Overall Equipment Effectiveness OEE

What do we mean by OEE?


A measurement system that..
Helps us to understand the current process status
Supports production planning
Facilitates improvement plans
Supports investment decisions

Key factors of OEE

Availability
Performance
Quality

1. Availability
Measures “Productivity Losses” from breakdown times:
Remaining time is called “Operating Time”
Availability is the ratio of Operating Time to Planned Production Time.

2. Performance
Measures “Productivity Losses” from slow cycles
The remaining time is called Net Operating Time
Performance is the ratio of Net Operating Time to Operating Time

3. Quality
Quality takes into account Quality Loss
The remaining time is called Fully Productive Time
Quality is the ratio of Fully Productive Time to Net Operating Time

OEE..
Takes into account all the three factors
Availability
Performance
Quality
OEE = Availability x Performance x Quality

Six big losses

Breakdowns
Setup and adjustment
Minor stops
Reduced speeds
Start Up rejects
Production rejects

Calculating OEE

Availability
Availabilty takes into account Down Time Loss, and is calculated as:
Availability = Operating Time / Planned Production Time

Performance
Performance takes into account Speed Loss, and is calculated as:
Performance = Ideal Cycle Time / (Operating Time / Total Pieces)

Quality
Quality takes into account Quality Loss, and is calculated as:
Quality = Good Pieces / Total Pieces

Importance of OEE in the Strategic planning process

OEE can save companies from making wrong investment decisions
OEE can also be used to ensure that equipment suppliers deliver what they promised!

In essence, OEE is the missing link between money and machines!



OEE gives you answers to the following questions

How confident were you about the investment when you signed the cheque ?



Exactly how well is the new plant performing now?



Do you use an appropriate measure of machine performance ?



In the absence of the OEE measure, how will they ever know?