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Trade Related Technical Assistance (TRTA II) Programme

Overall Effective Efficiency

Trade Related Technical Assistance (TRTA II) Programme

What is Overall Effective Efficiency
 Provides an overall picture of Plant or Equipment performance  Allows within and between business comparison

 Each Element within OEE can be cost analysed
O.E.E. (Standard Method) Calculation Availability (%)  Performance (%)  Quality (%)

Trade Related Technical Assistance (TRTA II) Programme

Overall Effective Efficiency (O.E.E.)
Key Areas for Improvement •Changeover Times •Downtime •Output Rates •Waste •Skills Shortages Companies that achieve an OEE of 85% are considered to be at WORLD CLASS Manufacturing Standard

Trade Related Technical Assistance (TRTA II) Programme

Overall Effective Efficiency (O.E.E.)
Availability = Actual Run Time Planned Run Time
Actual Output Max. Output Possible in Actual Run Time Right First Time Total Produced

Performance

=

Maximum Quality =

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Trade Related Technical Assistance (TRTA II) Programme

How to Calculate Overall Effective Efficiency (O.E.E.) Worked Example
Days Hours Minutes Planned Time Changovers Unplanned downtime Total Unproductive Time Available production time Rows per minute Units per row Theoretical units per minute Total Output Possible 5 24 7200 232 356 588 6612 30 20 600 3967200 PERFORMANCE 3200000 = 80.7% 3967200 AVAILABILITY 6612 7200 = 91.8%

Click to reveal answers

Actual Production Rework Waste Faulty Production Right First Time

3200000 100000 50000 150000 3050000

QUALITY

3050000 3200000

= 95.3%

OEE =

AVAILABILITY PERFORMANCE 92% 81%

QUALITY 95%

OEE 70.6%

Trade Related Technical Assistance (TRTA II) Programme

How to Calculate Overall Effective Efficiency (O.E.E.) Worked Example
AVAILABILITY = Actual Time Available / Planned Time Available
Planned Time Available Hour Mon. 6 Tue. 6 Wed. 6 Thu. 6 Fri. 6 Sat. 6 Sun. 6 START Min 30 30 30 30 30 30 30 FINISH Hour 18 18 18 18 18 18 18 Min 0 0 0 0 0 0 0 = = = = = = = Hours 11.50 11.50 11.50 11.50 11.50 11.50 11.50

Hours Planned
Actual Time Available Hour Mon. 7 Tue. 6 Wed. 6 Thu. 6 Fri. 6 Sat. 6 Sun. 6 START Min 30 30 30 30 30 30 30 FINISH Hour 18 15 18 18 18 18 18 Min 0 30 0 0 0 0 0

80.50
Hours 10.50 9.00 11.50 11.50 11.50 11.50 11.50

= = = = = = =

Hours Actual

Availability

=

Click to reveal answers

77.00

=

96%

Trade Related Technical Assistance (TRTA II) Programme

How to Calculate Overall Effective Efficiency (O.E.E.) Worked Example
PERFORMANCE = Actual Output / Maximum Output Possible in Actual Time Available
Maximum Landing Rate per Hour 1.5 Tonne

Actual Hours
Maximum Possible in Time Available Received at Factory Reception Click to reveal answers

77.00
115.5 105

Hours
Tonne Tonne

Performance

=

105 115.5

=

91%

Trade Related Technical Assistance (TRTA II) Programme

How to Calculate Overall Effective Efficiency (O.E.E.) Worked Example
MAXIMUM QUALITY = Right First Time / Total Produced (Total Received / Total Landed)

Total Landed (Paid For)

120

Tonne

Received at Factory Reception Click to = reveal answers

105

Tonne

Maximum Quality

105 120

=

88%

Trade Related Technical Assistance (TRTA II) Programme

How to Calculate Overall Effective Efficiency (O.E.E.) Worked Example

OEE Availability (%) x Performance (%) x Quality (%) 96% x 91% Click to x reveal answers = 88% OEE = 76%

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Trade Related Technical Assistance (TRTA II) Programme

Overall Effective Efficiency (O.E.E.)
The „link‟ from Prevention, Appraisal & Failure (PAF) to OEE is “Right First Time” & Availability
Therefore when making improvements to Quality / Cleaning systems, the direct affect on the companies OEE is  a higher quality score by reducing reject, waste & rework = improving ‘Right First Time’  a higher availability score by reducing ‘lost Time’ due to  poor cleaning & organisation  plant damage, poor assembly etc

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Trade Related Technical Assistance (TRTA II) Programme

Worked Example 2

Calculate Case Study 1 OEE = Availability (%)  Performance (%)  Quality (%)

WHAT DOES OEE DO?

