Knowledge

Overall equipment effectiveness

Source 📝

679:
impacted by variability in equipment wear rates and working methods. The second stage of OEE improvement (optimisation) can be carried out to remove chronic losses. Combining OEE and TPM Focused improvement tactics creates a leading indicator that can be used to guide performance management priorities. As the TPM process delivers these gains through small cross functional improvement teams, the process of OEE improvement raises front line team engagement/problem ownership, collaboration and skill levels. It is this combination of OEE as a KPI, TPM Focused improvement tactics and front line team engagement that locks in the gains and delivers the TPM goal of year on year improvement in OEE.
179: 602: 691:, but can break down in several circumstances. For example, it may be far more costly to run a facility at certain times. Performance and quality may not be independent of each other or of availability and loading. Experience may develop over time. Since the performance of shop floor managers is at least sometimes compared to the OEE, these numbers are often not reliable, and there are numerous ways to fudge these numbers. 77: 36: 671:). Specifically, the goal of TPM as set out by Seiichi Nakajima is "The continuous improvement of OEE by engaging all those that impact on it in small group activities". To achieve this, the TPM toolbox sets out a Focused improvement tactic to reduce each of the six types of OEE loss. For example, the 678:
Combining OEE with Focused improvement converts OEE from a lagging to a leading indicator. The first Focused improvement stage of OEE improvement is to achieve a stable OEE. One which varies at around 5% from the mean for a representative production sample. Once an asset efficiency is stable and not
463:
The Loading portion of the TEEP Metric represents the percentage of time that an operation is scheduled to operate compared to the total Calendar Time that is available. The Loading Metric is a pure measurement of Schedule efficiency and is designed to exclude the effects how well that operation may
415:
Each of the three components of the OEE points to an aspect of the process that can be targeted for improvement. OEE may be applied to any individual Work Center, or rolled up to Department or Plant levels. This tool also allows for drilling down for very specific analysis, such as a particular Part
306:
way of thinking regarding labor efficiency. The generic form of OEE allows comparison between manufacturing units in differing industries. It is not however an absolute measure and is best used to identify scope for process performance improvement, and how to get the improvement. OEE measurement is
491:
The Availability portion of the OEE Metric represents the percentage of scheduled time that the operation is available to operate. The Availability Metric is a pure measurement of Uptime that is designed to exclude the effects of Quality and Performance. The losses due to wasted availability are
561:
The Quality portion of the OEE Metric represents the Good Units produced as a percentage of the Total Units Started. The Quality Metric is a pure measurement of Process Yield that is designed to exclude the effects of Availability and Performance. The losses due to defects and rework are called
280:
Measuring OEE is a manufacturing best practice. By measuring OEE and the underlying losses, important insights can be gained on how to systematically improve the manufacturing process. OEE is an effective metric for identifying losses, bench-marking progress, and improving the productivity of
710:
than performance or availability. OEE also to some extent assumes a closed system and a potentially static one. If one can bring in additional resources (or lease out unused resources to other projects or business units) then it may be more appropriate for example to use an expected
264:
operation is utilized (facilities, time and material) compared to its full potential, during the periods when it is scheduled to run. It identifies the percentage of manufacturing time that is truly productive. An OEE of 100% means that only good parts are produced (100%
370:
The calculations of OEE are not particularly complicated, but care must be taken as to standards that are used as the basis. Additionally, these calculations are valid at the work center or part number level but become more complicated if rolling up to aggregate levels.
290:
is a closely related measure which quantifies OEE against calendar hours rather than only against scheduled operating hours. A TEEP of 100% means that the operations have run with an OEE of 100% 24 hours a day and 365 days a year (100%
416:
Number, Shift, or any of several other parameters. It is unlikely that any manufacturing process can run at 100% OEE. Many manufacturers benchmark their industry to set a challenging target; 85% is not uncommon.
702:
among its subcomponents. For example, 20% * 80% = 16%, whereas 50% * 50% = 25%. When there are asymmetric costs associated with one or more of the components, then the model may become less appropriate.
