The Fast Guide Tooee™

Th e Fa st Gu ide
t o OEE™
Present ed by Vorne I ndust ries

Specialist s in Visual Fact ory and
Product ion Monit oring Syst em s
© 2002- 2008 Vorne I ndust r ies I nc., I t asca, I L USA + 1 ( 630) 875- 3600 www.vorne.com www.oee.com
Ta ble of Con t e n t s
FAST TRACK OEE FOR PROD UCTI ON PEOPLE ON TH E M OVE ................................... 4

W H AT I S OEE?........................................................................................................ 4
FAST TRACK ROAD M AP........................................................................................... 5
OEE FACTORS ......................................................................................................... 6
W h e r e D o W e St a r t ? ......................................................................................... 6
Ava ila bilit y ....................................................................................................... 6
Pe r for m a nce ..................................................................................................... 6
Qu a lit y ............................................................................................................. 6
Qu ick Re vie w ................................................................................................... 7
SI X BI G LOSSES ..................................................................................................... 8
D e fin ing t h e Six Big Losse s .............................................................................. 8
Addr e ssing t h e Six Big Losse s .......................................................................... 9
Breakdowns ................................................................................................ 9
Set up and Adj ust m ent s ................................................................................. 9
Sm all St ops and Reduced Speed .................................................................... 9
St art up Rej ect s and Product ion Rej ect s ........................................................... 9
W ORLD CLASS OEE ............................................................................................... 1 0
CALCULATI N G OEE ............................................................................................... 1 1
Th e For m ula s ................................................................................................. 1 1
Availabilit y ................................................................................................ 11
Perform ance .............................................................................................. 11
Qualit y ..................................................................................................... 11
OEE ......................................................................................................... 11
Ex a m ple OEE Ca lcu la t ion ................................................................................ 1 3
Ex a m ple OEE Ca lcu la t ion ................................................................................ 1 3
OEE FAQ ............................................................................................................... 1 4
OEE GLOSSARY ..................................................................................................... 1 7
VI SUAL OEE™ ....................................................................................................... 2 2
Th e Visua l OEE™ Pr in ciple .............................................................................. 2 2
Ge t t in g St a r t e d............................................................................................... 2 3
At t a ck in g t h e Six Big Losse s .......................................................................... 2 4
ABOUT VORN E ...................................................................................................... 2 5
W ho W e Ar e ................................................................................................... 2 5
W h a t W e D o ................................................................................................... 2 5
W hy W e D o I t ................................................................................................. 2 5
CON TACT US......................................................................................................... 2 6
N OTES: ................................................................................................................. 2 7
Fa st Tr a ck OEE for Pr odu ct ion Pe ople on t h e M ove
D oe s you r pr odu ct ion h a ve bot t le n e ck s t h a t you 'r e not a w a r e of?
Cou ld on e m a ch in e be dr a ggin g dow n t he e n t ir e fa cilit y?
D oe s you r e qu ipm e n t h a ve e x ce ss ca pa cit y t ha t could be e a sily a n d
in e x pe n sive ly t a ppe d?
There's been a long parade of m anufact uring buzzwords and syst em s over t he years. As you
are all t oo aware, m any have been lit t le m ore t han a wast e of t im e, energy and m oney for
you and your already overworked st aff.
But Overall Equipm ent Effect iveness ( OEE) is different . OEE t ruly reduces com plex
product ion problem s int o sim ple, int uit ive present at ion of inform at ion. I t helps you
syst em at ically im prove your process wit h easy- t o- obt ain m easurem ent s.
We invit e you t o spend a few m inut es reading The Fast Guide t o OEE™. I t 's a st ep by st ep
t ut orial t hat will help you inst ant ly m ake m ore wit h what you've got .
W h a t is OEE?
OEE is a " best pract ices" way t o m onit or and im prove t he effect iveness of your
m anufact uring processes ( i.e. m achines, m anufact uring cells, assem bly lines) .
OEE is sim ple and pract ical. I t t akes t he m ost com m on and im port ant sources of
m anufact uring product ivit y loss, places t hem int o t hree prim ary cat egories and dist ills t hem
int o m et rics t hat provide an excellent gauge for m easuring where you are - and how you
can im pr ove !
OEE is frequent ly used as a key m et ric in TPM ( Tot al Product ive Maint enance) and Le a n
M a nufa ct ur ing program s and gives you a consist ent way t o m easure t he effect iveness of
TPM and ot her init iat ives by providing an overall fram ework for m easuring product ion
efficiency.
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Fa st Tr a ck Roa dm a p
We've broken it down int o " six easy pieces" - Your Fast Guide t o OEE™.
OEE Fa ct or s int roduces Availabilit y, Perform ance, and Qualit y...t he m et rics t hat you will
use t o m easure your plant 's efficiency and effect iveness. We provide a visual overview of
t he key product ivit y losses t hat occur in t he t ypical m anufact uring environm ent . We st art
wit h Plant Operat ing Tim e and end up at Fully Product ive Tim e, showing t he sources of
product ivit y loss t hat occur in bet ween.
Six Big Losse s describes t he m ost com m on causes for efficiency loss – alm ost always
found in t oday's m anufact uring environm ent . Six root causes of loss are present ed, each
direct ly relat ed t o an OEE Fact or.
W or ld Cla ss OEE int roduces t he general OEE calculat ion and what is considered t o be t ruly
world class OEE. This is your goal!
Ca lcu la t ing OEE illust rat es how t he t hree OEE Fact ors are calculat ed and breaks t hem int o
t he specific elem ent s t hat are required t o develop t he OEE percent age. A real- world
exam ple is given t o dem onst rat e t he m echanics of a t ypical OEE calculat ion.
OEE FAQ present s com m only asked quest ions about OEE, wit h pract ical, real world answers
and advice.
Visua l OEE™ m akes im m ediat e im provem ent s at t ainable! By bringing real- t im e dat a
direct ly t o t he plant floor, Visual OEE™ is t he proact ive pat h t o cont inuous im provem ent !
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OEE Fa ct or s
W here Do W e St art ?
OEE analysis st art s wit h Pla n t Ope r a t in g Tim e ; t he am ount of t im e your facilit y is open
and available for equipm ent operat ion.
From Pla n t Ope r a t ing Tim e , you subt ract a cat egory of t im e called Pla n n e d Sh u t D ow n,
which includes all event s t hat should be excluded from efficiency analysis because t here was
no int ent ion of running product ion ( e.g. breaks, lunch, scheduled m aint enance, or periods
where t here is not hing t o produce) . The rem aining available t im e is your Pla nne d
Pr odu ct ion Tim e .
OEE begins wit h Pla n n e d Pr odu ct ion Tim e and scrut inizes efficiency and product ivit y
losses t hat occur, wit h t he goal of reducing or elim inat ing t hese losses. There are t hree
general cat egories of loss t o consider - D ow n Tim e Loss, Spe e d Loss and Qua lit y Loss.
Availabilit y
Ava ila bilit y t akes int o account D ow n Tim e Loss, which includes any Eve n t s t hat st op
planned product ion for an appreciable lengt h of t im e ( usually several m inut es – long enough
t o log as a t rackable Event ) . Exam ples include equipm ent failures, m at erial short ages, and
changeover t im e. Changeover t im e is included in OEE analysis, since it is a form of down
t im e. While it m ay not be possible t o elim inat e changeover t im e, in m ost cases it can be
reduced. The rem aining available t im e is called Ope r a t in g Tim e .
Perform ance
Pe r for m a nce t akes int o account Spe e d Loss, which includes any fact ors t hat cause t he
process t o operat e at less t han t he m axim um possible speed, when running. Exam ples
include m achine wear, subst andard m at erials, m isfeeds, and operat or inefficiency. The
rem aining available t im e is called N e t Ope r a t in g Tim e.
Qualit y
Qu a lit y t akes int o account Qua lit y Loss, which account s for produced pieces t hat do not
m eet qualit y st andards, including pieces t hat require rework. The rem aining t im e is called
Fully Pr oduct ive Tim e . Our goal is t o m axim ize Fu lly Pr odu ct ive Tim e .
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Quick Review
Now t hat you have t aken a look at how t he fact ors t hat cont ribut e t o OEE Losses are
developed we can quickly review t he key point s.
OEE Loss OEE Fa ct or

