verall quipment ffectiveness: Overall Equipment Effectiveness (설비종합효율)

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Maintenance Optimization

- Overview -
Overall Equipment Effectiveness
( 설비종합효율 )
Machines have souls.
If you take special care about them, they will return it.

Prof. Bo-Suk Yang


Intelligent Mechanics Lab.
Pukyong National University

Pukyong National Univ. Intelligent Mechanics Lab.


A Survival Tool for Manufacturing

 Pressured by current economic conditions and global competition,


manufacturers are becoming increasingly sensitive about operational
costs.
 In this environment, it pays to consider both creative and proven
methods that you can use to bring your product to market at minimum
cost and can be guaranteed by an effective maintenance system.
 OEE is a method that meets this objective.
 OEE is a performance metric compiled from machine-availability data.
 OEE also captures the reasons for downtime (e.g. machine
conditions,
material status, production personnel, or quality issues) and can
deal with the individual machine level, a line level or the entire plant.
 At the plant level, OEE metrics can be correlated with other plant
metrics to provide key performanceReference:
indicators.
Jack Wilkins, Sensors, Nov 16, 2007

Pukyong National University Intelligent Mechanics Lab.


Definition of OEE

 The overall performance of a single piece of equipment or even an


entire factory, will always be governed by the cumulative impact of
the 3 OEE factors: Availability, Performance Rate & Quality Rate

Overall = Availability  Performance  Quality


Equipment
Efficiency
Outages of Reduced In process
machines operating quality errors
speed
Retooling &
adjustment Idle time
& short
standstills
Startup difficulties

Pukyong National University Intelligent Mechanics Lab.


Definition of OEE

 OEE is a percentage derived by multiplication of the three ratios for


the factors mentioned above.
 OEE is a measure comparing how well manufacturing equipment is
running compared to the ideal plant.
 The resulting measurement is expressed as the ratio of the actual
output of the equipment divided by the maximum possible output of
the equipment under ideal conditions.
 In other words, OEE takes an holistic view of all losses that impact on
equipment performance: not being available when needed; not running
at the ideal rate and not producing first quality output.

Pukyong National University Intelligent Mechanics Lab.


A Survival Tool for Manufacturing

 Managers can monitor OEE plant metrics and drill down to find the
root causes of problems, getting minute-by-minute updates to enable
real-time process improvement.
 Downtime reductions can be readily achieved by using OEE to gain
visibility into machine status and to analyze problems.
 Facility operators and supervisors spend an enormous amount of time
recording, analyzing, & reporting on downtime, then further explaining
these reports to management.
 OEE system captures & reports downtime and efficiency
automatically.
 This eliminates the time wasted in non-value-added reporting and
allows personnel to focus on more valuable tasks.
 With OEE, everyone from the plant floor to the boardroom is more
informed, more often, more easily.
Reference: Jack Wilkins, Sensors, Nov 16, 2007

Pukyong National University Intelligent Mechanics Lab.


A Survival Tool for Manufacturing

 OEE also enables predictive maintenance, which can dramatically


reduce repair costs.
 As the information on factors contributing to downtime grows in the
historical database, the maintenance department can classify trends
and predict impending failures.
 Also, by interfacing OEE system with a Computerized Maintenance
Management System (CMMS), the maintenance department can
take proactive steps to do predictive maintenance.
 For example, maintenance can order the necessary part in advance
and get better rates.
 It can allocate repair personnel from an existing pool of resources
instead of hiring someone on an emergency basis.

Pukyong National University Intelligent Mechanics Lab.


A Survival Tool for Manufacturing

 All this can result in huge savings compared with repairing a machine
after the breakdown has happened.
 The net effect of reduced machine downtime, higher productivity of
operators, and reduced defects is the ability to achieve higher
production levels with the same amount of resources.

Pukyong National University Intelligent Mechanics Lab.


