OEE

Overall Equipment EffectivenessOverall Equipment Effectiveness

& Capacity Training & Capacity Training

O.E.E. definition Items which influence O.E.E. Applying O.E.E. - 3 Case Studies O.E.E. ‘Quiz’ Capacity Calculations S/D Group Current System for O.E.E. and

capacity calculation

Class FormatClass Format

Class PurposeClass Purpose

Become familiar with O.E.E. Understand Automotive Industry’s approach to

capacity

What Is Overall Equipment What Is Overall Equipment Effectiveness?Effectiveness?

Overall equipment effectiveness is a measure of the how well lines or equipment are utilized in relation to their full potential.

What factors influence Overall What factors influence Overall Equipment Effectiveness?Equipment Effectiveness?

Overall equipment effectiveness is the product of 3 individual rates :

Operating rate Performance rate Quality rate

Loading Time Refers to the net available time. Is the total time available for operation minus

necessary downtime ( breaks and paid lunches)

Equipment

Loading Time

6 Big Losses

O.E.E. in Relationship to the 6 Big LossesO.E.E. in Relationship to the 6 Big Losses

Big Loss #1 Delays of 5-10 minutes or more which result from

associate errors, electrical failure or mechanical breakdown.

Loading Time

6 Big LossesEquipment

1. Frequent Breakdowns (Recorded Downtime)


Big Loss #2 Losses during setup and adjustment resulting from

downtime during changeover.

Loading Time



2. Set-up and Adjustment


Operating Time Refers to the time during which the

equipment is actually in operation.

Dow

ntim

eLo

sses

OperatingTime

Loading Time




2. Set-up and Adjustment

Operating Rate The ratio of the Operating Time to the Loading Time

OEE Formulas

Loading Time - Downtime

Loading Time

Dow

ntim

eLo

sses

OperatingTime

2. Setup and Adjustment

Loading Time



OPERATING RATE


Big Loss #3 Equipment delays of short duration (Short stoppages). Usually less than 5-10 minutes. Other unrecorded downtime.

3. Idling and Minor Losses (Unrecorded Downtime)

OEE Formulas


Loading Time

Dow

ntim

eLo

sses

OperatingTime


Loading Time



OPERATING RATE


Big Loss #4 Losses due to the difference between expected cycle

time and actual cycle time.


OEE Formulas


Loading Time

Dow

ntim

eLo

sses

OperatingTime


Loading Time



OPERATING RATE

4. Drop in Cycle Time


Net Operating Time Refers to the time the equipment is operating at a

stable or constant speed.

NetOperating

Time

Spe

edLo

sses


OEE Formulas


Loading Time

Dow

ntim

eLo

sses

OperatingTime


Loading Time



OPERATING RATE



Performance Rate Ratio of Net Operating Time to Operating Time. Compares time it should have taken vs. the time it did take to

produce the products.

