OEE – Overall Equipment Efficiency

(Effectiveness)
• Downtime Losses
• Speed Losses
• Quality Losses
OEE – Overall Equipment Efficiency
Formula:
OEE = (AR X PR X QR)X 100
AR= Availability Ratio = Loading Time – Stoppage Time
Loading Time

PR = Performance Ratio Cycle Time X Output

Loading Time – Stoppage Time
QR = Quality Ratio = Output - Defectives
Output

Benchmark : 85 %
 Example - 1
Yesterday – A Shift
Shift Time : 7.30 am to 4.00 pm ( 510 Min)
Lunch time = 30 min
Tea time = 7.5 minutes : 2 times ( 15 min)
• Breakdown = 20 min
• Machine stop due Tool problem = 10 min
• Power failure = 10 min
• Raw material not available = 6 min
• Cycle Time = 1 min
• Production = 390 nos
• OK production = 370 nos

Calculate OEE
 AR – Availability Ratio
Loading time = 510 – 30 -15 = 465 min
Stoppage time = 20+10+10+6 = 46 min

AR= Availability Ratio = Loading Time – Stop[page Time

Loading Time

= 465 – 46 = 0.90
465
 PR – Performance Ratio
Cycle Time = 1 min
Output = 390
So
PR = Performance Ratio Cycle Time X Output
Loading Time – Stoppage Time

= 1X 390 = 0.93
465 - 46
 QR – Quality Ratio
Output = 390
Defectives = 390 – 370 = 20
QR = Quality Ratio = Output - Defectives
Output
= 390 – 20/ 390 = 0.95
OEE – Overall Equipment Efficiency

OEE = (AR X PR X QR)X 100

= 0.90 X 0.93 X 0.95 X 100
= 79.51 %
 Example - 2
Yesterday – A Shift
Shift Time : 7.30 am to 4.00 pm ( 510 Min)
Lunch time = 30 min
Tea time = 7.5 minutes : 2 times ( 15 min)
• Breakdown = 20 min
• Machine stop due Tool problem = 10 min
• Power failure = 10 min
• Raw material not available = 6 min
• Cycle Time = 1 min
• Production = 450 nos
• OK production = 410 nos

Calculate OEE
 AR
Loading time = 510 – 30 -15 = 465 min
Stoppage time = 20+10+10+6 = 46 min

AR= Availability Ratio = Loading Time – Stop[page Time

Loading Time

= 465 – 46 = 0.90
465

This is same as eralier

 PR
Cycle Time = 1 min
Output = 450
So
PR = Performance Ratio Cycle Time X Output
Loading Time – Stoppage Time

= 1X 450 = 1.07 ….. Oh ???? PR is coming pore than 1 !!!

465 – 46 Is there anything wrong in the above
calculations ?
Ans: No nothing wrong… In certain
cases , PR can be more than 1.
Under what conditions ??
 PR – Performance Ratio
Conditions, where PR can be more than 1:
1) Cycle time we considered is 1 min. This we have taken from
Standard Operation Sheet.
But this sheet was made 10 years back.
Over last 10 years, lot of kaizens have been done and actual cycle time
has now become 50 seconds instead of 1 min.
 PR – Performance Ratio
Conditions, where PR can be more than 1.
2) While calculating the Cycle Time, we consider Loading + Unloading
times also. But the operator is able to do it faster than the decided
timings.
 QR – Quality Ratio
Output = 450
Defectives = 450 – 410 = 40
QR = Quality Ratio = Output - Defectives
Output
= 450– 40/ 390 = 410/450
= 0.91
OEE – Overall Equipment Efficiency

OEE = (AR X PR X QR)X 100

= 0.90 X 1.07 X 0.91 X 100
= 87.63 %
 Example - 3
Yesterday – A Shift
Shift Time : 7.30 am to 4.00 pm ( 510 Min)
Planned Stoppage = 30 min – due to Jishu Hozen Activity for Initial Cleaning
Lunch time = 30 min
Tea time = 7.5 minutes : 2 times ( 15 min)
• Breakdown = 20 min
• Machine stop due Tool problem = 10 min
• Power failure = 10 min
• Raw material not available = 6 min
• Cycle Time = 1 min
• Production = 360 nos
• OK production = 330 nos

Calculate OEE
 AR
Loading time = 510 - 30 - 30 -15 = 435 min
Stoppage time = 20+10+10+6 = 46 min

AR= Availability Ratio = Loading Time – Stoppage Time

Loading Time

= 435 – 46 = 0.89
435
 PR – Performance Ratio
Cycle Time = 1 min
Output = 360
So
PR = Performance Ratio Cycle Time X Output
Loading Time – Stoppage Time

= 1X 360 = 360 = 0.92

435 – 46 389
 QR – Quality Ratio
Output = 360
Defectives = 360 – 330 = 30
QR = Quality Ratio = Output - Defectives
Output
= 360 – 30/ 360
= 330/360 = 0.91
OEE – Overall Equipment Efficiency

