OEE measurements rely on three separate metrics. Manufacturers take this trio of OEE metrics into account to get a holistic look at the effectiveness of their processes and assets: 1) Availability: How often does the asset or system function at a given time and under given conditions? 2) Performance: How much does the asset or system produce? 3) Quality: How many defect-free products does the asset or system create?
OEE in lean manufacturing
Calculating availability scores
Published: Wednesday, February 21, 2024 – 12:02
OEE scores are particularly important for lean manufacturers. In lean environments, all efforts are tailored toward eliminating sources of waste and fostering continuous improvements. It’s all about avoiding the six big losses. You’ll notice that these are tied to the qualities used to calculate OEE: • Availability losses: Breakdowns (equipment failure, unplanned downtime, missing tools), setup, and adjustments (changeover, startup time) • Performance losses: Reduced speed (operator errors or inefficiencies, slow cycles, incorrect settings) and small stops (jams, bottlenecks, obstructions, cleaning, inspection, idling) • Quality losses: Startup rejects (rework, scrap, and production rejects) during production
Take an OEE-driven approach to preventive maintenance. A more preventive, data-driven approach to asset management helps boost the factors that contribute to OEE. Introducing automation will enhance your abilities to spot signs of trouble early and keep machines in peak condition. • Trace issues to their source. Don’t just settle for collecting and storing data; make it the source of dependable business improvement. Diving into performance and failure data makes it possible to track issues to their source, conduct root cause analyses, and make a change. • Build a culture of continuous improvement. Your team should never settle for good enough. Remember that OEE scores provide useful guidelines for driving improvements and continually making the maintenance department everything it can be. • Leverage the right technology. Maintenance 4.0 demands far more advanced resources than spreadsheets alone. Edge computing and IoT (internet of things) devices with real-time data collection and monitoring capabilities make it easier to analyze the production data necessary for making improvements, benchmarking the performance of assets and systems, and tracking progress against KPIs.
((20,000 parts/400 minutes of run time)/60 parts per minute) x 100 = 83.3%
Here’s the formula for calculating a system’s availability, and another example:
In manufacturing industries, calculating overall equipment effectiveness (OEE) offers deep insights into the performance of production processes and enables data-driven improvements.
.5312 x 100 = 53.12% OEE
So please consider turning off your ad blocker for our site.
Determining OEE is a standard method for assessing the productivity of production lines compared to their potential. Organizations in manufacturing sectors, including pharmaceuticals, food and beverage, and utilities, use OEE data to eliminate inefficiencies and drive continuous improvement.
Availability, performance, and quality
When teams commit to improving OEE, they see a range of benefits: • More productivity and efficiency; reducing unnecessary downtime across the production line helps manufacturers achieve their ideal cycle times. This means more efficient use of resources and higher production rates. • Reduced maintenance costs; improvements to OEE drive down overall maintenance costs by minimizing scrap, rework, unplanned downtime, and other contributors to excess costs. • Improved equipment reliability and lifetime value; an emphasis on OEE entails more preventive and proactive maintenance to ensure maintenance teams address equipment issues promptly and keep them running effectively as long as possible. • Enhanced product quality; by reducing defects and encouraging consistency, OEE improvements make production processes more dependable and, ultimately, better satisfy customer expectations. • Data-driven decision making; all those performance data offer useful guidance for making decisions to carry out process improvements.
How can manufacturers achieve world-class OEE?
Quality scores look at the percentage of quality parts you produced compared to the number of defective parts.
OEE looks at availability by comparing runtime to scheduled and planned production time. When you calculate OOE, you look at availability by comparing total production time to your plant’s total operational capacity. TEEP calculations use the broadest possible definition of availability, comparing actual uptime to the total number of hours in a year.
You’ll calculate availability by determining the ratio of actual run time to planned production run time for your system.
Calculating performance scores
This figure offers a starting point for eliminating sources of inefficiency and carrying out process improvements. It should play an important role in initiatives aimed at eliminating unnecessary production losses and maximizing the total time spent in operation.
OEE vs. OOE vs. TEEP
Availability = ((planned production time – stop time)/planned production time) x 100
How do manufacturers calculate OEE?
Calculating quality scores
((500 minutes – 100 minutes)/500) x 100 = 80%
You can find a system’s performance score by dividing its actual throughput by its maximum possible throughput. Performance losses occur when manufacturing processes are forced to run below their maximum speed.
Raising your OEE scores starts with taking a more proactive approach to managing your assets and enhancing their performance. Check out this guide to evolving beyond reactive maintenance.
Once you’ve completed these calculations, you’re ready to determine your OEE score. To keep it simple, move the decimal point to the left for each figure.
Here’s the formula for calculating performance, and an example:
Our PROMISE: Quality Digest only displays static ads that never overlay or cover up content. They never get in your way. They are there for you to read, or not.
Here’s how overall equipment effectiveness, overall operations effectiveness, and total effective equipment performance relate to one another.
How does OEE in manufacturing relate to maintenance?
Quality Digest does not charge readers for its content. We believe that industry news is important for you to do your job, and Quality Digest supports businesses of all types.
OEE = performance x availability x quality
Here’s the quality formula, and yet another example:
Performance = (total parts produced/total run time)/ideal throughput
.8333 x .8000 x .8000 = .5312
Learn all about calculating OEE to assess manufacturing productivity in this video.
(1,000 good parts/1,250 total parts) x 100 = 80%
The OEE formula
Organizations determine the overall equipment effectiveness of their systems and manufacturing processes by multiplying performance, availability, and quality.
However, someone has to pay for this content. And that’s where advertising comes in. Most people consider ads a nuisance, but they do serve a useful function besides allowing media companies to stay afloat. They keep you aware of new products and services relevant to your industry. All ads in Quality Digest apply directly to products and services that most of our readers need. You won’t see automobile or health supplement ads.
OEE is a valuable metric for evaluating maintenance teams. All three of the scores that go into OEE calculations tell you how well maintenance takes care of assets. Along with industry standards, OEE calculations offer useful baselines for assessing maintenance’s effect on asset performance and the success of manufacturing operations as a whole. They are especially useful for organizations that aim to achieve total productive maintenance (TPM) and maximize efficiency.
What are the benefits of improving OEE in manufacturing?
Overall, equipment manufacturing is closely related to two more system performance metrics: Overall operational effectiveness (OOE) and total effective equipment performance (TEEP). Although all three look at availability, performance, and quality to assess systems, they differ in how they define and calculate availability.