Pla n n e d
Not part of t he OEE calculat ion.
Sh u t dow n
D ow n Tim e • Availabilit y is t he rat io of Operat ing Tim e t o Planned Product ion Tim e
• Calculat ed as t he rat io of Operat ing Tim e t o Planned Product ion Tim e.

Loss ( Operat ing Tim e is Planned Product ion Tim e less Down Tim e Loss) .
• 100% Availabilit y m eans t he process has been running wit hout any
recorded st ops.
Spe e d Loss • Perform ance is t he rat io of Net Operat ing Tim e t o Operat ing Tim e ( Net
• Calculat ed as t he rat io of I deal Cycle Tim e t o Act ual Cycle Tim e, or

Operat ing Tim e is Operat ing Tim e less Speed Loss) .
• 100% Perform ance m eans t he process has been consist ent ly running at
alt ernat ely t he rat io of Act ual Run Rat e t o I deal Run Rat e.
it s t heoret ical m axim um speed.

• Qualit y is t he rat io of Fully Product ive Tim e t o Net Operat ing Tim e ( Fully
• Calculat ed as t he rat io of Good Pieces t o Tot al Pieces.

Product ive Tim e is Net Operat ing Tim e less Qualit y Loss) .
Qu a lit y Loss
• 100% Qualit y m eans t here have been no rej ect or rework pieces.
As you can see, t he core concept s of OEE are quit e sim ple and really help t o focus on t he
underlying causes of product ivit y loss. We can delve even deeper int o product ivit y losses by
underst anding t he Six Big Losses.
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Six Big Losse s
Defining t he Six Big Losses

One of t he m aj or goals of TPM and OEE program s is t o reduce and/ or elim inat e what are
called t he Six Big Losse s – t he m ost com m on causes of efficiency loss in m anufact uring.
The following t able list s t he Six Big Losses, and shows how t hey relat e t o t he OEE Loss
cat egories.
Six Big Loss OEE Loss Eve nt Ex a m ple s Com m e n t

Ca t e gor y Ca t e gor y
•
•
Br e a k dow ns Down Tim e Tooling Failures There is flexibilit y on where t o
•
Loss Unplanned Maint enance set t he t hreshold bet ween a
•
General Breakdowns Breakdown ( Down Tim e Loss)
Equipm ent Failure and a Sm all St op ( Speed Loss) .
•
•
Se t up a n d Down Tim e Set up/ Changeover This loss is oft en addressed
•
Adj u st m e nt s Loss Mat erial Short ages t hrough set up t im e reduct ion
•
Operat or Short ages program s.
•
Maj or Adj ust m ent s
Warm - Up Tim e
•
•
Sm a ll St ops Speed Loss Obst ruct ed Product Flow Typically only includes st ops
•
Com ponent Jam s t hat are under five m inut es
•
Misfeeds and t hat do not require
•
Sensor Blocked m aint enance personnel.
•
Delivery Blocked
Cleaning/ Checking
•
•
Re du ce d Speed Loss Rough Running Anyt hing t hat keeps t he
•
Spe e d Under Nam eplat e Capacit y process from running at it s
•
Under Design Capacit y t heoret ical m axim um speed
•
Equipm ent Wear ( a.k.a. I deal Run Rat e or
Operat or I nefficiency Nam eplat e Capacit y) .
•
•
St a r t u p Qualit y Scrap Rej ect s during warm - up,
•
Re j e ct s Loss Rework st art up or ot her early
•
I n- Process Dam age product ion. May be due t o
•
I n- Process Expirat ion im proper set up, warm - up
I ncorrect Assem bly period, et c.
•
•
Pr odu ct ion Qualit y Scrap Rej ect s during st eady- st at e
•
Re j e ct s Loss Rework product ion.
•
I n- Process Dam age
•
I n- Process Expirat ion
I ncorrect Assem bly
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Addressing t he Six Big Losses

Now t hat we know what t he Six Big Losses are and som e of t he Event s t hat cont ribut e t o
t hese losses, we can focus on ways t o m onit or and correct t hem . Cat egorizing dat a m akes
loss analysis m uch easier, and a key goal should be fast and efficient dat a collect ion, wit h
dat a put it t o use t hroughout t he day and in real- t im e.
Breakdowns
Elim inat ing unplanned D ow n Tim e is crit ical t o im proving OEE. Ot her OEE Fact ors cannot
be addressed if t he process is down. I t is not only im port ant t o know how m uch Down Tim e
your process is experiencing ( and when) but also t o be able t o at t ribut e t he lost t im e t o t he
specific source or reason for t he loss ( t abulat ed t hrough Re a son Code s) . Wit h Down Tim e
and Reason Code dat a t abulat ed, Root Ca u se Ana lysis is applied st art ing wit h t he m ost
severe loss cat egories.
Setup and Adjustments

Set up and Adj ust m ent t im e is generally m easured as t he t im e bet ween t he last good part
produced before Set up t o t he first consist ent good part s produced aft er Set up. This oft en
includes subst ant ial adj ust m ent and/ or warm - up t im e in order t o consist ent ly produce part s
t hat m eet qualit y st andards.
Tracking Se t u p Tim e is crit ical t o reducing t his loss, t oget her wit h an act ive program t o
reduce t his t im e ( such as an SM ED – Single M in u t e Ex ch a nge of D ie s program ) .
Many com panies use creat ive m et hods of reducing Set up Tim e including assem bling
changeover cart s wit h all t ools and supplies necessary for t he changeover in one place,
pinned or m arked set t ings so t hat coarse adj ust m ent s are no longer necessary, and use of
prefabricat ed set up gauges.
Small Stops and Reduced Speed

