OEE - Overall Equipment Effectiveness

Training
Objectives

• Define Overall Equipment Effectiveness (OEE)

• Describe the seven big losses
• Explain OEE calculation
• Define how to identify OEE losses
• Describe the limit analysis approach
• Show how an area with improved OEE looks like

1
Agenda

• Background & Introduction

– What is OEE?
– OEE factors
– What are the seven big losses?
– How do you calculate OEE?

• OEE losses analysis

• Limit analysis

• Recognize an improved OEE area

2
OEE is a measure of productiveness

Overall Equipment Effectiveness (OEE) is a measure to

evaluate the productiveness of a machine or a production line

The higher the OEE measure the more good product per shift
a machine or line produces – which results in lower costs per unit
produced and helps operations to be more competitive

OEE analysis is a tool used to analyze equipment

performance, accounting for losses due to availability,
performance, and quality

3
OEE at a glance

Availability Performance Quality

7 days
Losses Losses Losses
per week
with 24h

100 %

Total Time not Breaks PM* out- Total PM* in Break- Setup / Idling / Speed Startup Scrap / OEE
time scheduled (Lunch, side pro- available production downs Adjust- Minor losses losses Rework
for pro- etc.) duction time time ments stops
duction time

* Preventive Maintenance 4
OEE takes into account machine availability, performance and quality

OEE = Availability Rate X Performance Rate X Quality Rate

Availability rate Performance rate Quality rate

How much time per How well did the How many products
shift was the machine machine perform were good the first
actually running? (compared to the time?
rated speed) when it
was actually running?

5
There are seven big losses of machine time

1 Planned maintenance
Downtime
Availability rate 2 Breakdowns
losses
3 Changeovers

4 Idling and minor stoppages

Speed
Performance rate
losses
5 Reduced speed

6 Scrap and rework

Quality
Quality rate
losses
7 Start-up losses

6
OEE can also be calculated directly from production output

(Number of good parts)x(nominal cycle time per part)

OEE =
(Total available time)

8
Application case

9
What is the OEE of my machine? TO BE FILLED DURING THE SESSION

Data OEE calculation

• 7100 parts are produced in 2
shifts (8 hours/shift) on
machine X

• The line stops during the

shift for:
– 30 min of lunch time
– 2 times 10 min of rest time
– 5 min of team meeting at
start of the shift
– 5 min of cleaning at the
end of the shift

• The nominal cycle time to

produce one part is 4,1 sec

10
Application case - Solution

Data OEE calculation

• 7100 parts are produced in 2
7100 x 4,1 sek
shifts on machine X OEE =
2x(8x60-30-20-5-5)x60

• The line stops during the

shift for:
– 30 min of lunch time (7 100) x (4,1 sec)

– 2 times 10 min of rest time OEE = = 57,8%

– 5 min of team meeting at 50 400 sec

start of the shift

– 5 min of cleaning at the So what ?
end of the shift How to improve OEE?

• The nominal cycle time to

produce one part is 4,1 sec We need data on the OEE losses to
define priorities of action

11
Agenda

• Background & Introduction

• OEE losses analysis

• Limit analysis

• Recognize an improved OEE area

12
 Availability rate is defined as running time divided
with total available time A
P

Q
100%

Availability • The availability ratio

%
measures time percent
spent on:
– Planned maintenance
– Breakdowns
– Changeovers (setups &
adjustments)
Total available Planned Break- Setup& Running
time - Maint. - downs - Adjust- = time
ments

(Total available time - (PM +breakdowns + changeovers)) X 100

Total available time
Availability ratio

13
Availability losses - examples
Planned maintenance
The line is idle because teams
are doing periodical
maintenance
Breakdowns/Stops
The line stops for more than 5
minutes because something is
broken or needs to be fixed
Changeovers
The line stops because material
or tools need to be changed
14
A
P
Q
Examples
• Periodic checks need to be done to ensure
proper machine operating conditions
• Worn parts need to be replaced to avoid major
breakdowns going forward
Examples
• Transfer of product is not possible due to broken
conveyor or faulty automation
• Machine is shut down because of machine
failures
• Equipment stopped because operator is missing
Examples
• Fixtures and/or material types need to be changed
because of different product (product change)
• Equipment fixtures/tools need to be changed
(tool change)
Performance rate is defined as standard operating
time over running time A
P

Performance • The performance ratio

% measures time percent lost for:
– Idling and minor stoppages
– Reduced speed

Running Minor Speed Operating

time stoppages Losses time

(Running time – (slowdowns+small stops)) X 100

Performance ratio ratio Running time

15
Performance losses - examples
Idling and minor stoppages
The line has either no products
to process or it stops for short
periods of time, often less than
a minute
Reduced speed
The actual line speed is slower
than the rated speed
16
A
P
Examples
• Equipment is idle because product supply
from previous process is insufficient
• Operators pause to “tweak” equipment (e.g.,
adjustment of tool interrupting normal flow of
parts to the workstation)
Examples:
• A stamping press is slow down to avoid
overheating of a motor
• A temporary fix of a conveyor breakdown limit the
transfer speed of material
Quality rate is defined as net operating time over
operating time A
P

• The quality ratio

Yield %
measures time percent
lost for:
– Scrap and start up
losses
– Rework
Operating Startup Scrap / Net
time losses Rework operating time