430:
Alternatively, and often easier, OEE is calculated by dividing the minimum time needed to produce the parts under optimal conditions by the actual time needed to produce the parts. For example:
502:
A given Work Center is scheduled to run for an 8-hour (480-minute) shift with a 30-minute scheduled break and during the break the lines stop, and unscheduled downtime is 60 minutes.
437:
Fastest possible cycle time is 1.5 seconds, hence only 21,600 seconds would have been needed to produce the 14,400 parts. The remaining 7,200 seconds or 2 hours were lost.
94: 49: 675:
tactic to systematically reduce breakdown risk sets out how to improve asset condition and standardise working methods to reduce human error and accelerated wear.
547:
The Work Center produces 242 Total Units during the shift. Note: The basis is Total Units, not Good Units. The Performance metric does not penalize for Quality.
656:
The reason for identifying the losses in these categories is so that specific countermeasures can be applied to reduce the loss and improve the overall OEE.
315:
efforts to provide an indicator of success. OEE can be illustrated by a brief discussion of the six metrics that comprise the system (the "Six Big Losses").
281:
manufacturing equipment (i.e., eliminating waste). The best way for reliable OEE monitoring is to automatically collect all data directly from the machines.
609:
To be able to better determine the sources of the greatest loss and to target the areas that should be improved to increase performances, these categories (
706:
Consider a system where the cost of error is exceptionally high. In such a condition, higher quality may be far more important in a proper evaluation of
449:
Whereas OEE measures efficiency based on scheduled hours, TEEP measures efficiency against calendar hours, i.e.: 24 hours per day, 365 days per year.
440:
The OEE is now the 21,600 seconds divided by 28,800 seconds (same as minimal 1.5 seconds per part divided by 2 actual seconds per part), or 75%.
141: 802: 783: 764: 113: 55: 940: 120: 745: 816: 240: 222: 200: 160: 63: 810: 127: 98: 109: 1074: 911: 839: 668: 1069: 834: 308: 860: 193: 187: 134: 699: 87: 538:
A given Work Center is scheduled to run for an 8-hour (480-minute) shift with a 30-minute scheduled break.
356:
To calculate the Total Effective Equipment Performance(TEEP), the OEE is multiplied by a fourth component:
204: 508:
Operating Time = 480 Minutes – 30 Minutes Schedule Loss – 60 Minutes Unscheduled Downtime = 390 Minutes
723: 333:
percentage of scheduled time that the operation is available to operate. Often referred to as Uptime.
672: 601: 348:
Good Units produced as a percentage of the Total Units Started. It is commonly referred to as the
822: 343: 312: 303: 434:
Total Time: 8-hour shift or 28,800 seconds, producing 14,400 parts, or one part every 2 seconds.
947: 798: 779: 760: 741: 712: 349: 323:
The OEE of a manufacturing unit are calculated as the product of three separate components:
299: 610: 695: 1063: 972: 261: 996: 544:
The Standard Rate for the part being produced is 40 Units/Hour or 1.5 Minutes/Unit
526: 361: 328: 613:) have been subdivided further into what is known as the 'Six Big Losses' to OEE. 823:
Overall Equipment Effectiveness (OEE) – What is OEE & How is OEE calculated?
76: 541:
Operating Time = 450 Min Scheduled – 60 Min Unscheduled Downtime = 390 Minutes
886: 707: 915: 688: 578:
Calculation: Quality = (Units produced - defective units) / (Units produced)
477:
A given Work Center is scheduled to run 5 Days per Week, 24 Hours per Day.
366:
percentage of total calendar time that is actually scheduled for operation.
1021: 574:
while units being scrapped can affect both operation time and unit count.
339:
speed at which the Work Center runs as a percentage of its designed speed.
420:
OEE is calculated with the formula (Availability)*(Performance)*(Quality)
1042: 550:
Time to Produce Parts = 242 Units * 1.5 Minutes/Unit = 363 Minutes
426:(Availability= 86.6%)*(Performance=93%)*(Quality=91.3%)= (OEE=73.6%) 17: 600: 452:
TEEP, therefore, reports the 'bottom line' utilization of assets.
480:
For a given week, the Total Calendar Time is 7 Days at 24 Hours.
