Discover the six Big losses in OEE (Overall Equipment Effectiveness) and learn how to minimize them to optimize your production process. Read the full article: https://www.datatobiz.com/blog/six-big-losses-in-oee/ About DataToBiz: DataToBiz is a team of experts who are committed to helping businesses and enterprises adopt advanced technologies like Data Science, Artificial Intelligence, and Business Intelligence technologies. We possess rich experience in designing, implementing, and crafting Data Engineering Solutions, for a wide array of business challenges. DataToBiz: https://www.datatobiz.com/

1. What are the
Six Big Losses
in OEE?

2. About the Topic
OEE (Overall Equipment
Effectiveness) is considered the
gold standard to measure
manufacturing productivity. A
business with higher OEE implies
being more productive and
optimally using resources, while
reducing defects or wastage.
Quality, performance, and time
are the three major parameters
used to measure OEE.

3. 1. Equipment Breakdowns
Equipment breakdowns and failure
account for significant loss of time
and productivity in an enterprise.
This is usually categorized as
availability loss as it is unplanned
downtime. The equipment is not
running when it is expected to run
leads to wastage of time and
productivity .

4. 2. Machine Setup and
Adjustment
The second loss of OEE in production
deals with the lack of availability of
the equipment due to setup,
installation, customization, or other
adjustment requirements.
This is the duration where the
machine has to be running but is
instead being adjusted (due to
various reasons).

5. 3. Minor Stops or Breaks
Minor stops or idling time is the
short duration when the machine’s
operator stops its usage to resolve
an issue. This is usually a minute or
two (for each stop).
It is categorized as performance
loss because the equipment is
available and running but is not
performing (or producing) during
that short period.

6. 4. Slower or Reduced Speeds
This is the duration when the
equipment is slower than the Ideal
Cycle Time, thus resulting in the
production of fewer goods than
expected.
It is categorized as performance loss
as the equipment is not producing as
many goods as it usually does. The
Ideal Cycle Time is the fastest
possible time taken to manufacture a
product.

7. 5. Process Defects
Every batch produced may have
some defective parts or goods
despite the production process
being stable throughout. Both
scrapped products and the ones
that can be reworked or reused are
totaled in this loss.
OEE measures quality based on the
First-Pass Yield, which makes
process defects a quality loss issue. If
the quality of the products is good,
they wouldn’t be marked defective.

8. 6. Lesser Yield or Higher
Scrap
The last OEE loss is reduced or lesser
yield caused by process defects.
Reduced yield is also categorized
under quality loss.
Though it can occur at any stage of
production, reduced or lesser yield
is mostly noticed (in high
frequency) after changeovers. It is
also calculated from the
perspective of First-Pass Yield.

9. Conclusion
Resolving the losses in OEE to
improve its score is a
continuous and long-term
process.
Manufacturers have to work
with a reputed Power BI
company to digitally
transform the processes and
automate recurring tasks.

10. Thank You For Reading!
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