Sm all St ops and Reduced Speed are t he m ost difficult of t he Six Big Losses t o m onit or and
record. Cycle Tim e Ana lysis should be ut ilized t o pinpoint t hese loss t ypes. I n m ost
processes recording dat a for Cycle Tim e Analysis needs t o be aut om at ed since cycles are
quick and repet it ive event s t hat do not leave adequat e t im e for m anual dat a- logging.
By com paring all com plet ed cycles t o t he I de a l Cycle Tim e and filt ering t he dat a t hrough a
Sm a ll St op Th r e sh old and Re du ce d Spe e d Th r e sh old t he errant cycles can be
aut om at ically cat egorized for analysis. The reason for analyzing Sm all St ops separat ely from
Reduced Speed is t hat t he root causes are t ypically very different , as can be seen from t he
Event Exam ples in t he previous t able.
Startup Rejects and Production Rejects

St art up Rej ect s and Product ion Rej ect s are different iat ed, since oft en t he root causes are
different bet ween st art up and st eady- st at e product ion. Part s t hat require rework of any kind
should be considered rej ect s. Tracking when rej ect s occur during a shift and/ or j ob run can
help pinpoint pot ent ial causes, and in m any cases pat t erns will be discovered.
Oft en a Six Sigm a program , where a com m on m et ric is achieving a defect rat e of less t han
3.4 defect s per m illion “ opport unit ies” , is used t o focus at t ent ion on a goal of achieving
” near perfect ” qualit y.
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W or ld Cla ss OEE
OEE is essent ially t he rat io of Fully Product ive Tim e t o Planned Product ion Tim e ( refer t o t he
OEE Fa ct or s sect ion for a graphic represent at ion) . I n pract ice, however, OEE is calculat ed
as t he product of it s t hree cont ribut ing fact ors:
OEE = Availabilit y x Perform ance x Qualit y
This t ype of calculat ion m akes OEE a severe t est . For exam ple, if all t hree cont ribut ing
fact ors are 90.0% , t he OEE would be 72.9% . I n pract ice, t he generally accept ed World-
Class goals for each fact or are quit e different from each ot her, as is shown in t he t able
below.
OEE Fa ct or W or ld Cla ss
Ava ila bilit y 90.0%
Pe r for m a nce 95.0%
Qu a lit y 99.9%
OEE 85.0%
Of course, every m anufact uring plant is different . For exam ple, if your plant has an act ive
Six Sigm a qualit y program , you m ay not be sat isfied wit h a first - run qualit y rat e of 99.9% .
Worldwide st udies indicat e t hat t he average OEE rat e in m anufact uring plant s is 60% . As
you can see from t he above t able, a World Class OEE is considered t o be 85% or bet t er.
Clearly, t here is room for im provem ent in m ost m anufact uring plant s! How about yours?
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Ca lcu la t in g OEE
The Form ulas

As described in World Class OEE, t he OEE calculat ion is based on t he t hree OEE Fact ors,
Availabilit y, Perform ance, and Qualit y. Here's how each of t hese fact ors is calculat ed.
Availability
Availabilit y t akes int o account D ow n Tim e Loss, and is calculat ed as:
Ava ila bilit y = Operat ing Tim e / Planned Product ion Tim e
Performance
Perform ance t akes int o account Spe e d Loss, and is calculat ed as:
Pe r for m a n ce = I deal Cycle Tim e / ( Operat ing Tim e / Tot al Pieces)
I deal Cycle Tim e is t he m inim um cycle t im e t hat your process can be expect ed t o achieve in
opt im al circum st ances. I t is som et im es called Design Cycle Tim e, Theoret ical Cycle Tim e or
Nam eplat e Capacit y.
Since Run Rat e is t he reciprocal of Cycle Tim e, Perform ance can also be calculat ed as:
Pe r for m a n ce = ( Tot al Pieces / Oper at ing Tim e) / I deal Run Rat e
Perform ance is capped at 100% , t o ensure t hat if an error is m ade in specifying t he I deal
Cycle Tim e or I deal Run Rat e t he effect on OEE will be lim it ed.
Quality
Qualit y t akes int o account Qua lit y Loss, and is calculat ed as:
Qu a lit y = Good Pieces / Tot al Pieces
OEE
OEE t akes int o account all t hree OEE Fa ct or s, and is calculat ed as:
OEE = Availabilit y x Perform ance x Qualit y
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I t is very im port ant t o recognize t hat im proving OEE is not t he only obj ect ive. Take a look at
t he following dat a for t wo product ion shift s.
OEE Fa ct or Sh ift 1 Sh ift 2

Ava ila bilit y 90.0% 95.0%
Pe r for m a nce 95.0% 95.0%
Qu a lit y 99.5% 96.0%
OEE 8 5 .1 % 8 6 .6 %
Superficially, it m ay appear t hat t he second shift is perform ing bet t er t han t he first , since it s
OEE is higher. Very few com panies, however, would want t o t rade a 5.0% increase in
Availabilit y for a 3.5% decline in Qualit y!
The beaut y of OEE is not t hat it gives you one m agic num ber; it 's t hat it gives you t hree
num bers, which are all useful individually as your sit uat ion changes from day t o day. And it
helps you visualize perform ance in sim ple t erm s – a very pract ical sim plificat ion.
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Exam ple OEE Calculat ion

The t able below cont ains hypot het ical shift dat a, t o be used for a com plet e OEE calculat ion,
st art ing wit h t he calculat ion of t he OEE Fact ors of Availabilit y, Perform ance, and Qualit y.
Not e t hat t he sam e unit s of m easurem ent ( in t his case m inut es and pieces) are consist ent ly
used t hroughout t he calculat ions.
I tem Data
Sh ift Le n gt h 8 hours = 480 m in.
Sh or t Br e a k s 2 @ 15 m in. = 30 m in.
M e a l Br e a k 1 @ 30 m in. = 30 m in.
D ow n Tim e 47 m inut es
I de a l Run Ra t e 60 pieces per m inut e
Tot a l Pie ce s 19,271 pieces
Re j e ct Pie ce s 423 pieces
Pla n n e d Pr odu ct ion Tim e = [ Shift Lengt h - Breaks] = [ 480 - 60] = 4 2 0 m in u t e s

Ope r a t ing Tim e = [ Planned Product ion Tim e - Down Tim e] = [ 420 - 47] = 3 7 3 m inut e s
Good Pie ce s = [ Tot al Pieces - Rej ect Pieces] = [ 19,271 - 423] = 1 8 ,8 4 8 pie ce s
Ava ila bilit y = Ope r a t ing Tim e / Pla n n e d Pr odu ct ion Tim e
= 373 m inut es / 420 m inut es
= 0.8881 ( 88.81% )
Pe r for m a nce = ( Tot a l Pie ce s / Ope r a t in g Tim e ) / I de a l Run Ra t e

= ( 19,271 pieces / 373 m inut es) / 60 pieces per m inut e
= 0.8611 ( 86.11% )
Qu a lit y = Good Pie ce s / Tot a l Pie ce s

= 18,848 / 19,271 pieces
= 0.9780 ( 97.80% )
OEE = Ava ila bilit y x Pe r for m a n ce x Qu a lit y

= 0.8881 x 0.8611 x 0.9780
= 0.7479 ( 74.79% )
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OEE FAQ
Do you define everyt hing in unit s of part s and unit s of t im e?
The answer depends on what 's m ost int uit ive for you and your operat ors. Down Tim e Loss is
usually described in unit s of hours or m inut es. Speed Loss is m ost oft en defined in t erm s
such as pieces per hour ( rat e) or seconds per piece ( cycle t im e) . Qualit y Loss is t ypically
looked at as a rat io of rej ect s t o t ot al product ion. Ot her quant it y relat ed m easurem ent s like
pounds, kilos or m et ers m ay also be used. All of t hese event ually are convert ed
( norm alized) t o a percent age t hat shows act ual vs. pot ent ial.
I s OEE dat a subj ect t o m isint erpret at ion?