Plant Utilization Statistics

 Generally, operations of most manufacturing plants are running at only


60% efficiency during uptime. The other 40% of the total equipment time
are lost due to various downtime.
 Among which, 15% of plant utilization are lost to scheduled downtime.
 Scheduled downtime can be preventive maintenance, setup, change of
consumables/materials, production test and so on.
 Unscheduled downtime accounts for 10%, which is usually difficult to quantify
but preventable if proper preventive measures are taken.
 The remaining significant 15% of the total utilization is lost as hidden downtime.
 Hidden downtime can be due to shift
interruptions, minor maintenance issues, Hidden

operator not available and so on, which Downtime

are difficult to quantify and remain Unscheduled


Downtime
unnoticed without a monitoring system. Uptime

Scheduled
Downtime

Pukyong National University Intelligent Mechanics Lab.


Plant Utilization Statistics

 Technology Roadmap, the Semiconductor Industry Association (SIA) identified


the need to improve Overall Equipment Effectiveness, which is an industry
standard measure of equipment productivity.
 Surveyed the industry and found that an average piece of wafer processing
equipment has an OEE of 45%.
 Need to increase OEE from 45% to 65% by 2002, and to 80% by 2011.
 The number of test wafers used is a significant factor in OEE. Today, 33% of
wafers processed are used to test processing equipment, to make sure the
equipment is operating correctly.

Pukyong National University Intelligent Mechanics Lab.


What is OEE?

 In an ideal factory, equipment would operate 100% of the time


at 100% capacity, with an output of 100% good quality.
 In real life, however, this situation is rare.
 Difference between the ideal and actual situation is due to losses.
 Calculating the OEE rate is a important element of any serious
commitment to reduce equipment- and process-related wastes
through total productive maintenance (TPM) and other Lean
manufacturing methods like Operational Excellence, Six Sigma
or World Class Manufacturing.
• Lean : 여윈 , 마른 , 기름이 없고 살코기만의 라는 뜻 .
• Lean 제작방법 : 아주 간결하고 최소한도의 필요한 자원만을 이용해
생산하는 시스템
• PULL 생산방식 = 동기화 생산 = JIT (Just in time) 생산방식 = 재고
없는 생산
= 필요한 만큼의 자재 이용 = 연속적 흐름 생산
Pukyong National University Intelligent Mechanics Lab.
Defect and Failure Cost?

 When a failure incident occurs there is a consequential loss of profits


and accumulating of costs.
 Cost of failure includes lost profit, the cost of the repair, the fixed and
variable operating costs wasted during the downtime and a myriad of
consequential costs that reverberate and surge through the business.
 The costs of failure cannot be escaped and are counted in millions of
dollars of lost profit per year.
 Total defect and failure true costs are not normally recognized by
managers, yet they can send businesses bankrupt.
 In the instance of a failure all its costs and losses are automatically
incurred on the business.
 These costs can only be prevented by precluding the failure in the first
place.

Pukyong National University Intelligent Mechanics Lab.


Cost of Failure to a Business
• 총 비용 = 고정비용 + 가변비용
• 고정비용 : 생산량의 대소에 관계없이 일정액으로 발생하는 급료 · 토지세 ·
이자 · 공장관리비 ,
보험료 , 임대료 등으로 생산이 중단되어도 지출되는 비용

• 가변비용 : 원자재비 · 동력비 등 생산량에 비례하여 증가하는 변동비 ( 비례적


가변비용 ) 와
급료 · 보수비 등과 같이 생산량의 증대와는 비례하지 않는 증가율을
갖는
준변동비 ( 비례하지 않는 가변비용 )
• 고정비용이 높은 산업은 생산량을 늘려 가변비용의 비중을 낮추고 기업의
수익을 증대

Normal business in operation


Pukyong National University Intelligent Mechanics Lab.
Cost of Failure to a Business

 A failure incident occurs at time t1 that stops the operation.


 Future profits are lost because no product can be made
(though inventory can still be sold until it is gone).
 Fixed costs continue accumulating but are now wasted because
no product is being produced.

Effects on costs and profit of a failure incident


Pukyong National University Intelligent Mechanics Lab.
Cost of Failure to a Business

 Some of the variable costs will fall because they are not used,
whereas some, like maintenance, will suddenly rise in response
to the incident.
 Other variable costs are retained in the expectation that the equipment
will get back into operation quickly. 인건비
 These are also wasted because they are no longer involved in making
saleable product.

Effects on costs and profit


of a failure incident

Pukyong National University Intelligent Mechanics Lab.