Ideal Cycle Time x Output

Operating Time

NetOperating

Time

Spe

edLo

sses


OEE Formulas


Loading Time

Dow

ntim

eLo

sses

OperatingTime


Loading Time



OPERATING RATE


PERFORMANCE RATE


Big Loss #5 Losses generated from rejected parts


Operating Time

NetOperating

Time

Spe

edLo

sses


OEE Formulas


Loading Time

Dow

ntim

eLo

sses

OperatingTime


Loading Time



OPERATING RATE


PERFORMANCE RATE

5. In-Process Scrap


Big Loss #6 Losses from initial start-up to process stabilization


Operating Time

NetOperating

Time

Spe

edLo

sses


OEE Formulas


Loading Time

Dow

ntim

eLo

sses

OperatingTime


Loading Time



OPERATING RATE


PERFORMANCE RATE

6. Start-up Scrap

5. In-process scrap


Qua

lity

loss

es

ValuableOper.Time

Valuable Oper. Time Time during which acceptable product is manufactured


Operating Time

NetOperating

Time

Spe

edLo

sses


OEE Formulas


Loading TimeD

own

time

Loss

esOperating

Time2. Setup and Adjustment

Loading Time



OPERATING RATE


PERFORMANCE RATE

6. Start-up Scrap

5. In-process scrap


Qua

lity

loss

es

ValuableOperatingTime

Quality Rate Ratio of the number of good products to total produced


Operating Time

NetOperating

Time

Spe

edLo

sses


OEE Formulas


Loading TimeD

own

time

Loss

esOperating


Loading Time



OPERATING RATE


PERFORMANCE RATE

6. Start-up Scrap

5. In-process scrapTotal Produced - Scrap

Total Produced

QUALITY RATE


Qua

lity

loss

es

ValuableOperatingTime

O.E.E. = Availability X Performance X Quality


Operating Time

NetOperating

Time

Spe

edLo

sses


OEE Formulas


Loading TimeD

own

time

Loss

esOperating


Loading Time



OPERATING RATE


PERFORMANCE RATE

6. Start-up Scrap

5. In-process scrapTotal Produced - Scrap

Total Produced

QUALITY RATE


O.E.E. - GoalsO.E.E. - Goals

O.E.E. = Availability X Performance X Quality

World Class O.E.E.

= 90% X 95% X 99% = 85%

O.E.E. Case Study 1

1 2 3

ITEM SCHEDULE MINUTES TYPEStart 7:00Meeting 7:00 - 7:05 5 Planned DowntimeWork 7:05 - 9:00 115Break 1 9:00 - 9:10 10 Break timeWork 9:10 - 11:00 110Lunch 11:00 - 11:30 30 Unpaid lunchWork 11:30 - 1:30 120Break 2 1:30 - 1:40 10 Break timeWork 1:40 - 3:20 100Clean-up 3:20 - 3:30 10 Planned DowntimeEnd 3:30

TOTAL 510

The assembly line above has dedicated equipment andfixturing for making identical parts. It works one 8 hr shift

each day 5 days per week according to this schedule:

A time study was completed for the lineand the following times were observed

and determined to be standard process times for each station:

OPERATION1 2 3

TIME (sec) 68 sec 70 sec 74 sec

Calculate O.E.E. for this line based on the following actual production data from the previous month:

•TOTAL PROD. FOR MONTH (good + scrap) : 6300 pcs•TOTAL DAYS WORKED: 21 days•TOTAL SCRAP 168 pcs•TOTAL DOWNTIME 819 min

~ Planned = 15 min/day meeting + cleanup = 315~Unplanned=504 min total (breakdowns, etc.)

•Background for Case Study 1: Dedicated Assembly Line Example

O.E.E. Case Study 1•Calculation of O.E.E.

DAILY WORK TIME = 7:00-3:30 MINUS .5 HR LUNCH = 8 HOURS OR 480 MINUTES

PLANNED BREAK = TWO 10 MINUTE BREAKS = 20 MIN

WORKSHEET CALCULATION

PLANNED DOWNTIME = (5 MINUTE MEETING + 10 MINUTE CLEANUP) = 15 MIN

UNPLANNED DOWNTIME = (504 TOTAL MONTH / 21 WORKDAYS )= 24 MIN / DAY AVG



OUTPUT / DAY (GOOD + SCRAP) = (6300 PCS PRODUCED/21 DAYS) =300 PCS / DAY

AVG DAILY SCRAP = (168 PCS SCRAPPED / 21 DAYS)=8 PCS / DAY

STANDARD / IDEAL CYCLE TIME = 74 SEC





CAPACITY O.E.E. CALCULATIONS

ASSEMBLY

A DAILY WORK TIME (MIN.) 480

B PLANNED BREAK TIME (MIN.) 20

C LOADING TIME (MIN.) 460

D PLANNED DOWNTIME (MIN.) 15

E UNPLANNED DOWNTIME (MIN.) 24.00

F TOTAL DOWNTIME (MIN.) 39.00

G ACTUAL OPERATING TIME (MIN.) 421.00

H OUTPUT (DAY) ACTUAL PRODUCTION 300.00

J SCRAP 8.00

K STANDARD/IDEAL CYCLE TIME (SEC.) 74

L OPERATING RATE 91.52%

M PERFORMANCE RATE 87.89%

N QUALITY RATE 97.33%

P CAPACITY OVERALL EQUIP. EFFECTIVNESS 78.29%

A-B

D+E

C-F

G/C

(HxK)/(Gx60)

