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KPI for Measuring of Equipment Performance % posted in category Manufacturing

WinningKPI - Manufacturing - KPI for Measuring of Equipment Performance % posted in category Manufacturing

KPI details:KPI Expert Oana Boteanu

This indicator is for measuring the performance of a piece of equipment, as a % of the desired performance. This is calculated by dividing the total pieces of product that the machine is expected to produce by the operating time and then the result is divided by the ideal run rate.

For example, if the company has a machine that is operating 8h a day and the ideal run rate is for the machine to produce 1000 pieces of the product (e.g. plastic bags). However, due to some faults (e.g. the machine has not been preserved according to maintenance norms) it now produces only 800 pieces per day, and according to the formula below (see calculation below), the machine has a performance of 80%.

Whilst this may not be a huge worry for the company, anything below 60-70% is likely to produce a loss in profit.

Therefore, in order to maximize this KPI the company may choose to better maintenance procedures, train staff etc.

Formula:

(Total Pieces/Operating Time) / Ideal Run Rate x 100

Following our example the formula is:

[(800/8)/ (1000/8)] x 100 = (100/125) x 100 = 0.8 x 100= 80%

Hence the machine is performing at 80% of its power

KPI Unit: %

KPI Time Frame: update annually

Posted by Oana Boteanu | Help to protect community: Flag for moderation

Ideas suggested by WinningKPI community:

Here are comments:

KPI Expert Here is an example of a very low equipment performance, problem that my company had to deal with in the manufacturing sector.

Example:

Measurement period: 3 months

Machine Ideal Run Rate: 2000 pieces in 10 h

Actual Total Pieces Produced: 500 pieces

Operating Time: 10 h

Equipment performance %:

(Total Pieces/Operating Time) / Ideal Run Rate x 100

(500/10) / (2000/10) x 100 = 50/200 x 100 = 25 %

Therefore, the machine is working at a 25% rate (extremely low).

Often in this case the best solution is to replace the machine (if the problem comes from the machine and not other exterior factors).

Oana Boteanu | September 13, 2012 at 9:55 am

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