Wit hout a doubt ! The t wo shift exam ple in t he Calculat ing OEE sect ion is a great exam ple.
OEE t ells you not hing about how m uch your resources act ually cost in dollars, what t he
easiest im provem ent act ually is, or how m uch it will cost you t o m ake t hat im provem ent .
What you should look for in OEE is losses and bot t lenecks t hat can be elim inat ed for a
cost / benefit t hat m akes sense. OEE dat a is only m eaningful in t he cont ext of your sit uat ion
and your effort s t o im prove it .
How do you det erm ine t he I deal Cycle Tim e or I deal Run Rat e of a
m achine or process?
The sim ple answer is t he Nam eplat e Capacit y – t he st at ed capacit y given by t he
m anufact urer or engineer. But like t he speedom et er in your car, t his num ber m ay only be
an approxim at ion and m ay vary considerably wit h m achine age and ot her circum st ances.
I deally you should experim ent , t ake m easurem ent s and com e up wit h your own num ber.
How do you define w het her a m achine is "producing"?

I f t he m achine is producing anyt hing at all, t he product ion clock is running. Even if a
m achine is not producing, if product ion is planned, t he product ion clock is running.
How do you m inim ize num ber crunching, spreadsheet s and report s
and m ake OEE t ruly sim ple?
Dat a isn't very useful if you don't see it unt il t om orrow, or at next week's product ion
m eet ing. The print out in t he m anager’s office isn't nearly as helpful as having real- t im e
dat a, wit h visual cues, already digest ed int o a form t hat is useful t o you and your operat ors.
Aut om at e t he OEE dat a collect ion and calculat ion process, and spend your t im e dealing wit h
t he issues t hat im pact product ivit y here and now.
W hat period of t im e do you use for an OEE calculat ion?

You can choose any period you want . Most com m only it 's based on t he working cycle of t he
fact ory, i.e. one shift ( 8 hours or 480 m inut es) . Ot her t im e fram es include one day, one j ob,
or even cont inuous m onit oring.
I s it possible t o have processes t hat exceed 1 0 0 % ?

No. I f you obt ain readings great er t han 100% , t hen at som e point of t he process you are
not defining som et hing correct ly. I t m eans t hat you were underest im at ing t he capacit y of a
process when you input your param et ers. This is m ost oft en an issue wit h Perform ance,
when t he I deal Cycle Tim e or I deal Run Rat e have not been correct ly charact erized.
- 15 -
I f you have a series of m achines or st ages in a cell w it h different

capacit ies, w hich st age do you base your I deal Cycle Tim e ( or I deal
Run Rat e) on?
Typically, when a cell is “ balanced” , m eaning t hat t he Nam eplat e Capacit y of all cont ribut ing
m achines, st at ions, or st ages is designed t o produce at reasonably close t o t he sam e rat e,
t he fast est st age ( not t he slowest ) , should be your t arget . This forces you t o recognize all
ot her bot t lenecks and st rive t o im prove t hem .
I n cases where a cell is not balanced, som e analysis should be perform ed. Probably t he best
way t o begin is t o look at t he cell in aggregat e t o det erm ine if any of t he associat ed st ages
have a Nam eplat e Capacit y t hat far exceeds t he ot hers. These st ages are t ypically known as
“ accum ulat or/ buffers” , or m ay be t he result of a piece of equipm ent not originally designed
for use in t he part icular cell but lat er added, and should be disregarded when calculat ing t he
I deal Cycle Tim e for t he cell.
How do I calculat e OEE for m y ent ire plant ?

This is a very int erest ing quest ion t hat t ouches on a t ricky and som ewhat cont roversial t opic
( as discussed below) . But first , here are t wo reasonable opt ions for calculat ing Plant OEE:
Calculat e Plant OEE Using a St raight Average

Calculat e Plant OEE Using a Weight ed Average
Ca lcu la t e Pla n t OEE Using a St r a igh t Ave r a ge – The sim plest m et hod of calculat ing
Plant OEE is t o average t he OEE scores of all product ion asset s ( i.e. add t oget her t he OEE
scores of all product ion asset s and t hen divide t hat result by t he num ber of product ion
asset s) .
I n a plant wit h t hree product ion asset s t he calculat ion would be:
( OEE1 + OEE2 + OEE3 ) / 3
Ca lcu la t e Pla n t OEE Using a W e igh t e d Ave r a ge – An im proved ( albeit m ore com plex)
m et hod of calculat ing Plant OEE is t o calculat e a weight ed average of t he OEE scores of all
product ion asset s. A weight ed average “ weight s” t he OEE score of each product ion asset t o
t ake int o account it s relat ive im port ance. The weight can be any fact or t hat assigns relat ive
im port ance; however, it is recom m ended t o assign weight s based on t he value added by t he
product ion asset . Doing so, helps keep t he focus on im provem ent s t hat add t he m ost value
– t o t he bot t om line.
I n a plant wit h t hree product ion asset s, t he calculat ion would be:
( ( OEE1 x Weight 1 ) + ( OEE2 x Weight 2 ) + ( OEE3 x Weight 3 ) ) /

( Weight 1 + Weight 2 + Weight 3 )
Calculat ing Plant OEE can be very useful for m onit oring t rends ( such as whet her a given
plant is im proving OEE over t im e) or as a rough gauge of where a given plant lies in t he
OEE benchm arking spect rum . However, one should be very caut ious about using OEE t o
com pare different plant s, or even t o com pare different product ion asset s. Unless product ion
asset s are running ident ical product s on ident ical equipm ent under ident ical condit ions,
com paring t heir OEE m et rics is som ewhat akin t o com paring apples t o oranges.
Do OEE benchm arks, i.e. Theoret ical Capacit y, ever change?

Yes, but only if t he process is im proved in som e t angible and m easurable way.
- 16 -
Can OEE becom e a polit ical foot ball?

