OVERALL EQUIPMENT

EFFECTIVENESS (OEE)

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PROCESS STEPS

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DEFINING OEE

1. Identify machine losses

2. Categorize machine losses
2.1. scheduled DT
2.2. Unschedule DT
2.3. Idle, etc…
3. Group or identify losses to:
3.1. availability
3.2. performance rate
3.3. quality/yield
4. Know the machine design rated speed

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 EQUIPMENT STATES STACK CHART

Non-scheduled • Unworked shifts • major PM

• The equipment is not in a
Time • weekends • weekly PM
condition to perform its
• Holidays intended function due to
Unscheduled unscheduled events.
• machine issues, material
Downtime issues, quality issues, utilities
issues

Availability Scheduled •Scheduled PM • machine adjutments

• Change product
Losses Downtime • Change over
• Set-up/start-up
Evaluation • R&D or QA trial/evaluation
Time • Engineering evaluation
• Process Characterization
• Kanban Full (waiting for
Standby next step to be ready)
Time • Low WIP
• Meeting/Training
• No available operator
Performance • Breaktime
loss Speed Loss • loading gap
• minor stoppages
• actual speed is lower than the design
speed
Quality Loss Yield Loss • Rejects
•Reworks

Productive
Time
MFG - IE 4
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What is OEE ?
▪ Over-all Equipment Effectiveness

▪ The fraction of the total time that the tool is producing effective units at theoretically
efficient rates.

▪ A measurement to indicate how effective a tool is running.

OEE FORMULA :

▪ OEE = Availability Rate x Performance Rate x Yield

or

▪ OEE = Theoretical Production Time for Effective Units

Total Time

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MFG - IE
OEE FORMULA :
▪ OEE = Availability Rate x Performance Rate x Yield
where:
Availability Rate = the fraction of total time that the equipment is in a condition to
perform its intended function.
Equipment Uptime
=
Total Time

Performance Rate = the fraction of tool uptime that the equipment is processing
actual units at theoretically efficient rates

= Theoretical Time for Actual Units

Tool Uptime

Yield = the theoretical production time for effective units divided by

the theoretical production time for actual units

= Theoretical Production Time for Effective Units

Theoretical Production Time for Actual Units

MFG - IE 7
SAMPLE OEE COMPUTATION

SEAMER ONE-WEEK PERFORMANCE :

Good Outs = 1,828 cases total time = 12 hrs.
Rejects/Scraps = 69 cases UPH = 252 cans/min or 12,096 cans/hr

TRANSACTION SUMMARY:
Productive Time : 7.53 hrs. Standby/idle: 1.94 hrs.
Evaluation time : 0.00 hrs. Set-up time: 1.59 hrs.
Unscheduled DT : 0.89 hrs. Sched PM : 0.05 hr.

USING THE FIRST FORMULA :

▪ OEE = Availability Rate x Performance Rate x Yield
Equipment Uptime
Availability Rate =
Total Time
Evaluation Time + Standby/idle Time + Productive Time
=
Total Time
0.00hrs + 1.94hrs. + 7.53hrs 9.47hrs
= =
Total Time 12hrs
= 78.917%

MFG - IE
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SAMPLE OEE COMPUTATION

Theoretical Time for Actual Units

Performance Rate =
Equipment Uptime

where:

Theoretical Time for Actual Units = Actual Outs

Max. UPH
Actual Outs = good Outs + scraps
Max UPH = 252
Theoretical Time for Actual Units = 1,828 + 69
252
= 7.528 hours
Equipment Uptime = Evaluation Time + Standby/idle Time + Productive
Time

Performance Rate = 7.527 hours

9.47 hours

= 79.49%

MFG - IE
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SAMPLE OEE COMPUTATION

Theoretical Production Time for Good Units

Yield =
Theoretical Production Time for Actual Units
where:

Theoretical Time for Good Units = Good Outs

Max. UPH

= 1,828
252
= 7.253 hours

Theoretical Time for Actual Units = Actual Outs

Max. UPH
= 1,828 + 69
252
= 7.527 hours
Theoretical Production Time for Good Units
Yield =
Theoretical Production Time for Actual Units
= 7.253 hrs
7.527hrs
= 96.36%

MFG - IE
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SAMPLE OEE COMPUTATION

USING THE FIRST FORMULA :

OEE = Availability Rate x Performance Rate x Yield

= 78.917% x 79.49% x 96.36%

= 60.44%
USING THE SECOND FORMULA :
Theoretical Production Time for Good Units
OEE =
Total Time
where:
Theoretical Time for Effective Units = Good Outs
Max. UPH
1,828
=
252
= 7.53
hours
OEE = 7.253 hours
12 hours

= 60.44%

MFG - IE
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THE END

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