- RAJNISH R DUBEY

 OEE (Overall Equipment Effectiveness) is the gold standard for

measuring manufacturing productivity.
 An OEE score of 100% is perfect production: manufacturing only
good parts, as fast as possible, with no stop time.
 An OEE score of 85% is considered world class for discrete
manufacturers. For many companies, it is a suitable long-term goal.
 An OEE score of 60% is fairly typical for discrete manufacturers,
but indicates there is substantial room for improvement.
 An OEE score of 40% is not at all uncommon for manufacturing
companies that are just starting to track and improve their
manufacturing performance. It is a low score and in most cases can
be easily improved through straightforward measures (e.g. by
tracking stop time reasons and addressing the largest sources of
downtime – one at a time).
 OEE = UTILISATION X PERFORMANCE X QUALITY

 UTILISATION: Utilisation takes into account all events that stop

planned production long enough where it makes sense to track a
reason for being down (typically several minutes).
 Utilisation is calculated as the ratio of Run Time to Planned
Production Time

Utilisation = Run time/ Planned Production time.

 Performance: Performance takes into account anything that
causes the manufacturing process to run at less than the
maximum possible speed when it is running (including
both Slow Cycles and Small Stops).
 Performance is the ratio of Net Run Time to Run Time. It is
calculated as:

Performance = Ideal Cycle x Total Count/ Run time.

 Quality takes into account manufactured parts that do not
meet quality standards, including parts that need rework.
 OEE Quality is similar to First Pass Yield, in that it
defines Good Parts as parts that successfully pass through
the manufacturing process the first time without needing
any rework.
 Quality is calculated as:

Quality = (Produced Quantity – Rejected Quantity)/ Produced Quantity

 It Ensures us to use existing equipment to its full capacity, reducing
the need for investment in other areas
 Gives us a better oversight of the production process, so we can
understand where the real problems exist and how to prioritise them.
 Delivers significant return on investment whether we are increasing
capacity, driving efficiencies, launching new products, and more.
 Helps us to maintain competitiveness in the market.
 Improved process quality which will save our time and money as
well as help in maintaining our reputation in the market while also
avoids the risks and consequences of product recalls.
 Reduces machine maintenance and repair costs as we can put proper
plans and schedules in place.
 Improves the scalability of our production line.
PURPOSE OF TOOL LIFE MANAGEMENT

 To utilize the tool effectively.

 To increase the productivity.
 To determine the tool damage issue and reduce the tool
failure.
 To determine the right tool selection for the part.
 To reduce the total cost-per-piece.
 TOOL
MANAGEMENT

TOOL TOOL LIFE TOOL LIFE

PROCUREMENT FORECASTING MONITORING
 Tool Procurement

Tool Master Purchase Reciept

Waiting for
Regrind Receipt
Regrind

Final Stock
Regrind Issue
 Tool Life
Forecasting

Tool Usage Part

per Part Forecast

Total tool life

forecast
 Tool
Master

Tool Life
entry

Tool life
Monitoring
TAN 1A-1

Unique Code for each tool

Tool Spare Code

Tool Number

Nomenclature used for the ease identification of the tool

for tool life monitoring.