Yes, t o t he ext ent t hat it is m isint erpret ed and t o t he ext ent t hat it is used for polit ical
purposes rat her t han t o genuinely work t owards sust ainable im proved product ivit y. Of
course t hat 's t rue of all num bers and m easurem ent s. The im port ant t hing is t o keep t he
core obj ect ive in m ind – t o produce m ore qualit y product wit h less wast e and fewer
headaches. Therefore you should be very clear about exact ly what you want and m ake sure
you are m easuring it . Then you can creat e incent ives for operat ors t o deliver t hat result .
I f t here are several int erpret at ions for t he cause of a problem , w here
do you st art ?
Always look for t he sim plest and m ost direct explanat ion ( t he root cause) . Obviously t here
are except ions, but here's what 's im port ant – rat her t han ponder and discuss 50 different
causes, st art wit h t he m ost st raight forward hypot hesis and t est it . Use a process of
elim inat ion unt il you are cert ain you have reached t he root cause of t he problem .
Should prevent at ive m aint enance Dow n Tim e be allow ed t o penalize

an OEE calculat ion?
I f t he prevent at ive m aint enance happens during Planned Product ion Tim e ( rat her t han
during Planned Shut Down) t hen it is int erfering wit h product ion and should be count ed.
This does not m ean t hat you should not do prevent at ive m aint enance at t hat t im e; it only
m eans t hat over t im e, OEE will t ell you whet her t his m aint enance result s in less overall
Down Tim e, because of fewer " surprises," or m ore Down Tim e, because of t he lost
product ivit y while m aint enance is done. This is an exam ple of how OEE can give you solid
answers t o com plex quest ions by at t aching t hem t o sim ple m easurem ent s.
Should rew orked pieces be count ed as Good or Rej ect in t he OEE

calculat ion?
I n OEE, any part t hat doesn't com e out right t he first t im e is a Rej ect Piece. I t 's a
product ion issue t hat needs t o be addressed. Your st rat egy for im proving original part
qualit y vs. reworking rej ect part s is a separat e m anagem ent and financial issue.
How can rew orked pieces count ed in an OEE calculat ion?

Reworked pieces are t ypically looked at as a com plet ely independent OEE process. I t is
t aken int o considerat ion t hat t im e and m at erials were used in t he first pass run t hat
result ed in a part or product t hat did not m eet qualit y st andards but where a part of som e
value exist s. Where t he original I deal Cycle Tim e m ay have been 180 seconds, a rework
I deal Cycle Tim e m ay be only 26 seconds, for exam ple.
I f a process can run during scheduled breaks, t hen is t hat break t im e

fact ored int o equipm ent availabilit y?
A personnel break is not necessarily t he sam e as a process break. I f t he process is expect ed
t o be running ( i.e. producing anyt hing at all) t hen regardless of whoever is or isn't eat ing
lunch, OEE considers t he t im e t o be part of planned product ion. On t he ot her hand, in a
m ult iple operat or non- aut om at ed process, a different I deal Run Rat e m ay be applicable
during t he break.
How does OEE relat e t o t he m anagem ent funct ion of “enabling”

operat ors?
The t rue value of OEE is in helping you and your operat ors m ake syst em at ic im provem ent s.
Therefore everyt hing you do wit h OEE, including t he visual display of OEE dat a, should be
designed wit h operat ors in m ind and st at ed in what ever t erm s t hey m ost easily underst and.
- 17 -
OEE Glossa r y
Te r m D e fin it ion I m plica t ion

Act ua l Cycle Tim e The act ual t im e t o produce one Used in calculat ing OEE
piece. I n OEE, calculat ed as Perform ance. A variat ion of t he
Operat ing Tim e divided by Tot al calculat ion uses Act ual Run Rat e
Pieces. inst ead.
Act ua l Ru n Ra t e The act ual rat e of product ion, Used in calculat ing OEE
when it is running. I n OEE, Perform ance. A variat ion of t he
calculat ed as Tot al Pieces divided calculat ion uses Act ual Cycle Tim e
by Operat ing Tim e. inst ead.
Adj u st m e nt Tim e Product ive t im e lost while Can be a significant loss fact or,
t weaking equipm ent . See Set up and in m any fact ories is not
and Adj ust m ent s. direct ly m easured.
An don I ndicat or above product ion line t o Oft en uses green/ yellow/ red
signal product ion condit ions. colors t o indicat e st at us.
Ava ila bilit y One of t he t hree OEE Fact ors. Must be m easured in an OEE
Takes int o account Down Tim e program , usually by recording t he
Loss ( event s t hat st op planned durat ion of Down Tim e Event s.
product ion for an appreciable
am ount of t im e) .
Be st Pr a ct ice Met hods t hat are considered Successful com panies use
“ st at e of t he art ” by t he m ost different m et hods t han
respect ed in an indust ry. unsuccessful com panies.
Br e a k dow ns Lost t im e due t o equipm ent Cont ribut es t o OEE Down Tim e
failure. One of t he Six Big Losses. Loss ( reduces OEE Availabilit y) .
Ch a n ge ove r Tim e Lost t im e due t o swapping of A prim e candidat e for
equipm ent , connect ions or im provem ent for m ost com panies.
m at erials. See Set up and
Adj ust m ent s.
Cycle Tim e The t im e t o produce one piece. I nverse of Run Rat e.
Cycle Tim e Tool used t o bet t er underst and I m port ant t o aut om at e logging of
Ana lysis issues t hat affect Perform ance. Cycle Tim es for lat er analysis.
D e sign Cycle Tim e See I deal Cycle Tim e. See I deal Cycle Tim e.
D ow n Tim e Loss Product ion t im e lost t o unplanned One of t he t hree OEE Losses
shut downs. ( reduces OEE Availabilit y) .
Maj or focus area for im provem ent .
Eve nt I n OEE, a product ion loss which OEE’s purpose is t o clarify t he
m ust be cat egorized. nat ure and effect of Event s.
Fu lly Pr odu ct ive Act ual product ive t im e aft er ALL What OEE m easures – t he t rue
Tim e losses are subt ract ed. bot t om line of your facilit y's
efficiency.
- 18 -

