How to Calculate OEE?

You’ll probably get a lot of answers, because I’ve seen people calculate it a number of different ways.
If it was me, though, I’d use 8 hours minus lunch as net-available.
My reasoning is that lunch is lunch.  This is time that the machine is scheduled to be down.  Do you ever run the machine during lunch?  Do you have “relievers”? If so, then you may even want to include lunch in the NAT.
So why not include setup time?  My reasoning may be a little “weird”, but I think of setup time as something that I will want to improve (maybe by getting one of the Lean weenies to do some SMED or something).  Therefore, this is time that I would really prefer to be up, but there is something preventing me from doing so.  Notice the dissimilarity from lunch, where I am scheduling the machine to be down.
What I tell people is that Downtime is defined as “time that I wanted to be running but couldn’t”.  If that includes lunch in your calculation, then so be it.  It wouldn’t make it into mine, but everybody does a little different.
My two cents…

Your query needs to lok right rom its origin…..Why do we calculate OEE ? It is actually the total time availability against which an equipment is compared for its use. You see, Lunch hour is something which can always be overcome by various means but the fact remains – how much was the M/C utilised. Therefore , as done in many industries, OEE gets calculated on 24 Hr basis.
Hope you can appreciate the logic.

That was a very well prepared sheet. Vidya can now prepare a similar sheet with formulas.
Just one input, I would like to add further to what Paul has provided. Under the Availability heading the S1,S5 & S6- it is recommended to capture this under the ” Tool Change-over Time “. If it is a planned repetitive  activity, it is advisable to track that time separately. This will help to get the true picture of your process and also since the Tool change-over time is a tracked separately, you can monitor it separately.
The OEE should typically tell you given the available resources (availability) how are we performing in delivery (Performance efficiency) and Quality (FTT). Keeping this in mind, the OEE calculation methodology can be finalised.
AVY

Paul,
I have never said that what u r following is wrong, instead I was just trying to explain Vidya, the OEE concept at an higher level.
What u r following is a very good system, which might work very good for ur organization. I just shared what was being followed in my previous organization. Afterall, we r here to share information.
Hope, Vidya has got what she had asked for !
AVY

What does OEE stand for? 

Peppe,
I don’t think you can increase your OEE by shifting the lunch break unless you are including it as a loss somewhere in the OEE calculation. It would be cheating if you did that and you might even get an OEE rating of over 100% which would be embarrassing;¬) I know because I tried cheating and got caught out in exactly this situation.
Practical application of OEE is easy in this sense. If you have someone working through their lunch break or someone covering for them then all you do is leave the base hours for that particular shift/day as the full amount. The OEE data capture system should be flexible enough to allow this adjustment. From my experience OEE data collection and analysis made manually by the process operators is far more effective than an automated ones that punch out lots of meaningless data.
Paul

Hi
OEE stands for Overall Equipment Effectiveness.
Let me give you a simple example to make you understand how this metric is used.
OEE is a metric typically used in a manufacturing  industry. Let us take an example of a m/c shop, consisting of 10 machines. Now, as a plant manager, you should be in a position to understand – whether you are using this equipments to its planned capacity. 
For that you have to calculate the OEE for each of the equipment and check up whether all the equipments are delivering production and quality at the expected performance.
AVY

Dear Friend,
 
As far as availability is concerned
Availability = Operating Time/ Loading time
where
 Loading time = Available time (8 hrs)- planned downtime(1 hrs- lunch)
here u may take setting time (1hrs) as planned downtime if you donot want to improve on it.
 
Best state is if Loading time = Available time
&
Operating time = loading time – machine breakdown time
remember
OEE= availability*perf. eff.* rate of quality product

First OEE is a combination of three distinct calculations:
1) Availability
 Availability

A. Total  time available _____min
B. Planned down time(Breaks, meeting, Prev. Maint. …) _____min
C. Run time A-B _____min
D. Unplanned Downtime 1+2+3= _____min
1. Breakdown minutes   _____
2. Change over minutes _____
3. Minor stoppages   _____
E. Net operating time C-D _____min
F. Available Percentage E/C x 100 _____%

2)Performance

G. Processed Amount (total good and bad) _____units
H. Design cycle time(ideal) _____min/unit
I. Performance percentage [(H x G)/E]x100 _____%

3)Quality

Total Rejects _____units
K. Quality Percent [(G-J/G)]x100 _____%
OEE
L. Overall Equipment Effectiveness F x I x K= _____%
 
You cannot look at OEE in a singular perspective.

