OEE - A WAY OF MEASURING THE EFFECTIVENESS OF EQUIPMENT

OEE - THE WAY TO MESURE Equipment Effectiveness José Pedro Amorim Rodrigues da S
ilva Engineer - Consultant - Trainer www.freewebs.com / leanemportugal jparsilva
@sapo.pt
Keywords: OEE, Equipment Overhaul Effectivess, Lean manufacturing, TPM, Total Pr
oductive Maintenance, Lean maintenance, Total Productive Maintenance, Performanc
e, Effectiveness, Efficiency, Availability, Quality, Efficiency, Availability, Q
uality, TEEP
Quotes from Lord Kelvin: "I Often When You Can Say That measure what you are spe
aking about, and express it in numbers, you know something about it, But When Yo
u Can not express it in numbers, your knowledge is of a meager and unsatisfactor
y kind ... "" To measure is to know. " "If You Can not measure it, You Can not I
mprove It."
Summary
It is of utmost importance to measure how the equipment and how they are conduct
ed contribute to the performance of industrial enterprises, because these depend
on several key aspects that ultimately determine their success or even survival
. The performance of the equipment directly determines the productivity of produ
ction processes, influences the efficiency of hand-work, contributes to the leve
l of product quality and customer satisfaction. This article describes when and
where the OEE was developed from the "Big Six Losses of equipment, how to calcul
ate it and implement it, and focuses on the strategies and the main tools used t
o improve the availability and efficiency of equipment and quality of the produc
ts they produced. Using two spreadsheets model linked to the file of this articl
e, the concepts and formulas can be easily understood and applied by readers who
may also use them in their real cases. It also highlighted the need to measure
the ability of equipment to generate revenue for businesses is being harnessed b
y using other indicators to complement the more comprehensive EEO. In the Append
ices, contained a complete glossary of terms, key references and some web sites
related to EEO and a list of the best known computer programs. To enrich the kno
wledge of readers about the topic, as provided text links to Web sites, includin
g the free encyclopedia www. wikipedia.org.
Introduction
Management companies often resorts to a set of indicators, usually only economic
and financial nature, on the market and its competitive position, forgetting re
presentative indicators of productive activity and operations, when these activi
ties are the source of the determinants competitiveness and economic performance
. So it is a basic condition of good management have a set of representative ind
icators of the performance of the plant and operations in general. Maximize oper
ability and performance of equipment in terms of efficiency and quality should b
e a permanent objective of the managers of the operations of industrial faciliti
es, transportation, telecommunications and all firms whose production depends ma
inly on the performance of the equipment. It is here that fit the various existi
ng approaches to measure the performance of the equipment being recognized by ma
ny authors and organizations, worldwide, that the best way to measure the effect
iveness of the equipment during operation, is the indicator:
OEE - Overhaul Equipment Effectiveness - Overall Equipment Effectiveness
1 / 15
OEE is an indicator that measures performance in a "three dimensional" (Fig. 1)
it takes into consideration:
Quality
• how much time the equipment has to work / produce • the efficiency demonstrate
d during operation, ie the ability to produce the nominal cadence • the quality
of the product obtained by the process in which the equipment is housed.
Efficiency
EEO
Availability
1 - Tri-dimensonalidade OEE
Other indicators of equipment performance are not abragência OEE, for example, w
hen you focus only on efficiency or time available to produce. But we see in Fig
ure 2, which happens every day in much of the equipment of industrial units:
Boot Failure Meal Time Set product expected material change Clean Production Spe
ed Reduction Tool Exchange
2 - The reality of the functioning of many devices
A significant portion of time that the equipment should be operating, actually i
s stopped or operating in conditions that do not allow to produce the ideal cade
nce. The negative impact on productivity and costs are huge and often€is this si
tuation that led to the lack of timeliness of delivery to Customer or in stock-o
uts at the stores. Unfortunately, the traditional accounting mechanisms to contr
ol costs do not reflect "reality" of the factories. If they did, surely the live
s of those responsible for the operations would be much more complicated, becaus
e the show "Hidden Factory" that exists in all plants, calling their attention t
o the "True Cost of Stops" and a loss in general . Figure 3 shows the classical
concept of cost accounting of production, where the cost of losses and wastage i
s hidden in the various cost components. Since there are losses in all these cla
ssics cost components, the actual situation is shown in Figure 4, with losses re
aching values sometimes very high.
P e r s of the Indirect Maint ention
Energy Mat erials
Indirect the Maint ention
Ener gy Mat er ial
Hand-work
Hand-work
3 - Total cost of production with the losses "hidden"
4 - Costs of production losses evidenced
1
View Sites on the Internet [1] 2 / 15
The great losses responsible for this large share of costs of production (and pr
oduct) has its origin in so-called "Seven Types of Waste" as defined by Taiichi
Ohno: • • • • • • • Waiting periods Transport unnecessary Production excess (ove
r what and when necessary) Inventories (stock) materials (over and when necessar
y) Over-processing Unnecessary movement of people of quality defects
5 - Taiichi Ohno
Focusing on the production equipment, Seiichi Nakajima defined, in a more object
ive, the main losses caused by their equipment or the way they are operated, and
created the so-called "Big Six Losses of equipment."
