Improving the efficiency of manufacturing facilities is on every manufacturer’s mind, especially in today’s economy. The difficult part is knowing how to improve efficiencies, and determining the areas to concentrate on and the best time to implement such improvements. That is where overall equipment effectiveness (OEE) comes in. OEE is about learning where and how to improve operations, so that a company can increase profits and gain a competitive edge in the market. OEE is a hierarchy of metrics used to monitor the effectiveness of manufacturing sites
Formula:
Availability
Availability 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)
Ideal Cycle Time is the minimum cycle time that your process can be expected to achieve in optimal circumstances. It is sometimes called Design Cycle Time, Theoretical Cycle Time orNameplate Capacity.
Since Run Rate is the reciprocal of Cycle Time, Performance can also be calculated as:
- Performance = (Total Pieces / Operating Time) / Ideal Run Rate
Performance is capped at 100%, to ensure that if an error is made in specifying the Ideal Cycle Time or Ideal Run Rate the effect on OEE will be limited.
Quality
Quality takes into account Quality Loss, and is calculated as:
- Quality = Good Pieces / Total Pieces
OEE
OEE takes into account all three OEE Factors, and is calculated as:
- OEE = Availability x Performance x Quality
It is very important to recognize that improving OEE is not the only objective. Take a look at the following data for two production shifts.
It’s your choice if you have a business or a success business.