The Actual operation time is always calculated when the M/C actually gives output ( Desired Output )
The Set up time & Lunch hour is M/C  ” NOT ” and can’t be considered within the total operational time .
You can increase the M/C operating time by introducing ” Renso  system “( A japanese word means M/C shall not be stopped during Lunch hours and another crew shall operate the M/C when the M/C operators are gone for Lunch. )
Also you can target to reduce the Set up time for increase in total operating hours thus to increase the M/C output .
 

hi,
I’m sundeep chaudhary from faridabad,
It is very easy to calculate the OEE.
1:- what is your available time ( no. of hrs x no. of days) A
2:- What are your maint & m/c failures & setup time. (equipment failures) B
3:- what are your process failures.C
4:- what are your prod. & rej.
5:- cycle time of prod.
imagine:=- OEE is Z
if you 3 shift then you have available time:- 21 hrs (1080 min)
your total prod in 3 shift is 900 pc.
first calcuate the available time in :- available time* availabletime-stoppage like m/c fail
then calculate performance totalprod * cycle time*100
then calculate the qc rating:- total prod. -rej / total prod*100
then
 
multiply all three percentages *100
That’s your OEE.
if any query please call me 9873020590, 0129-2233091, 92, 93(360)
i’ve also programmes of oee.
Sundeep chaudhary
 
 
 

Would I be able to use OEE with lots or batches? Or is it just for machines and or assembly lines? For example, one lot is scheduled to take 3 hours to complete. We complete anywhere from 3 to 6 a shift. Can I use OEE to determine performance, quality, etc.?
Thanks

Paul
I really like the format and approach you are advocating – is the full spreadsheet something that you came up with or a standard template that I can get over the web?
I’m reluctant to post my e-mail because of the spam ramifications – have you posted yours to this site and, if so, did you suffer from increased spam afterwards?
Thanks
Duncan

The design rate is 3 hours. The OEE site has the excel file where you can just plug in your numbers but again there is no provision for anything else but PPM?
 
Thanks

Respected Sir,
Plz provide me solution for the following problem asap.
Coursework 1
Background
The company manufactures a range of specialist radiator and heat exchangers. A Key
component of all products is the metallic core tubing. Every product range contains
these items. The company produces these tubes on a single machine. Due to the
criticality of this equipment it is important to increase its effectiveness.
The process itself entails two raw material types, depending on product (brass or tin).
Reels of raw material are loaded to the rear, and fed through the machine. The raw
material is then folded, welded and cut to the required length, so producing the
finished component.
Current situation
The company has designed a data collection chart and instructed operators to collect
data. Currently there is one week’s worth of data collected. No corrective action has
been taken.
All breaks are covered (the machine is planned to run continuously)
The shift starts at 8am and finishes at 4pm
A set-up is defined as a change of material or cutters (or both)
Speed is recorded digitally and reported as an average over the shift.
The tasks
1 Calculate the daily availability, performance, quality and OEE figures (state any
assumptions made).
2 Pareto analyse the losses.
3 propose actions to improve the situation.
Week No.
Product
Length Good
Length Bad
START
FINISH
Minor Stops
No. of Operators
Start-up Losses
Reel Changes
Material
Breaks
Breakdowns
Set-ups
Comments & Maintenance Shift M/C Speed
Monday Brass
1347 (786)
1283 (1028)
1588 (780)
1588 (2350)
1283 (300)
25/24/10
25/5/4
8:40
9:40
11:00
11:50
3:30
9:40
11:00
11:50
3:30
3:55
5 – 40 51 (9) 25 45 18 26
Bad cutting finish on tube, knives
changed
18
Tuesday Brass
1283 (708)
1588 (3156)
1347 (1935)
5/15/9
4/6/40
6/8
8:00
8:45
13:05
8:45
13:05
15:20
5 –
66
(11)
21 40 20 32
Bad cutting finish
Dross out solder
Changed flux
Set up machine for tin
19.5
Wednesday
Brass
Tin
1347 (1836)
1588 (17)
35/20/10/
6/22/10
15/20/6
15/20/10
6/15/25
8:50
15:10
15:10
15:45
– – 60 (9) 29 50 14 19
M/C down
Bad finish on tube
Removed knives and
cleaned
7.2
Thursday Brass
1347 (341)
1941 (1194)
1283 (1082)
1347 (2040)
6/10/6
10/6/6
6/8/29
8:00
8:30
11:00
12:20
8:30
11:00
12:20
1340
1 – 48 (8) 16 30 20 29
Marks on tube
Pick up on tinned brass
17 15
Brass 1347 (2808)
40/15
6/6
13:20 3:55
1 – 70 (12) 19 75 14 39 Lost time during set up 15 17
Tin 1588 (960)
12/6/10/6
6 Greased rollers
TD TUBE MACHINE O.E.E. DATA
Friday