6 - Seiichi Nakajima
The six big losses of equipment
Before moving to the deeper explanation of OEE and how it is calculated, it shou
ld retain the concepts of losses related to the equipment. Nakajima defined in h
is book [3] [4] that the production losses due to problems with equipment 2 has
three sources: • Losses caused by unplanned stops; • Losses for the equipment is
not operating at the speed / cadence nominal; • Losses of product not meet spec
ifications. From these three sources of losses, Nakajima defined the six big los
ses of the main production equipment: • Failure / breakdown of equipment • Chang
e (changeover) settings / adjustments (setup), and elsewhere; • Waits, stopping
off due to other process steps (upstream or downstream) and work in a vacuum; •
Reduce speed / cadence for the originally planned; • Defective product quality a
nd rework; • Losses on startup and change of product (non-compliant product and
waste materials). In table 1, we present some examples of events that cause the
six types of losses and their consequences. Table 1 Loss Events
• mechanical failure, electrical or other systems which cause the interruption o
f production equipment • General failure • Wrap tools • unplanned stoppages for
maintenance • Power failures / utilities • Change of product • Heating / cooling
for changing tools • Replacement of worn tools • Stops • Lack of cleaning mater
ials • Lack of operator
Consequences
Remarks
The expression stops over 50-10 minutes, recorded by the operator or automatical
ly
1 - Failure
2 - Change, adjust and elsewhere
Reduce the time available to produce or operate the equipment
Losses change are reduced or eliminated by the implementation of SMED techniques
2
We consider the binomial equipment-operator if the machine requires the operator
to operate, ie, not fully automatic as well as the environment in which it is i
nserted (process, organization, necessary utilities, etc.. 3 / 15
3 - Small stops
4 - Reduction of speed
5 - Defects and rework
• Cleaning and minor adjustments • Obstruction in the flow upstream or downstrea
m • Failure to supply materials • Replacement Tools • Verification by the operat
or wear / adjustment parameters • Operating below the specified speed operation
• Irregular • Failure by the operator to ensure the smooth operation • Scrap • P
roduct off-specification product • Rework • Incorrect assembly • Bad • Component
parts • Lack of Scrap
Affect the efficiency of the equipment, not allowing it to operate in nominal cy
cle time
Stops less than 50-10 minutes and not requiring the intervention of maintenance
personnel, usually not recorded by the operator All instances it impossible to p
roduce maximum speed specified for the product Product rejected during the norma
l operation of equipment
6 - Loss of off-specification product • Boot
• Rework product
Reduce the amount of product that meets the specifications for first
Product rejected during the startup or shutdown of equipment due to normal cause
s (pre-heating) or errors of pitch
In this concept of the Big Six Losses of equipment are not considered stops plan
ned for equipment such as: • Time meal breaks and binding of the operator; • Tim
e scheduled for separate maintenance by the operator (eg, 10 minutes at the begi
nning of each shift ) • Time scheduled for planned maintenance (preventative ins
pections, corrective) • Time for training of the operator; • Time for meetings (
provided in the plan of production) • Testing of production (Ex-New Products) •
Lack of production program. Some authors choose to consider some of these times
within the Big Six Losses and therefore covered by the EEO, including planned ma
intenance work. The purpose of this option is not losing focus on this kind of s
tops, to reduce its duration through studies of reliability and Maintainability
and the development of preventive maintenance on a systematic basis for maintena
nce based on condition.
Origins and definition of OEE
The OEE originated in TPM - Total Productive Maintenance, part of the TPS - Toyo
ta Production System and its creator, Seiichi Nakajima, developed it as a means
of quantifying not only the performance of equipment, but also as a metric for c
ontinuous improvement of equipment and production processes. With the adoption o
f the concepts of TPS for a number of Japanese companies and the development of
Lean Manufacturing in the West, the OEE has become the global benchmark for meas
uring the performance of the equipment of industrial enterprises. As already men
tioned, the OEE is an indication "three dimensional" which reflects the main los
ses related equipment. Quantifies how much the equipment is effective in adding
value to the product in a production process. Just as production losses related
equipment have three origins, the OEE is composed of three factors representativ
e of these three sources: • Availability • Efficiency • Quality. A simple way to
introduce the concept of OEE is through the definition of "Perfect Engine": If
during a given period of time there are no losses of any kind, ie the quipamento
was always able to produce when needed and has always produced products without
defects to the first and the maximum speed set, then said to be operated with 1
00% overall efficiency. Figure 7 shows the relationship among the six big losses
and the factors of OEE.
