OEE Analysis Tool

(Overall Equipment Effectiveness)

Guide Book and Case Study

The OEE Analysis Tool

The OEE Analysis Tool provides an automated mechanism for calculating a number of productivity metrics. The user 1. collects a series of inputs from the plant floor 2. enters the data into the excel worksheet 3. views the OEE Tool output 4. compares various measures to understand the possible root causes of low OEE.

Overall Equipment Effectiveness (OEE)

What is it? - OEE is a composite measure for assessing the operational performance
of a machine or piece of equipment that combines Uptime, the Performance Rate, and the Quality Rate into one metric. Simply stated, OEE measures how effectively you are using production assets.

What to do if the measure is low? - Since OEE is composed of other measures, the
approach for improving OEE is a combination of the approaches used to improve its elemental measures. To get you focused on the right area, review the elements that make up the OEE measure to see if one or two elements are dragging the overall measure down. If so, then this element(s) would be the place to start looking. In general, here are some things to look for when trying to address a low OEE.

Is there an excessive amount of Unscheduled down time being logged at the machine by the operator or team leader? If so identify the top causes via Pareto analysis and conduct root cause analysis on these top items via Cause & Effect diagramming. Is production time being lost from machine operation that is not being tracked as Unscheduled down time? Start monitoring the machines operation, talk to operators to find out what they do and do not log on their down time tracking sheets. Is the machine running consistently at its designed or planned cycle time? Look for intermittent slow downs or delays. Is there an excessive number of defective parts being produced or reworked on the machine?

Another approach to understanding a low OEE is to examine the contributing metrics: Uptime/Operating Rate Operating cycle Rate Net Operating Rate Quality Rate

Uptime/Operating Rate
What is it? - Uptime or Operating Rate represents the percentage of the available work time in which production assets are utilized. Uptime is a measure of the amount of production time lost due to scheduled and unscheduled down time. For unscheduled down time to show up in the Uptime measure, it must be known or quantified by tracking it during the production shift. What to do if the measure is low? - Since the Uptime or Operating Rate is affected by either scheduled or unscheduled downtime, analysis of the these two elements will lead to ideas to improve. For example, what is the reason for the scheduled down time, and is there any way to eliminate it? Scheduled downtime for routine maintenance items such as perishable tool changes can be reduced by changing tools between shifts and time lost for change-overs can be reduced by implementing quick change over techniques. Unscheduled downtime should be analyzed using a Pareto diagram where the top causes of unscheduled downtime can be identified and attacked individually. {Note: In order to use Pareto analysis effectively, unscheduled downtime needs to be carefully tracked. As a means of assessing how effectively unscheduled downtime is being tracked in production, see the Net Operating Rate Measure.}

Operating Cycle Rate

What is it? - The Operating Cycle Rate measure represents how closely to the standard cycle time production assets are being operated. In other words, it answers the question; At what percent of the standard cycle time is a process or machine running? Ideally, this measure should be as close to 100% as possible. Determining the Operating Cycle Rate requires taking actual stop watch measurements of the cycle time while the equipment or process is operating, and taking an average of several stop watch samples. It is important to use actual cycle time measurements to determine the Operating Cycle Rate as opposed to using the overall average cycle time which is simply the number of parts produced divided by the amount of time worked. Use the actual cycle time. What to do if the measure is low? - Machinery and processes that do not operate at the pace they are designed for can be a major and invisible loss of production capacity. Checking to ensure equipment and processes operate at the designed pace should be a routine responsibility of maintenance and manufacturing engineers. Practicing TPM on equipment is the most effective way to manage cycle performance, and line or process balancing is the most effective way to ensure more labor intensive processes effectively operate together at the designed pace of production.

Net Operating Rate

What is it? - The Net Operating Rate (NOR) represents the productivity of the Actual Operating Time during the shift. After subtracting scheduled and unscheduled downtime from total time, NOR answers the question; What percent of the Actual Operating Time was used to manufacture the product? Stated simply NOR measures production time that is lost and not accounted for in either scheduled or unscheduled downtime. What to do if the measure is low? - The Net Operating Rate measure is affected by the Actual Cycle Time and Actual Operating Time. When the measure is low, this indicates that you are losing production time without being aware of the loss. This production loss is either because your Actual Cycle Time performance is not what you thought, or, more likely, the Unscheduled Downtime tracked in production is not reflecting all of the downtime being experienced. To attack a low Net Operating Rate measure, restudy the Actual Cycle Time performance of the machine or process to ensure your initial data was correct. If Net Operating Rate is still low, you should begin studying the equipment or process operations to determine where production time is being lost. Some things to look for when trying to identify lost production time;

Production stops that are not recorded as unscheduled downtime in production or are not accurately quantified when recorded. Incremental stops or slow downs that amount to only a few seconds but occur frequently enough to cumulatively add up to a substantial loss over the course of a production shift. For example; Equipment that delays between cycles either regularly or periodically. A machine that stops periodically until an operator hits the reset button or removes a misfed part is a common example. Operators or workers who are not performing their processes in the designed cycle time either because they are not following the standard method or technique for the process or because sequential process times are not properly balanced.