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Trade Related Technical Assistance (TRTA II) Programme

Worked Example 2
CASE STUDY 1 Overall Effective Efficiency
Weeks Days Hours Planned Time Down Time Planed Out Time Total Unproductive Time Actual Time Available 26 5 16 2080 122 134 256 1824 AVAILABILITY 1824 2080 = 88%

Click to reveal answers PERFORMANCE
999845 1094400 = 91%

Process Output per hour Total Output Possible

600 1094400

Actual Production Faulty Production Right First Time

999845 49992 949853

QUALITY 949853 999845

=

95%

OEE =

AVAILABILITY PERFORMANCE QUALITY 88% 91% 95%

OEE 76%

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Trade Related Technical Assistance (TRTA II) Programme

Worked Example 3 Availability
Let's consider a factory that has 3 production lines, Line A, B and C. Two of the lines, A and B work an 8hr (480 min) shift. Line C works a 12 hr (720 min) shift. Lines A and B have a total of 60 minutes of planned breaks, while line C has 90 minutes of planned breaks. So, now that we have that information we can calculate the planned runtime for the whole factory: Planned runtime = Shift time - Planned stoppages Now, for a particular day the following downtime and stoppages were logged: Line A 40 mins Line B 35 mins Line C 65 mins Let's use this information to calculate the actual runtime: Actual Runtime = Planned runtime - Downtime and stoppages Next we can calculate the availability percentage: Availability = Actual runtime ÷ Planned runtime x 100%

Trade Related Technical Assistance (TRTA II) Programme

Worked Example 3: Availability
• • • • • • • • • • • • • • • Planned runtime = Shift time - Planned stoppages = (480 + 480 +720) - (60+60+90) = 1680 - 210 = 1470 mins Now, for a particular day the following downtime and stoppages were logged: Line A 40 mins Line B 35 mins Line C 65 mins Click to the actual runtime: Let's use this information to calculate reveal answers Actual Runtime = Planned runtime - Downtime and stoppages = 1470 mins - (40+35+65) = 1470 - 140 = 1330 mins Next we can calculate the availability percentage: Availability = Actual runtime ÷ Planned runtime x 100% = 1330 ÷ 1470 x100% = 90.5%

Trade Related Technical Assistance (TRTA II) Programme

Worked Example 3: Performance
The actual output for each of the three lines is shown below: Line A = 28,424 units Line B = 40,906 units Line C = 480 units Using the total units produced, and the total possible that we have already calculated, the performance rate for the factory is:
Performance = Actual output x 100 % Total possible output in actual time

Trade Related Technical Assistance (TRTA II) Programme

Calculate the OEE: Performance
Performance = Actual output x 100 % Total possible output in actual time

Line A = 28,424 units Line B = 40,906 units Line C = 480 units Using the total units produced, and the total possible that we have already calculated, Click to reveal answers the performance rate for the factory is Performance = 69,810 units 82,130 units = 85 %

Trade Related Technical Assistance (TRTA II) Programme

Calculate the OEE: Quality
The factory produced 69,810 units across the 3 lines, but some of these units were rejected as faulty before being dispatched. A total of 3,000 units were logged as rejects and 490 units were repackaged. Right First Time = Total Produced - rejects – rework Quality rate = Right First Time x 100 Total amount produced

Trade Related Technical Assistance (TRTA II) Programme

Worked Example 3: Quality
The factory produced 69,810 units across the 3 lines, but some of these units were rejected as faulty before being dispatched. A total of 3,000 units were logged as rejects and 490 units were repackaged. Right First Time = Total Produced - rejects - rework = 69,810 - 3,000 - 490 Click to reveal answers = 66,320 units Taking the information from above, the quality rate for the factory is calculated: Quality rate = 66,320 units =95% 69,810 units

Trade Related Technical Assistance (TRTA II) Programme

Worked Example 3: OEE
Now the 3 calculations can be multiplied to find our OEE score for the example factory:
Availability x Performance x Quality

We can compare these percentages to the World Class Standards, remember the standards are: „Availability 90 %
„Performance 95 % „Quality 99.9 %

Trade Related Technical Assistance (TRTA II) Programme

Worked Example 3: OEE
Now the 3 calculations can be multiplied to find our OEE score for the example factory:
Availability x Performance x Quality Click to reveal answers

Now the 3 calculations can be multiplied to find our OEE score for the example factory:
Availability = 90.5 % x Performance = 85% x Quality = 95% = 73.1%