Overall Equipment Effectiveness (OEE)

OEE Factors

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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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Microsoft Excel, a stalwart in the world of spreadsheet software, has become synonymous with data management, analysis, and decision-making. Since its inception in 1985, Excel has undergone significant transformations, evolving into a multifaceted tool that caters to the needs of individuals, businesses, and researchers alike. In this comprehensive guide, we’ll unravel the essence of Microsoft Excel and delve into the vast array of applications that make it an indispensable asset in today’s digital landscape. Microsoft Excel is a versatile spreadsheet software facilitating data organization, analysis, and visualization through a grid-based interface with powerful formulas and functions. We in Know Industrial… Read more: What is Microsoft Excel
OEE Software for Maximizing Operational Efficiency
In today’s fast-paced industrial landscape, the pursuit of operational excellence is a critical factor for success. One key metric that plays a pivotal role in achieving this goal is Overall Equipment Efficiency (OEE). OEE software has emerged as a powerful tool for businesses seeking to optimize their operations and enhance productivity. In this article, we will delve into the intricacies of OEE software, exploring its benefits, features, and how it contributes to organizational success. Know about OEE Software Factovare One Month Free Trial See how Factovare helps factories digitize work Watch the demo and contact us to try Factovare for… Read more: OEE Software for Maximizing Operational Efficiency
Takt time Clock
In the realm of manufacturing precision, a pivotal player emerges the Takt Time Clock. This sophisticated timekeeping instrument is more than a mere apparatus; it serves as a cornerstone for aligning production with customer demand. In this exploration, we’ll navigate the professional significance of the Takt Time Clock and its role in elevating manufacturing efficiency. What is takt time clock Factovare One Month Free Trial See how Factovare helps factories digitize work Watch the demo and contact us to try Factovare for your manufacturing operations. Call: +91 80890 36992 WhatsApp: +91 80890 36992 Email: [email protected] Free Training Registration Factovare Certified… Read more: Takt time Clock
Takt time and Cycle time
In the ever-evolving landscape of manufacturing, efficiency is a paramount goal. Two critical concepts that play a pivotal role in achieving this efficiency are Takt Time and Cycle Time. In this article, we will unravel the essence of Takt Time and Cycle Time, exploring their definitions, significance, and how they collaborate to streamline manufacturing processes. Takt Time: The Heartbeat of Production Factovare One Month Free Trial See how Factovare helps factories digitize work Watch the demo and contact us to try Factovare for your manufacturing operations. Call: +91 80890 36992 WhatsApp: +91 80890 36992 Email: [email protected] Free Training Registration Factovare… Read more: Takt time and Cycle time
Takt time example
Takt time is a fundamental concept in lean manufacturing that plays a crucial role in optimizing production processes. In this article, we’ll explore a practical example of takt time in the context of an automotive assembly line. Understanding how takt time operates in real-world scenarios is essential for manufacturers aiming to enhance efficiency and meet customer demand seamlessly. The example Factovare One Month Free Trial See how Factovare helps factories digitize work Watch the demo and contact us to try Factovare for your manufacturing operations. Call: +91 80890 36992 WhatsApp: +91 80890 36992 Email: [email protected] Free Training Registration Factovare Certified… Read more: Takt time example
Companies hire Industrial engineers in India
Are you an industrial engineer looking for exciting career prospects in India? You’re in the right place! We’ve compiled a comprehensive list of companies that frequently hire industrial engineers. It’s important to note that this isn’t an exhaustive list, and there may be other companies actively seeking industrial engineering talent. We have listed 261 companies which hire industrial engineers in India and their career page link What you will get Factovare One Month Free Trial See how Factovare helps factories digitize work Watch the demo and contact us to try Factovare for your manufacturing operations. Call: +91 80890 36992 WhatsApp:… Read more: Companies hire Industrial engineers in India