Good Pie ce s Produced pieces t hat m eet qualit y Used in calculat ing OEE Qualit y.
st andards ( wit hout rework) .
I de a l Cycle Tim e Theoret ical m inim um t im e t o Used in calculat ing OEE
produce one piece. The inverse of Perform ance. A variat ion of t he
I deal Run Rat e. calculat ion uses I deal Run Rat e
inst ead.
I de a l Run Ra t e Theoret ical m axim um product ion Used in calculat ing OEE
rat e. The inverse of I deal Cycle Perform ance. A variat ion of t he
Tim e. calculat ion uses I deal Cycle Tim e
inst ead.
Le a n Qualit y philosophy t hat st rives t o OEE can be a key t ool and m et ric
M a n u fa ct u r in g m inim ize consum pt ion of in Lean Manufact uring program s.
resources t hat add no value t o t he
finished product .
N a m e pla t e The design capacit y of a m achine Used t o det erm ine I deal Cycle
Ca pa cit y or process. Tim e or I deal Run Rat e.
N e t Ope r a t in g Tim e True product ive t im e before Equipm ent t im e losses norm ally
product qualit y losses are are m uch larger t han defect
subt ract ed. losses.
OEE ( Ove r a ll Fram ework for m easuring t he OEE helps you see and m easure a
Equ ipm e n t efficiency and effect iveness of a problem so you can fix it , and
Effe ct ive ne ss) process, by breaking it down int o provides a st andardized m et hod
t hree const it uent com ponent s of benchm arking progress.
( t he OEE Fact ors) .
OEE Fa ct or s The t hree const it uent elem ent s of Oft en it is m ore im port ant t o
OEE ( Availabilit y, Perform ance, focus on t he t hree OEE Fact ors
and Qualit y) . t han t he consolidat ed OEE m et ric.
OEE Losse s The t hree t ypes of product ivit y The goal is t o relent lessly work
loss associat ed wit h t he t hree OEE t owards elim inat ing OEE Losses.
Fact ors ( Down Tim e Loss, Speed
Loss, and Qualit y Loss) .
Ope r a t ing Tim e Product ive t im e available aft er Operat ing Tim e increases as
Down Tim e Losses are subt ract ed. Down Tim e Losses are reduced.
Pe r for m a nce One of t he t hree OEE Fact ors. Must be m easured in an OEE
Takes int o account Speed Loss program , usually by com paring
( fact ors t hat cause t he process t o Act ual Cycle Tim e ( or Act ual Run
operat e at less t han t he m axim um Rat e) t o I deal Cycle Tim e ( or
possible speed, when running) . I deal Run Rat e) .
Pla n n e d Pr odu ct ion Tot al t im e t hat equipm ent is Benchm ark t hat OEE is m easured
Tim e expect ed t o produce. against .
- 19 -

Pla n n e d Sh u t D ow n Deliberat e unproduct ive t im e. Excluded from OEE calculat ions.
Pla n t OEE Consolidat ed OEE calculat ion as There are different m et hods of
applied t o an ent ire plant . calculat ing Plant OEE. Pick t he
one t hat m akes sense for your
com pany.
Pla n t Ope r a t ing The t im e t he fact ory is open and Planned Shut Down is subt ract ed
Tim e capable of equipm ent operat ion. from Plant Operat ing Tim e t o
reach t he OEE st art point –
Planned Product ion Tim e.
Pr oce ss A sequence of act ivit ies t hat st art s OEE can be used across a wide
wit h som e t ype of input ( e.g. raw range of different processes,
m at erials) and ends wit h som e alt hough it is m ost oft en
t ype of out put ( e.g. a product ) . associat ed wit h discret e
m anufact uring.
Pr odu ct ion Re j e ct s Rej ect s produced during st eady- Cont ribut es t o OEE Qualit y Loss
st at e product ion. One of t he Six ( reduces OEE Qualit y) .
Big Losses.
Qu a lit y One of t he t hree OEE Fact ors. Must be m easured in an OEE
Takes int o account Qualit y Loss program , usually by t racking
( part s which do not m eet qualit y Rej ect Pieces.
requirem ent s) .
Qu a lit y Loss Percent age of pieces which do not One of t he t hree OEE Losses
m eet qualit y requirem ent s. ( reduces OEE Qualit y) . OEE views
defect s in t erm s of lost t im e.
Re a son Code An ident ificat ion num ber or Makes it m uch easier t o get a
classificat ion applied t o an Event handle on losses, especially Down
subcat egory. Used t o t abulat e Tim e.
st at ist ics regarding Event s.
Re du ce d Spe e d Cycle where t he process is t ruly Cont ribut es t o OEE Speed Loss
running ( as opposed t o a Sm all ( reduces OEE Perform ance) .
St op) , but is slower t han
“ expect ed” . One of t he Six Big
Losses.
Re du ce d Spe e d A dividing point bet ween a Set t ing a Reduced Speed
Th r e sh old st andard cycle, and one which is Threshold can be used in Cycle
considered “ slow” ( a Reduced Tim e Analysis t o aut om at ically
Speed cycle) . ident ify Reduced Speed cycles.
Re j e ct Pie ce s Produced pieces t hat do not m eet Used in calculat ing OEE Qualit y.
qualit y st andards.
Re w or k Pie ce s A subset of Rej ect Pieces, t hat can OEE does not m ake a dist inct ion
be reworked int o Good Pieces. bet ween pieces t hat can be
reworked and pieces t hat are
scrapped.
- 20 -

Root Ca u se Ana lysis A m et hod of resolving a non- The basic t ool for underst anding
conform ance, by t racing back and elim inat ing t he sources of
from t he end failure t o it s original product ivit y losses.
( root ) cause.
Ru n Ra t e The product ion rat e when act ually I nverse of Cycle Tim e.
producing ( running) .
Se t up a n d Tim e lost configuring equipm ent . Cont ribut es t o OEE Down Tim e
Adj u st m e nt s One of t he Six Big Losses. See Loss ( reduces OEE Availabilit y) .
also Adj ust m ent Tim e and Tracking Set up Tim e is crit ical t o
Changeover Tim e. reducing t his loss.
Six Big Losse s Six cat egories of product ivit y Drill down int o t he t hree OEE
losses t hat are alm ost universally Fact ors, and you will reach t he Six
experienced in m anufact uring: Big Losses. Measure your process
Breakdowns, Set up and wit h OEE, and im prove your
Adj ust m ent s, Sm all St ops, process by addressing t he Six Big
Reduced Speed, St art up Rej ect s, Losses.
and Product ion Rej ect s.
Six Sigm a Syst em at ic qualit y program t hat I n m ost com panies, Qualit y Loss
st rives t o lim it defect s t o six will be by far t he sm allest of t he
st andard deviat ions from t he OEE Losses. A Six Sigm a or
m ean. One of t he m aj or focuses equivalent program m ay be
of Six Sigm a is t o reduce process necessary t o m aint ain focus on
variat ion. qualit y im provem ent s.
Sm a ll St op A brief pause in product ion, but Cont ribut es t o OEE Speed Loss
not long enough t o be t racked as ( reduces OEE Perform ance) .
Down Tim e. One of t he Six Big
Losses.
Sm a ll St op A dividing point bet ween a Set t ing a Sm all St op Threshold
Th r e sh old Reduced Speed cycle, and one can be used in Cycle Tim e
which is considered a Sm all St op. Analysis t o aut om at ically ident ify
Sm all St op cycles.
SM ED ( Single Program for reducing set up t im e. Oft en a part of program s t o
M in u t e Ex ch a nge of Nam ed aft er t he goal of reducing im prove OEE Availabilit y.
D ie s) set up t im es t o under t en m inut es
( represent ing t im e wit h one digit ) .
Spe e d Loss Product ion t im e lost t o equipm ent One of t he t hree OEE Losses
running below m axim um rat ed ( reduces OEE Perform ance) .
speed. Usually t he m ost difficult of t he
OEE Losses t o analyze.
St a r t u p Re j e ct s Rej ect s produced while equipm ent Cont ribut es t o OEE Qualit y Loss
is adj ust ed for product ion. One of ( reduces OEE Qualit y) .
t he Six Big Losses.
- 21 -

