Calculating OEE
The Formulas
As described in World Class OEE, the OEE calculation is based on the three OEE Factors:
Availability, Performance, and Quality. Here's how each of these factors is calculated.
Availability
Availability takes into account Down Time Loss, and is calculated as:
Availability = Operating Time / Planned Production Time
Performance
Performance takes into account Speed Loss, and is calculated as:
Performance = Ideal Cycle Time / (Operating Time / Total Pieces)
Ideal Cycle Time is the minimum cycle time that your process can be expected to achieve in
optimal circumstances. It is sometimes called Design Cycle Time, Theoretical Cycle Time or
Nameplate Capacity.
Since Run Rate is the reciprocal of Cycle Time, Performance can also be calculated as:
Performance = (Total Pieces / Operating Time) / Ideal Run Rate
Performance is capped at 100%, to ensure that if an error is made in specifying the Ideal
Cycle Time or Ideal Run Rate the effect on OEE will be limited.
Quality
Quality takes into account Quality Loss, and is calculated as:
Quality = Good Pieces / Total Pieces
OEE
OEE takes into account all three OEE Factors, and is calculated as:
OEE = Availability x Performance x Quality
It is very important to recognize that improving OEE is not the only objective. Take a look at
the following data for two production shifts.
OEE Factor Shift 1 Shift 2
Availability 90.0% 95.0%
Performance 95.0% 95.0%
Quality 99.5% 96.0%
OEE 85.1% 86.6%
Superficially, it may appear that the second shift is performing better than the first, since its
OEE is higher. Very few companies, however, would want to trade a 5.0% increase in
Availability for a 3.5% decline in Quality!
The beauty of OEE is not that it gives you one magic number; it's that it gives you three
numbers, which are all useful individually as your situation changes from day to day. And it
helps you visualize performance in simple terms - a very practical simplification.
Example 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.
Item Data
Shift Length 8 hours = 480 min.
Short Breaks 2 @ 15 min. = 30 min.
Meal Break 1 @ 30 min. = 30 min.
Down Time 47 minutes
Ideal Run Rate 60 pieces per minute
Total Pieces 19,271 pieces
Reject Pieces 423 pieces
Planned Production Time
= [Shift Length - Breaks]
= [480 - 60]
= 420 minutes
Operating Time
= [Planned Production Time - Down Time]
= [420 - 47]
= 373 minutes
Good Pieces
= [Total Pieces - Reject Pieces]
= [19,271 - 423]
= 18,848 pieces
Availability = Operating Time / Planned Production Time
= 373 minutes / 420 minutes
= 0.8881 (88.81%)
(Total Pieces / Operating Time) / Ideal Run
Performance =
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 x Performance x Quality
= 0.8881 x 0.8611 x 0.9780
= 0.7479 (74.79%)
Go on to Visual OEE™
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