4 / 15
1 - Failure / malfunction 2 - Change / adjust
3 - Wait / small stops 4 - Reduce speed
LOSS OF SPEED / CADENCE
5 - Defects / rework 6 - Losses boot
Stops
DEFECTS
Reducing the time available to produce
Reduction in equipment efficiency
Rework defective or rejected products and scrap
AVAILABILITY
EFFICIENCY
QUALITY
7 - Relationship between the six major losses and the factors of OEE
Besides being an indicator of performance, the OEE has utility for four addition
al purposes: • Planning of capacity • Process Control, Process Improvement •, •
Costs for production losses. OEE should not be used as a criterion for acceptanc
e of equipment, since it involves factors external to the equipment. OEE is not
a system rasteio of failures, but only one detection system losses. Therefore, t
he variety of losses to be considered for equipment, should be limited (maximum
50-10) to allow an unambiguous and rapid identification by the operator but allo
wing an assessment of the primary importance of each loss on a diagram Paretti.
Calculation of OEE
OEE is determined by multiplying the three representative numerical factors: • t
he availability of equipment to produce, • efficiency demonstrated during produc
tion • the quality of the product.
EEO
Availability Efficiency Quality
OEE = Availability x Quality x Efficiency
Figure 8 - The three factors of OEE
A simple example: A production line produced 99% of good products at first and r
an for 90% of the time schedule (10% of unplanned stops) at a rate averaging 95%
of the programmed cadence, so€obtained an overall efficiency of 90 x 95 x 99 =
85%. None of the factors of OEE can be greater than 100%. Sometimes, we obtain e
fficiency values exceeding 100%. This is a sign that the equipment could produce
a cadence / speed rated higher than the value considered as standard (nominal c
adence). Setting the pace rating (based on ideal cycle time) For purposes of cal
culating the efficiency, requires some precautions, otherwise the efficiency val
ues obtained may be misleading. For example, the nominal cadence set by the manu
facturer for a production line is 10 units per minute (cycle time = 6 seconds or
0.1 minutes). In testing of the line and for various reasons, only been achieve
d in a consistent manner, a rate of 8 units per minute. So this is the value to
be nominal cadence as in the calculation of efficiency (cycle time = 7.5 seconds
, or 0.125 minutes). If, for technological reasons, the cycle time of the equipm
ent is changed (increased or decreased), the OEE will be based on a new reality,
possibly not comparable with the previous one. You must take this into consider
ation. Another situation that needs attention is when the equipment is the proce
ss handle (pacemaker) in a flow value based on lean principles. This equipment w
ill not work when the nominal maximum cadence
5 / 15
but according to the takt time this March and, probably, will vary over time, ac
cording to the demand of the Customer. In this case, is the takt time to conside
r how cycle time, to calculate the efficiency factor of OEE. To demonstrate the
method of calculating OEE, we use two examples included in both ® Excel files li
sted below. Example 1 Let's start with a simple example that just want to get th
e values of three factors D, E, Q and OEE. The data were collected on the sheet
of Registration of Operation of Equipment-Model A (see page 1 of 4 oee_calculato
r_model_A_pt.xls file during an 8 hour shift. In addition, the program provides
not produce in the last hour of the shift and the equipment was stopped during a
meal time for the operator. At the beginning of the shift, the operator has 15
minutes for maintenance tasks independently. The nominal cycle time is 15 second
s and were recorded 50 minutes of unplanned stoppages. It was obtained a product
ion of 825 units , of which 35 were rejected for scrap and rework the 50th compe
lled to meet the specifications. With these data and formulas in the table on pa
ge "2-OEE Calculator Model A", is automatically obtained the results shown in Fi
gure 9. A quite informative way of presenting the OEE is through graphs. The thr
ee examples presented in Figures 10, 11 and 12 are the more traditional forms of
graphically representing the times of OEE and losses (see page 3 of the file).
