First popularized as an integral part of Total Productive Maintenance (TPM), Overall Equipment Effectiveness (OEE) helps facilities uncover losses and improvement opportunities. OEE, considered a manufacturing best practice, measures how close to perfection the production line is currently running by focusing on three underlying losses:
- Availability = Run Time / Planned Production Time
- Productivity = (Ideal Cycle Time x Total Count) / Run Time
- Quality = Good Count / Total Count
How to use the OEE Calculator
- Begin by inputting your parameters in the fields below, beginning with shift times, planned downtime, and unplanned downtime. Add in the number of total parts produced and the ideal cycle time in minutes per part; finally enter the value for total scrap.
- It's now time to analyze the results -- it is important you are detailed in collecting data in the previous step, so your results are as accurate as possible. OEE is calculated as a percentage and the goal is to be as close to 100% as possible. It is beneficial to set a target score that is viable for your facility to reach in a few months.
- List the causes of unplanned stops and begin there. Look at the percentages for Availability, Quality, and Performance, these numbers will provide insight into the Six Big Losses. It is these losses that will drive your improvement actions.
Additional OEE facts:
- OEE (Overall Equipment Effectiveness) is a metric used to measure the effectiveness and performance of manufacturing processes or any individual piece of equipment. It provides insights into how well equipment is utilized and how efficiently it operates in producing goods or delivering services. Source: https://www.ibm.com/topics/oee
- OEE is calculated by multiplying three factors: Availability, Performance, and Quality. Availability measures the actual production time compared to the planned production time. Performance measures how well the equipment is performing compared to its maximum potential. Quality measures the rate of production of good count products without defects or rework. Source: https://www.oee.com/
- OEE is a percentage value that indicates the overall effectiveness of the equipment or process. A higher OEE percentage indicates better performance and effectiveness, while a lower percentage suggests room for improvement. OEE is commonly used as a performance metric in manufacturing industries to identify areas for optimization, track improvements over time and benchmark different equipment or production lines. Source: https://en.wikipedia.org/wiki/Overall_equipment_effectiveness
- In an Industry 4.0 context, technologies like cloud, edge computing, internet of things (IoT) devices, and others converge to provide real-time data that can help to gauge and improve OEE. IoT data, analytics and AI can help streamline asset operations and reduce downtime, optimize equipment performance and minimize quality issues, and increase productivity and output without the need for additional resources or investments. Source: https://www.ibm.com/topics/oee
- Improving OEE can bring several significant benefits to organizations in the manufacturing sector, such as increased productivity, improved efficiency, cost reduction, and enhanced quality. By minimizing equipment downtime, organizations can avoid costly production delays. By improving quality and reducing defects, organizations can minimize scrap, rework and material wastage. By optimizing equipment utilization and performance, organizations can make better use of their resources and achieve higher production rates and output. Source: https://techqualitypedia.com/oee/
(minutes per part)