Cost of Failure to a Business

 Losses and wastes continue until the plant is back in operation


at time t2.
 The cost for repair from a severe outage can be many times
the profit made in the same time period (dotted outline).

Effects on costs and profit of a failure incident

Pukyong National University Intelligent Mechanics Lab.


Cost of Failure to a Business

 When a failure happens many people suddenly get involved in


solving it.
 Meetings are held, overtime is worked, subcontractors are brought-in,
engineers investigate, parts and spares are purchased to get back in
operation.
 Instead of the variable costs being a proportion of production, as
intended, they instead rise and take on a life of their own in response
to the failure.
 The losses grow proportionally bigger the longer the repair takes or
the greater the consequences of the failure.

Pukyong National University Intelligent Mechanics Lab.


Cost of Failure to a Business

 Shaded areas in figure that when a failure happens the cost to


the business is lost future profits, plus immediately wasted fixed costs,
plus immediately wasted variable costs, plus the added variable costs
needed to get the operation back in production.
 There are many other consequential costs too.

Pukyong National University Intelligent Mechanics Lab.


Cost of Failure to a Business

 The losses and wasted costs accumulate in production, the cost of


maintenance climbs, the knock-on costs( 연쇄효과비용 ) and
wasted
time across the business rise and profits in the business fall.

Effects on profitability of repeated failure incidents

http://www.lifetime-reliability.com
Pukyong National University Intelligent Mechanics Lab.
Total and True Failure Cost and Defect Cost

 Each organization is different and each defect, error and failure it


suffers has different consequences.
 The total cost to the organization of an incident will be shared
amongst the departments and people involved.
 The proportion of the cost each department ends up carrying
depends on the extent of its involvement.
 The total and true costs incurred by a business from a failure event
reverberate and surge throughout the organization.
 The 60 consequential costs listed below reflect a good number of
them, though there are others specific to each organization and
you will need to identify and record them.

http://www.lifetime-reliability.com

Pukyong National University Intelligent Mechanics Lab.


Total and True Failure Cost and Defect Cost

 Labour : both direct and indirect  Services


• operators • emergency hire
• repairers • sub-contractors
• supervisory • travelling
• management • consultants
• engineering • utility repairs
• overtime/penalty rates • temporary accommodation
 Product waste  Materials
• scrap • replacement parts
• replacement production • fabricated parts
• clean-up • materials
• reprocessing • welding consumables
• lost production • workshop hire
• lost spot sales • shipping
• off-site storage • storage
• space
• handling
http://www.lifetime-reliability.com • disposal
Pukyong National University Intelligent Mechanics Lab.
Total and True Failure Cost and Defect Cost

 Equipment  Consequential
• OEM • penalty payments
• energy waste • lost future sales
• shutdown • legal fees
• handover • loss of future contracts
• start-up • environmental clean-up
• inefficiencies • death and injury
• emergency hire • safety rectification
• damaged items  Administration
 Additional capital • documents and reports
• replacement equipment • purchase orders
• new insurance spares • meetings
• buildings and storage • meeting rooms
• stationary
• planning, schedule changes
• investigations and audits
• invoicing and matching
http://www.lifetime-reliability.com

Pukyong National University Intelligent Mechanics Lab.


Six Big Losses

 Looking at machine operation, we distinguish six types of waste


we refer to as losses, because they reflect lost effectiveness of
the equipment
 These six big losses are grouped in three major categories:
downtime, speed losses, and defect losses

 
Loss Categories The Six Big Losses
  Downtime • Equipment failures ( 장비고장손실 )
  (lost availability) • Setup and adjustments ( 준비 · 조정손실 )
Speed losses • Idling and minor stoppages ( 공전 ·
(lost performance) 멈춤손실 )
• Reduced speed operation ( 속도저하손실 )
Defect losses • Scrap and rework ( 불량 · 손질손실 )
(lost quality)  • Startup losses ( 시동손실 )

Pukyong National University Intelligent Mechanics Lab.


Six Big Losses

 Merely considering on the optimization of the maintenance strategy


is inadequate to cease or to minimize these losses
 A unitary approach is needed which considers the factors influencing
the OEE and enables complex solutions.
 This approach is delivered by the maintained production concept.
 The realization of the maintained production is based on the constant
optimization of the condition of machines and equipments.
 

