Overall Equipment Efficiency

1. OEE-Overall Equipment
Effectiveness
Guide
July 2010

2. OEE-When to use
1. Does your production have bottlenecks that you
are not aware of?
2. Could one machine be dragging down the entire
facility?
3. Does your equipment have excess capacity that
could be easily and inexpensively tapped?

3. OEE-Benefits
HELPS YOU INSTANTLY
MAKE MORE WITH WHAT
YOU HAVE

4. OEE- What is it
OEE is just a Best Practice that
helps you monitor and improve
the effectiveness of your
processes

5. OEE- Guide
OEE Six Big World
Factors Losses Class OEE
Formulas OEE Visual
Example OEE

6. OEE-Factors
Time Available
Plant Operating Time i.e. LMI Mex
10hrs
Planned Subtract
Plant Operating Time Shutdown
Lunch,Breaks,
Maintenace
Subtract
Down Time
Operating Time Loss
•Equipment failure
•Mat. Shortages,
•Changeover time
Speed Subtract
Net Operating Time Loss •Different material, machine wear,
operator inefficiency
Quality Subtract
Fully Productive Time Loss •Rework time
•Scrap
OEE Goal is to Maximize Fully
Productive Time

7. OEE-Factors
The following table is a review of the interpretation of the core concepts.
OEE LOSS OEE Factor
Planned Shutdown *Not part of the calculation
Down Time Loss *Availability=Ratio of Operating Time to Planned Production Time
(Operating Time=Planned Production Time-Down Time Loss)
*100% Availability means the process has been running without any recorded stops
Speed Loss *Performance= Ratio of Net Operating time to Operating Time
(Net Operating Time=Operating Time-Speed Loss)
*Interpreted as Ideal Cycle Time to Actual Cycle Time
*100% Performance means the process has been consistently running at its
theoretical maximun speed
Quality Loss *Quality=Ratio of Fully Productive Time to Net Operating Time
(Fully Productive Time=Net Operating Time-Quality Loss)
*Interpreted as the ratio of Good Pieces to Total Pieces
*100% Qaulity means there have been no reject or rework pieces
This factor can then drill down into productivity losses

8. OEE-6 Big Losses
Six Big Loss OEE Loss
Category Category Event Examples Comment
Breakdowns Down Time Loss Tooling failures There is flexibility to
Unplanned maintenance decide between a
General breakdowns breakdown and small
Equipment failure stop
Those Set Up and
Adjustments Down Time Loss Setup/changeover
productivity Material shortages
This loss is adressed
through set up
Losses are Operator shortages
reduction projects
Major adjustments
called the SIX Warm-Up Time
BIG LOSSES Small Stops Speed Loss Obstructed product flow
Component jams
Typically includes stops
Misfeeds
that are under five
Sensored blocked
minutes
Delivery blocked
Cleaning / Checking
Reduced
Speed Speed Loss Rough running
Anything that prevents
Under nameplate capacity
the process running
Under designed capacity
normal speed
Equipment wear
Operator inefficiency
1.Startup 1.Rejects during warm
Rejects Quality Loss Scrap up, start up and early
2.Production Rework production
Rejects In process damage 2. Rejects during
In process expiration steady-state
Incorrect assembly production

9. OEE-World Class
Accepted World Class OEE Factor World Class
Performance per Factor is: Availability 90.0%
Performance 95.0%
Quality 99.9%
OEE 85.0%
Studies indicate that most manufacturing plants are around 60% performance
in OEE. A world class is considered to be 85% or more.

10. OEE-Formulas
Availability= Operating Time / Planned Production Time
Performance = Ideal Cycle Time / (Operating Time/Total Pieces)
Quality = Good Pieces / Total Pieces
OEE = Availability x Performance x Quality

11. OEE-Example
Item Data
Shift Length 10 hrs = 600 min
Short Breaks 2 at 10min = 20min
Meetings 30 min
Meal Break 1 at 30 min = 30 min
Down Time 47 min
Ideal Run Rate 60 pieces per minute
Total Pieces 19,271 pieces
Reject Pieces 423
•Planned Production Time= [Shift Length –Breaks] =[600-80]=520min
•Operating Time= [Planned Production Time-Down Time]=[480-47]=433
•Good Pieces= [Total Pieces – Reject Pieces]=[19,271-423]=18,848

12. OEE-Example
Availability = Operating Time/Planned Production Time
= 433/520
= 0.8326923 83.3%
Performance = (Total Pieces/operating Time)/Ideal Run Rate
= (19,271pieces/433minutes)/60 pieces per minute
= 0.7417629 74.2%
Quality = Good Pieces/ Total Pieces
18,848 / 19,271
0.9780499 97.8%
OEE = Availability x Performance x Quality
.8326 x .7417 x .978
= 0.6041026 60.4%

13. OEE-Visual
It is very important to have performance data
Available and In Real Time to
EVERYONE
Benefits:
•Operators quickly respond to problems
•Gauge to make adjustments that lead to incremental
improvements
•Empowers operators to take immediate action
•Helps monitor plant floor activity in real time