Formulas ABCDEFGHIJKLMNOPQRST abbrev. TT TTO NPT PP TPP PNP TBP EEO Appointment
Time Total Time Total Time Not Planned Operation Time Stops Planned Planned Not
Planned Stops Production Time Gross Production Value 480 60 420 75 345 50 295 Un
it
minutes minutes minutes minutes minutes% minutes% units units units units units
minutes%%
C = E = A-B C D E F G = H = G/Ex100
D
T / CN
Availability Factor
Cycle Time Production Theoretical Nominal Real Real Time Production Total Produc
tion Efficiency Losses
86
0.25 1180 825 206 89
KxI L = M = N = G-L L/Gx100
TRP PE
E
Efficiency Factor
Rejected production (scrap) production reworked product (Recovered) Good Product
ion (At first) Util Time Production Quality Losses
70
35 50,740,185 21
KOP Q = R = S = LR QxI T = U = R/Lx100 HxNxT/10000
TUP PQ
Q
Quality Factor
90 54
Data
U = R/Ex100
OEE Overall Equipment Effectiveness
E 70 Q 90 54 OEE
D 86
X
X
=
%
Calculated values
Figure 9 - Calculating the OEE of Example 1
April 3
Takt time = Search Product / Download time available to produce in www.scribd.co
m. To download the files you need to register on the site. 6 / 15
Min 400 350 300 250 200 150 100 50 0 Time Gross Planned Time of Real-Time Produc
tion Production Production Production Time Util
345 295
600 500
60
Time unplanned planned whiffs P P whiffs unplanned
400 min
206 185
75 50
P P ERDAS ERDAS efficiency of quality
300 200 100 0
Total Time Time Operation Planned Production 420 345
89
21
295 206 185
Real Time Gross Time Time Util of Production Production Production
Figure 10 - Graph of Example 1 times
Figure 11 - Chart of times and losses of Example 1
OEE - Times and Losses
480 420 345 295 206 185 0 100 21 200 300 400 500 600 Min 89 50 75 60
TT-TTO-Time Total Time Total Time Operation TNP-TPP-Time Not Planned Planned Pla
nned Stops Production PP-TBP-Time Gross Production PNP-Stops Planned Not TRP-Rea
l Time Production Efficiency Losses PE-TUP-time PQ-Production Losses quality
Legend
Fig.12 - Diagram of horizontal stroke and loss of Example 1
This example not allowing a deeper analysis of equipment performance because it
includes only one shift and has no repetition of anomalies. Also not available f
or data on the costs of losses, we can only conclude that to improve OEE, we pri
marily implement actions to: • reduce efficiency losses (most important), after
analyzing its causes, reduce • time and / or quantity of the unplanned stops. Ex
ample 2 Let us explore the potential of EEO through a more elaborate example (pr
oduction of three products with different cycle times and also address the root
cause analysis of stops to guide the priority measures to improve OEE. Apart fro
m the data basic calculation of OEE (as in the previous example), were collected
details about the operation of equipment, using the sheet of Registration of Op
eration of Equipment - Model B (see page 1 of file oee_calculator_model_B_pt.xls
4) for a period of three 8 hour shifts. In the three rounds is planned to produ
ce three products A, B and C, with nominal cycle times and amounts indicated bel
ow:
Product Mon T / CN min. Production plan
Quantity min.
A B C D E
15 20 30
0.25 0.33 0.50 0.00 0.00
1400 1000 1200
350.0 333.3 600.0 0.0 0.0
TOTALS
3600
1283.3
Leaf Registration of Operation of Equipment Model B-1, we can conclude that the
equipment was stopped for 30 minutes for meal operators in each shift. At the be
ginning of each shift, operators have 10 minutes for maintenance tasks independe
ntly.
7 / 15
Were recorded 25 and 30 minutes for product changes, four failures of 9, 12, 8 a
nd 13 minutes and a failure of compressed air for 10 minutes. There were problem
s with tools that, by 12 times, caused a reduction of the rate and several other
small stops or speed reduction. There have been 900 products A, 700 B and 890 C
and were discarded for scrap 20 products A and 12 B, 45 C products have been re
worked to meet specifications, as recorded in the leaf of the Registration of Op
erations Model B-2, which automatically performs some youngest, as shown in the
following table:
Product Mon T / CN min. Actual production
TRP Quantity (min.)
Quality defects
Scrap Rework PQ (min.)
A B C D E
15 20 30 0 0 TOTAL
0.25 0.33 0.50 0.00 0.00
900 700 890
225 233 445 0 0
December 20 45
5.0 4.0 22.5 0.0 0.0
2490
903
32
45
32
These data are automatically entered on the "two-OEE Calculator Mod.B" and obtai
ned the results shown in Figure 13. The graphics of this representative sample a
re shown in Figures 14, 15 and 16.
