Calculating Total Daily Efficiency Loss

Six Sigma – iSixSigma Forums Operations Manufacturing Calculating Total Daily Efficiency Loss

This topic contains 1 reply, has 2 voices, and was last updated by  Mike Chambers 2 years, 1 month ago.

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    Aaron Deane


    I am trying to calculate the total efficiency loss of a certain group of equipment per day due to a certain factor. I think I’m making it a little too complicated and wanted to get my math checked.

    Here’s what I know:
    Total number of EQP
    Target UPH
    EQP CT (sec)
    % loss impact on CT

    Right now I’m using the following formula
    (EQP CT)/3600 * (% loss) * (Total # EQP) = Total time in hrs per line of EQP



    Mike Chambers

    Perhaps a cleaner and more readily understood approach is to use the concept of Overall Equipment Effectiveness (OEE). OEE is the product of performance (usually speed), availability, and yield. If you’re 100 products per minute versus a best demonstrated of 150, 22 hours of uptime versus 24 hours available, and 95% yield your OEE would be …

    (100/150)(22/24)(0.95) = 0.58

    That means your system is 58% effective versus what it could be. I often describe manufacturing as having 3 knobs: performance, availability, and yield. To the extent I improve any of 3, I improve my efficiency and subsequent product output.

    Hope that helps …

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