Quality Rate

What is it? - The quality rate is the percentage of parts that pass through a given process free of defects or the need for rework. Other common names for this measure are first-time-through rate or direct pass rate. What to do if the measure is low? - The first thing to do when trying to address a low quality rate is to gain understanding of the top defect items that are driving the quality rate down. Pareto diagramming the defect data from the production process is an effective way to identify the top quality problems impacting the quality rate, and will enable you to focus your resources on eliminating the high impact problems. Once Pareto analysis helps you to identify the top problems for a given process, Cause & Effect diagramming and brainstorming will help you determine the root case of the top problems so countermeasures can be developed and implemented to eliminate them.

Other Metrics
A number of labor productivity and production metrics are provided as additional sources at the bottom of the OEE Analysis Tool Output. These metrics can be used as a single source for information useful in assessing productivity root causes.

OEE Analysis Tool

Case Study
The following is a sample Overall Equipment Effectiveness (OEE) Analysis Tool calculation for a typical plant.

Assumptions

For Plant Z, the control part was the Widget (SDE-12345) The plant runs 3, 8 hour shifts with hour of brake-time and hour of planned downtime per shift The standard cycle time for each Widget (SDE-12345) is 2.5 seconds Production for the day was 6,000 widgets during shift 1, 5,430 during shift 2, and 5,430 during shift 3 There were 700 defective widgets produced during shift 2 The actual cycle time to produce these widgets was 2.5 seconds during shift 1, 2.5 during shift 2, and 3.5 during shift 3

Process Productivity

The OEE for shift 1, 2, and 3 were 55.6%, 43.8%, and 50.3% respectively. Overall Uptime/Operating rate was 84.4% Overall Operating cycle rate was 88.2% Overall Net operating rate was 69.8% Overall Quality rate was 95.8% After examining the low OEE of 49.9% the next three metrics are examined. Up/time/Operating rate of 84.4% is OK, Operating cycle rate of 88.2% is a little low but maybe not a direct flag, Net operating rate 69.8% is too low, and Quality rate of 95.8 is seemingly OK. Therefore the next obvious focus is on the Net Operating rate. The most likely cause is additional downtime not currently being tracked. This might be due to frequently occurring short downtime of occasional long duration of machine downtime.

Process or Team Name: Process or Team Number: Base Part or Component Name: Production Date:

Widget Team 656 Widget 7/5/96

Inputs
Shift 1 A Manpower at process B Number of hours worked {Schdl Hrs x A} C Planned break time (min.) {Break min x A} D Planned down time (min.) E Unplanned down time (min.) F Number of units produced G Number of defects produced H Standard cycle time (seconds) I Actual cycle time (seconds) {Measured} 2.5 2.5 6,000 10 8 30 30 Shift 2 10 8 30 30 120 5,430 700 2.5 2.5 2.5 3.5 5,430 Shift 3 10 8 30 30 Total 30 24 90 90 120 16,860 700 2.5 2.8

Outputs
OEE Productivity
J Overall Equipment Effectiveness KxLxMxN 55.6% 43.8% 50.3% 49.9%

Elements of OEE
K Uptime/Operating rate R/P L Operating cycle rate H/I M Net operating rate FxI/R/60 N Quality rate (F-G)/F 93.3% 100.0% 59.5% 100.0% 66.7% 100.0% 75.4% 87.1% 93.3% 71.4% 75.4% 100.0% 84.4% 88.2% 69.8% 95.8%

Operating Time
O Number of minutes worked Bx60 P Available work time (min.) B-C Q Total down time (min.) D+E R Actual operating time (min.) P-Q 480 450 30 420 480 450 150 300 480 450 30 420 1,440 1,350 210 1,140

Labor Productivity
S Output per labor hour (units) F/A/Px60 T Output per worker (units) F/A U Efficiency F/(Px60/H) 80.0 600 55.6% 72.4 543 50.3% 72.4 543 50.3% 25.0 562 52.0%

Shift 1 Shift 2 Uptime/Operating rate R/P 100.0% 80.0% 60.0% 40.0% 20.0% Quality rate (F-G)/F 0.0% Operating cycle rate H/I Shift 3 Total

Net operating rate FxI/R/60