Formulas ABCDEFGHIJKLMNOPQRST abbrev. TT TTO NPT PP TPP PNP TBP DT / CN EEO Appo
intment Time Total Time Total Time Not Planned Operation Time Stops Planned Plan
ned Not Planned Stops Production Time Gross Production Availability Factor Nomin
al Cycle Time Plan Production Production Total Real Time Real Production Loss of
Efficiency Production Efficiency Factor Rejected (Scrap) Production reworked pr
oduct (Recovered) Good Production (At first) Util Time Production Losses Quality
Factor Quality Overall Equipment Effectiveness
E 74 Q 97 66 OEE
C = A-B C-D E = G = E F-H = G/Ex100
Value 1440 0 1440 120 1320 107 1213
Unit
minutes minutes minutes minutes minutes% minutes% units units units units units
minutes%%
92
--- 3600 2490 903 310
L = Σ (KxI) M = N = G-L L/Gx100
TRP AND PE
74
32 45 2413 872 32
KOP Q = R = L = Σ ((O + P) xI) T = U = R/Lx100 HxNxT/10000
TUP PQ Q OEE
97 66
Data
U = R/Ex100
D 92
X
X
=
%
Calculated values
Figure 13 - Calculating the OEE of Example 2
1400 1200 1000 Min 800
Min
903 872 1320 1213
1600 1400 1200 1000 800 600 400 200
1440 0
Time unplanned
P whiffs planned
P whiffs unplanned
120 107 310
P ERDA efficiency
32
P ERDA quality
600 400 200 0 Time to Planned Production Time Gross Real Time Production Product
ion Production Time Util
1320
1213 903 872
0
Total Time Operating Time to Planned Production Time Real Time Gross Util Time o
f Production Production Production
Figure 14 - Graph of Example 2 times
Figure 15 - Chart of times and losses in Example 2 8 / 15
OEE - Times and Losses
1440 1440 1320 1213 903 872 0 200 400 600 800 Min 32 1000 1200 1400 1600 107 310
0120
TT-TTO-Time Total Time Total Time Operation TNP-TPP-Time Not Planned Planned Pla
nned tops Production PP-TBP-Time Gross Production PNP- tops Planned Not TRP-Rea
l Time Production Efficiency Losses PE-TUP-time PQ-Production Losses quality
Legend
Figure 16 - Graph of horizontal stroke and loss of Example 2
This example allows a more detailed analysis on the performance of the equipment
, the time period considered, in order to take appropriate actions. On the "four
-Analysis-stop" file is presented a simple analysis on the frequency of the caus
es of unplanned stops and how long they lasted (see Figures 17 and 18). It is ap
propriate to make these two tests because they may lead to different conclusions
about the priority of improvements, assisting in the process of decision making
. Only by observing the graphs it is concluded that the main actions to be under
taken will include: • Reduce the time for change (about 50% of the time PNP; • I
dentify the causes of mechanical malfunctions and resolve them. But, given the l
arge negative impact on efficiency, it is necessary to solve certain problems wi
th tools, which led, along with other small stops or reduction of cadence, effic
iency losses of around 26% of TBP, equivalent to over five hours to 24 hours of
work equipment. Obviously one day of analysis is not enough to make decisions. I
t is necessary to monitor the performance of equipment for days or weeks to accu
mulate a sufficient amount of data representative of the actual performance of t
he equipment and the arrest occurred.
4
Number of stops
60 50
Time stops unplanned
120% 100% 80% 60% 40% 20% 0%
3
min.
40 30 20
2 1 0 Failure mechanics Change product failed air supply failure
10 0
Change Product
Mishap
Time
Electrical failure
Failed air
% Cumulative time
Figure 17 - Diagram Paretti the number of stops
Figure 18 - Diagram of the times of stops Paretti
It is recommended that the causes of breakdowns and other events are coded so th
at operators do not require much text. Codes should be self-illuminating for eas
y storage and must be the same for all plant equipment.
EEO and the costs of losses
When calculating the OEE and monitor its progress only in their total value, not
taking advantage of the full potential of the system. It is very important to p
ay attention to the values and monitor the progress of individual factors and to
quantify the economic impact of losses. By analyzing the OEE and its three fact
ors D, E and Q, since only are based on the magnitude time, we may be obliged to
take specific guidance on actions to implement. Moreover, if we are in possessi
on of the costs of losses, we can arrive at different conclusions. Consider the
following case. Two equal equipment, operating in a given period of time, showed
the performance shown in the table below:
9 / 15
%
Quality Efficiency Effectiveness OEE Availability
The equipment
85% 95% 95% 80%
Equipment B
95% 98% 89% 82.9%
On those figures, we conclude that the equipment B has shown more effectiveness
than the equipment A. However, the equipment B caused more quality defects that
A. This represented a loss of quality value much higher cost than the equipment
have been more down time and with an efficiency lower than B. It is therefore ne
cessary to consider the value and evolution of the losses, not only in terms of
time, but also in terms of cost. In this example, improvement actions should bec
ome a priority for resolving the problems of quality of the equipment B, the neg
ative impact they have on costs. There is a standard calculation method to calcu
late the costs of losses. Using as a basis to Example 1 above presented, we can
calculate the cost of losses from the following unit costs:
MO Manufacturing Cost Cost Cost materials / pcs. Cost recovery / pcs. Unit costs
€ 15 / € 25 m / h 14 € / piece 5 € / piece
Applying the formulas for calculating this model (see cells 10: 15 on page 2 o
f file oee_calculator_model_A_pt.xls), we obtain the following costs of losses:
Total Cost of Not tops Planned Total Cost of Losses Cost Efficiency of the prod
uct materials rejected Cost Recovery Cost + OM Transformation of nonconforming p
roduct Losses Total Cost of Quality Cost € 13 59,490,250 14 754
One way to highlight the differences between costs, lost time and units to prese
nt their absolute values:
Cost of losses (€) unplanned stops Efficiency Quality losses TOTAL Times (min) U
nits lost
13 59,754,826
50 89 21 160
200 355 85 640
Now, the quality problems are responsible for the greatest loss in value, while
that based on time, efficiency losses were the most important, as shown in Figur
e 19. This example shows that the simple analysis of OEE and its factors based o
n time, you may not give correct guidance about which areas to act to improve ef
ficiency. It is essential that this analysis is accompanied by the calculating t
he cost of the losses incurred.
