OEE Benchmarks

So as a benchmark, what is considered a good OEE score?

An OEE score of 100% is perfect production manufacturing on!" good parts, as fast as
possib!e, with no down time#
An OEE score of $%% is considered wor!d c!ass for discrete manufacturers# &or man"
companies, it is a suitab!e !ong'term goa!#
An OEE score of (0% is fair!" t"pica! for discrete manufacturers, but indicates there is
substantia! room for impro)ement#
An OEE score of *0% is not at a!! uncommon for manufacturing companies that are +ust
starting to track and impro)e their manufacturing performance# ,t is a !ow score and in
most cases can be easi!" impro)ed through straightforward measures -e#g# b" tracking
down time reasons and addressing the !argest sources of down time . one at a time/#
0enchmark "our OEE score against industr" standards for discrete manufacturing and stri)e for
wor!d c!ass resu!ts#
Calculating OEE The Simple Way
So how is the OEE score ca!cu!ated?
,n simp!est terms, OEE is the ratio of &u!!" 1roducti)e 2ime to 1!anned 1roduction 2ime# ,n
practice this is ca!cu!ated as
-3ood 1ieces 4 ,dea! 5"c!e 2ime/ 6 1!anned 1roduction 2ime
7et8s define some terms
3ood 1ieces -pieces that are manufactured without an" defects/
,dea! 5"c!e 2ime -the theoretica! fastest possib!e time to manufacture one piece/
1!anned 1roduction 2ime -the tota! time that the production asset is schedu!ed for
production/
&u!!" 1roducti)e 2ime -producing on!" good pieces, as fast as possib!e, with no down
time/
Calculating OEE The Preferred Way
2he preferred wa" to ca!cu!ate OEE is mathematica!!" e9ui)a!ent to the simp!e formu!a
described abo)e, but pro)ides a much richer understanding of waste in the manufacturing
process b" breaking it down into three measurab!e categories
A)ai!abi!it"
1erformance
:ua!it"
OEE is the ratio of &u!!" 1roducti)e 2ime to 1!anned 1roduction 2ime#
1!anned Shutdown is not inc!uded in OEE ca!cu!ations since there is no intention of running
production#
Availability
A)ai!abi!it" takes into account !"n Time #!ss, which inc!udes a!! e)ents that stop p!anned
production for an appreciab!e !ength of time -t"pica!!" se)era! minutes or !onger/#
,t is ca!cu!ated as the ratio of Operating 2ime to 1!anned 1roduction 2ime, where Operating
2ime is simp!" 1!anned 1roduction 2ime !ess ;own 2ime
Operating 2ime 6 1!anned 1roduction 2ime
Perf!rmance
1erformance takes into account Speed #!ss, which inc!udes a!! factors that cause the production
asset to operate at !ess than the ma4imum possib!e speed when running#
,t is ca!cu!ated as the ratio of <et Operating 2ime to Operating 2ime# ,n practice, it is ca!cu!ated
as
-,dea! 5"c!e 2ime 4 2ota! 1ieces/ 6 Operating 2ime
,dea! 5"c!e 2ime is the theoretica! fastest possib!e time to manufacture one piece# 2herefore,
when it is mu!tip!ied b" 2ota! 1ieces the resu!t is <et Operating 2ime . the theoretica! fastest
possib!e time to manufacture the tota! 9uantit" of pieces#
=ere is a simp!e e4amp!e of a 1erformance ca!cu!ation
,tem >a!ue E4p!anation
,dea! 5"c!e 2ime 1 minute 2heoretica! fastest time to produce this part#
2ota! 1ieces ?00 2ota! 9uantit" of pieces manufactured during this shift#
Operating 2ime ??0 minutes @un time of this shift -p!anned production time !ess down time/#
1erformance A0#A%
-,dea! 5"c!e 2ime 4 2ota! 1ieces/ 6 Operating 2ime B -1 4 ?00/ 6
??0
$uality
:ua!it" takes into account $uality #!ss, which factors out manufactured pieces that do not meet
9ua!it" standards, inc!uding pieces that re9uire rework#
,t is ca!cu!ated as the ratio of &u!!" 1roducti)e 2ime -fastest possib!e time for 3ood 1ieces/ to
<et Operating 2ime -fastest possib!e time for 2ota! 1ieces/# ,n practice it is ca!cu!ated as
3ood 1ieces 6 2ota! 1ieces
OEE
OEE takes into account a!! !osses -;own 2ime 7oss, Speed 7oss, and :ua!it" 7oss/, resu!ting in
a measure of tru!" producti)e manufacturing time#
,t is ca!cu!ated as the ratio of &u!!" 1roducti)e 2ime to 1!anned 1roduction 2ime# ,n practice, it is
ca!cu!ated as
A)ai!abi!it" 4 1erformance 4 :ua!it"
,f the e9uations for A)ai!abi!it", 1erformance, and :ua!it" are substituted in the abo)e e9uation
and then reduced to their simp!est terms the resu!t is
-3ood 1ieces 4 ,dea! 5"c!e 2ime/ 6 1!anned 1roduction 2ime
2his is the simp!est OEE ca!cu!ation described ear!ier# Cith a bit of ref!ection, it can be seen
that mu!tip!"ing 3ood 1ieces b" ,dea! 5"c!e 2ime resu!ts in &u!!" 1roducti)e 2ime
-manufacturing on!" good parts, as fast as possib!e, with no down time/#
Perfect Pr!ducti!n
Ear!ier, an OEE score of 100% was described as perfect production manufacturing on!" good
parts, as fast as possib!e, with no down time# 7et8s tie this notion of perfect production to the
OEE ca!cu!ation
Danufacturing on!" good partsEmeans a :ua!it" score of 100%
As fast as possib!eEmeans a 1erformance score of 100%
Cith no down timeEmeans an A)ai!abi!it" score of 100%
Corking through rea!'wor!d e4amp!es is a great wa" to master the OEE ca!cu!ation# &or free
worked e4amp!es, temp!ates, spreadsheets, and other too!s )isit www#oee#com6resource'center#
%etrics &!r The Plant &l!!r
OEE is a great too! for managers, but for p!ant f!oor emp!o"ees it can be a bit abstract# 1!ant
f!oor emp!o"ees wi!! perform best when the" are gi)en goa!s that are rea!'time, easi!" interpreted
and high!" moti)ationa!# A good e4amp!e of an effecti)e set of p!ant f!oor metrics is 2AE;
2arget -a rea!'time production target dri)en b" the p!anned rate of production/
Actua! -the actua! production count/
Efficienc" -the ratio of 2arget to Actua!F how far ahead or behind production is running in
terms of a percentage/
;own 2ime -accumu!ated down time for the shift updated in rea!'timeF this keeps a
strong focus on a ke" actionab!e impro)ement area/
3et something for nothing . down!oad free too!s
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