What is OEE, Meaning of oee, How to calculate oee

What is OEE ( Overall Equipment  Effectiveness)?

  • OEE ( Overall Equipment Effectiveness) is an indicator to judge product run in terms of machine Productivity , product rate & quality rate of the product.
  • For TPM ( Total Productive Conservation) and Spare Manufacturing programs, OEE is a key metrics.
  • It’s an important specific of capacity planning, material planning, and other resource planning.
  • OEE is also popularly known as TEEP ( Total effective Equipment performance).
  • Overall Equipment Effectiveness is a Spare Manufacturing Tool

What is meaning by OEE? ( Overall Equipment Effectiveness  Meaning )

There are three parameters for Overall Outfit Effectiveness) monitoring

  1. Availality,
  2. Performance
  3. Quality

What’s Avaalibility rate?

  • Availability shows the machine available duration for manufacturing.
  • In other words, for how much time  machine is available for Production.
  • Availability takes into account of Breakdown Losses and any other losses that make machine to stop.
  • Time-out losses include events or incidents that lead to a cessation of planned product for a considerable duration.
  • After removing, time-out we can get the operating duration of the machine.

Exemplifications of Time-out

  • Availbility failure,
  • Material deficit,
  • Redundant change over timing, etc.

What is  Performance Rate ?

  • Performance shows the redundant time taken for manufacturing as compared to standard operating timing.
  • The performance takes into account of Speed Losses.
  • The Speed Losses includes any factor that leads to operating product with further cycle time than maximum admissible.

Exemplifications of performance losses

  • Low speed of job lading/ unloading,
  • Fatigue of the driver,
  • Redundant cycle time in homemade work, etc.

What’s Quality Rate in OEE?

  • Quality shows the Good Quality of Product
  • It takes into account the losses ( loss due to the manufacturing of a bad part).
  • Quality loss can only be present due to the manufacturing of a imperfect part or non-conforming part.

How to calculate OEE?

OEE Computation is mentioned in the below picture.

what is oee

Times and Losses Computation

  • Planned Arrestment – Not part of Overall Equioment Effectiveness Computation.
  • Break Down Loss- Operating timing to Planned Manufacturing timing rate is called Availability rate when a process runs without any stopage there will be 100 vacuity.
  • Speed Loss – It’s the rate of net operating timing to total operating timing or it can be calculated by factual cycle time/ ideal cycle time. When the process runs with maximum theoretical speed also performance will be 100.
  • Quality Loss-it’s the rate of total good corridor to a total part produced. When all produced corridor are good also there will be 100 quality.

OEE Computation Illustration

  • Let’s assume below data to understand Overall Outfit Effectiveness computation
  • Shift Duration = 8 Hours (480 Twinkles)
  • Total Breaks = 55 Twinkles
  • Break Down = 40 Twinkles
  • Ideal Production Rate = 1 Part per Nanosecond
  • Total Part Produced = 350
  • Rejected Corridor = 4

➨ Planned Product duration = Total Available Time – Planned Breaks
= 480 Twinkles – 55 Twinkles
= 425 Twinkles

➨ Factual Product duration = Planned Product duration – stops ( breakdowns)
= 425 Twinkles – 40 Twinkles
= 385 Twinkles

➨ Vacuity (A) = Factual Prod. Time/ Planned Prod. Time
= 385/425 Twinkles
= 0.905

➨ Factual Product Rate = Total Count/ Total Run Timing
= 350/385
= 0.909

➨ Performance (P) = Factual Product Rate/ Ideal Production Rate
= 0.909/1.0
= 0.909

➨ Quality (Q) = Good Corridor/ Total Corridor Produced
= (350-4)/ 350
= 0.988

➨ OEE = Vacuity (A) x Performance (P) x Quality (Q)
= 0.905 x0.909 x0.988
= 0.812

OEE Benefits

  • It helps us to set pretensions for enhancement, and track the progress.
  • Overall Outfit Effectiveness helps us to find inefficiencies in the operation process.

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