Overall Equipment Effectiveness (OEE)

OVERALL EQUIPMENT EFFECTIVENESS (OEE)

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Overall Equipment Effectiveness (OEE)

Elements of OEE is the way to

OEE OEE Measure Effectiveness

Prime Cause of How to increase

OEE Calculation OEE ?
Production Loss

Fundamental Concept
of plant Effectiveness

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Overall Equipment Effectiveness (OEE)
Overall equipment effectiveness (OEE) is a hierarchy of metrics to
evaluate how effectively a manufacturing operation is utilized.

In an ideal factory, equipment would operate 100 percent of the

time at 100 percent capacity, with an output of 100 percent good
quality.
The difference between the ideal and the actual situation is due to
losses. Calculating the overall equipment effectiveness (OEE) rate
is a crucial element of any serious commitment to reduce
equipment- and process-related wastes.

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 Elements Of OEE

Inconsistent Timings, Insufficient Skills. Poor Planning & Scheduling, Different

Set-up
methods, Poor Tooling, Poor start up controls, Missing Parts, Insufficient support,
Excessive start-up adjustment
Availability
losses Lack of Maintenance, Low Operator Interest, Not knowing of problems,
Breakdown Poor Training, Design Problems, Inferior Material

Minor Material not Available, Change over at start/end, Jams/misfeeds/

Stoppages overloads, Operator Error, Operator Absence

Overall Performance
Equipment losses
Effectiveness Unclear Design Specs., Poor Maintenance History, Incorrect Settings, Poor
Speed
Training, Speed Deliberately Reduced, Inconsistent Material
losses

Start-up Poor Product Changeover, Inconsistent Materials, No start-up check lists, Waiting
losses for Temp. Pressures, Minor adjustments

Quality
losses Environmental Conditions, inconsistent Materials, Process not followed, Poor
In process
Calibration, Gauges not calibrated properly etc.
losses

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OEE is the way to Measure Effectiveness
OEE is the way to measure how effectively Machine / Equipment hours are used.

Total time
OEE goes down due to following Losses
e.g. 480 min. (1 shift)

Planned - breaks, planned

Available time Downtime maintenance, training

- breakdowns, repairs
Running time Downtime - changeover
- adjustment
- start up

- machine speed
Productive time Performance - short stoppages
Losses - lower yield

- scrap
Effective time Quality Losses - reject
- rework

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 Prime Cause of Production Loss
A production line seldom operates at optimum speed. A variety of reasons or Negative
Performance Impacts, mostly in combination, cause losses in productivity and therefore loss
of money. These include:
•Line Saturation
There is no place for more output from the machine.
•Equipment Failure
Machines break down, wear out, are not used properly and so on. All ends up in lost production
time.
•Product changes
During the change over from one product to another the machine settings must be changed,
breakdown may occur and speed must be reduced.
•Short Stops
For example, thread breakage. These short but frequent events can be the reason for major time
loss.
•Operator Inefficiency
The operators like to have it nice and easy. They run with lower speed in order to guarantee smooth
operation.

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 Prime Cause of Production Loss
•External reasons
Sometimes, the production runs out of orders and the machines have to shut down. Or there can
be a failure in the electrical power network far away from the factory.
•Product Type
Some products are more difficult to make. There are more breakdowns and quality problems.
•Speed Losses
For one reason or another, the speed of the machine is not optimum. In order to save costs,
someone has purchased cheap but poor quality raw material.
•Quality
Although the machine is running, the products are not good enough for the customers. These are
the most expensive kinds of losses.
•Missing Material
The raw material storage is empty and machines can not produce any more.

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How to Calculate OEE

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Overall Equipment Effectiveness Calculation

Available time - Downtime

Running Efficiency =
Availability
OEE (in %) =
420 min - 80 min
420 min
factor 81%

Productive Performance=
Running time - Performance loss X
Running time

340 min – 70 min

=
340 min
factor 79.4%

Quality =
Total peaces produced – Defective peaces X
Total Peaces Produced

270 - 20
=
270
factor 92.6%

Overall Equipment Effectiveness = 59.6%

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World Class OEE

OEE is essentially the ratio of Fully Productive Time to Planned Production Time. In
practice, OEE is calculated as the product of its 3 contributing factors

OEE = Availability x Performance x Quality

This type of calculation makes OEE a severe test. For example, when all 3 factors are
at 90%, OEE would be 72.9%. The following table shows generally accepted World
Class goals for each factor

Worldwide studies show that the average OEE rate in manufacturing plants is 60%
 How to Improve OEE ?
Data collection is the most important action to increase OEE

Collect data for all downtimes Data analysis and Make improvements
and losses on the machine visible measure visible and implement

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Analysis
Repairs 30 Autonomous Maintence.
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20
Change over, Adjustm. 15 Preventive Maintenance
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Tool change Changeover reduction
Repair Changeover Tool change Scrap Minor Stopp.

Minor stoppages 33 26 16 7 3
Standardize tooling
Scrap, rework OEE Trend Improved machine
Target 2003 reliability

Standardisation

J F M A M J J A S O N D

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Fundamental Concept of Plant Effectiveness

16 Kinds of loss

8 availability losses 5 productivity losses 3 production/ cost losses

– not part of OEE -
Machine Failure Management losses

Motion Loss of energy

Set up & adjustments

Line organization tool losses

Tool changes

Start-up losses Logistics Yield losses

Minor stoppages Adjustments

Speed Losses

Defects and Rework

Shutdown

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 Exercise – OEE Calculation

During an eight hour shift a canning machine is scheduled to run continuously.

It should produce 60 cans per minute, but the machine ran poorly during the
shift. Several jams were encountered and a breakdown finally resulted. The
equipment was down the last two hours of the shift. A total of 1600 cases (12
cans per case) were produced, in addition to 125 damaged cans.

Calculate OEE for this equipment.

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Let,
•Working hours per day: 10 hours x 60 min = 600 min
•Shut down (SD): 35 min
•Loading time: (600-35) = 565 min
•Equipment stoppage/ down time: (30+20+25) = 75
(a) Failure : 30 min
(b) Set up : 20 min
(c) Adjustment : 25 min
•Operating time : (565 - 75) = 490 min
•SAM = 0.35 min/ pieces
•Processing quantity : 550 pieces/ day
•Defective : 30 pieces.

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                       Loading time – Down time
Availability = ……………………………………………. X 100
                               Loading time

    565 – 75
= ………………….. x 100
       565

= 86.72%

                         Standard cycle time x Processing quantity

Performance = ………………………………………………….. x 100
                                           Operating time

    0.35 x 550

= ……………………. X 100
        490

= 40.35%

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                                      Processing quantity – Defective quantity
Quality product rate =
……………………………………………………………………. X 100
                                                 Processing quantity
   550 – 30
= …………….. x 100
     550

= 94.54%

So, OEE = Availability X Performance Rate X Quality Product Rate

= 0.8672 X 0.4035 X 0.9454

= 33.08%

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S.no Operator Operation SAM Available Production Total Defective
Name minutes (pieces) Off Peace
std
time
(mins)

1 ABC A 0.5 480 800 40 40

2 ASD B 0.3 540 1500 80 100
3 XYZ C 0.75 540 500 60 30
4 OPD D 0.25 540 1499 50 80
5 QWE E 0.6 480 650 30 35
6 ASD F 0.7 540 550 50 25
7 TYU G 0.4 540 1000 25 70
8 IOP H 0.2 480 1700 35 110
9 ZXC I 0.3 540 1200 90 90
10 MNB J 1.5 480 250 70 10
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