OVERALL EQUIPMENT EFFECTIVENESS (OEE)



       One established industry or a factory measure of productivity is overall equipment effectiveness. OEE (OVERALL EQUIPMENT EFFECTIVENESS) in simple form is a measure of Productivity of an asset. If a machine has a planned production of 5 hours ,with the expectation that it can produce 5000 units during that time, but the machine only produces 2500 during the shift, that machine has an OEE of ( 2500/5000=.5).

The components of OEE (OVERALL EQUIPMENT EFFECTIVENESS):

         To answer this, we should understand the three components that makeup OEE.  These components are:

  1. Availability
  2. Performance
  3. Quality


Availability:
                 
                 It measures how frequently machine is available for its intended use. Events that stop machine production result in a downtime loss. Availability can be affected by equipment failure, unplanned maintenance and downtime, material shortages, and machine changeover time.

Performance:

                It is more difficult to assess, but is defined as a speed loss. If a machine is rated to produce a certain amount of units per hour, and runs uninterrupted for that hour, producing fewer units than the machine rating is called as performance loss. These losses can be a contribution of machine wear, operating person’s efficiency, bad materials.

Quality:

               It can be calculated very easily among three. It is a measure of amount of scrap a machine produces. Any reject material that doesn’t meet quality standards, and rework all contributes to quality losses.

Measuring OEE:

                  Availability is calculated as a ratio between actual operating time and planned production time

Availability = Operating time/Planned production time

Performance is the ratio of the ideal cycle time to the operating time divided by total pieces produced

Performance = Ideal cycle time/ (operating time/total pieces produced)

This can also be defined as a ratio of net operating time to operating time.

Quality is measured as the ratio of good pieces to total pieces

Quality= Good pieces/ total pieces.

OEE Example:

Through this example I want to explain the OEE calculation.
The plant shift is 8 hours, with two breaks 15 min tea break,30 minutes lunch. The machine can produce 60pieces per hour at its ideal cycle time. For suppose if the machine is down for 15 minutes, but produces 400 pieces during its uptime. Out of which 20 pieces are rejected and sent for reworking. Based  on this ..

8 hours                               480 minutes
Breaks                                45 minutes
Down time                          15 minutes
Parts produced                    400 pieces
Rejection                            100 pieces
Planned production time       480-45=435
Operating time                    435-15=420
Availability                          420/435=.96
Performance                        400/420=.95
Quality                                380/ 400=.95
OEE                                    .95*.95*.96=.86


The machine is having OEE  of 86%.


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