Overall Equipment Effectiveness (OEE)

OEE Factors

OEE depends on three major factors.

Availability
Performance
Quality

We will be discussing these three factors in the following sections…

How to calculate OEE

We can calculate OEE by two methods. One is very simple and less data is required. The other one requires more data, but for improving OEE we prefer second method since it has more data.

Lets move into detail…

OEE calculation – Method 1

Following formula is used for calculating OEE in this method.

OEE = (Total no of good products produced × cycle time) / Planned production time

But in this method, we did’t get an idea of which three factors of OEE is lagging behind. Only after knowing this information, we can improve those factors.

But for quick calculation we can use this method.

OEE calculation – Method 2

Initially we need to calculate three factors, Availability, Performance and quality.

And finally OEE is calculated by multiplying these three OEE factors.

Lets look in to these factors, in detail…

Availability

Availability factor is the measure of how well a planned production time is used for producing products.

Availability is calculated by the following formula,

Availability = Run time / Planned production time

Run Time is obtained by reducing idle time from Planned production time.

Run Time = Planned production time − Idle time

Idle time is the time for which machine is not running. This can be due to breakdown, material shortage, power failure, change over, etc.

Performance

Performance factor is a measure of how well a machine is able to maintain its cycle time for producing parts.

Performance factor is calculated by following formula,

Performance = (Cycle Time × Total products produced) / Run Time

Cycle time can be calculated by time study.

Quality factor

Quality factor measures how well a machine is able to produce good parts.

Quality factor is calculated by following formula,

Quality factor = No of good products produced / Total no of products produced

OEE calculation

OEE is calculated by multiplying the above three factors

OEE = Availability × Performance × Quality

If the equations for Availability, Performance, and Quality are substituted in the above and reduced to their simplest terms the result is:

OEE = (No of good products produced × Cycle Time) / Planned Production Time

OEE calculation Example

Now let’s walk through a complete example using the method 2 of OEE calculation. Here is data recorded for the first shift:

Element	Time
Duration of shift	480 minutes
Total break duration	2 nos 15 minute tea breaks and 30 minute lunch break
Downtime	55 minutes
Cycle Time	40.0 seconds
Total no of parts produced	490 products
Total no of parts rejected	40 products

Initially we need to calculate the following …

Planned production time

Formula for calculating planned production time is,

Duration of shift − Total break duration

480 minutes − 60 minutes = 420 minutes

Run time

The next step is to calculate the amount of time that production was actually running.

The formula is,

Run Time = Planned production time − Idle time

= 420 minutes − 55 minutes

= 365 minutes

No of good products produced

No of products produced = Total products produced − Total rejected nos

= 490 products − 40 products

= 450 products

Availability

Availability = Run Time / Planned Production Time

= 365 minutes / 420 minutes

= 0.869 (86.90%)

Performance

Performance = (Cycle Time × Total products produced) / Run Time

= (40.0 seconds × 490 ) / (365 × 60 seconds)

= 0.895 (89.5%)

Quality factor

Quality factor = No of good products produced / Total no of products produced

= 450 / 490

= 0.9183 (91.83%)

OEE CALCULATION

Finally, OEE is calculated by multiplying the three OEE factors.

Availability × Performance × Quality

= 0.869 × 0.895 × 0.9183

= 0.7142 (71.42 %)

OEE can also be calculated using a simple method (method 1).

Formula is,

OEE = (Total no of good products produced × cycle time / Planned production time

= (450 products × 40.0 seconds) / (420 minutes × 60 seconds) = 0.7142 (71.42%)

The result is the same in both cases. The OEE for this shift is 71.42%.

Thanks for reading

I am thankful to Mr. Abin Antony for contributing to this article.

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Hey there! Have you heard about 3D printing? It’s this incredible technology that’s shaking up the world of manufacturing. Let me break it down for you. Imagine a world where you can create anything you want, from the most intricate designs to personalized medical implants, at the touch of a button. That’s the power of 3D printing, and it’s revolutionizing the world of manufacturing. 3D printing, or additive manufacturing, is changing the game, allowing us to build objects layer by layer, a stark contrast to the traditional subtractive manufacturing methods. This technology offers design flexibility, rapid prototyping, reduced waste, and… Read more: 3D Printing in manufacturing
Industrial wastewater treatment
Industrial wastewater treatment is the process of purifying and removing contaminants from water that has been used in industrial processes. It aims to eliminate harmful substances, such as chemicals, heavy metals, and pollutants, from the wastewater before it is discharged into the environment or returned for reuse. This treatment is essential to protect ecosystems, public health, and comply with environmental regulations. In this article, we are going to focus on industrial wastewater and its treatment. What is Industrial waste water? Industrial wastewater refers to the contaminated water generated during various industrial activities, such as manufacturing, mining, and chemical production. It… Read more: Industrial wastewater treatment
Takt time excel template
Takt time excel template is a format in Microsoft excel, which can be used to calculate takt time from the inputs entered in to it. Following are the three inputs needed for calculating takt time in the excel template; Here you will be able to download the takt time excel template, by clicking the download button. Download Excel Template For Knowing more about takt time, how is this calculated with example and it uses, refer our article on takt time. You can also try our web based takt time calculator from here. Don’t forget to consider your efficiency of your… Read more: Takt time excel template