 
 

Pukyong National University Intelligent Mechanics Lab.


Maintenance Improvement Process

Goals for a capacity improvement and


maintenance optimization process

OEE

 
 

Pukyong National University Intelligent Mechanics Lab.


Typical Goals

 Typical goals for a capacity improvement and maintenance


optimization process would be:
• Improve overall system availability by __ %
• Improve customer satisfaction index by __ %
• Decrease maintenance expenditures by __ %
• Decrease unplanned downtimes by __ %
• Decrease annual equipment replacements by __ %
• Improve craft skill and cross-training knowledge by __ %
 

  • Decrease personnel overtime by __ %


  • Improve the documentation of equipment problems by __ %
• Implement automated work order processing for _ services centers by {date}
• Reduce the number of safety related incidences by __ %

Pukyong National University Intelligent Mechanics Lab.


Maintenance Improvement Process

 Maintenance optimization is about how work is done.


 We often think of design as applying only to products.
 Yet, maintenance optimization is based on the premise that the desig
n
of processes - how work is done - is of essential importance.
 Starting point for organizational success is well-designed processes.
 Equipment reliability is improved, equipment life is extended, product
  quality is improved, and capacity goes up.
 
 The net effect is an improvement in the OEE, achieved by increasing
 
the combination of factors associated with availability, capacity and
quality.
 The key issue in order to achieve improved OEE is therefore …
"What is the best process by which to maintain and
operate the critical and important equipment?"
Pukyong National University Intelligent Mechanics Lab.
Downtime Losses (Lost Availability) 정지시간

 Downtime refers to time when the machine should be running,


but it stands still.
 Downtime includes two main types of loss: equipment failures,
and setup and adjustments.

 Equipment Failures Loss ( 장비고장손실 )


• Sudden and unexpected equipment failures, or breakdowns, are
an obvious cause of loss, since an equipment failure means that
the machine is not producing any output.
 

 
The economical consequences from an unexpected one-day stoppage
 
in industry may become as high as up to 100,000 ~ 200,000 euros :
• Nuclear power plant: 300,000€
• Pulp and paper plant: 200,000€
• Steel works and continuous casting: 150,000€
• Chemical factory, coal power station and mining plant: 100,000€
• Oil refinery: 50,000€ (Holmberg et al., 2004)

Pukyong National University Intelligent Mechanics Lab.


Downtime Losses (Lost Availability) 정지시간

 Setup & Adjustments Loss ( 준비 · 조정손실 )


• Most machine changeovers require some period of shutdown so
that internal tools can be exchanged.
• Time between the end of production of the last good part and
the end of production of the next good part is downtime.
• This downtime loss often includes substantial time spent making
adjustments until the machine gives acceptable quality on new part.

 현재 품종의 생산종료시점에서 다음 품종으로 전환 및 조정하고 완전한 양품이


나올 때까지의
시간적 손실
 작업준비 ( 절차변경 , 작업교체 ) 란 생산종료 시의 치공구류 분리 , 마무리 , 청
소 , 다음 제품에
필요한 치공구류 , 금형류의 준비  설치  조정  측정  생산의 일련의
작업을 하고
완전한 양품이 나올 때까지의 시간
 조정이란 : • 어떤 목적을 위해 최적치를 추구하기 위해서 하는 조치 ,
예로University
Pukyong National 품질을 목표치로 얻기 위한 조치 등 Intelligent Mechanics Lab.
• 시행착오 반복에 의해 달성하는 것 : 내부 작업준비 , 외부 작업준비
Speed Losses (Lost Performance)

 A speed loss means that the equipment is running, but it is not


running at its maximum designed speed.
 Speed losses include two main types of loss: idling and minor
stoppages, and reduced speed operation. 

 Idling and Minor Stoppages ( 공전 · 멈춤 손실 )


• When a machine is not running smoothly and at a stable speed,
it will lose speed and obstruct a smooth flow.
 
• The idling and stoppages in this case are caused not by technical
 
failures, but by small problems such as parts that block sensors or
 
get caught in chutes.
• Although the operator can easily correct such problems when they
occur, the frequent halts can dramatically reduce the effectiveness
of the equipment.

