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CHAPTER 6: Improvement by OVERALL EQUIPMENT
improving EFFECTIVENESS
Overall Equipment Effectiveness
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Evolution of OEE Evolution of OEE
Analysis of OEE then led to the addition of more performance
The TPM concept, launched by Nakajima in the 1980’s, provided a
measures to fit different industries’ requirements:
quantitative metric called Overall Equipment Effectiveness (OEE) for
measuring productivity of individual equipment in a factory. It identifies • TEEP= Total Equipment Effectiveness Performance
ad measures losses of important aspects of manufacturing: • PEE = Production Equipment Effectiveness
• Availability • OFE = Overall Factory Effectiveness
• Quality • OTE = Overall Throughput Effectiveness
• Performance • OAE = Overall Asset Effectiveness
OEE is the degree to which our equipment • OLP = Overall Labour Productivity
is doing what it is supposed to do The workforce strives to improve OEE by eliminating Six Big Losses
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OEE Calculation OEE Calculation
Where: Availability gives us what percentage of time the
equipment is actually running, at its total capacity.
▪ Ar = availability rate;
▪ Pr = Performance rate; • A = All considered working time (Total Work Hours)
▪ Qr = Quality rate. • Planned stoppage represents contractual breaks,
etc.
• B = Planned work time for equipment
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OEE Calculation OEE Calculation
• B = Planned working time • Availability rate can be written as follows:
• Downtime represents total time for unscheduled stops
(changeover time and adjustments)
• C = Actual Working Time
• C = Actual Working Time
• B = Planned Working Time
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OEE Calculation OEE Calculation
• If using the time ratio, the actual cycle time per
part can be calculated from the Running
• Reduced speed represents the loss from running at Time(C) and Actual Output (E):
speeds less than optimum
• D = Target output according to ideal cycle time
(ideal cycle time per part x net operating time)
• E = Actual output
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OEE Calculation OEE Calculation
• Performance rate can be written as follows:
• F = Actual Output (E)
• Scrap, rejects is all not accepted units
• G = Total good output
• E = Actual Output
• D = Target Output
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OEE Calculation OEE Model
• Using the above formula’s, the OEE rate
can be expressed as:
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TPM-OEE Productivity Model
OEE Example
• Refer to handout exercise
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OEE - Six Loss Calculation OEE - Six Loss Calculation
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OEE - Six Loss Calculation OEE Example
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OEE Example OEE Example
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OEE Rating OEE Myths
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OEE Myths OEE Myths
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OEE Myths OEE Myths
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OEE Myths Ex.
• Number of working days: 22 days
• + Working hour: 8h00 – 16h30
• + Lunch : 65 minutes
Performance Table drill Vertical Milling
machine drill machine
machine
Number of real 701,67 283,05 417,89
working hours per
month)
Throughput / month 1217 981 1194
Downtime/ month 95,83 35,11 60,61
Good quality of 823 716 827
product
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