How to prepare OEE DATA

OEE overall equipment effectiveness and overall equipment efficiency

OEE overall equipment efficiency and effectiveness

OEE, or Overall Equipment Effectiveness, is a measure of the efficiency and performance of a manufacturing process, production line, or piece of equipment. It is a metric that provides a quantitative representation of how effectively a system is being utilized and how well it is producing relative to its maximum potential.

OEE is calculated as a percentage of ideal performance, taking into account three factors: availability, performance, and quality. Availability refers to the amount of time that a system is available to produce, performance refers to the actual speed at which it is producing relative to its maximum speed, and quality refers to the number of good units produced relative to the total units produced. The OEE is calculated by multiplying these three factors together.

OEE is widely used in manufacturing and production operations to identify areas for improvement and track progress over time. By monitoring OEE, organizations can identify and resolve bottlenecks, reduce waste, and increase the efficiency and productivity of their operations.

What is Overall Equipment Efficiency

OEE is calculated by multiplying three factors together: availability, performance, and quality. The formula is:

OEE = Availability * Performance * Quality

Where:

• Availability: This is the proportion of time that the equipment is available to produce, expressed as a percentage. It is calculated as follows:

Equipment Availability Ratio (EAR) is a metric that measures the proportion of time that a piece of equipment or a production line is available and capable of producing, compared to the total planned production time. It is expressed as a percentage and provides a quantitative representation of the availability of a system for production.

The formula for calculating Equipment Availability Ratio is:

Availability = Operating Time / Planned Production Time

Where:

• Operating Time: This is the amount of time that the equipment is actually available and produced.
• Planned Production Time: This is the total amount of time that the equipment is scheduled to be available and produced, taking into account scheduled maintenance, downtime, and other disruptions.

The Equipment Availability Ratio provides valuable insights into the efficiency and effectiveness of a production system, and it is widely used in manufacturing and production operations to identify areas for improvement and track progress over time. By monitoring EAR, organizations can identify and resolve bottlenecks, reduce downtime, and increase the efficiency and productivity of their operations.

• Performance: This is the actual speed at which the equipment is producing relative to its maximum speed, expressed as a percentage. It is calculated as follows:

Performance is a measure of how effectively a system, process, or piece of equipment is operating. It is often expressed as a percentage, relative to a maximum or ideal performance level. Performance is a critical factor in determining the overall efficiency and effectiveness of a system, and it is widely used in manufacturing and production operations to identify areas for improvement and track progress over time.

In production operations, performance is typically measured in terms of the actual production rate of a system or equipment, relative to its maximum production rate. This can be calculated as follows:

Performance = Actual Production Rate / Maximum Production Rate

Where:

• Actual Production Rate: This is the actual number of units produced per unit of time.
• Maximum Production Rate: This is the maximum number of units that the equipment is capable of producing per unit of time, under ideal conditions.

Performance is a critical component of Overall Equipment Effectiveness (OEE), which is a metric that provides a comprehensive representation of the efficiency and performance of a production system. By monitoring performance, organizations can identify and resolve bottlenecks, improve productivity, and increase the efficiency of their operations.

• Quality: This is the number of good units produced relative to the total units produced, expressed as a percentage. It is calculated as follows:

Quality rate is a metric that measures the proportion of good units produced by a system, process, or piece of equipment, relative to the total number of units produced. It is expressed as a percentage and provides a quantitative representation of the quality of the production output.

The formula for calculating the quality rate is:

Quality Rate = Good Units / Total Units Produced

Where:

• Good Units: This is the number of units produced that meet the specified quality standards.
• Total Units Produced: This is the total number of units produced by the system, process, or equipment.

The quality rate is a critical factor in determining the overall efficiency and effectiveness of a production system, and it is widely used in manufacturing and production operations to identify areas for improvement and track progress over time. By monitoring the quality rate, organizations can ensure that their products meet the required quality standards, reduce the amount of rework and scrap, and improve the overall efficiency and productivity of their operations.

Once you have calculated these three factors, you can multiply them together to get the Overall Equipment Effectiveness (OEE) as a percentage. The higher the OEE percentage, the more efficient and effective the equipment is at producing good units.

