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This document discusses benchmarks and calculations for Overall Equipment Effectiveness (OEE). It provides the following key points:
1) An OEE score of 100% is considered perfect production, while a score of 70% is world-class, 60% is typical, and 50% is not uncommon for companies just starting to track OEE.
2) OEE can be calculated simply as good pieces produced divided by planned production time, or preferably by breaking down losses into availability, performance, and quality.
3) Achieving a perfect OEE score of 100% means having availability, performance, and quality scores of 100% - producing only good parts as fast as possible with no downtime.
This document discusses benchmarks and calculations for Overall Equipment Effectiveness (OEE). It provides the following key points:
1) An OEE score of 100% is considered perfect production, while a score of 70% is world-class, 60% is typical, and 50% is not uncommon for companies just starting to track OEE.
2) OEE can be calculated simply as good pieces produced divided by planned production time, or preferably by breaking down losses into availability, performance, and quality.
3) Achieving a perfect OEE score of 100% means having availability, performance, and quality scores of 100% - producing only good parts as fast as possible with no downtime.
This document discusses benchmarks and calculations for Overall Equipment Effectiveness (OEE). It provides the following key points:
1) An OEE score of 100% is considered perfect production, while a score of 70% is world-class, 60% is typical, and 50% is not uncommon for companies just starting to track OEE.
2) OEE can be calculated simply as good pieces produced divided by planned production time, or preferably by breaking down losses into availability, performance, and quality.
3) Achieving a perfect OEE score of 100% means having availability, performance, and quality scores of 100% - producing only good parts as fast as possible with no downtime.
So as a benchmark, what is considered a good OEE score?
An OEE score of 100% is perfect production manufacturing on!" good parts, as fast as possib!e, with no down time# An OEE score of $%% is considered wor!d c!ass for discrete manufacturers# &or man" companies, it is a suitab!e !ong'term goa!# An OEE score of (0% is fair!" t"pica! for discrete manufacturers, but indicates there is substantia! room for impro)ement# An OEE score of *0% is not at a!! uncommon for manufacturing companies that are +ust starting to track and impro)e their manufacturing performance# ,t is a !ow score and in most cases can be easi!" impro)ed through straightforward measures -e#g# b" tracking down time reasons and addressing the !argest sources of down time . one at a time/# 0enchmark "our OEE score against industr" standards for discrete manufacturing and stri)e for wor!d c!ass resu!ts# Calculating OEE The Simple Way So how is the OEE score ca!cu!ated? ,n simp!est terms, OEE is the ratio of &u!!" 1roducti)e 2ime to 1!anned 1roduction 2ime# ,n practice this is ca!cu!ated as -3ood 1ieces 4 ,dea! 5"c!e 2ime/ 6 1!anned 1roduction 2ime 7et8s define some terms 3ood 1ieces -pieces that are manufactured without an" defects/ ,dea! 5"c!e 2ime -the theoretica! fastest possib!e time to manufacture one piece/ 1!anned 1roduction 2ime -the tota! time that the production asset is schedu!ed for production/ &u!!" 1roducti)e 2ime -producing on!" good pieces, as fast as possib!e, with no down time/ Calculating OEE The Preferred Way 2he preferred wa" to ca!cu!ate OEE is mathematica!!" e9ui)a!ent to the simp!e formu!a described abo)e, but pro)ides a much richer understanding of waste in the manufacturing process b" breaking it down into three measurab!e categories A)ai!abi!it" 1erformance :ua!it" OEE is the ratio of &u!!" 1roducti)e 2ime to 1!anned 1roduction 2ime# 1!anned Shutdown is not inc!uded in OEE