OEE = (AR X PR X QR)X 100

= 0.89 X 0.92 X 0.91 X 100
= 74.51 %
• Based on our experience, the ideal conditions are,
– Availability => greater then 90 %.
– Performance Efficiency => greater then 95%.
– Rate of quality products => greater then 99%.
• Therefore the ideal overall equipment
effectiveness should be.
» 0.9 x 0.95 x 0.99 x 100 = 85 +%
• This figure is not just a remote goal. All the PM
prize winning companies have an equipment
effectiveness greater then 85%.
 Reasons for Machine Stoppages
1) Breakdown
2) Start up losses
3) Adjustment losses
Management Losses
1) Trolley not available
2) Raw Material Shortage
3) Tool Problem
4) Die Problem
5) Persons Reporting late
6) Power Failure
7) Accident
 Reasons for Speed Losses
1) Wear and Tear – Leading to reduced speeds
2) Loading / unloading taking more time; e.g Operator has to
hammer the part in every cycle – thus the actual cycle time
becomes more
3) Trolley for FG not available
4) Tools fallen on floor – Operator has to pick up the tools – it
consumes time.
These we can term as Minor Stoppages
 Reasons for Quality Defects
1) Jigs / Fixture / Die problem
2) Wear and tear of certain parts in jigs/fixtures – leading to play /
mismatch
3) Poka Yoke not functioning
4) Pressure / Temperature not ok
5) Filter not cleaned
6) Oil level not ok
7) Chips getting struck in moving parts
8) Contaminations – leading to defcets
 Factors affecting equipment
effectiveness
• Equipment failure (breakdown)
• Setup and adjustment downtime
• Idling and minor stoppages
• Reduced speed
• Process defects
• Reduced yield
 Six Major Losses
 Down Time.
1. Breakdowns due to equipment failure.
2. Setup and adjustment (e.g. exchange of dies in
injection molding machines, etc.)
 Speed Losses.
3. Idling and minor stoppages (abnormal operation of
sensor, etc.).
4. Reduced speed (discrepancies between designed
and actual speed of equipment)
 Defects.
5. Defects in process and rework (scrap and quality
defects requiring repair)
6. Reduced yield between machine startup and stable
production.
The Equipment Losses (you can and
must measure)
•Setup and Adjustments
Including changeovers.
Programming.
Equipment Test runs.
Availability •Equipment Failures
Sporadic breakdowns.
Chronic breakdowns.

•Idling and Minor Stoppages

Jams and other short stoppages.
No parts, no operator.
Equipment “Blocked”.
Efficiency •Reduced Speed
Equipment worn out.
Lack of accuracy.
 Contd.

Quality •Process Defects

Scrap.
Rework

•Others (define)
Equipment warm up etc.
No parts, no operator.
• Based on our experience, the ideal conditions are,
– Availability => greater then 90 %.
– Performance Efficiency => greater then 95%.
– Rate of quality products => greater then 99%.
• Therefore the ideal overall equipment
effectiveness should be.
» 0.9 x 0.95 x 0.99 x 100 = 85 +%
• This figure is not just a remote goal. All the PM
prize winning companies have an equipment
effectiveness greater then 85%.
OLE – Overall Line Efficiency
 Line Efficiency
Example:
Garment Industry:
100 square meters of cloth produced in 34 hrs
The actual output rate = 100/34 = 2.94 sq.mtr/ hr

But according to Work Standard and standard cycle time,

We must produce 100 sq. mts in 30 hrs.
So Std Output rate = 100/30 = 3.33 sq. mtr/hr

Line efficiency = Actual output rate / Std Output rate = 2.94/3.33

= 88.29 %
 Example 2
WELD SHOP
Machine 1 Machine 2 Machine 3 Inspection
Cycle Time= 30 Sec Cycle Time= 30 Sec Cycle Time= 60 Sec Cycle Time=40 Sec

Stoppage Time = M1 + M2 + M3 (Total)

Defctives = Overall defectives from line
Performance Raio :
Loading Time = 465 min
Stoppage Time = 65 min
Actaul Line Run Time = 400 min
Consider Cycle Time = 60 sec fopr calculating Performance Ratio
 Example
Conveyor:
Product: Engine:
Standard Time = 100 min
Production in A shift yesterday = 300

Loading Time = 465 min

Manpower = 80

Line Efficiency = 300X100/465X80 = 80.64%

Preventive & Reliability
Maintenance
 The training kit will help you to gain
• Basics of Maintenance
• Maintenance Practices
• Preventive Maintenance
• Reliability Maintenance
• Reliability Maintenance work sheet
• Learning from examples
• Benefits
 Question?
• Why do we need maintenance?
• What are the costs of doing maintenance?
• What are the costs of not doing maintenance?
• What are the benefits of maintenance?
• How can maintenance increase profitability of
company?
Preventive & Reliability
Maintenance
 Maintenance and Reliability
 Maintenance is all activities involved in
keeping a system’s equipment in working
order
 Reliability is the probability that a machine
will function properly for a specified time
 Reliability
Improving individual components

Rs = R1 x R2 x R3 x … x Rn

where R1 = reliability of component 1

R2 = reliability of component 2

and so on
 Reliability Example

R1 R2 R3

.90 .80 .99 Rs

Reliability of the process is

Rs = R1 x R2 x R3 = .90 x .80 x .99 = .713 or 71.3%

 Providing Redundancy
Provide backup components to increase
reliability

Probability of first Probability of Probability of

component second needing second
working + component x component
working

(.8) + (.8) x (1 - .8)

= .8 + .16 = .96
 Redundancy Example
A redundant process is installed to support the
earlier example where Rs = .713
R1 R2 R3
Reliability has increased
0.90 0.80 from .713 to .94

0.90 0.80 0.99

= [.9 + .9(1 - .9)] x [.8 + .8(1 - .8)] x .99

= [.9 + (.9)(.1)] x [.8 + (.8)(.2)] x .99
= .99 x .96 x .99 = .94
Probability of Occurrence Categories
Criticality/ Severity Categories