Pukyong National University Intelligent Mechanics Lab.


Speed Losses (Lost Performance)

 공전 및 멈춤 손실의 정의
• 일시적인 기능정지를 수반하는 것
• 기능 회복은 간단한 처치 ( 이상 작업의 제거와 재 기동 ) 로 가능할 것
• 부품 교환 , 수리는 수반하지 않는 것
• 회복 시간이 2 ~ 3 초에서 5 분 미만인 것

 고장과는 달리 , 일시적인 트러블 때문에 설비가 정지 혹은 공전하는


  상태
  예 : 작업이 슈트 상에서 막혀서 공전하거나 ,
 
품질불량 때문에 센서가 작동하여 일시 정지하는 경우
 이것은 이상 작업의 제거 , Reset 을 하면 기계는 정상적으로
작동하므로
설비 고장과는 본질적으로 다름
인용 경함의
 멈춤을 줄이기 위해서는 현상을 잘 분석하고 경미한 : www.ktpm.co.kr
철저한
배제가 중요
Pukyong National University Intelligent Mechanics Lab.
Speed Losses (Lost Performance)

 Reduced Speed Operation ( 속도저하 , 감속운전 )


• Reduced speed operation refers to the difference between the actual
operating speed and the equipment’s designed speed (also referred
to as nameplate capacity).
• There is often a gap between what people believe is the maximum
speed and the actual designed maximum speed.
• The goal is to eliminate the gap between the actual speed and the
 
designed speed.
  • Significant losses from reduced speed operation are often neglected
  or underestimated.

Pukyong National University Intelligent Mechanics Lab.


Speed Losses (Lost Performance)
 설비의 속도가 늦기 때문에 발생하는 손실
( 기준 주기시간과 실제 주기시간과의 차 )
• 설계 시점의 속도 ( 혹은 정격 운전속도 ) 에 대한 실제속도의 차이에
의한 손실
예 : 주기시간이 60 초로 기준설정 되어 있는데 , 실제로는 65 초로
가동될 경우 ,
5 초가 속도저하 손실
• 설계시점의 속도가 현 기술수준 또는 당연 상태에 비하여 낮은 경우의
손실
  예 : 주기시간이 60 초로 설정되어 있는데 현 단계에서 개선하면 50
  초까지
  내릴 수 있을 경우 10 초가 속도저하 손실
 속도향상을 도모하는 것은 문제를 드러내고 , 기술수준 향상에
기여하는 것으로
이에 대한 목표는 설계와 실제의 차를 0 으로 하는
인용것: www.ktpm.co.kr

Pukyong National University Intelligent Mechanics Lab.


Defect Losses (Lost Quality)

 A defect loss means that the equipment is producing products that


do not fully meet the specified quality characteristics.
 Defect losses include two major types of loss: scrap and rework,
and startup losses. 

 
 

Pukyong National University Intelligent Mechanics Lab.


Defect Losses (Lost Quality)

 Scrap and Rework ( 불량손질손실 )


• Loss occurs when products do not meet quality specifications,
even if they can be reworked to correct the problem.
• The goal should be zero defects - to make the product right the first
time and every time.
 불량품을 생산하기 때문에 생기는 이익의 감소액 .
 수요량이 생산능력을 밑도는 설비과잉상태에서는 불량품의 생산 때문에 소비된
재료비 등의
변동비가 손실액이 되지만 , 생산능력이 수요량을 따르지 못하는
 

  설비부족상태에서는 불량품
  을 만들어 양품을 팔 기회를 놓치기 때문에 , 불량품 생산시간에 상당하는 만큼
이익의 총액이
불량손실이 되고 , 그 금액은 일반적으로 설비과잉상태의 경우보다 더 크게 된다 .
 이와 같이 생산능력과 수요량과의 관계에 의해 , 불량손실의 평가방법과 금액이
다른 것을 주의
인용
 관점을 좁게 보아 ' 불량 . 손질손실 ' 로서 설비효율화 저해 : www.ktpm.co.kr
손실의 하나

Pukyong National University Intelligent Mechanics Lab.