(H-J)/H

LxMxNx100

0

50

100

150

200

250

300

350

400

450

50039 MIN

DOWNTIME

ACTUALOPER.TIME =

421 MIN

STD.TIME TO

MAKE 300

PIECES74”/PC =

370 MIN

STDTIME TO

MAKE 292

GOODPIECES:

360 MIN

51 MINLOST TIME

OPERATINGRATE

421MIN 460 MIN

91.52%

PERFORMANCERATE

370MIN 421 MIN

87.89%

QUALITYRATE

292 PCS 300 PCS

97.33%

10 MINSCRAPTIME

MINUTES 480’ WORK TIME

20’ BREAKS

AVAIL.OPER.TIME

(LOADTIME)=

460 MIN

OVERALL EQUIPMENT

EFFECTIVENES = X X

= X X

X X

O.E.E. Case Study 1: O.E.E. Graph

78.3%=

0

50

100

150

200

250

300

350

400

450

500 39 MINDOWNTIME

ACTUALOPER.TIME =

421 MIN

STD.TIME TO MAKE

300 PIECES74”/PC =

370 MIN

STDTIME TO MAKE

292 GOOD

PIECES:

360 MIN

51 MINLOST TIME

OPERATINGRATE

421MIN 460 MIN

91.52%

PERFORMANCERATE

370MIN 421 MIN

87.89%

QUALITYRATE

292 PCS 300 PCS

97.33%

10 MINSCRAPTIME

MINUTES 480’ WORK TIME 20’

BREAKS

AVAIL.OPER.TIME

(LOADTIME)=

460 MIN

OVERALL EQUIPMENT

EFFECTIVENES = X X

= X X

AVAIL.OPER.TIME

(LOADTIME)=

460 MIN

STDTIME TO

MAKE 292

GOODPIECES:360 MIN

OR: 360 MIN 460 MIN

= 78.3%

X X


78.3%=

ITEM SCHEDULE MINUTES TYPEStart 6:00Meeting 6:00 - 6:05 5 Planned DowntimeRun 6:05 - 8:00 115Break 1 8:00 - 8:10 10 Break timeRun 8:10 - 10:00 110Lunch 10:00 - 10:20 20 Break (Paid lunch)Run 10:20 - 12:30 130Break 2 12:30 - 12:40 10 Break timeRun 12:40 - 1:45 65Clean-up 1:45 - 2:00 15 Planned DowntimeEnd 2:00

TOTAL 480

The paint line above is a single line painting 10 different parts. Paint racks are spaced

3 feet apart. Line speed is 5.5 ft/min. Last month the paint line ran as follows:

* Same schedule format for 2nd and 3rd shift

Production Total ScrapPart Good Scrap Pcs/Rack Racks RacksA 7800 410 10 821 41B 16147 329 4 4119 82C 16593 513 6 2851 86D 17343 723 6 3011 121E 17434 632 6 3011 105F 44120 1224 8 5668 153G 2824 212 4 759 53H 5754 178 4 1483 44I 2473 103 4 644 26J 92266 3844 14 6865 275

222754 8168 29232 986

Calculate O.E.E. for this line based on last month’s productiondata shown below:

Production Data

- For common / shared equipment such as this paint line, a combined standard cycle time for the group of parts must be determined:

StandardCycle Time

= (3ft/rack)/(5.5ft/min) = .545 min/rack = 32.7 sec/rack

- Total days worked = 21 days- Total Downtime = 4767 min Planned = (5’meeting + 15’ cleanup)X3shiftX21days=1260’/month Unplanned = 3507 recorded for the month ( Avg =167’/day)

O.E.E. Case Study 2•Background for Case Study 2: Paint Line Example

O.E.E. Case Study 2•Calculation of O.E.E.