Cost and Time of Loss
100% 80% 60% 40% 20% 0% Cost Efficiency losses tops Time Quality losses
Figure 19 - Comparison of percentage of the costs and time losses
Analysis of OEE and other indicators
OEE measures the effectiveness of personal equipment. It can also be used to com
pare the performance of the equipment equal work under similar conditions.
10/15
As demonstrated, analyzing OEE only for their value and their factors, does not
consider any measures to improve or calculate the potential cost savings from wa
ste. To do this, have to be calculated the costs of losses. Let us now look what
is happening at the level of performance of an industrial Even we calculate the
average OEE of all equipment of a factory, this number tells us nothing about t
he factory as a whole, is contributing to the business or even if she is making
money or not. For the same factory, if during a certain time there are few order
s and only part of the equipment to work, she may submit an EEO much higher than
usual (eg 90% vs. 65%), but during this period, the plant has lost money due to
profit does not cover all fixed charges. This is because the OEE does not consi
der the stops planned or unplanned time. o to have a clearer view of the perfor
mance (or a production line or a factory) and how they contribute to the company
, it is necessary to supplement the OEE by other more global indicators for meas
uring the degree of use of equipment, for the TTTempo total. For these indicator
s is not necessary to collect more data than is already collected for the OEE. F
igure 20 shows how to calculate the three indicators that measure the degree of
utilization of equipment.
TT TTO TPP TBP TRP TUP A B C D PQ PE PP NPT PNP
OEE = A / B = TUP / TBP
TEEP = A / D = TUP / TT
TUB = B / D = TBP / TT
TUC = C / U = TPP / TT
Figure 20 - EEO and global indicators
The TEEP-Total Effective Equipment Productivity - Productivity Total Effective E
quipment, measures the percentage of time the equipment is to produce good produ
cts at first, for the total time (TT). It is the most comprehensive indicator "r
adical" and more used, together with the EEO. The TUB - Utilization Rate Gross a
nd TUC - Rate of capacity utilization, are the other two global indicators can a
lso be used. Each company must decide what the overall indicator of performance
of the equipment that best suits the needs of analysis. For the second example a
bove, the values of these indicators were:
OEE TTEP TUB TUC 66% 61% 84% 92%
Implementation of OEE
The implementation of an OEE system requires a prior assessment of needs, defini
tion of the objectives and the assembly of an implementation plan. hould be con
sidered a business plan and not as "another fad" that will create more bureaucra
cy on the factory floor. The methodology and resources to be used will depend on
the size of the plant and its degree of automation. In factories with automatic
lines connected to computer systems for monitoring the process should encararse
investment in computer software dedicated to the EEO five or development of an
EEO program in their own system for monitoring the process. The big advantages o
f an integrated EEO program are:
5
ee References OEE programs on 11/15
• enable "real time" monitoring the effectiveness of individual equipment and pr
ocess lines in which they are entered; • minimize the administrative work with t
he EEO; • ensure the reliability of data; • to take corrective actions more quic
kly, enabling • dissemination of results "on line" for various levels of the com
pany. In plants with equipment operators and led by discrete cell manufacturing
/ assembly, it makes sense to implement a system based on manual records on pape
r, complete with classic tools for calculating and graphing are like spreadsheet
s (M Excel ®, etc.).. In either case the disclosure of the results of OEE, its
evolution and monitoring of corrective actions and improvements should be made b
y visual systems,€placed with the equipment. A project OEE includes the followin
g steps: 1. Identifying needs and setting goals 2. Conceptual definition 3. Plan
the project in April. Acquisition or creation of the media 5. Education and tra
ining of operators, supervisors and management 6. Pilot implementation in device
(s) selected (s) 7. Implementation extended to all plant equipment 8. Continuou
s improvement and continues the EEO. Phase 8 is included in the Deming PDCA conc
ept and can be symbolized by Figure 17.