811:
OEE and derived indicators TEEP, PEE, OAE, OPE, OFE, OTE and CTE
719: 570:. Reworked units which have been corrected are only measured as 553:
Performance (Productivity) = 363 Minutes / 390 Minutes = 93.1%
172: 70: 29: 505:
The scheduled time = 480 minutes - 30 minutes = 450 minutes.
483:
Loading = (5 days x 24 hours) / (7 days x 24 hours) = 71.4%
718:
Variability in flow can also introduce important costs and
512:
Calculation: Availability = operating time / scheduled time
861:"OEE, TEEP e IROG! Importantes Métricas Para a Indústria" 27:
Measure of how well a manufacturing operation is utilized
529:) = (Parts Produced * Ideal Cycle Time) / Operating time 997:"Calculate OEE - Simple Calculator & OEE Formulas" 865:
CONAENGE-Congresso Online de Eng. Mecânica e Automação
590:(242 units produced - 21 defective units) = 221 units 468:
Calculation: Loading = Scheduled Time / Calendar Time
593:221 good units / 242 total units produced = 91.32% 101:. Unsourced material may be challenged and removed. 795:OEE for Operators: Overall Equipment Effectiveness 667:Continuous improvement in OEE is the goal of TPM ( 738:Introduction to Tpm: Total Productive Maintenance 516:Availability = 390 minutes / 450 minutes = 86.6% 8: 1043:"Top Three Methods on how to Fudge Your OEE" 793:Productivity Press Development Team (1999), 376:9 Major Downtime Losses Affect Availability 64:Learn how and when to remove these messages 587:242 Units are produced. 21 are defective. 941:"OEE Overview - with Calculation Methods" 241:Learn how and when to remove this message 223:Learn how and when to remove this message 161:Learn how and when to remove this message 618: 186:This article includes a list of general 851: 726:and measures of change may be helpful. 605:Example of OEE and Six Loss calculation 817:Everything You Need to Know About OEE 757:Overall Equipment Effectiveness (OEE) 611:Availability, Performance and Quality 445:Total effective equipment performance 285:Total effective equipment performance 7: 991: 989: 935: 933: 99:adding citations to reliable sources 859:Guimarães, Nilo (16 August 2019). 616:These are categorized as follows: 273:), and without interruption (100% 192:it lacks sufficient corresponding 25: 722:that may merit further modeling. 110:"Overall equipment effectiveness" 45:This article has multiple issues. 788:. (English). (Dutch)., (German). 177: 75: 34: 423:Using the examples given below: 411:Overall equipment effectiveness 254:Overall equipment effectiveness 86:needs additional citations for 53:or discuss these issues on the 397:Operations team member missing 269:), at the maximum speed (100% 1: 1022:"OEE Primer: Calculating OEE" 319:Calculations for OEE and TEEP 260:) is a measure of how well a 973:"Understanding Availability" 840:Total productive maintenance 669:Total Productive Maintenance 663:Total Productive Maintenance 520:Performance and productivity 391:Quality issues from material 835:Overall labor effectiveness 776:OEE for the Production Team 298:The term OEE was coined by 1091: 736:Nakajima, Seiichi (1988). 525:Calculation: Performance ( 311:(KPI) in conjunction with 867:(in Brazilian Portuguese) 755:Hansen, Robert C (2005). 309:key performance indicator 819:, Manufacturing Tomorrow 813:, MES Center Association 694:OEE has properties of a 307:also commonly used as a 698:. As such it punishes 207:more precise citations. 