DAILY WORK TIME = 3 SHIFTS X 8 HOURS = 24 HOURS = 1440 MINUTES

PLANNED BREAK = (TWO 10 MIN BREAKS + 20 MIN LUNCH) X 3 SHIFT = 120 MIN


PLANNED DOWNTIME = (5 MIN MTG + 15 MIN CLEANUP)=20 MIN X 3 SHIFT=60 MIN

UNPLANNED DOWNTIME = AVG 167 MIN / DAY (FROM PRODUCTION REPORT)



OUTPUT/DAY (GOOD+SCRAP RACKS)=(29232 RACKS/21DAYS)=1392 RACKS/DAY

AVG DAILY SCRAP RACKS=(8168 RACKS SCRAPPED / 21 DAYS)=47 RACKS / DAY

COMBINED STANDARD C.T.= 32.7 SEC/RACK (CALC. ON BACKGROUND SHEET)






PAINT





E UNPLANNED DOWNTIME (MIN.) 167.00

F TOTAL DOWNTIME (MIN.) 227.00

G ACTUAL OPERATING TIME (MIN.) 1093.00

H OUTPUT (DAY) ACTUAL PRODUCTION (RACKS) 1392.00

J SCRAP (RACKS) 47.00

K STANDARD/IDEAL CYCLE TIME (SEC / RACK) 32.7





A-B

D+E

C-F

G/C

(HxK)/(Gx60)

(H-J)/H

LxMxNx100

OVERALL EQUIPMENT EFFECTIVENESS = 82.8% X 69.41% X 96.92% = 55.5 %- OR -

(STD TIME TO PAINT 1345 GOOD RACKS)/(LOADING TIME)=(733 MIN/1320 MIN)=55.5%

0

200

400

600

800

1000

1200

1400

1600

TOTALCOMBINEDDOWNTIME= 227 MIN

120’ BREAKS

1320’LOADING

TIME

334 MINLOST TIME 26 MIN

STD TIMEFOR 47SCRAPRACKS

OPERATINGRATE

1093 MIN 1320 MIN

= 82.8%PERFORMANCE

RATE 759 MIN 1093 MIN

= 69.41%QUALITY

RATE 1345 RACKS 1392 RACKS

= 96.62%


STANDARDTIME TO

MAKE 1345 GOOD

RACKS =733 MIN

STANDARDTIME TO

PAINT 1392 RACKS759 MIN

ACTUALOPER.TIME

1093 MIN

O.E.E. Case Study 3•Background for Case Study 3: Shared Equipment Example

• PRODUCTION AREA OF ANALYSIS = (2) 750 TON PLASTIC INJECTION MOLDING PRESSES

• LAST MONTH’S PRODUCTION SCHEDULE = 3 SHIFTS, 7 DAYS PER WEEK (STANDARD WORKWEEK)

• OPERATORS ARE RELIEVED FOR BREAKS / LUNCHES (BREAKTIME = 0)

• TOTAL # OF TOOLS WHICH RUN IN EITHER OF THE PRESSES = (9)

• PRODUCTION DATA FROM LAST MONTH IS SHOWN BELOW:

Mold Standard Month Total Pieces Scrap Total StandardPart Number Cavity Cycle (sec) Good + Scrap Pieces Hours*

1 H315 2 40 8520 303 47.32 H282A 2 40 79154 3211 439.73 B165 1 39 377 39 4.14 F398 2 30 8848 362 36.95 84C 1 40 4755 190 52.86 621A 2 30 9212 322 38.47 F407 1 90 3503 112 87.68 F363 1 40 809 33 9.09 F364 2 35 74116 2668 360.3