Ta k t Tim e Product ion rat e needed t o m eet Where sales and business
cust om er dem and. planning m eet s t he fact ory floor.
Th e or e t ica l Cycle See I deal Cycle Tim e. See I deal Cycle Tim e.
Tim e
Tot a l Pie ce s Tot al of all produced pieces. Used in calculat ing OEE Qualit y.
TPM ( Tot a l Maint enance syst em covering t he OEE is a m et ric for defining
Pr odu ct ive life of all equipm ent : planning, equipm ent effect iveness in a TPM
M a in t e n a nce ) m anufact uring, m aint enance and program .
im proving perform ance.
Visua l OEE™ Plant floor real- t im e display of live Visual OEE™ displays m ake
OEE dat a for m axim um t eam im provem ent everyone's j ob.
involvem ent .
W or ld Cla ss OEE 90.0% Availabilit y A com posit e OEE num ber m eans
95.0% Perform ance very lit t le wit hout t he t ot al
99.9% Qualit y cont ext .
85.0% OEE
- 22 -
Visu a l OEE™
" H ow ca n I colle ct a n d displa y u se fu l OEE da t a w it h ou t r e a m s of

pa pe r a n d a pla t oon of I n du st r ia l En gin e e r s?"
Th e a n sw e r is: V isu a l OEE™
Visu a l OEE™ D ispla y

D im e n sion s 1 3 .8 " x 7 4 .0 " ( 2 " t a ll ch a r a ct e r s sh ow n )
Have you ever driven a car wit h a speedom et er t hat didn't work? I m agine for a m om ent
t hat you couldn't t ell how fast ( or slow) you were going. A fact ory wit hout a display of
product ion m et rics is like a car wit hout a speedom et er! You m ight know where you’re going,
but you have no idea when you’ll get t here.
Real- t im e display of product ion m et rics enables your operat ors and m aint enance personnel
t o quickly respond t o issues t hat would ot herwise disrupt and reduce your plant ’s
product ivit y. Visual m et rics serve as a gauge when m aking adj ust m ent s t hat lead t o
increm ent al im provem ent s, and provide real- t im e right - now m ot ivat ion t o everyone on t he
plant floor.
The Visual OEE™ Principle

The # 1 barrier bet ween you and great er product ivit y is perform ance dat a you can't see
when you need it . Perform ance dat a needs t o be available in real- t im e t o everyone –
operat ors, m aint enance personnel, supervisors, m anagers – everyone.
OEE inform at ion in t om orrow's report is not nearly as useful as inst ant aneous report ing of
OEE m et rics in real- t im e. I m age t he product ivit y im provem ent s t hat can be achieved by
seeing real- t im e dat a developed direct ly from your m achine or m anufact uring cell.
Visual OEE™ displays are a sim ple, effect ive way t o:
Em power your operat ors and m aint enance personnel t o underst and and quickly respond
t o product ion problem s ( t he Six Big Losses)
Monit or plant floor act ivit y in real- t im e from anywhere in t he plant
Aut om at e t he inform at ion gat hering process – leaving you m ore t im e for analysis and
im provem ent , and your operat ors m ore t im e t o effect ively operat e equipm ent .
Re a lize im m e dia t e im pr ove m e n t s in pr odu ct ivit y
- 23 -
Get t ing St art ed

I t ’s easy t o get st art ed wit h Visua l OEE™:
I nst all t wo sensors, a swit ch and your break schedule

Supply your I deal Cycle Tim e, Takt Tim e ( opt ional) , and Goal Count ( opt ional)
I n ret urn t he Visual OEE™ display provides over 1 0 0 diffe r e n t w a ys t o view your
product ion in real t im e – from anywhere in your plant . I t ’s t hat sim ple!
You Pr ovide … You Ge t …

•
•
On e Se n sor OEE Ava ila bilit y
•
Tot al Pieces
•
Current and Average Rat e for Tot al Pieces
•
Cycle Tim e, Last Cycle Tim e, Average Cycle Tim e
•
Run Tim e, Percent Run Tim e, Event Run Tim e
•
Down Tim e, Percent Down Tim e, Event Down Tim e
Plant Operat ing Tim e
•
•
Se con d Se n sor OEE Qua lit y
•
Good Pieces, Percent Good Pieces
•
Rej ect Pieces, Percent Rej ect Pieces
Current and Average Rat e for Good or Rej ect Pieces
• Set up Pieces
• Set up Tim e, Percent Set up Tim e, Event Set up Tim e
Se t up Sw it ch
• St andby Tim e, Percent St andby Tim e, Event St andby Tim e

• Planned Product ion Tim e
Br e a k Sch e du le
• Rem aining Tim e ( for breaks)

•
•
I de a l Cycle Tim e OEE Pe r for m a n ce
•
OEE
•
St andard Cycles and Tim e
•
Reduced Speed Cycles and Tim e
•
Sm all St op Cycles and Tim e
Target Cycle
•
•
Ta k t Tim e Target Count
•
Takt Tim er
•
Efficiency
•
Count Variance
Tim e Variance
• Pieces To Goal
• Percent Towards Goal
Goa l Coun t
- 24 -
At t acking t he Six Big Losses

The cornerst one of Visu a l OEE™ is providing your em ployees t he t ools t hey need t o
aggressively at t ack t he Six Big Losse s. I f you can display t he underlying dat a in real- t im e,
in one st roke you have em powered your operat ors and m aint enance st aff t o underst and
how t hey can im prove t heir OEE num bers – and m ost im port ant ly – your plant product ivit y.
I n any fast - paced m anufact uring environm ent , it is of param ount im port ance t hat operat ors
spend t heir t im e effect ively operat ing equipm ent – not m anually recording dat a.
The following t able shows t he Six Big Losse s, t he associat ed OEE Fa ct or s and how Visu a l
OEE™ provides real- t im e m et rics and a powerful set of analyt ical t ools t o help everyone see
how efficient ly, effect ively and consist ent ly a product ion line or work cell is operat ing.
Six Big Losse s OEE Fa ct or Visua l OEE™

•
•
Br e a k dow ns Availabilit y Ava ila bilit y
•
Down Tim e ( cum ulat ive and event )
•
Real- t im e product ion m ode indicat ion
•
Reason Code t racking and analysis
•
St at ist ics and m et rics are real- t im e aut om at ed
Operat ors can focus on get t ing equipm ent running
• Set up Tim e ( cum ulat ive and event )
• Set goals for Set up Tim e reduct ion program s
Se t up a n d Availabilit y
Adj u st m e nt s
•
•
Sm a ll St ops Perform ance Pe r for m a nce
•
Average Cycle Tim e
•
Sm all St ops ( occurrences and t im e)
•
Configurable Sm all St op Threshold
•
Cycle Tim e Trace records every cycle
I dent ify when and how t im e is lost t o Sm all St ops
•
•
Re du ce d Spe e d Perform ance Reduced Speed ( occurrences and t im e)
•
Configurable Reduced Speed Threshold
•
Cycle Tim e Trace records every cycle
I dent ify Reduced Speed pat t erns
• Rej ect Pieces ( during St art up)
• Percent Rej ect Pieces ( during St art up)
St a r t u p Re j e ct s Qualit y
• Qu a lit y
• Rej ect Pieces ( during Product ion)
Pr odu ct ion Qualit y
• Percent Rej ect Pieces ( during Product ion)

