Measuring Over-all Equipment Effectiveness (OEE)

Equipment Six big losses Calculation of overall equipment effectiveness

1 Schedule Time - Downtime

Availability = X 100
Schedule Time Equipment Failure Schedule Time

460 mins. - 60 mins.

2 e.g. = X 100 = 87%
460 mins.
Setup &
Downtime

Operating
Losses

Adjustment
Time
Production Quantity
3
Performance Effcy = ------------------------------------
Idle & Minor
Speed Losses

Rated Capacity x Operating. Time

Stoppages
Net 400 Units
Operating e.g. .= X 100 = 50 %
Time 4 2 Units/Min. x (400 mins.)
Reduced Speed

5
Defect Losses

Defects in
Production Quantity - Defective Qty
Valuable Process RQP = x 100%
Production Quantity
Operating
Time 6 400 Units - 8 Units
Reduced Yield e.g. = X 100 = 98%
400 Units

Overall Equipment Performance

= Availability x x Rate of Quality Products
Effectiveness Efficiency

e.g. = 0.87 x 0.50 x 0.98 x 100 = 42.6%

TPM

Actual Run Time No. of Quality Products

------------------------------- ------------------------------------
Schedule Production Time Gross Production

OEE = Availability x Performance Effcy x Quality

Gross Production
------------------------------------------------
Rated Capacity x Schedule Production time

OEE - Overall Equipment Effectiveness

OR

Uptime Gross Production - Rejects

------------------------------- ------------------------------------
Uptime + Downtime Gross Production

OEE = Availability x Performance Effcy x Quality

Gross Production
--------------------------------------------------------------
Rated Capacity x Schedule Production time

OEE - Overall Equipment Effectiveness

EQUIPMENT EFFICIENCY

Equipment is becoming more complex

and operating at higher speeds,
producing more product with less
manpower.
 Availability & Downtime

Reduced planned and unplanned downtime will result in

increase availability.
Availability (A) is measured as follows:

Uptime
A = ------------------------------ x 100%
Uptime + Downtime
 Slowdown/ Capacity Utilization

Reduction of slowdown will result in increased

utilization of equipment capacity.
Capacity utilization or operating speed(s) is measured as
follows:

Actual Speed
Capacity Utilization = --------------------------------- x 100%
Actual Speed + Slowdown
Reject/ prime quality volume

Reduction of rejects (waste) such as manufacturing

related trim in a paper machine, and sub-standard quality
product will result in increases volume of prime quality.
Prime volume of total manufactured tons is measured as
follows:

Prime Quality Volume

PQV = ------------------------------------------------- x 100%
Prime Quality Volume + Reject
PRODUCTIVITY
Better Tomorrow for Everyone
Ultimate Operational Excellence
Goal

TQM

Intermediate
Effective Use of Resources
Goal Efficiency Improvement
Cost Effective Operation

Approach,

CMMS
Strategy,

RCM
TPM
Method, IQA
System

Foundation 5S
Procedures , Policies, Training