Defect Losses (Lost Quality)

 Startup Losses ( 시동손실 , 생산개시손실 )


• Startup losses are yield losses that occur when production is not
immediately stable at equipment startup, so the first products do
not meet specifications.
• This is a latent loss, often accepted as inevitable, and it can be
surprisingly large.

 규정된 사이클 시간으로 운전시에 기계적인 트러블 ( 멈춤 . 작은 트러블 ,


도구파손 등 ) 없이
 
품질이 안정되고 양품을 생산할 수 있기까지의 시간적 손실과 , 그 사이에
  발생하는 양적 손실
  ( 불량 , 손질 )
• 정기수리 후의 시동 , • 휴지 ( 장시간정지 ) 후의 시동 , • 휴일 후의 시동
• 점심시간 후의 시동 등
 아침 생산 시작 시에 치수의 오류가 많이 발생하기 때문에 조정빈도가 높아 조정에
실패하여
인용 : www.ktpm.co.kr
재 손질이 발생하고 , 도구를 파손하는 등의 손실이 있어 , 이를 방지하기 위해
아침 일찍National
Pukyong 워밍 University Intelligent Mechanics Lab.
업을 하면서 공운전을 함 . 시동손실의 목표는 0 보다는 “극소화”
OEE Metric

 Most industries have some kind of gauge system on their equipment


that measures quantities such as uptime, units produced, and
sometimes even the production speed.
 These are appropriate things to look at if the focus is on what’s
coming out of the machine.
 Besides what’s coming out of the machine, we also want to know
what could have come out, and where we are losing effectiveness.
 OEE offers a simple but powerful measurement tool to get inside
 

  information on what is actually happening.


   OEE calculation is a metric that gives us daily information about
• How effectively the machine is running and
• Which of the six big losses we need to improve.
 OEE is not the only indicator to assess a production system,
but it is certainly very important if our goal is improvement.

Pukyong National University Intelligent Mechanics Lab.


Elements of OEE

OEE is a performance measurement comprised of asset


availability, production rate and quality levels.

 
 

Pukyong National University Intelligent Mechanics Lab.


Elements of OEE

 The three main categories of equipment-related losses


• Downtime
• Speed loss
• Defect or quality loss

 Are also the main ingredients for determining the OEE.


 OEE is calculated by combining three factors that reflect these
 
losses:
 
  • Availability rate
• Performance rate
• Quality rate

Pukyong National University Intelligent Mechanics Lab.


Elements of OEE

Availability rate is the time the equipment is really


running, versus the time it could have been running.
A low availability rate reflects downtime losses:
• Equipment failures Availability rate = Operating Time /
Planned Production Time
• Setup and adjustments
Performance rate is the quantity produced during
the running time, versus the potential quantity, given
the designed speed of the equipment. Performance rate = Ideal Cycle Time /
A low performance rate reflects speed losses: (Operating Time / Total Pieces)
  = (Total Pieces / Operating Time) /
• Idling and minor stoppages Ideal Run Rate
 
• Reduced speed operation
 
Quality rate is the amount of good products versus
the total amount of products produced. 
A low quality rate reflects defect losses:
Quality rate = Good Pieces /
• Scrap and rework
Total Pieces
• Startup losses

Pukyong National University Intelligent Mechanics Lab.


Calculation of OEE

To calculate OEE, we multiply the three factors together:

OEE = Availability Rate x


Performance Rate x
Quality Rate

• The diagram shows graphically


how the losses in availability,
performance, and quality work
 
together to reduce OEE of a machine.
  • The top bar, total operating time, shows
  the total time a machine is available to
make a product.
• This is usually considered to be 480
minutes per 8-hour shift.

Pukyong National University Intelligent Mechanics Lab.


Calculation of OEE

 Bars A and B show Availability


• Bar A represents the net operating time, which is the time
available
for production after subtracting planned downtime (no scheduled
production) such as a holiday, no orders, or no personnel.
• Bar B shows the actual running time after subtracting downtime
losses such as equipment failures and setup and adjustments.
 

 
 Bars C and D show Performance
  • Bar C represents the Target Output of the machine during the
running time, calculated at the designed speed of the machine.
• Below it, a shorter fourth bar, D, represents the actual output,
reflecting speed losses such as minor stoppages and reduced
operating speed.

Pukyong National University Intelligent Mechanics Lab.


