OEE Overview

Concept Time Used

Time
Remaining
Total Time
168
OEE stands for Overall Equipment Effectiveness (i.e. 168 hrs/week, 24 hrs/day etc.)
Not Worked 88
It is an encompassing measure of total machine Planned Stops 5

performance, showing the overall picture of where time Scheduled Time 75

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Breakdowns 5.4
is lost Changeover 39.5

It categorises time losses for the purpose of Operating Time

Minor Stops 13.1
30.1

improvement Speed Losses 6.2

Running Time 10.8
Process Spoilage 0.1
Defects 4.0
Effective Time 6.7

When to use ? Overall Equipment Effectiveness (OEE) Breakdown Chart

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180

160

OEE gives us the overall picture of machine performance, 140

not focusing just on efficiency or utilisation 120

OEE should be used in support of business objectives 100 OEE Loss

Time
(total is 8%)

where there is a clear need, for example 80

Other

Bottleneck machine which is constraining the capacity

60

40

of a process to meet customer needs 20

High capital cost equipment where utilisation must be 0

Minor Stops

Speed Losses
Changeover

Running Time
Planned Stops

Scheduled Time

Operating Time

Process Spoilage
Breakdowns

Defects
Total Time *

Effective Time **
Not Worked
raised (e.g. injection molding, die casting, pressing)
OEE enables us to focus on the biggest of the 6 losses Category

1
Why measure OEE?
The river and the rocks analogy
Lean production aims to reduce the inventory (water level) to highlight
the underlying causes of downtime (rocks) and through removing these to
allow the company to operate at more competitive low water levels.

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It normally takes
1 week but I committed
to 3 weeks because
sometimes it takes longer

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By forcing a target reduction in
inventory, the company can
Long Frequent lower the water level and
changeo break- Inventory deliberately expose the rocks so
vers downs levels they can be eliminated or
Micro lowered
High stop- Poor Slow OEE measures how big the rocks
spoil pages product running are and shows which ones to
age quality reduce first

2
The 6 big losses of OEE

Traditional efficiency measure captures only part

of time losses

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Reduced
Changeover Breakdown
Speed

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Micro Quality
Spoilage
Stops Defects

Other time losses captured in OEE

3
OEE calculation Model

The 6 big losses reduce machine performance in the following way

Total Time

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Total Working Time Non working time Not included in OEE
calculation, but should
be shown separately
Total Available Time Planned Stops* for information

Operating Time Breakdown Availability = (Available time) - (Downtime)

(Downtime losses) Changeover
(Available time)

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Running Time Micro Stops Productivity* = (Operating time) - (Speed losses)
(Speed losses) Reduced Speed
(Operating time)

Spoilage Quality = (Processed amount) - (Defects)

Value-added (Processed amount)
(Defect losses) Quality Defects

Overall Equipment Effectiveness = Availability x

Productivity x Quality

* Planned stops can be included in the Productivity Calculation this could be appropriate where capacity is very
constrained

4
Example of a completed template ADAPTED AEROSPACE EXAMPLE

Data table (times are in hours) Calculations

Time
Time Used
Remaining Availability = Operating Time = 40%
Scheduled Time
Total Time

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(i.e. 168 hrs/week, 24 hrs/day 168
etc.) X
Not Worked 88
Productivity = Running Time = 36%
Planned Stops 5 Operating Time

Scheduled Time 75

Breakdowns 5.4
X
Changeover 39.5 Quality = Effective Time = 62%

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Running Time
Operating Time 30.1

Minor Stops 13.1

=
Speed Losses 6.2

Running Time 10.8 OEE = Effective Time = 9%

Scheduled Time
Process Spoilage 0.1

Defects 4.0

Effective Time 6.7

* Effective time should be checked against output levels to reveal any unrecorded downtime

5
OOE can be shown using the chart below ADAPTED AEROSPACE EXAMPLE
Overall Equipment Effectiveness (OEE) Breakdown Chart OEE loss (total is 91%)
180 OEE (9%)

160

140

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120

100
Time

80

60

40

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20

Effective Time **
Scheduled Time

Operating Time

Process Spoilage
Planned Stops

Running Time
Total Time *

Minor Stops
Breakdowns

Speed Losses
Changeover
Not Worked

Defects
OEE can also be
trended over time
on a separate
Category graph

Not included in OEE calculation, All sources of OEE loss are

but shown for information shown

6
Priorities for improvement become visible Application case
synthesis

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1. Minor stops
Percent
2. Breakdowns

3. Scrap

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Planned Break- Change Minor Speed Startup Scrap
maintena downs -overs stops loss loss
nce

Availability losses Speed losses Quality losses

7
Resulting target OEE can create major business impact

ILLUSTRATIVE

Limit analysis

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Losses Current Limit Target
Planned maintenance 0% 1% 1%
Breakdowns 12,5% 1% 6,7%
Changeovers 5,60% 4% 4,8%
Minor stops 16,20% 2% 9,1%
Slow down 0% 0% 0,0%

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Startup losses 2% 0,50% 1,3%
Scrap and rework 6% 0,50% 3,3%
OEE 57,8% 91,0% 73,9%

+28%
capacity