189294 7240 1076.1

StandardCycle Time

= (Total Standard Hours / Total Pieces)

= ( 1076.1 hrs X 3600 sec/hr) / 189294 pieces = 20.5 sec/pc

- Total days worked = 30 days- Total Planned Downtime = 6240 minutes / 30 days = avg 208 min/day- Total Unplanned Downtime = 9060 minutes / 30 days = avg 302 min/day- For common / shared equipment such as these molding presses with a family of tools, a combined standard cycle time must be determined:

* TOTAL STD HOURS =

((C/A) X B) / 3600

A B C D E

O.E.E. Case Study 3

•Calculation of O.E.E.

DAILY WORK TIME = 2 presses X 3 shifts X 8 hours X 60 min = 2880 minutes

PLANNED BREAK = 0 (All breaks and lunches are relief method)


PLANNED DOWNTIME = 6240 min month total / 30 days = avg 208 min /day

UNPLANNED DOWNTIME = 9060 min month total / 30 days = avg 302 min / day



OUTPUT/DAY (GOOD+SCRAP)=(189294 pcs / 30 days) = avg 6310 pcs / day

AVG DAILY SCRAP = 7240 pcs / 30 days = avg 241 pcs / day

COMBINED STANDARD C.T.= 20.5 SEC/PC (See calculation on background sheet)






MOLDING





E UNPLANNED DOWNTIME (MIN.) 302

F TOTAL DOWNTIME (MIN.) 510

G ACTUAL OPERATING TIME (MIN.) 2370

H OUTPUT (DAY) ACTUAL PRODUCTION 6310

J SCRAP 241

K STANDARD/IDEAL CYCLE TIME (SEC) 20.5





A-B

D+E

C-F

G/C

(HxK)/(Gx60)

(H-J)/H

LxMxNx100

0

500

1000

1500

2000

2500

3000

3500

OVERALL EQUIPMENT EFFECTIVENESS = 82.3% X 91.0% X 96.2% = 72.0 %- OR -

(STD TIME TO MOLD 6069 GOOD PIECES)/(LOADING TIME)=(2074 MIN/2880 MIN)=72.0%

2880’ LOADING TIME (Relief Style Breaks)

214 MINLOST TIME

82 MINSTD TIMEFOR 241SCRAPPARTS

OPERATINGRATE

2370 MIN 2880 MIN

= 82.29%PERFORMANCE

RATE 2156 MIN 2370 MIN

= 90.97%QUALITY

RATE 6069 PCS 6310 PCS

= 96.18%

STANDARDTIME TO

MOLD 6069 GOOD

PIECES2074 MIN

STANDARDTIME TO

MOLD 6310 PIECES

2156 MIN

ACTUALOPER.TIME

2370 MIN

TOTALCOMBINEDDOWNTIME= 510 MIN


O.E.E. Class Example 1

A DAILY WORK TIME (MIN)

B PLANNED BREAK TIME (MIN/DAY)

C LOADING TIME (MIN/DAY) (A-B)

D PLANNED DOWNTIME (MIN/DAY)

E UNPLANNED DOWNTIME (MIN/DAY)

F TOTAL DOWNTIME (MIN/DAY) (D+E)

G ACTUAL OPERATING TIME (MIN/DAY) (C-F)

H AVG. OUTPUT/DAY (PCS)

J SCRAP (PCS)

K EXPECTED / IDEAL CYCLE TIME (SEC/PC)

L OPERATING RATE (G/C)

M PERFORMANCE RATE (HxK)/(Gx60)

N QUALITY RATE (H-J)/H

P OVERALL EQUIP. EFFECTIVENESS LxMxNx100

Calculations:

Background:• Process: Weld Cell w/ dedicated fixturing• Shifts: 2 ( 8 hours each )• Lunch: Unpaid - Outside of 8 hours (do not include)• Breaks: 2 per shift ( 10 minutes each )• Cycle Time: 27 seconds per piece