Figure 17 - Continued improvement of OEE
Improving OEE - trategies to eliminate the Big ix Losses
The analysis of OEE allows you to: • decide on corrective actions and improvemen
t based on facts and real data and not "reviews" • Prioritize actions that will
bring bigger and faster results; • Monitor the effects of actions by the evoluti
on Positive OEE and its factors. Improving OEE is an ongoing process that is usu
ally framed in programs TPM - Total Productive Maintenance or implementation of
Lean Manufacturing concepts in the management of production units. trategies to
eliminate the " ix Big Losses" and, consequently, improve OEE, can be of two ty
pes, depending on the desired objectives and deadlines for obtaining them. Table
2 lists the six losses on the type of strategies and indicate some features of
TPM, Lean and Quality apply to every case. Table 2 Loss trategies for Eliminati
on / reduction
• Repair • quickly and effectively detect and correct the causes of breakdowns •
• • •
Prevention strategies
Preventive maintenance Predictive maintenance Autonomous Maintenance RCM-Reliabi
lity Centred Maintenance
Applicable tools
• 5 • FTA-Fault Tree Analysis • Analysis Diagram Ishikawa PM • • • MED Poka-Yo
ke ystems • visual • ystems in place using a single theme • Lessons • tandard
ized work
1 - Failure
2 - Change, adjust and elsewhere
• Reduce the time for change
• Design or modify equipment incorporating techniques MED • Equipment monoprodu
to (no need to change)
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3 - mall • Elimination of small stops stops
• RCM-Reliability Centred Maintenance • Automation • Autonomation • Modify equip
ment for continuous feeding
4 - Reduction of speed
• Balancing of production lines
• Engineering reliability
5 - Defects and • detect and correct the causes of quality problems, rework
• Quality • Maintenance • Preventive actions Autonomation
6 - Losses • Detect and correct the causes of losses start
• tudy and implement the ideal boot • Modify equipment and tools
• 5 • FTA-Fault Tree Analysis • Analysis • Kaizen PM Ishikawa Diagram • • Train
ing • Lessons and training of single theme • tandardized work • Diagram Paretti
• 5 • FTA-Fault Tree Analysis • Kaizen • Zip-Control tatistical Process and P
roduct Quality at source • • ix- igma • Poka-Yoke • tandardized work • Kaizen
• MED • Training • Lessons and training of single theme • tandardized work • K
aizen
Conclusions
OEE is not a solution to problems of productive systems. He just: • Allows you t
o identify and quantify the problems detected in a standardized way; • Expresses
effectiveness of the equipment through a single number; • Allows evaluate the e
ffects of improvement actions designed to make equipment more efficient and thus
generate more value for the company. Companies that apply the system of measuri
ng OEE and effectively implement the necessary actions to improve the effectiven
ess of the equipment, obtain a fast increase in OEE of the order of 50-20 percen
tage points. Depending on the starting value of the OEE, the effort put into the
improvement and consolidation, OEE can get to double within one year (eg passin
g from 35 to 70%). The higher the value of OEE is more difficult to improve it.
The "bar" of 85%, achieved consistently, is a reference to "world class". Howeve
r, companies that have adopted the forefront of Lean as a management feature for
your production line OEE values above 90%. OEE, its factors D, E and Q as well
as global indicators TEEP, TUB TUC and are just indicators, nothing more. They j
ust tell you if there are problems, what is the potential use of the equipment a
nd if we are improving or getting worse. When there is a problem it has to be in
vestigated by studying and implementing measures that resolve, eliminating a per
manent form (s) cause (s) root,€properly consolidated (s) for standardized work.
OEE is primarily a tool to support continuous improvement. If this concept is p
resent in all the players in the system - operators, supervisors and management
- then the environment will be created so that the system becomes an indicator o
f management very helpful and never be tempted to "manipulate" the numbers. Fina
lly, some recommendations, sometimes forgotten, to support / facilitate continuo
us improvement: • Learn to identify and eliminate waste and losses of equipment;
• olve problems in a simple and practical way; • tandardize work to reduce va
riation and ensure quality; • Team work; • Valuing people and reward their dedic
ation to continuous improvement.