797:, Productivity Press, 606: 604: 455:TEEP = Loading * OEE 302:. It is based on the 953:on 27 September 2013 918:on 23 September 2016 759:. Industrial Press. 724:Sensitivity analysis 650:Rejects on Start up 572:unscheduled downtime 95:improve this article 1075:Production planning 1001:Mingo Smart Factory 912:"Understanding OEE" 774:Koch, Arno (2007). 740:. Productivity Pr. 687:OEE is useful as a 673:Focused improvement 639:Production Rejects 494:availability losses 406:Other-Miscellaneous 1070:Lean manufacturing 607: 388:Machine adjustment 313:lean manufacturing 304:Harrington Emerson 804:978-1-56327-221-9 785:978-90-78210-08-5 766:978-0-8311-3237-8 713:net present value 654: 653: 251: 250: 243: 233: 232: 225: 171: 170: 163: 145: 68: 16:(Redirected from 1082: 1054: 1053: 1051: 1049: 1039: 1033: 1032: 1030: 1028: 1018: 1012: 1011: 1009: 1007: 993: 984: 983: 981: 979: 969: 963: 962: 960: 958: 952: 946:. Archived from 945: 937: 928: 927: 925: 923: 914:. Archived from 908: 902: 901: 899: 897: 883: 877: 876: 874: 872: 856: 807: 789: 770: 751: 633:Planned Downtime 619: 597:"Six Big Losses" 394:Material missing 350:first pass yield 300:Seiichi Nakajima 246: 239: 228: 221: 217: 214: 208: 203:this article by 194:inline citations 181: 180: 173: 166: 159: 155: 152: 146: 144: 103: 79: 71: 60: 38: 37: 30: 21: 1090: 1089: 1085: 1084: 1083: 1081: 1080: 1079: 1060: 1059: 1058: 1057: 1047: 1045: 1041: 1040: 1036: 1026: 1024: 1020: 1019: 1015: 1005: 1003: 995: 994: 987: 977: 975: 971: 970: 966: 956: 954: 950: 943: 939: 938: 931: 921: 919: 910: 909: 905: 895: 893: 887:"Origin of OEE" 885: 884: 880: 870: 868: 858: 857: 853: 848: 831: 805: 792: 786: 773: 767: 754: 748: 735: 732: 730:Further reading 685: 665: 659: 599: 559: 522: 489: 461: 447: 413: 378: 374: 321: 247: 236: 235: 234: 229: 218: 212: 209: 199:Please help to 198: 182: 178: 167: 156: 150: 147: 104: 102: 92: 80: 39: 35: 28: 23: 22: 15: 12: 11: 5: 1088: 1086: 1078: 1077: 1072: 1062: 1061: 1056: 1055: 1034: 1013: 985: 964: 929: 903: 891:OEE Foundation 878: 850: 849: 847: 844: 843: 842: 837: 830: 827: 826: 825: 820: 814: 808: 803: 790: 784: 771: 765: 752: 747:978-0915299232 746: 731: 728: 696:geometric mean 684: 681: 664: 661: 652: 651: 648: 645: 641: 640: 637: 634: 630: 629: 626: 623: 598: 595: 564:quality losses 558: 555: 521: 518: 488: 485: 460: 457: 446: 443: 442: 441: 438: 435: 428: 427: 424: 421: 412: 409: 408: 407: 404: 401: 398: 395: 392: 389: 386: 383: 382:Machine broken 368: 367: 354: 353: 340: 334: 320: 317: 249: 248: 231: 230: 185: 183: 176: 169: 168: 83: 81: 74: 69: 43: 42: 40: 33: 26: 24: 14: 13: 10: 9: 6: 4: 3: 2: 1087: 1076: 1073: 1071: 1068: 1067: 1065: 1044: 1038: 1035: 1023: 1017: 1014: 1002: 998: 992: 990: 986: 974: 968: 965: 949: 942: 936: 934: 930: 917: 913: 907: 904: 892: 888: 882: 879: 866: 862: 855: 852: 845: 841: 838: 836: 833: 832: 828: 824: 821: 818: 815: 812: 809: 806: 800: 796: 791: 787: 781: 777: 772: 768: 762: 758: 753: 749: 743: 739: 734: 733: 729: 727: 725: 721: 716: 714: 709: 704: 701: 697: 692: 690: 682: 680: 676: 674: 670: 662: 660: 657: 649: 646: 643: 642: 638: 635: 632: 631: 627: 624: 621: 620: 617: 614: 612: 603: 596: 594: 591: 588: 585: 584: 580: 579: 575: 573: 569: 568:quality stops 565: 556: 554: 551: 548: 545: 542: 539: 536: 535: 531: 530: 528: 519: 