Useful Links:

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Availability(Equipment Availability Ratio)(A%)

Availability means Unplanned and Planned downtime. An Availability score of 100% means the process is always running during Available Production Time.

Availability Ratio=Downtime(Breakdown time) / Available Time X 100

Performance(Production Efficiency) (E%)

A Performance score of 100% means the total quantity produced per cycle time in the available time.

Performance Ratio = Total Production/Plan as per Standard Time

Quality(Quality rate) (Q%)

A quality ratio is ok parts produced to total parts made.

Quality ratio=Ok parts produced -Defective parts produced/Total parts produced

Ok parts =Total parts produced -Defective parts produced

OEE overall equipment efficiency

Overall Equipment Efficiency=Equipment Availability Ratio(A%) X Production Efficiency (E%) X Quality rate (Q%)

Overall Equipment Effectiveness=Equipment Availability Ratio(A%) X Production Efficiency (E%)

Overall Equipment Efficiency=Overall Equipment Effectiveness X RatioQuality rate (Q%)

Example to illustrate the calculation of OEE:

Let’s say that a production line has a maximum production rate of 100 units per hour, and it operates for 8 hours per day. In a given day, the production line produced 720 units, of which 690 were good and 30 were defective.

First, we’ll calculate Availability:

Availability = Operating Time / Planned Production Time = 8 hours / 8 hours = 100%

Next, we’ll calculate Performance:

Performance = Actual Production Rate / Maximum Production Rate = 720 units / (100 units per hour * 8 hours) = 72%

Finally, we’ll calculate Quality:

Quality = Good Units / Total Units Produced = 690 units / 720 units = 95.83%

Finally, we’ll calculate OEE:

OEE = Availability * Performance * Quality = 100% * 72% * 95.83% = 68.08%

So in this example, the OEE for the production line is 68.08%, which indicates that the equipment is being used effectively 68.08% of the time it is available to produce. This means that there is room for improvement to increase efficiency and reduce waste.

OEE BENCHMARKS

So, as a benchmark, what is considered a “good” OEE score? What is a world-class OEE score?

• 100% OEE is perfect production: manufacturing only good parts, as fast as possible, with no stop time.
• 85% OEE is considered world-class for discrete manufacturers. For many companies, it is a suitable long-term goal.
• 60% OEE is fairly typical for discrete manufacturers but indicates there is substantial room for improvement.
• 40% OEE is not at all uncommon for manufacturing companies that are just starting to track and improve their manufacturing performance. It is a low score and in most cases can be easily improved through straightforward measures (e.g., by tracking stop time reasons and addressing the largest sources of downtime – one at a time).

Available Losses

1.  Equipment Failure: This is equipment that is not running when it is scheduled for production, causing unplanned downtime. Machine breakdowns, unplanned maintenance stops, and tooling failures are common examples.
2.  Setup and Adjustments: This is production downtime due to changeovers, machine, and tooling adjustments, planned maintenance, inspections, and setup/warmup time.

Performance Losses

1.  Idling and Minor Stops: Sometimes called small stops, idling and minor stops are when equipment stops for a short period of time. This can be caused by jams, flow obstructions, wrong settings, or cleaning. These issues are usually resolved by the operator.
2.  Reduced Speed: Sometimes referred to as slow cycles, reduced speed is when equipment runs at speeds slower than the ideal cycle time (the fastest possible time). Worn-out or poorly maintained equipment due to poor lubrication practices, substandard materials, and bad environmental conditions are common causes of reduced speed.

Quality Losses

1.  Process Defects: This refers to any defective part manufactured during stable production, including scrapped parts and parts that can be reworked. Incorrect machine settings and operator or equipment errors are common reasons for process defects.
2.  Reduced Yield: Reduced yield refers to defective parts made from startup until stable production is achieved. Like process defects, this can mean scrapped parts and parts that can be reworked. Reduced yield most commonly occurs after changeovers, incorrect settings, and machine warmups.

Download OEE spreadsheet

Also Read:-

• 3G Gemba, Gembutsu, Genjitsu
• 3K 3M 3R 4M
• 4M Analysis
• Continual Improvement
• CONTROL PLAN
• Critical To Quality (CTQ)
• Difference Between Cycle Time And Lead Time
• Importance of daily work management
• Process Analysis
• Learn HMI and SCADA

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