2/18/2017 A Brief Overview ofOverall equipment eectiveness(OEE)

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A Brief Overview of Overall equipment effectiveness (OEE)

Posted by Matt Newton on Jan 31, 2017 4:04:08 PM

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Ahh, the Sixties...

The 1960s was a decade full of inventions, especially innovative new tools that the
manufacturing industry would eventually adopt:

In 1964 the BASIC computer language was invented.

The following year the compact disc went on sale in the US for a mere $1,000 per
unit (maybe thats why software was so darne d expensive).
1969 brought us the first barcode scanner .
And that same year Al Gore invented the Internet , leading to the development of the
Industrial Internet of Things as we know it today . Way to go, Al.

The 1960s also brought one of the most important manufacturing industry innovations
of all: OEE or Overall Equipment Ef fectiveness. And tod ay, OEE can help improve just
about every manufacturing and production line in the world.

Yes, that means yours, too.

Overall Equipment Effectiveness

One of the best definitions Ive come across for OEE is from www.industryweek.com : "Put simply, OEE assigns
numerical value to improvement opportunity ." So it's really about measuring how productive or ef fective something
could be, given the right production variables.

OEE is a metric that identifies the percentage of planned production time that is actually productive. So for any given
piece of machinery, one might measure how many products were manufactured correctly the first time and compare
that amount to the number the machine should have produced in a given amount of time.

But how does OEE do that exactly? It starts with TPM.

Total Productive Maintenance

Total Productive Maintenance (TPM) is an ov erall approach to equipment maintenance that strives to achieve "perfect
production" by focusing on 3 key objectives:

No breakdowns
No small stops or slow running
No defects

In my experience, all 3 of those objectives are pretty tall orders. Similar to KPIs , OEE was developed to support TPM
initiatives by accurately tracking progress towards achieving perfect production. Perfect production means that the
manufacturing plant meets all 3 of the above objectives.
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2/18/2017 A Brief Overview ofOverall equipment eectiveness(OEE)

Calculating OEE

OEE is a metric derived from 3 other key metrics:

Availability measures productivity losses from

downtime (events that stop planned
production for an appreciable amount of time).
Performance measures losses from slow
cycles (factors that cause the process to
operate at less than the maximum possible
speed).
Quality measures losses from manufactured
parts that do not meet quality requirements.

Together these three factors combine into on e

OEE scorea single number that provides a
complete measure of manufacturing ef ficiency
and effectiveness. OEE is calculated with this formula:

OEE (%) = Availability Rate Performance Rate Quality Rate

Let's take a look at the three parts that make up the OEE calculation: availability rate, performance rate, and quality
rate.

Availability Rate (the percentage of time the machine is ready to produce, working properly , and not in the midst of
changeovers or adjustments) = A vailable Time (scheduled operating time less downtime) Scheduled Operating
Time.

Performance Rate (the ratio of output produced compared to a standard) = Actual Output Standard Output.

Quality Rate (the ratio of good output compared to actual output) = Right-first-time Output Actual Output.

Efficiency and Effectiveness Loss

When trying to reach perfect production, we need some form of measurement to determine how well our
manufacturing lines are running and help pinpoint the causes of ef ficiency and effectiveness loss.

Loss in availability, performance, and quality are typically broken down into the Six Big Losses:

OEE Metric Six Big Losses Example Loss

Machine Failure
Breakdowns Unexpected Equipment Breakdown
General Maintenance
Availability Rate
Changeover
Setup and Adjustment Material Shortages
Machine Warm-up
Operator Efficiency
Speed Losses Machine Wear down
Operating Under Capacity
Performance Rate Jams, Blocks, and Obstructions
Cleaning
Small Stops and Idling
Output Checking
Misfeeds
Product Damages and Expiration
Production Defects (During Production)
Scraps
Quality Rate Improper Assembly
Startup Rejects (Before Steady Production) Scrap
Product Damages

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2/18/2017 A Brief Overview ofOverall equipment eectiveness(OEE)
Now that we know how to calculate OEE, we can begin to keep track of how ef ficient
and effective our manufacturing lines are.

Collecting OEE information and generating an actionable plan can be a time-

consuming and labor-intensive taskparticularly if information is collected by hand
using paper and pencil to build reports.

A much more efficient process is to collect in formation in real time. Then you can
provide the plant floor with KPI information to improve production ef ficiency and
effectiveness during a production run. Much b etter than tweaking settings months
after the run is complete.

A great tool for quickly building an OEE or KPI dashboard is the groov
mobile operator interface from Opto 22.

Watch this video to find out what groov can do to improve OEE and KPIs . Or
download a free, fully functional trial .

Watch: What Is groov?

Topics: groov, OEM

Mike Hake
2/1/2017, 11:34:36 PM

Good stuff Matt, thanks!

Reply to Mike Hake

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