Calculation of OEE

 Bars E and F show Quality


• As you can see, the actual output (E) is reduced by defect losses
such as scrap and startup losses, shown as the shaded portion of
bar F.
• As this diagram shows, the bottom-line good output is only a
fraction of what it could be if losses in availability, performance,
and quality were reduced.
 The diagram also suggests that to maximize effectiveness- to grow
 

  the good output on the bottom line- you must reduce not only
  quality losses, but also availability and performance losses.
 The three factors work together, and the lowest percentage is
usually the constraint that most needs addressing.

Pukyong National University Intelligent Mechanics Lab.


Example of OEE Calculation

 The table below contains hypothetical shift data, to be used for a


complete OEE calculation, starting with the calculation of the OEE
factors of Availability, Performance, and Quality.
 Note that the same units of measurement (in this case minutes and
pieces) are consistently used throughout the calculations.

Planned Production Time


Item Data
= [Shift Length - Breaks]
Shift Length 8 hours = 480 min. = [480 - 60] = 420 minutes
  Short Breaks 2  15 min. = 30 min.
  Operating Time
Meal Break 1  30 min. = 30 min. = [Planned Production Time - Down
 
Down Time 47 minutes Time]
= [420 - 47] = 373 minutes
Ideal Run Rate 60 pieces per minute
Total Pieces 19,271 pieces Good Pieces
Reject Pieces 423 pieces = [Total Pieces - Reject Pieces]
= [19,271 - 423] = 18,848 pieces

Pukyong National University Intelligent Mechanics Lab.


Example of OEE Calculation

Availability = Operating Time / Planned Production Time


= 373 minutes / 420 minutes
 
= 0.8881 (88.81%)

Performance = (Total Pieces / Operating Time) / Ideal Run Rate


= (19,271 pieces / 373 minutes) / 60 pieces per minute
 
= 0.8611 (86.11%)

  Quality = Good Pieces / Total Pieces


 
= 18,848 / 19,271 pieces
   
= 0.9780 (97.80%)

OEE = Availability  Performance  Quality


= 0.8881 x 0.8611 x 0.9780
 
= 0.7479 (74.79%)

Pukyong National University Intelligent Mechanics Lab.


World-Class Goal of OEE

 In practice, generally accepted world-class goals for each factor


are quite different from each other, as is shown in the table below.
 Of course, every manufacturing plant is different.
 Worldwide studies indicate that average OEE rate in manufacturing
plants is 60%.
 As you can see from the table, a World Class OEE is considered to
be 85% or better.
   There is room for improvement in most manufacturing plants
 
 
OEE Factor World Class
Availability 90.0%
Performance 95.0% www.oee.com
Can you download the fast guide to OEE
Quality 99.9%
Overall OEE 85.0%

Pukyong National University Intelligent Mechanics Lab.


Goal & Benefits of OEE Measurement

 Goal of measuring OEE is to improve the effectiveness of your


equipment.
 Since equipment effectiveness affects shop-floor employees more
than any other group, it is appropriate for them to be involved in
tracking OEE and in planning and implementing equipment
improvements to reduce lost effectiveness.
 Recommend that the operator collect the daily data about
 
the equipment for use in the OEE calculation.
   Collecting this data will 
 
• Teach the operator about the equipment
• Focus the operator’s attention on the losses
• Grow a feeling of ownership of the equipment

Pukyong National University Intelligent Mechanics Lab.


Goal & Benefits of OEE Measurement

 The shift leader or line manager is often the one who will
• Receive the daily operating data from the operator and
• Process it to develop information about the OEE.
 Working hands on with the data will; 
• Give the leader/manager basic facts and figures on the equipment 
• Help the leader/manager give appropriate feedback to the operators
and others involved in equipment improvement 
 
• Allow the leader to keep management informed about equipment
 
status and improvement results
 

Pukyong National University Intelligent Mechanics Lab.


Books & Related Software Providers

If you needs more information, please visit the following homepage


or buy the related books

 www.oee.com
 www.lighthousesystems.com     
 www.idhammarsystems.com/product     
 www.downtimecentral.com
 www.oeeimpact.com
 

   www.silkron.com
 

Pukyong National University Intelligent Mechanics Lab.

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