• Last Month Total Output: 34221 pcs• Scrap: 934 out of 34221 were scrapped• Days Worked Last Month: 22• Planned Downtime = 10 min / shift ( 5’mtg + 5’ cleanup)• Unplanned Downtime Total for Last Month: 1232 min

O.E.E. Class Example 1: Answer

A DAILY WORK TIME (MIN)

B PLANNED BREAK TIME (MIN/DAY)

C LOADING TIME (MIN/DAY) (A-B)

D PLANNED DOWNTIME (MIN/DAY)

E UNPLANNED DOWNTIME (MIN/DAY)

F TOTAL DOWNTIME (MIN/DAY) (D+E)

G ACTUAL OPERATING TIME (MIN/DAY) (C-F)

H AVG. OUTPUT/DAY (PCS)

J SCRAP (PCS)

K EXPECTED / IDEAL CYCLE TIME (SEC/PC)

L OPERATING RATE (G/C)

M PERFORMANCE RATE (HxK)/(Gx60)

N QUALITY RATE (H-J)/H

P OVERALL EQUIP. EFFECTIVENESS LxMxNx100

• Process: Weld Cell w/ dedicated fixturing• Shifts: 2 ( 8 hours each )• Lunch: Unpaid - Outside of 8 hours (do not include)• Breaks: 2 per shift ( 10 minutes each )• Cycle Time: 27 seconds per piece

Calculations:

2 sh x 8 hr x 60 min = 960 min960

2 x 10 min ea x 2 shift = 40 min40

920

• Last Month Total Output: 34221 pcs• Scrap: 934 out of 34221 were scrapped• Days Worked Last Month: 22• Planned Downtime = 10 min / shift ( 5’mtg + 5’ cleanup)• Unplanned Downtime Total for Last Month: 1232 min

2 sh x 10 min per shift = 20 min20

1232 month / 22 days = 56 min56

76

844

Background:

34221 pcs / 22 days = 1556 pcs / day1556

934 pcs / 22 days = 43 pcs / day43

27

.92

.83

.97

74%

S/D Approach to Capacity

• Expressed as a Percentage of Available Time• Based on actual performance ( Previous Month O.E.E.)• Basic Capacity Formula:

(Standard Hours Required by Demand)O.E.E.

( )Actual Standard Hours Available to Produce

CAPACITY ANALYSISSUPPLIER: EXAMPLE SUPPLIERLINE/EQUIP. TYPE: COMMON/FLEXIBLE ISSUED BY: FRANCIS

EXCLUSIVE/DEDICATED ISSUE DATE: 10/29/98DESCRIPTION:

0

PROCESS/OPERATION: WELD CELL WELD CELL

MONTH: NOV MONTH: MONTH: JANCYCLE DEMAND HOURS DEMAND HOURS DEMAND HOURS

PART NUMBER PART NAME TIME (PCS.) REQ. (PCS.) REQ. (PCS.) REQ.

12345-xxx-a000 WELDED BRACKET 27 27785 208.4 0.0 41000.0 307.5

OTHER CUSTOMERS:

1. GROSS HRS REQUIRED: SUM OF HOURS REQ'D FOR EACH MONTH. 208 3082. OVERALL EQUIPMENT EFFECTIVENESS (LINE P OF C.I.C. FORM: ATTACH). 74% 74%3. NET HOURS REQUIRED = ( 1 / 2 ) 282 4164. STANDARD MONTHLY HOURS AVAILABLE

(# of mach. or lines x shifts / day x (hrs. shift - breaks) x w orkdays / month)

MONTH MACH/LINE SHIFTS/DAY HRS-BRKS DAYS/MON

NOV 1 X 2 X 7.6 X 19 288.8 X X X

JAN 1 X 2 X 7.6 X 20 3045. ACTUAL CAPACITY = ( 3 / 4 ) X 100 98% 137%6. TARGET CAPACITY 100%7. O.E.E. REQUIRED TO MEET TARGET CAPACITY: 72% 101%

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