Lean Six Sigma

Topic - Lean Metrics:

OEE Calculation- Part 1

Prof Yogesh Brahmankar

SIBM Pune
 Equipment Availability

Equipment Availability = Run Time / Planned Production Time=

=(Planned Production Time– Downtime)/Planned Production time
Planned Production Time = Total Shift Time- Planned Breaks

e.g. Shift = 8 hrs, Breaks = Two 15 min.breaks, one 15-min meeting and 5 min for
planned maintenance.
Breakdown = The machines went down during the shift for 45 min.
Loading Time = 8x60- 35 = 425 min
Equipment Availability = 425- 45 / 425 = 0.8941 = 89.41%
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 Machine Availability Loss

▪ Schedule Loss- Time where production could be running but is not

scheduled. This is because of Factory not working or Only working on few
shifts/days.

▪ Availability Loss- Time where production should be running but is not. This is
because of Planned breaks and unplanned breaks

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 Equipment Performance Efficiency

▪ Performance Efficiency = ( Specified Cycle Time x Total Count) / Run Time

= (Total Count/ Run Time) / Ideal Run Rate
Given Data: Shift Length= 8 Hrs , Specified Cycle time is 45 seconds/ unit
Run time = 6.5 hrs = 390 Minutes. Total Count = 450

Performance efficiency = (45 sec x 450)/390 = (0.75 minx 450)/390= 0.8653 = 86.53 %

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 Performance Loss

▪ Performance loss means the machine/ process is not able to deliver the
specified output in given time.

▪ This is due to small stoppages, breakdowns and reduced speeds

▪ Stoppages and reduced speed can be due to improper trainings of

operator, tools wear issues, flow or layout related issues.

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 Quality Rate

▪ Quality rate takes into account output that does not meet quality standards.

▪ Quality Rate = Good Count / Total Count = Acceptable Count/ Total count
▪ It’s also expressed in %
▪ e.g. In 8 hrs Shift 390 job Manufactured and only 375 are acceptable then

Quality Rate = 375/390 = 96.15 %

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 Quality Loss

▪ Quality Loss is due to in-process rejections, production rejects or

startup rejects ( while starting the process).

▪ There is also high pressure on adherence to quality due to customer

requirements and avoid failures/ rejections at customer end. This
may result into quality loss at some organisations sometimes.

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 OEE Calculation

▪ OEE = Overall Equipment Effectiveness

▪ OEE = Availability x Performance x Quality = A X P x Q

▪ OEE is accurate representation of how effectively our manufacturing process is

running. And, it makes it easy to track improvements in that process over time

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 Calculate OEE

Item Data
Availability = 89.28 %
Shift Length 8 hours (480 minutes) Performance = 84.44 %
Breaks (2) 15 minute and (1) 30 minute Quality = 97.63 %
Downtime 45 minutes
Ideal Cycle Time 1.0 seconds
Total Count 19,000 Units
Reject Count 450 Units

OEE = 89.28 x 84.44 x 97.63 = 73.60%

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 Losses

▪ Availability Loss = Planned Breaks of 60 min + 45 min Breakdown

▪ Performance Loss = Run Time available is 375 min i.e 22500 seconds
With 1 sec cycle time only 19000 jobs manufactured.

▪ Quality Loss = 450 rejected .

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What's your OEE as a Learner ……..

Thank you !

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