The OEE

ChallengeHow productive are you?

“It takes a German worker

four days to produce what

we make in five”

Philip Hammond, Chancellor of the Exchequer

The OEE ChallengeHow productive are you?

There are generally two ways

to improve productivity. One

is the purchase of better

machinery. The second involves a new process,

which allows a worker to

increase the speed or quality

of what they are doing.

The OEE ChallengeHow productive are you?

Many companies routinely hit

capacity constraints and immediately consider adding

overtime for existing workers,

hiring workers for a new shift,

or buying a new line.

Relatively few companies

have made the more modest

investment that is required to

optimise the performance of

their existing lines.

Team GB cyclists, under the leadership of Sir

David Brailsford, knew the end goal of

training and competition was to win races on

the national and international stage.

Instead of looking at the race as a whole, the team broke it down into its

component parts ranging from the aerodynamics of the equipment, to

dust that gathered on the bike, adversely effecting maintenance, and

set about making marginal gains…

…they measured everything

The small cumulative improvements across a

host of areas added up to a significant

improvement overall, and you can’t argue with

their medal tally over the years.

If you want to improve productivity, then you need to know what your

current performance level is, and

where improvements in the production

cycle can be made.

OEE (Overall Equipment Effectiveness), is a measurement that can help you

determine, how effective your manufacturing operations are, and where

improvements can be made. It is a calculation involving the components of

Availability, Performance and Quality, each measured

separately, so losses can be identified and

bottlenecks minimised.

Availability x Performance x Quality=OEE

In order to have a good

understanding of OEE as a

concept, it is helpful to look at an

example. Consider a beverage

plant with the following

production schedule for the

bottling area. They have chosen

fifteen shifts to measure.

This data gives you all of the

information you need to

calculate OEE, which you can see

on the following page.

Item Data

Days of Operation Planned 5

Number of Shifts Planned 15

Total Available Time (minutes) 7,200

Total Planned Shutdown (minutes) 2,400

Downtime (minutes) 1,250

Theoretical (Ideal) Rate (e.g.

bottles per minute)

600

Total Bottles Produced 1,656,502

Rejected Bottles 1,207

Example

The Breakdown and OEE Calculation:

OEE

57%

Example

From the example, you can see that the plant is operating at

57% OEE. If downtime and short-lived stoppages were reduced

by 1% or 12.5 minutes, the same factory would be able to

produce 5832 more bottles during the same five-day period. If

downtime and short-lived stoppages were reduced by 10% or

125 minutes, they would be able to produce 58,327 more

bottles during the same five-day period (assuming the same

effective performance).

Example

If the factory was to reduce downtime and short-lived

stoppages by 10%, and the wholesale price of each

bottle was £0.56, during

each five-day period,

the bottling area

could produce

£32,669.66 more saleable product

per week. If the bottling area

is operating 260 days during the

year, the extra production would

be worth £1,698,822.12 without

extra shifts or overtime.

Example

By drilling down into the data you have gathered, you can spot

opportunities and begin to make

small incremental improvements.

For example, maybe the same machine

broke down several times and accounted

for 25% of the unplanned downtime, or

maybe labels were not available for 5% of the unplanned downtime.

If the example has inspired you, start measuring OEE and implementing

improvements. If you are new to OEE as a KPI and don’t have a systemwhich measures productivity in real-time, you can still calculate your

OEE in a few easy steps.

Before we begin…

Download the OEE Calculator.

Just like in the example, you need to have access to the

data listed in in the chart on the right.

Download your OEE

Calculator

Item Data

Days of Operation Planned

Number of Shifts Planned

Total Available Time (minutes)

Total Planned Shutdown (minutes)

Downtime (minutes)

Theoretical (Ideal) Rate (e.g. bottles per minute)

Total Product Produced

Rejected Product

If you don’t have this data to

hand, just follow the steps on the next few slides.

Select a line, work cell, or machine to

perform this calculation on. Select one

that you will have accurate production

numbers for.

Step One: The Line

Download your OEE

Calculator

Step Two: Time Period

Select a period of time that is long

enough to account for any periodic

availability related downtimes that will occur. For instance, if your line

runs continuously for two days, and

then must be stopped for a CIP

(Clean-in-Place; sanitation) for four

hours every third day, run your

calculation over that three-day

period.

Download your OEE

Calculator

Step Three: Operating Time

For the time period that you are measuring (total available time),

you need to subtract the number of minutes that were planned

shutdown (e.g. if the line was not scheduled to run), this gives you

your planned production time.

Then you need to record all other downtime (short stoppages,

changeovers, cleaning, maintenance) and stoppages from within

the planned production time, this gives you your operating time.

Download your OEE

Calculator

Step Four: Theoretical Rate

You will need to know the real theoretical rate of the line based on the

equipment specifications on the line being measured.

This is the rate the equipment was to run at when purchased, NOT the rate that operators may currently be running the equipment at. This information is

gathered from equipment manuals, not calculated or gathered from how your

line is performing on its best day. If you are measuring a line that has several

machines operating on it with differing theoretical rates, the number you should

use is the lowest theoretical rate.

This can be in any units such as bottles per minute, units per minute, feet per

minute etc.

Download your OEE

Calculator

Step Five: Good Product

Produced

You will need to know the quantity of

good product produced vs total

product produced for the whole

time period that you are measuring.

Be consistent with the units you have

used for your theoretical rate, for

example bottles per minute, units per

minute, feet per minute etc.

Download your OEE

Calculator

Download your OEE

CalculatorNow you have your data, complete the

calculator information

This information will

automatically populate

This is your OEE

Score!

Now that you have calculated your OEE score, why not play

about with the numbers?

Could you reduce downtime by 10%, improve quality by 5%, or

are your machines set to run lower than their theoretical rate?

How much more could you produce

AND SELL?

If you had this information, in real-

time and at your fingertips, you could

continually approve your operations.

The Return on Investment for TrakSYS Performance

Management is within six months. Find out more by

downloading the brochure

Download the

Brochure

Although it is a start measuring OEE manually, it is time consuming, and by

the time you have your data for calculation, the opportunity for

improvement has passed.

What Opportunities for improvement are you missing?

Manufacturing Improvement Solutions

enquiries@cimlogic.co.uk

01274 599 955

@Cimlogic Cimlogic Cimlogic

If like us, you would prefer to avoid unnecessary pitfalls and follow a path

which leads to measurable and sustainable improvement, then please contact us. We are here to help you.