ca!cu!ations since there is no intention of running production# Availability A)ai!abi!it" takes into account !"n Time #!ss, which inc!udes a!! e)ents that stop p!anned production for an appreciab!e !ength of time -t"pica!!" se)era! minutes or !onger/# ,t is ca!cu!ated as the ratio of Operating 2ime to 1!anned 1roduction 2ime, where Operating 2ime is simp!" 1!anned 1roduction 2ime !ess ;own 2ime Operating 2ime 6 1!anned 1roduction 2ime Perf!rmance 1erformance takes into account Speed #!ss, which inc!udes a!! factors that cause the production asset to operate at !ess than the ma4imum possib!e speed when running# ,t is ca!cu!ated as the ratio of <et Operating 2ime to Operating 2ime# ,n practice, it is ca!cu!ated as -,dea! 5"c!e 2ime 4 2ota! 1ieces/ 6 Operating 2ime ,dea! 5"c!e 2ime is the theoretica! fastest possib!e time to manufacture one piece# 2herefore, when it is mu!tip!ied b" 2ota! 1ieces the resu!t is <et Operating 2ime . the theoretica! fastest possib!e time to manufacture the tota! 9uantit" of pieces# =ere is a simp!e e4amp!e of a 1erformance ca!cu!ation ,tem >a!ue E4p!anation ,dea! 5"c!e 2ime 1 minute 2heoretica! fastest time to produce this part# 2ota! 1ieces ?00 2ota! 9uantit" of pieces manufactured during this shift# Operating 2ime ??0 minutes @un time of this shift -p!anned production time !ess down time/# 1erformance A0#A% -,dea! 5"c!e 2ime 4 2ota! 1ieces/ 6 Operating 2ime B -1 4 ?00/ 6 ??0 $uality :ua!it" takes into account $uality #!ss, which factors out manufactured pieces that do not meet 9ua!it" standards, inc!uding pieces that re9uire rework# ,t is ca!cu!ated as the ratio of &u!!" 1roducti)e 2ime -fastest possib!e time for 3ood 1ieces/ to <et Operating 2ime -fastest possib!e time for 2ota! 1ieces/# ,n practice it is ca!cu!ated as 3ood 1ieces 6 2ota! 1ieces OEE OEE takes into account a!! !osses -;own 2ime 7oss, Speed 7oss, and :ua!it" 7oss/, resu!ting in a measure of tru!" producti)e manufacturing time# ,t is ca!cu!ated as the ratio of &u!!" 1roducti)e 2ime to 1!anned 1roduction 2ime# ,n practice, it is ca!cu!ated as A)ai!abi!it" 4 1erformance 4 :ua!it" ,f the e9uations for A)ai!abi!it", 1erformance, and :ua!it" are substituted in the abo)e e9uation and then reduced to their simp!est terms the resu!t is -3ood 1ieces 4 ,dea! 5"c!e 2ime/ 6 1!anned 1roduction 2ime 2his is the simp!est OEE ca!cu!ation described ear!ier# Cith a bit of ref!ection, it can be seen that mu!tip!"ing 3ood 1ieces b" ,dea! 5"c!e 2ime resu!ts in &u!!" 1roducti)e 2ime -manufacturing on!" good parts, as fast as possib!e, with no down time/# Perfect Pr!ducti!n Ear!ier, an OEE score of 100% was described as perfect production manufacturing on!" good parts, as fast as possib!e, with no down time# 7et8s tie this notion of perfect production to the OEE ca!cu!ation Danufacturing on!" good partsEmeans a :ua!it" score of 100% As fast as possib!eEmeans a 1erformance score of 100% Cith no down timeEmeans an A)ai!abi!it" score of 100% Corking through rea!'wor!d e4amp!es is a great wa" to master the OEE ca!cu!ation# &or free worked e4amp!es, temp!ates, spreadsheets, and other too!s )isit www#oee#com6resource'center# %etrics &!r The Plant &l!!r OEE is a great too! for managers, but for p!ant f!oor emp!o"ees it can be a bit abstract# 1!ant f!oor emp!o"ees wi!! perform best when the" are gi)en goa!s that are rea!'time, easi!" interpreted and high!" moti)ationa!# A good e4amp!e of an effecti)e set of p!ant f!oor metrics is 2AE; 2arget -a rea!'time production target dri)en b" the p!anned rate of production/ Actua! -the actua! production count/ Efficienc" -the ratio of 2arget to Actua!F how far ahead or behind production is running in terms of a percentage/ ;own 2ime -accumu!ated down time for the shift updated in rea!'timeF this keeps a strong focus on a ke" actionab!e impro)ement area/ 3et something for nothing . down!oad free too!s 7earn more and get inspired . +oin our !ean mai!ing !ist