🎰 What is OEE?
• KPI
• Used while implementing TPM
• Measure effective utilization of a machine or process
• Indicate the closeness to perfect production (Only good parts, faster possible machine speed, without downtime)
🤔 Why OEE?
To Quantify
1️⃣ Downtime Losses
2️⃣ Reduced Speed Losses
3️⃣ Poor Quality Losses
📆 Formula for OEE
OEE = Availability * Performance Efficiency * Rate of Quality Product
OEE = A*E*R
1️⃣ DOWNTIME LOSSES:
Measured by EQUIPMENT AVAILABILITY (Ratio of actual operating time and planned operating time)
👉 A= T/P *100
A = Equipment Availability
T = Actual Operating Time
P = Planned Operating Time
D = Downtime
▶️ Losses Include
• Breakdown failures
• Setup and changeover time
🔎 Focus: Reduce unplanned stoppages
2️⃣ REDUCED SPEED LOSSES:
Measured by PERFORMANCE EFFICIENCY (ratio of total cycle time to actual operating time.
👉 E = [ (C*N)/T ]*100
E = Performance efficiency
C = Theoretical Cycle Time
N = Process Quality
Losses include
• minor stops and idling
• reduced operating speed or slow m/c speed
3️⃣ POOR QUALITY LOSSES: Measured by RATE OF QUALITY PRODUCTS produced (Total quality parts produced to total parts produced by the machine)
👉 R= [ (N-Q)/T ]*100
R = Rate of quality products
N = Process Quantity
Q = non-conformities or defectives
Losses include:
•Rejections and defects • Rework
Focus: Build quality at the source
Targeted OEE: -
OEE = A*E*R
if A = 90%, E=95%, R = 99%
OEE = 0.90*0.95*0.99 = 0.85 (Approx.)
Importance of OEE
• Indicates the machine's current operational condition
• Showcases the gap between current and targeted equipment effectiveness
• Identifies the opportunity for Kaizen or continuous improvement
• Data based decision making
Final Thought
OEE is not just a number. It is the reflection of the level of operational excellence of an organization, and it helps to move towards the TPM goals of Zero Breakdown, Zero Defects, & Zero Losses
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Learn OEE in detail
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