This document discusses Overall Equipment Effectiveness (OEE), which is a metric used in Lean Manufacturing and Total Productive Maintenance programs to measure machine performance. OEE considers three factors: availability, which accounts for downtime losses; performance, which considers speed losses; and quality, which looks at defective parts. The document provides examples of calculating each factor and demonstrates how to determine an overall OEE percentage by multiplying the availability, performance, and quality rates. An OEE of over 85% is considered good, while the example shown calculates to 81.2%. Tracking OEE helps identify inefficiencies and set goals for continuous improvement.

1. BALAKUMAR V
OVERALL EQUIPMENT EFFECTIVENESS

2. OEE
 OEE is an index to judge production run in terms of Machine Availability,
Production Rate & Quality rate of the Product
 For TPM and Lean Manufacturing Programs, OEE is a key metric.
 It is an Important Planning, Material Planning and other resource planning.
 OEE is also known as TEEP ( Total Effective Equipment Performance )
 Overall Equipment Effectiveness is a Lean Manufacturing Tool.
OEE :
There are three parameters for Overall Equipment ( Effectiveness ) Monitoring.
(i) Availability
(ii) Performance
(iii) Quality

3. AVAILABILITY
 Availability Shows the machine available duration for manufacturing.
 In Other Words, for how much time our machine is available for manufacturing.
 Availability takes into account of Breakdown Losses.
 Downtime Losses include events or incidents that lead to a stoppage of planned production for a
considerable duration.
 After Removing, downtime we can get the operating duration of the machine.
 Examples of Downtime:
(i) Equipment Failure
(ii) Material Shortage
(iii) Excess Change over Timing

4. PERFORMANCE:
 Performance Shows the excess 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 production with more cycle time than
maximum permissible.
 Examples of Performance Losses :
(i) Low Speed of Job Loading/Unloading
(ii) Fatigue of the Operator
(iii) Excess Cycle time in Manual Work, Etc…

5. QUALITY:
 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 defective part or Non-Conforming Part.
OEE CALCULATION:
 Availability(A) = Actual Production Time / Planned Production Time
(i) Planned Production Time = Total Available Time – Planned Break Time
(ii) Actual Production Time = Planned Production Time – Stops
 Performance (P) = Actual Production Rate / Ideal Production Rate
(i) Actual Production Rate = Total Count / Total Run Time
 Quality (Q) = Good Parts / Total Parts Produced

6. Times and Losses Calculation:
 Planned Shutdown – Not Part of Overall Equipment Effectiveness Calculation.
 Breakdown Loss – Operating timing to Planned Manufacturing timing ratio is called availability when a
process runs without any stoppage there will be 100% availability.
 Speed Loss – It is ratio of net operating timing to total operating timing or it can be calculated by actual
Cycle time / Ideal Cycle time. When the process runs with maximum theoretical speed then performance
will be 100%
 Quality Loss – It is the ratio of total good parts to a total part produced. When all produced parts are
good then there will be 100% Quality.

7. OEE Calculation Example:
 Let’s assume below data to understand Overall Equipment Effectiveness Calculation
(i) Shift Duration – 8 Hours (480 Minutes)
(ii) Total Breaks – 55Mins
(iii) Breakdown – 40Mins
(iv) Ideal Production Rate – 1 Part per Minute
(v) Total Part Produced – 350
(vi) Rejected Parts - 4

8. OEE Calculation Example:
 Planned Production Time = Total Available Time – Planned Break time
= 480Mins – 55Mins
= 425Mins
 Actual Production Time = Planned Production Time - Breakdown Time
= 425Mins – 40Mins
= 385Mins
 Availability = Actual Production Time / Planned Production Time
= 385Mins / 425Mins
= 0.91
 Performance = Total Production / Ideal Production Rate
= 350 / 385
= 0.91
 Quality = Good Parts / Total Parts Produced
=(350-4) / 350
= 346/350 = 0.988

9. OEE Benefits:
 OEE = Availability x Performance x Quality
= 0.91 x 0.91 x 0.988
= 0.818
= 0.818 x 100 = 81.2 %
 It Helps us to set goals for improvement and track the Progress.
 Overall Equipment Effectiveness helps us to find inefficiencies in the operation process.
 It Provides us a benchmark data for the New Process Setup.
 Overall Equipment Effectiveness helps to track progress in Eliminating Waste from an Operation Process.
Times and Losses Calculation:

10. THANK YOU