Operating time – (scrap+rework) X 100

Quality ratio Operating time

17
Quality losses - examples
Startup losses
All products that fail the
inspection during start-up
periods
Scrap / Rework
Products that leave the
process, don’t pass inspection,
and return later for additional
rework
18
A
P
Examples
• Defective pieces scrapped during machine start
up, as process not fine tuned or stabilized (e.g.,
tools/fixtures need to warm up or require
adjustments)
Examples
• Products scrapped during normal production (e.g.
pieces out of dimensional acceptance range)
• Products that fail inspection, but can be corrected
to meet specifications (e.g. re-drill a bigger hole in
bar)
Application case
(3 person groups)

19
What is the availability rate of my machine?
TO BE FILLED DURING THE SESSION

Data Availability rate calculation

• No planned maintenance is
performed on machine X
during shift

• 2 breakdowns of 35 minutes
each occurred during shift 1
• Another breakdown of 35
minutes occurred during shift
2

• In each shift, 5 changeovers

have been performed , each
with an average duration of
282 sec
What is the performance rate of my machine?
TO BE FILLED DURING THE SESSION

Data Performance ratio calculation

• Machine X is running at
nominal speed when
operating

• Various incidents caused

some small stops of the
machine but no recording is
available as operators are
used to solve the incidents
directly
What is the quality rate of my machine?
TO BE FILLED DURING THE SESSION

Data Quality rate calculation

• At each changeover, 24
parts are taken out of
production for control and
destructive testing

• The auto-control devices of

the machine rejected 350
parts during shift 1 and 388
parts during shift 2; rejected
parts are scraped

22
Availability rate - Solution

Data Availability rate calculation

• No planned maintenance is
Running time
performed on machine X Availability rate =
during shift Total available time

• 2 breakdowns of 35 minutes
each occurred during shift 1
• An other breakdown of 35
minutes occurred during shift
Total available time = 50 400 sec (previous application case)
Planned stops for maintenance = 0 sec
Breakdowns time = 3 x 35 x 60 = 6300 sec

2
Changeover time = 2 x 5 x 282 = 2820 sec

• In each shift, 5 changeovers

Running time = 50 400 – 0 – 6300 – 2820 = 41 280 sec
have been performed , each
with an average duration of
41 280
282 sec Availability rate = = 81,9%
50 400

23
Performance rate - Solution

Data Performance ratio calculation

• Machine X is running at
Operating time
nominal speed when Performance rate =
operating Running time

From the 2 other groups:

• Various incidents caused
some small stops of the Operating time = 33 120 sec

machine but no recording is Running time = 41 280 sec

available as operators are
used to solve the incidents 33 120
directly Performance rate = = 80,2%
41 280

Losses distribution:

Speed losses = 0 sec

Minor stops losses = 41 280 – 33 120 = 8 160 sec

Quality rate - Solution

Data Quality rate calculation

• At each changeover, 24
parts are taken out of
production for control and
destructive testing
• The auto-control devices of
the machine rejected 350
parts during shift 1 and 388
Net operating time
Quality rate =
Operating time
Net operating time = 29 110 sec (previous application case)
Losses due to startups = 10 x 24 x 4,1 = 984 sec
Losses due to scraps = (350 + 388) x 4,1 = 3026 sec

parts during shift 2; rejected

parts are scrapped Operating time = 29 110 + 3026 + 984 = 33 120 sec

29 110
Quality rate = = 87,9%
33 120
OEE is the combination of the availibility, performance and quality rates

OEE = Availability Rate X Performance Rate X Quality Rate

OEE = 81,9 % X 80,2% X 87,9% = 57,8%

26
Priorities for improvement become visible

1. Minor stops
Percent
0,0 2. Breakdowns
12,5

5,6
3. Scrap
100,0 16,2

81,9 0,0 2,0

6,0
65,7
57,8

Planned Break- Change- Minor stopsSpeed Startup Scrap

maintenance downs overs loss loss

Availability losses Speed losses Quality losses

27
Agenda

• Background & Introduction

• OEE losses analysis

• Limit analysis

• Recognize an improved OEE area

28
OEE improvement targets are set through a
limit analysis

Traditional approach Limit analysis approach

Performance Performance
Limit
What will What if it all
satisfy goes right?
everyone? Target
Target Gap
Current Current Gain
Gain

Time What can I Time

• Internal vision achieve ?
• Scope of progress restricted to • Global vision
current knowledge • Extended scope of progress
• No visibility of deviations from • Good perception of deviations
benchmark from benchmark

Marginal performance gain Structural performance gain

29
What is a technical limit?
• Unavoidable losses,
e.g.,
– Required PMs
– Losses from local • Avoidable losses or
conditions (e.g. • Targeted gap to
waste e.g.,
weather) close
– Excessive
– Safety/logistical downtime – Typically set at
constraints ~50% of gap to
– Speed losses
– Idle time technical limit
100
OEE 10 90

75
30
15
60
Utopian limit or
perfection, interesting
but not achievable

Theoretical Technical Current Target

limit limit performance performance

Utopian limit less

unavoidable losses – what is
technically achievable
There are several ways to calculate technical limits
External/internal Physical/
benchmarks chemical laws

Technical limits
Theoretical/
Observations/ What if it all
Limit design limits
trials
goes right?
of
Gap equipment
Current

Repeated The ‘perfect’

best shift/day etc.

31