Overall Equipment

Effectiveness
 The objective of OEE
OEE Combines three factors:

1. Availability (a)
2. Performance (p)
3. Quality (q)

OEE = a*p*q
 The Six Big Losses
Planned output

1. Breakdowns
Gross output 2. Set-ups & Changeovers

3.Idling
Net output 4. Reduced speed

5. Start up
Valuable
scrap
output 6. Scrap
 The Six Big Losses
Planned output

1. Breakdowns
Gross output 2. Set-ups & Changeovers

3.Idling
Net output 4. Reduced speed

5. Start up
Valuable
scrap
output 6. Scrap
 Example
What is the Overall Equipment Effectiveness (OEE) ?
Workers scheduled 150 hours Waiting 7
Changeover and 8 hrs Speed 90% when
set up time running
Breakdowns 5 hrs Defect rate 5%

Speed losses = 7 hours (idling) + ()(137-7) * 0.1)

Net output = Gross output – speed losses = 137 -20 = 117 hrs
Calculating OEE

Theoretical output
= Availability rate (a)
Potential output

Actual output
= Performance rate (p)
Theoretical output
Good product
= Quality rate (r)
Actual output
OEE = a * p * r
 Example
What is the Overall Equipment Effectiveness (OEE) ?
Workers scheduled 150 hours Waiting 7
Changeover and 8 hrs Speed 90% when
set up time running
Breakdowns 5 hrs Defect rate 5%

Quality losses = 117 hrs * 0.05

Valuable output = Net output – Quality losses = 117 – 5.85 = 111 hrd
 Example
What is the Overall Equipment Effectiveness (OEE) ?
Workers scheduled 150 hours Waiting 7
Changeover and 8 hrs Speed 90% when
set up time running
Breakdowns 5 hrs Defect rate 5%

a = Theoretical output/ Potential output= 137/ 150 = 91.3%

p = Actual output/ Theoretical output = 117 / 137 = 85.4 % OEE = 74%
q = Good products/ Actual output = 111/117 = 94.8 %