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APPENDICE
Glossary OEE
D - Availability (factor) - Availability rate - the percentage of planned produc
tion time, during which the operation of the equipment is not affected by a malf
unction, or other unplanned event, which resulted in his arrest. All equipment m
ust be available when the production plan. Measures the reliability of the equip
ment to produce according to the needs of the client. Effectiveness - Effectiven
ess - Measures the degree of achievement of the productive capacity of a machine
, or process, comparing the actual production of flawless products obtained at f
irst, with the maximum output that this machine, or process instação can produce
. Example: If we can produce more good products in part A than in part B, then t
he former was more effective than the second. E - Efficiency (factor) - Performa
nce rate - measures the degree of resource utilization device, for a given outpu
t in a given period of time. It is the ratio between the real cadence and averag
e cadence planned or the ratio between the actual production achieved, and total
production planned for the TBP. Example: If the shift to use less resources to
produce the same amount of product which the B shift, then shift to work more ef
ficiently. Equipment - Equipment - A standalone machine, an automatic station of
a line, a workstation or a system / production line complete. It is important t
hat the limits / boundaries of equipment are defined and are clear. PE - Loss of
efficiency - peed losses - the equivalent time lost due to minor stoppages (no
t registered) or the equipment does not produce the rated speed. It's a Big ix
Losses. PNP - tops unplanned - Unplanned downtime - the time lost production du
e to unplanned stoppages (registered). PP - tops Planned - Planned downtime - p
lanned time to perform planned maintenance (preventive, curative), testing and p
roduction experiences and autonomous maintenance (operator). Dependent on equipm
ent operator to operate, consider also the intervals for meals, breaks and time
for training and meetings. PQ - Loss of quality - Quality losses - Time lost to
produce pieces that do not meet quality specifications. For the OEE, scrap, rewo
rk or product of second choice are the same, ie, it is not good product at first
, and therefore constitute loss of quality. Q - Quality (factor) - Quality rate
- One of the three factors of OEE. It takes into account the losses of quality (
product does not meet the specification in first). Even if the product can be re
processed in order to meet the specifications for the OEE, is defective. It is t
he ratio between the amount of good product at first and the total quantity prod
uced. eiichi Nakajima - Featured engineer at Toyota. Considered one of the "fat
hers" of TP -Toyota Production ysytem, was the creator of the TPM-Total Product
ive Maintenance and OEE. ix big losses of equipment - ix big losses of equipme
nt - The six major equipment related losses, identified and defined by eiichi N
akajima. MED - ingle minute exchange of dies - Methodology to reduce the time
for change of equipment. The name of the methodology, developed by higeo hingo
, the objective is to reduce the changing times of the tools (the press) to less
than 10 minutes (only one digit). Takt time - Rate of production needed to keep
pace with demand (the needs of customers) TBP - Time cadence nominal gross outp
ut or not. Runing time - time in which the equipment is producing product,
TEEP - Total Effective Equipment Productivity - Productivity effective overall e
quipment - the percentage of time the equipment is to produce good products at f
irst,€for the total time (TT) NPT - unplanned time - unscheduled time - time whe
re there is no need for operating equipment. Example: holidays, weekends, holida
ys, lack of work. TPP - Time planned production - Loading time - Total time that
the equipment is planned to produce. It is the starting point for the calculati
on of OEE. Also called theoretical production time
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TRP - Real Time Production - Net production time - time in which the equipment i
s producing the nominal cadence. This time is not measured by the operator but d
etermined by multiplying the total amount of product produced (good and rejected
) by the nominal cadence. TT - Total time - Total (calendar) time - The time sch
edule for a total period of analysis of OEE, considering 24 hours a day, 7 days
a week and 52 weeks of the year. Represents the theoretical maximum amount of go
od product that could produce a machine, it never stopped and ran to the nominal
cadence. TTO - Total time of operation-time Total Operations - The total time t
he equipment is at the disposal of operations (to produce or undergo maintenance
work and Engineering) TUB - Rate of use brute - Asset utilization - the percent
age of TT-Total time where the equipment is working. TUC - Rate of capacity util
ization - Capacity utilization - the percentage of time a product is planned to
produce, compared to TT-timing. hows the theoretical potential available to pla
n production. TUP - Time span of production - Valuable production time - time in
which the equipment produces good product at first, based on normal cadence. Th
is time is not measured by the operator but determined by multiplying the total
amount of product produced at a good pace for the first roll call. It's time tha
t adds value to the product. T / C - Cycle Time - Cycle time - The time to produ
ce a play. T / CN - nominal cycle time - Ideal cycle time - The minimum cycle ti
me in a given period of time, giving assurance of quality product with speed / c
adence nominal - Ideal run rate - The speed / cadence ideal maximum an equipment
to produce. We obtain the formula 1/T/CN.
References
[1] The Toyota Production ystem: Beyond Large- cale Production - Taiichi Ohno [
2] A tudy of the Toyota Production ystem from an Industrial Engineering Viewpo
int - higeo hingo [3] Introduction to TPM - eiichi Nakajima [4] TPM Developme
nt Program - eiichi Nakajima [5] New Directions for TPM - Tokutaro uzuki [6] T
he True Cost of downtime http://www.bin95.com/freeebook.htm [7] How to calculate
OEE - Carlo codanibbio http://www.brainguide .ca/data/publications/PDF/pub1217
95.pdf [8] Practical TPM Implementation Manual - Enrique Mora http://tpmonline.c
om/services/tpmenglist.htm [9] Training Course TPM - Author http://www .freewebs
.com / leanemportugal / formaotpm.htm
Web sites
www.downtimecentral.com http://www.scodanibbio.com/ www.tpmonline.com http://www
.strategosinc.com/ http://www.oee.com/
References on OEE programs
OEE Toolkit Tree Frog Focus Live View Boost IT OEE Impact: www.oeetoolkit.com or
www.blomconsultancy.nl View: ee www.tfslean.com or www.treefrogsoftware.co.uk
www.abb.com View www.oeeimpact.com
File attachments
This article is complemented by file: oee_calculator_model_A_pt.xls oee_calculat
or_model_B_pt.xls available in www.scribd.com
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