517: 514: 513: 509: 506: 503: 501: 497: 495: 486: 484: 481: 478: 475: 474: 470: 469: 465: 458: 456: 453: 450: 444: 439: 436: 433: 432: 431: 425: 422: 419: 418: 417: 410: 405: 402: 399: 396: 393: 390: 387: 384: 381: 380: 379: 377: 372: 365: 363: 359: 358: 357: 351: 347: 345: 341: 338: 335: 332: 330: 326: 325: 324: 318: 316: 314: 310: 305: 301: 296: 294: 289: 286: 282: 278: 276: 272: 268: 263: 262:manufacturing 259: 255: 245: 242: 227: 224: 216: 206: 202: 196: 195: 189: 184: 175: 174: 165: 162: 154: 143: 140: 136: 133: 129: 126: 122: 119: 115: 112: –  111: 107: 106:Find sources: 100: 96: 90: 89: 84:This article 82: 78: 73: 72: 67: 65: 58: 57: 52: 51: 46: 41: 32: 31: 19: 1046:. Retrieved 1037: 1025:. Retrieved 1016: 1004:. Retrieved 1000: 976:. Retrieved 967: 957:23 September 955:. Retrieved 948:the original 920:. Retrieved 916:the original 906: 894:. Retrieved 890: 881: 869:. Retrieved 864: 854: 794: 778:. Makigami. 775: 756: 737: 717: 705: 693: 686: 677: 666: 658: 655: 622:Availability 615: 608: 592: 589: 586: 582: 581: 577: 576: 571: 567: 563: 560: 552: 549: 546: 543: 540: 537: 533: 532: 527:Productivity 524: 523: 515: 511: 510: 507: 504: 499: 498: 493: 490: 487:Availability 482: 479: 476: 472: 471: 467: 466: 462: 454: 451: 448: 429: 414: 403:Startup loss 375: 373: 369: 360: 355: 342: 337:Performance: 336: 329:Availability 327: 322: 297: 292: 287: 284: 283: 279: 275:availability 274: 270: 266: 257: 253: 252: 237: 219: 210: 191: 157: 148: 138: 131: 124: 117: 105: 93:Please help 88:verification 85: 61: 54: 48: 47:Please help 44: 700:variability 636:Minor Stops 625:Performance 400:Tool change 271:performance 205:introducing 1064:Categories 1006:15 October 846:References 715:analysis. 708:efficiency 647:Speed Loss 644:Breakdowns 385:Setup time 188:references 121:newspapers 50:improve it 1048:5 January 978:9 October 689:heuristic 683:Heuristic 464:perform. 56:talk page 829:See also 628:Quality 583:Example: 534:Example: 500:Example: 473:Example: 213:May 2013 151:May 2013 896:15 July 557:Quality 492:called 459:Loading 362:Loading 344:Quality 293:loading 267:quality 201:improve 135:scholar 1027:9 July 922:7 July 871:30 May 801:  782:  763:  744:  352:(FPY). 288:(TEEP) 190:, but 137:  130:  123:  116:  108:  951:(PDF) 944:(PDF) 720:risks 142:JSTOR 128:books 1050:2014 1029:2013 1008:2016 980:2014 959:2013 924:2015 898:2015 873:2021 799:ISBN 780:ISBN 761:ISBN 742:ISBN 566:and 114:news 295:). 277:). 258:OEE 97:by 18:OEE 1066:: 999:. 988:^ 932:^ 889:. 863:. 496:. 59:. 1052:. 1031:. 1010:. 982:. 961:. 926:. 900:. 875:. 769:. 750:. 364:: 346:: 331:: 256:( 244:) 238:( 226:) 220:( 215:) 211:( 197:. 164:) 158:( 153:) 149:( 139:· 132:· 125:· 118:· 91:. 66:) 62:( 20:)

Index

OEE
improve it
talk page
Learn how and when to remove these messages

verification
improve this article
adding citations to reliable sources
"Overall equipment effectiveness"
news
newspapers
books
scholar
JSTOR
Learn how and when to remove this message
references
inline citations
improve
introducing
Learn how and when to remove this message
Learn how and when to remove this message
manufacturing
Seiichi Nakajima
Harrington Emerson
key performance indicator
lean manufacturing
Availability
Quality
first pass yield
Loading

Text is available under the Creative Commons Attribution-ShareAlike License. Additional terms may apply.