This indicator is for measuring the overall equipment effectiveness, such as the effectiveness of a machine center or a process line. It is calculated based on 3 factors, Availability, Performance and Quality. This KPI gives room to analysis between the three factors, hence insight for the managers to take action and amend systems and processes in order to achieve desired results.
Once the OEE is broken down in its 3 parts, Availability, Performance and Quality, it shows where the company should make changes. Improvement opportunities can be in areas such as breakdown, setup, downtime, speed loss, quality etc.
The OEE figure is also used to communicate it to clients or even staff and manufacturing partners. It stands at the core of manufacturing performance analysis.
Formula: OEE = Availability x Performance x Quality
where
Availability = Operating Time / Planned Production Time x 100
Performance = Ideal Cycle Time / (Operating Time / Total Pieces) x 100
or
Performance = (Total Pieces / Operating Time) / Ideal Run Rate x 100
Example: A company measures the OEE per one day of production of a product line.
Three factors are measured, Availability, Performance and Quality.
Item Details:
Shift Lasts 8 h= 480 minutes
There is one 1.5 h break (90 minutes)
Down Time: 60 minutes
Ideal Run Time: 60 pieces per minute
Total pieces: 19,000 pieces
Rejected pieces: 3000 pieces
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