Re j e ct s
- 25 -
Abou t Vor n e
W ho W e Are
We are Vorne I ndust ries I nc., a com pany t hat has been working hard for over 30 years t o
bring you t he best , field- proven indust rial aut om at ion product s available, period. During t his
t im e our com pany has evolved t o m eet and ant icipat e your ever- changing needs by
LI STENI NG t o you and by responding wit h well- engineered, well t hought - out solut ions t o
your real world problem s.
We are NOT a dist ribut or - we are t he m anufact urer of our own t ight ly- focused, innovat ive
product designs. We have com plet e cont rol over qualit y assurance, lead- t im e, support and
pricing.
Since incept ion, our com pany has been focused on im proving t he bot t om line of com panies
j ust like yours by delivering valuable, real- t im e inform at ion t o all levels of your ent erprise
when it is m ost useful - RI GHT NOW!
W hat W e Do
At Vorne I ndust ries we love what we do and it shows! Vorne product s are used around t he
world, at t housands of com panies and in a wide range of applicat ions, t o assist t hose
looking t o im prove t heir com pany’s efficiency and ult im at ely t heir bot t om line.
We t ake great pride in providing superior " product ivit y enhancing" product s and support at
all levels – before, during and aft er t he sale. As a m at t er of fact , m ore t han 70% of our
business is from repeat cust om ers and referrals.
Should you need t echnical support , you speak direct ly t o an engineer - not a t rainee reading
from a product m anual. Our people have helped us t o build a solid cult ure of qualit y and a
genuine com m it m ent t o exceeding your expect at ions each and every t im e.
W hy W e Do I t
Over t he years we have had lit erally t ens of t housands of conversat ions wit h people j ust like
you. We use t he knowledge t hat we have gained t hrough our applicat ion experience wit h
our cust om ers, in conj unct ion wit h ext ensive research in various m anufact uring- relat ed
fields, t o provide above and beyond value and a solid product at a great price.
We enj oy present ing powerful t ools like OEE t o people j ust like you who are concerned wit h
t he product ivit y of t heir operat ion.
The fact is, what ever your goal - increasing product ivit y, reducing down t im e, enhancing
com m unicat ion - Vorne m essage and product ion m onit oring displays are an out st anding
choice.
Call 888- DI SPLAYS ( 888- 347- 7529) or visit us at www.vorne.com t o see how Vorne can
help your ideas com e t o light .
- 26 -
Con t a ct Us
Cor por a t e Addr e ss:
1445 I ndust rial Drive
I t asca, I L 60143- 1849 USA
Sa le s, Cu st om e r Se r vice a n d Te ch n ica l Su ppor t :

888- DI SPLAYS or + 1 ( 630) 875- 3600
Fa x Suppor t :
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The Fast Guide Tooee™

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Copyright:

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The Fast Guide Tooee™

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Th e Fa st Gu ide

FAST TRACK OEE FOR PROD UCTI ON PEOPLE ON TH E M OVE ................................... 4

OEE Loss OEE Fa ct or

• Calculat ed as t he rat io of Operat ing Tim e t o Planned Product ion Tim e.

• Calculat ed as t he rat io of I deal Cycle Tim e t o Act ual Cycle Tim e, or

it s t heoret ical m axim um speed.

• Calculat ed as t he rat io of Good Pieces t o Tot al Pieces.

Six Big Losse s

Defining t he Six Big Losses

Six Big Loss OEE Loss Eve nt Ex a m ple s Com m e n t

Addressing t he Six Big Losses

Setup and Adjustments

Small Stops and Reduced Speed

Startup Rejects and Production Rejects

OEE = Availabilit y x Perform ance x Qualit y

The Form ulas

Pe r for m a n ce = I deal Cycle Tim e / ( Operat ing Tim e / Tot al Pieces)

Pe r for m a n ce = ( Tot al Pieces / Oper at ing Tim e) / I deal Run Rat e

Qu a lit y = Good Pieces / Tot al Pieces

OEE = Availabilit y x Perform ance x Qualit y

OEE Fa ct or Sh ift 1 Sh ift 2

Exam ple OEE Calculat ion

Pla n n e d Pr odu ct ion Tim e = [ Shift Lengt h - Breaks] = [ 480 - 60] = 4 2 0 m in u t e s

Pe r for m a nce = ( Tot a l Pie ce s / Ope r a t in g Tim e ) / I de a l Run Ra t e

Qu a lit y = Good Pie ce s / Tot a l Pie ce s

OEE = Ava ila bilit y x Pe r for m a n ce x Qu a lit y

I s OEE dat a subj ect t o m isint erpret at ion?

How do you define w het her a m achine is "producing"?

W hat period of t im e do you use for an OEE calculat ion?

I s it possible t o have processes t hat exceed 1 0 0 % ?

I f you have a series of m achines or st ages in a cell w it h different

How do I calculat e OEE for m y ent ire plant ?

Calculat e Plant OEE Using a St raight Average

( OEE1 + OEE2 + OEE3 ) / 3

( ( OEE1 x Weight 1 ) + ( OEE2 x Weight 2 ) + ( OEE3 x Weight 3 ) ) /

Do OEE benchm arks, i.e. Theoret ical Capacit y, ever change?

Can OEE becom e a polit ical foot ball?

Should prevent at ive m aint enance Dow n Tim e be allow ed t o penalize

Should rew orked pieces be count ed as Good or Rej ect in t he OEE

How can rew orked pieces count ed in an OEE calculat ion?

I f a process can run during scheduled breaks, t hen is t hat break t im e

How does OEE relat e t o t he m anagem ent funct ion of “enabling”

Te r m D e fin it ion I m plica t ion

Te r m D e fin it ion I m plica t ion

Te r m D e fin it ion I m plica t ion

Te r m D e fin it ion I m plica t ion

Te r m D e fin it ion I m plica t ion

" H ow ca n I colle ct a n d displa y u se fu l OEE da t a w it h ou t r e a m s of

Th e a n sw e r is: V isu a l OEE™

Visu a l OEE™ D ispla y

The Visual OEE™ Principle

Visual OEE™ displays are a sim ple, effect ive way t o:

Get t ing St art ed

I nst all t wo sensors, a swit ch and your break schedule

You Pr ovide … You Ge t …

• St andby Tim e, Percent St andby Tim e, Event St andby Tim e

• Rem aining Tim e ( for breaks)

At t acking t he Six Big Losses

Six Big Losse s OEE Fa ct or Visua l OEE™

• Percent Rej ect Pieces ( during Product ion)

Sa le s, Cu st om e r Se r vice a n d Te ch n ica l Su ppor t :

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