This document provides an introduction to Overall Equipment Effectiveness (OEE) including definitions of key terms and calculations. It discusses the six big losses that reduce productivity, and how OEE is calculated based on availability, performance, and quality. An example calculation is shown to demonstrate how OEE, availability, performance, and quality are determined based on production data. Finally, it compares the calculated OEE to world class benchmarks.

1. WELCOME

2. KAILAS SREE CHANDRAN
CLASS: S7 INDUSTRIAL 432
Guide:V REGIKUMAR
OVERALL EQUIPMENT EFFECTIVENESS
OEE

3. MODERN APPROACH TO
OVERALL EQUIPMENT EFFECTIVENESS
OEE

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8.  Loss due to breakdown of equipment.
 Loss is more than 10 minutes.
 Biggest of SIX BIG LOSSES.
 Tooling Failures
 Unplanned Maintenance
 General Breakdowns
 Equipment Failure
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9.  The time lost due to adjustments
in the equipment.
 Loss is less then 10 minutes.
 Setup/ Changeover
 Material Shortages
 Major Adjustments
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10.  Small stops losses occur when equipment
stops for a short time as a result of a
temporary problem.
 These includes stops that are under ten
minutes.
 Component Jams
 Misfeeds
 Sensor Blocked
 Delivery Blocked
 Cleaning/ Checking
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11.  Reduced speed refers to the
difference between Design speed
and Actual Operating speed.
 Under NameplateCapacity
 Under Design Capacity
 Due to EquipmentWear
 Due to Operator Inefficiency
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12.  Some equipments require warm-
up time and certain adjustments
to obtain optimum output.
Startup rejection occurs during
this startup time.
 Scrap
 Rework
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13.  These losses occurs when products
produced are not conforming to the
specifications.
 These are rejects during steady-state
production.
 Scrap
 Rework
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15.  The amount of time the facility is open and
available for operation.
 One year consists of 365 days, one day
consists of 24 hours, 60 minutes in one
hour, 60 seconds in one minute.
 PLANT OPERATING TIME = Fully
Productive Time + Quality Loss + Speed
Loss + Downtime Loss + Planned
Shutdown
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16. PLANT OPERATINGTIME
PLANNED PRODUCTIONTIME PLANNED
SHUTDOWN
OPERATINGTIME DOWNTIME
LOSS
NET OPERATINGTIME
SPEED
LOSS
FULLY PRODUCTIVETIME
QUALITY
LOSS
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17. OEE FACTORS
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18.  Availability represents the percentage
of scheduled time that the equipment is
available to operate.
 Availability takes into account Down
Time Losses.
AVAILABILITY = OperatingTime
Planned ProductionTime
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19.  Performance represents the speed at
which the equipment runs as a
percentage of its designed speed.
 Performance takes into account Speed
loss.
PERFORMANCE = Net OperatingTime
OperatingTime
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20.  Quality represents the Good units
produced as a percentage of the Total
units produced.
QUALITY = Fully ProductiveTime
Net OperatingTime
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21. QUALITY=
Good Pieces/
Total Pieces
PERFORMANCE
=Actual Run
Rate/ Ideal Run
Rate
AVAILABILITY=
Operating time/
Planned
ProductionTime
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25. OEE= AVAILABILITY X PERFORMANCE X QUALITY
Availability = OperatingTime / Planned Production
Time
Performance = (Total Pieces / OperatingTime) / Ideal
Run Rate
Quality = Good Pieces /Total Pieces
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26.  This method use computers for
accessing inputs, calculating OEE
and its analysis.
 E.g.: OEE IMPACT, VISUAL OEE,
OEETOOLKIT, PROVIDEAM etc.
 Spreadsheets
 System Software
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27. o Shift Length: 8 Hours
o Tea Breaks: 10 Minutes x 2
o Meals Break: 1 Hour
