OEE calculation and downtime tracking software helps in downtime tracking and increasing the ROI, professionals are recommending it. Measurement of OEE and the underlying losses helps managers to get a clear idea on how to systematically improve the manufacturing process. https://www.downtimecollectionsolutions.com

1. OVERALL EQUIPMENT
EFFICIENCY
A Next-Gen KPI for the Manufacturing
Industry

2. OVERVIEW
In 1960, the pioneering founder of the
Total Productive Maintenance System,
Seiichi Nakajima coined the term
overall equipment efficiency (OEE).
Equipment can run for a long duration
of time but how much of it is actually
productive? That is what OEE helps to
determine.
Measurement of OEE and the
underlying losses helps managers to
get a clear idea on how to
systematically improve the
manufacturing process. It is the single
best metric that can be used to
identify losses, benchmark progress,
and improve the productivity of
manufacturing equipment.

3. Simply put, OEE measure the
performance of a manufacturing unit
as three separate components:
Availability, Performance, and Quality.
Availability refers to the percentage
of scheduled time that the machine is
available for operation. Performance
refers to the speed at which machine
runs as a percentage of its designed
speed. Quality refers to the units
produced by the machine as a
percentage of the Total Units
Started.

4. SIX BIG LOSSES
A 100% availability score means that a process is always
operational during the planned production time. Performance is
divided into minor stops and speed loss. A 100% score means that
the process is operating at the fastest speed of which it is capable.
Quality has been broken down to production rejects and rejects on
startup. 100% score in quality means that only good parts are
being produced by the process.
For thorough calculation of OEE, the
three categories can be further
subdivided into two categories each.
So, availability can be broken down
into planned downtime and
breakdowns.

5. CALCULATING
OEE
OEE can be calculated by dividing the
least amount of time required to
produce parts under optimal
conditions by the actual time needed
to produce them. It becomes the ratio
of Fully Productive Time to Planned
Production Time.
The formula is: OEE = (Good Count ×
Ideal Cycle Time) / Planned
Production Time

6. But this formula does not provide
information about the three loss-
related factors: Availability,
Performance, and Quality.
So, the universal formula through
which OEE is determined is
(Availability)*(Performance)*(Quality).
Availability represents all events that
can halt planned production long
enough where a reason can be
tracked for downtime. Essentially it is
a ratio of Run Time to Planned
Production Time.
It is calculated as: Availability = Run
Time / Planned Production Time

7. Performance represents anything that causes the manufacturing process
to run at less than the maximum possible speed while operational.
Therefore, it is a ratio of Net Run Time to Run Time.
It is calculated as: Performance = (Ideal Cycle Time × Total Count) / Run
Time
Quality represents the manufactured parts that are substandard and do
not meet the quality requirement. It also includes the parts that need to be
reworked.
It is calculated as: Quality = Good Count / Total Count
The first step in calculating OEE, is to exclude any Shift Time where there
is no intent of running production, such as breaks. Next we have to
calculate the amount of time when production was actually running and
was not stopped. Stop Time should include both Unplanned Stops like
Breakdowns and Planned Stops.
Next we have to typically calculate the individual values of availability,
performance and quality using the above formulas. Multiplying the three
factors gives us the OEE value.

8. IMPLEMENTING OEE
Before OEE can be implemented, a pilot area must be selected to
determine the success of OEE. It can be a single machine, cell, or line.
Secondly, a constraint or bottleneck has to be selected in that
particular process, which can be a single step or machine that
manage the throughput of the overall process. OEE can be either
manual or automated. Three pieces of information are needed to
calculate OEE:

9. 01
02
03
GOOD COUNT
This only include parts that are defect-
free the first time through the process.
IDEAL CYCLE TIME
This is the theoretical minimum time to
produce one part, and
PLANNED PRODUCTION TIME
This is the total time that the
manufacturing process is scheduled for
production.

10. IMPROVING
OEE
OEE was developed under
Lean Manufacturing – as
part of the powerful and
holistic improvement
process known as TPM
(Total Productive
Maintenance). The
universal methodology for
driving any improvement
activity in OEE is referred
to as IDA (Information,
Decision, Action).

11. 01
02
03
INFORMATION
This is the foundation of IDA. It can be
subdivided into identifying constraint
and capturing loss information.
DECISION
Decisions are the axle between
Information and Action. It comes as a
moment when Information is assessed
and a course of Action is decided. It can
be subdivided into picking a top loss and
deciding countermeasures.
ACTION
Action is where the Decisions are
transformed into Results. Here is where
you implement the decided
countermeasures and capture data.

12. OEE scores provide an accurate picture of how
effectively a particular manufacturing process
is running. It makes it easy to monitor and
track improvements in that process. It helps
managers to systematically improve the
manufacturing process.