OEE WORKSHOP

Presented by: ROBERT VERMEULEN

OVERALL EQUIPMENT EFFECTIVENESS: THEORY AND APPLICATION

Evolution of OEE

The TPM concept, launched by Nakajima in the 1980’s, provided a

quantitative metric called Overall Equipment Effectiveness (OEE) for

measuring productivity of individual equipment in a factory. It identifies

ad measures losses of important aspects of manufacturing:

• Availability

• Quality

• Performance

OEE is the degree to which our equipment

is doing what it is supposed to do

Evolution of OEE

Analysis of OEE then led to the addition of more performance

measures to fit different industries’ requirements:

• TEEP= Total Equipment Effectiveness Performance

• PEE = Production Equipment Effectiveness

• OFE = Overall Factory Effectiveness

• OTE = Overall Throughput Effectiveness

• OAE = Overall Asset Effectiveness

• OLP = Overall Labour Productivity

The workforce strives to improve OEE by eliminating Six Big Losses

OEE Calculation

Where:

Ar = availability rate;

Pr = Performance rate;

Qr = Quality rate.

OEE Calculation

Availability gives us what percentage of time the

equipment is actually running, at its total capacity.

• A = All considered working time (Total Work Hours)

• Planned stoppage represents contractual breaks,

etc.

• B = Planned work time for equipment

OEE Calculation

• B = Planned working time

• Downtime represents total time for

unscheduled stops (changeover time and

adjustments)

• C = Actual Working Time

OEE Calculation

• Availability rate can be written as follows:

• C = Actual Working Time

• B = Planned Working Time

OEE Calculation

• Reduced speed represents the loss from running at

speeds less than optimum

• D = Target output according to ideal cycle time

(ideal cycle time per part x net operating time)

• E = Actual output

OEE Calculation

• If using the time ratio, the actual cycle time per

part can be calculated from the Running

Time(C) and Actual Output (E):

OEE Calculation

• Performance rate can be written as follows:

• E = Actual Output

• D = Target Output

OEE Calculation

• F = Actual Output (E)

• Scrap, rejects is all not accepted units

• G = Total good output

OEE Calculation

• Using the above formula’s, the OEE rate

can be expressed as:

OEE Model

OEE Example

• Refer to handout exercise

TPM-OEE Productivity Model

OEE - Six Loss Calculation

OEE - Six Loss Calculation

OEE - Six Loss Calculation

OEE Example

OEE Example

OEE Example

OEE Rating

OEE Myths

OEE Myths

OEE Myths

OEE Myths

OEE Myths

OEE Myths

References

• Jayaswal, Rajput and. "A Total Productive Maintenance Approach to Improve Overall

Equipment Effectiveness." International Jounal of Modern Engineering Research,

2012: 4383-4386.

• Mahdi, Almsafir and. "Diagnosing of Sustainable Competitive Advantage Using Six

Sigma Methodology and Overall Equipment Effectiveness." International Jounal of

Business and Management, 2012: 94-109.

• MUNTEANU, et al. "POSSIBILITIES FOR INCREASING EFFICIENCY OF

INDUSTRIAL EQUIPMENT." Series I: Engineering Sciences - Transilvania University

of Brasov • Vol. 3 (52), 2010: 199 - 205.

• Optimumfx.com. "Overall Equipment Effectiveness (OEE) Explained." OptimumFX -

Improvements Beyond Better, 2011.

• Pintelon, et al. "Performance measurement using overall equipment effectiveness

(OEE): Literature review and practical application discussion." International Journal of

Production Research, 2006.

• Samad, et al. "Analysis of Performance by OEE of the CNC Cutting Section of a

Shipyard." ARPN Journal of Science and Technology, 2012: 1091-1096.

• Wilmott, P. "The Myths and Realities of Implementing Overall Equipment

Effectiveness." ME Plant & Maintenance, 2012: 14-20.