o Downtime: 10% of shift
o Idle Runrate: 5 pieces/minute (Cycle
time=0.2min/pieces)
o Total Pieces Produced: 1600
o Rejected Pieces: 52
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28. OEE= Availability x Performance x Quality
Availability = Operating Time/ Planned
ProductionTime
Planned Production Time = Plant Operating
Time – Planned Shutdown
Plant OperatingTime= 8 hours x 60 = 480 min.
Planned Shut down = Tea break + Lunch
Break = (10x2) + 60 = 80minutes.
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29. Planned ProductionTime = 480-80 = 400 min.
Operating Time = Planned Production Time-
Downtime Loss = 400-48 = 352 minutes.
Availability = 352/400 = 0.88
Performance = (Total Pieces / Operating Time)/
Idle Run Rate = (1600/352) / 5 = 0.9091
Quality = Good Pieces /Total Pieces
= (1600-52) / 1600 = 0.9675
OEE = 0.88 x 0.9091 x 0.9675 = 0.774
OVERALL EQUIPMENT EFFECTIVENESS = 77.4%
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30. OVERALL EQUIPMENT EFFECTIVENESS (EXCEL CALCULATOR)
Production Data
Shift Length 8 Hours = 480 Minutes
Short Breaks 2 Breaks @ 10 Minutes Each = 20 Minutes Total
Meal Break 1 Breaks @ 60 Minutes Each = 60 Minutes Total
Down Time 48 Minutes
Ideal Run Rate 5 PPM (Pieces Per Minute)
Total Pieces 1,600 Pieces
Reject Pieces 52 Pieces
Support Variable Calculation Result
Planned
Production Time Shift Length - Breaks 400 Minutes
Operating Time Planned Production Time - Down Time 352 Minutes
Good Pieces Total Pieces - Reject Pieces 1,548 Pieces
OEE Factor Calculation OEE%
Availability Operating Time / Planned Production Time 88.00%
Performance (Total Pieces / Operation Time) / Ideal Run Rate 90.91%
Quality Good Pieces / Total Pieces 96.75%
Overall OEE Availability x Performance x Quality 77.40%
OEE Factor
World
Class OEE
OEE%
Availability 90.00% 88.00%
Performance 95.00% 90.91%
Quality 99.90% 96.75%
Overall OEE 85.00% 77.40%
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31.  World class OEE is a standard which is used to
compare the OEE of the firm.
OEE Factor WORLD CLASS
Availability 90%
Performance 95%
Quality 99%
Overall Equipment
Effectiveness
85%
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33. FULLY PRODUCTIVE
TIME
QUALITY
LOSS
PLANT OPERATINGTIME
PLANNED PRODUCTIONTIME PLANNED
SHUTDOWN
OPERATINGTIME DOWNTIME
LOSS
RUNNINGTIME
STOPTIME
LOSS
NET OPERATINGTIME
SPEED
LOSS
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34.  Usability takes into account Stop Time
Loss.
USABILITY = RunningTime
OperatingTime
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35. OEE
Availability Usability Performance Quality
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37. o Shift Length: 8 Hours
o Tea Breaks: 10 Minutes x 2
o Meals Break: 1 Hour
o Warm-upTime: 20 minutes
o Equipment Breakdown(Tool Failure): 28 min.
o Idle Runrate: 5 pieces/minute (Cycle
time=0.2min/pieces)
o Total Pieces Produced: 1600
o Rejected Pieces: 52
Downtime
Loss of 48
minutes (10%
of Shift)
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38. Availability = OperatingTime/ Planned
ProductionTime
Planned ProductionTime = 400 minutes
OperatingTime = Planned ProductionTime-
Breakdowns = 400-28 = 372 minutes.
Availability = 372/400 = 0.93
Usability = Running time / OperatingTime
RunningTime = OperatingTime –Warm-up
Time = 372-20 = 352 minutes.
Usability = 352 / 372 = 0.9462
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39. Performance =(Total Pieces / OperatingTime) /
Idle Run Rate = (1600 / 352) / 5 = 0.9091
Quality = Good Pieces /Total Pieces
= (1600-52) / 1600 = 0.9675
OEE = Availability x Usability x Performance x
Quality
OEE = 0.93 x 0.9462 x 0.9091 x 0.9675 = 0.774
Modified OVERALL EQUIPMENT
EFFECTIVENESS = 77.4%
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42.  Anil S. Badiger, ‘A proposal: evaluation of
OEE and impact of six big losses’, Int. J.
Process Management and Benchmarking,
Vol.2, No. 3, 2008, pp 234-248.
 Ravikumar M. M., ‘Improving Equipment
Effectiveness’, Int. Business Management,
Vol. 3, No.2, 2008, pp 91-96.
 www.bestmanagementarticles.com
 www.maintenanceworld.com
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