The mystery of OEE

1Marek.Piatkowski@Rogers.com
OEE
Definitions
Thinkingwin, Win, WIN
The Mystery of OEE
Definitions
Marek Piatkowski – April 2016

OEE
Definitions
Introduction - Marek Piatkowski
 Professional Background
 Toyota Motor Manufacturing Canada (TMMC) - Cambridge, Ontario from
1987-1994
 TPS/Lean Transformation Consulting - since 1994
 Professional Affiliations
 TWI Network – John Shook, Founder
 Lean Enterprise Institute (LEI) – Jim Womack
 Lean Enterprise Academy (LEA) – Daniel Jones
 CCM/CAINTRA – Monterrey, Mexico
 SME, AME, ASQ, CME
 Lean Manufacturing Solutions - Toronto, Canada
http://twi-network.com

OEE
Definitions

OEE
Definitions
TPM Implementation should be driven by the following phrase.
“THIS IS THE WORST CONDITION
THIS EQUIPMENT HAS EVER BEEN IN”

OEE
Definitions
Operational Availability
 The time that a machine operates maintenance free as a percentage of the time
during it is switched on.
 This is equivalent to the reliability of equipment and its maintenance
 The ideal condition is to have 100% operational availability during the time the
machine is switched on to fill production orders.
Rate of Operation
 The rate of operation states the actual production levels being achieved by
equipment
 This is the percentage of total production capacity actually produced during regular
work hours as determined by demand.
 This rate of operation itself changes depending upon sales.

OEE
Definitions
OEE - Improvement Measurements
 OEE - Overall equipment effectiveness measures how the plant is performing
relative to reducing the equipment losses and conditions which prevent customer
satisfaction
 The OEE improvement measurement is the product of three different
measurements:
EA - Equipment Availability
EEP - Equipment Efficiency Performance
EQP - Equipment Quality Performance

OEE
Definitions
EA – Equipment Availability
 EA - is a basic TPM performance measurement.
 EA measures how often equipment is not producing units (unplanned downtime)
due to breakdown or adjustment losses. It compares the actual time the equipment
was producing units (uptime) to the time it was scheduled to produce units
(scheduled production time).
 A breakdown is defined as a condition which requires assistance of a specially
trained maintenance technician or an engineer
 Equipment adjustments are should be normally performed by operators
 Unplanned downtime does not include breaks, lunches, personal relief, team
meetings or scheduled maintenance.
EA

OEE
Definitions
EA – Equipment Availability
Uptime
EA
Uptime = Scheduled Production Time - Unplanned Downtime
X 100 %EA =
Scheduled Production Time
EA percentage (%) gives the actual time the machine is
running versus what it should be running

OEE
Definitions
What is a Down Time Clock?
 Down Time Clock is a simple method to measure (EA), total duration of machine
stops – regardless of the reasons or causes
 In it’s simplest form it is an analog clock connected to the “logic” of a machine or
an automated process
 At the start of the shift the clock is reset to 12:00
 When machine is operating – the clock is not running. When the machine stops –
the clock starts to run.
 This way at the end of a work period (for example a shift) you can have an accurate
read-out how many minutes the machine was not running.
 In the example on the next slide the machine was not running for almost 2 hours
and 50 minutes – 170 minutes down time per shift
 How accurate is your down time? You might surprise yourself

OEE
Definitions
EEP – Equipment Efficiency Performancee
 EEP - measures the actual machine cycle time versus the theoretical or “standard”
cycle time.
 It compares the actual number of units produced versus the “standard” number of
units the machine should have produced in a given length of time (uptime)
 Uptime is the same number that was previously defined in the EA calculation.
 The standard cycle time assumes there are no minor stoppage losses or reduced
speed losses.
 Minor stoppages are defined as stoppages which can be corrected by the operator
EEP

OEE
Definitions
EEP – Equipment Efficiency Performance
EEP X 100 %EEP =
Actual Run Time
Standard Cycle Time x # of Units Produced
EEP percentage shows the percent of units produced versus the
“standard” quantity that should have been produced.
The number of Units Produced also includes any defective units that were
produced during that period of time.

OEE
Definitions
EQP – Equipment Quality Performance
 EQP - measures the performance of the machine from a quality standpoint.
 It compares the number of good units to the total number of units produced for a
given period of time.
 Defective units can be produced when equipment does not perform properly or
during machine start-up, before the process has stabilized.
 Parts which can be reworked are counted as defective.
EQP

OEE
Definitions
EQP – Equipment Quality Performance
EQP # of Good Units
X 100 %EQP =
Total # of Units Produced
# of Good units = Total # of Units Produced - Total # of Units Defective
EQP percentage shows the quality performance of equipment

OEE
Definitions
OEE – Overall Equipment Efficiency
OEE = EA x EEP x EQP
Benchmarks for these measurements are:
EA = 90% EEP = 95% EQP = 99%
OEE = 85%
OEE

OEE
Definitions
Availability
Greater than 90%
Running Time
Net Operating Time
B
A
=
Overall Equipment Effectiveness =
Availability x Performance rate x Quality rate 85%+
Idling and minor stoppages per
machine (under 10 minutes)
...less than 3 times/month
Idling &minor
stoppages
3
Operation speed increased
...increase 15% or more
Speed4
Quality defects in process
(including products to be
reworked)...less than 0.1%
Quality defects
in process &
rework
5
Raw material yield
...greater than 99%
Startup6
Setup & adjustment time
...less than 10 minutes
Setup/
adjustment2
1 Breakdowns
Machine down no longer than
10 minutes
...less than once a month
Average total operating loss
30 - 50%
Performance rate
Greater than 95%
Actual Output
Target Output
D
C
=
Total yield
Throughout process > 99%
Good Output
Actual Output
F
E
=
Equipment
Downtime
losses
Speed
losses
Quality
losses
Total operating time
Running time
Good
Output
Optimal conditions in "man-machine" system
Increase continuous unmanned operation time
Equipment operation and the six big losses Improvement Targets
Not
Scheduled
Net operating time
Target Output
Actual Output
Actual Output
A
B
C
D
E
F
OEE

OEE
Definitions
Changing the World. One Transformation at a time
This presentation is an intellectual property of W3 Group Canada Inc.
No parts of this document can be copied or reproduced
without written permission from:
Marek Piatkowski
W3 Group Canada Inc.
iPhone: 416-235-2631
Cell: 248-207-0416
Marek.Piatkowski@rogers.com
http://twi-network.com

OEE
Definitions
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