You have got to be kidding!! Any other projects you want us to do for you? Or tests you would like us to take for you?

Chad – don’t think he’ll try that again…but then?

See the formula below for calculating OEE
 
 
The Formulas
As described in World Class OEE, the OEE calculation is based on the three OEE Factors: Availability, Performance, and Quality. Here’s how each of these factors is calculated.
Availability
Availability takes into account Down Time Loss, and is calculated as:

 Availability = Operating Time / Planned Production Time
Performance
Performance takes into account Speed Loss, and is calculated as:

 Performance = Ideal Cycle Time / (Operating Time / Total Pieces)
Ideal Cycle Time is the minimum cycle time that your process can be expected to achieve in optimal circumstances. It is sometimes called Design Cycle Time, Theoretical Cycle Time or Nameplate Capacity.Since Run Rate is the reciprocal of Cycle Time, Performance can also be calculated as:

 Performance = (Total Pieces / Operating Time) / Ideal Run Rate
Performance is capped at 100%, to ensure that if an error is made in specifying the Ideal Cycle Time or Ideal Run Rate the effect on OEE will be limited.
Quality
Quality takes into account Quality Loss, and is calculated as:

 Quality = Good Pieces / Total Pieces
OEE
OEE takes into account all three OEE Factors, and is calculated as:

 OEE = Availability x Performance x Quality
It is very important to recognize that improving OEE is not the only objective. Take a look at the following data for two production shifts.
 

OEE Factor

Shift 1

Shift 2

Availability

90.0%

95.0%

Performance

95.0%

95.0%

Quality

99.5%

96.0%

OEE

85.1%

86.6%

Availability = Operating time / Net available time.
Net Available time = Total shift time- set up time-lunch time or simply put the net time the machine was planned to manufacture.
There are 2 levels of process improvements
1.increase the total operating time by eliminating waiting time for material, operator etc
2.decrease the setup time so both the numerator, denominator increases.
hope this helps.
 
 
 
 

Pl pass the speciment of OEE calculation on Heat Treatent furnaces. ( Daily and Monthly ) with  6-8 setup & verious cycle times for the day.
Note – How to calculate the performance for the day.
e.g.
Die No       Push Time      Qty/Tray  Total cycles Total Time
xyz           9 min        12                32                  288
set up time     9 min                5                         45                              
ABC        12 min          22             40                    480
set up time     12 min                    6                        72
JKD         8 min           18             40                     320
set up time     8 min                   6                          48
                                                                         1253 min
Against 1440min
Whta is the performance?

OMG!  LOL!  Seriously?
First of all, I prefer to give folks the benefit of the doubt.  If he is genuinely a manufacturer who needs some help (which is a possibility based on the way the question is asked) and I have the ability to help the guy out with minimal effort, then I’m happy to do so.
Secondly, even if he is a student who is struggling to understand the fundamental concepts of process measurement and continuous improvement, then I’m happy to help as well, again if I am able to do so with minimal effort.
Finally, no I won’t help with your homework, because you are clearly an unpleasant individual with nothing better to do than flaunt your (alleged) credentials and snipe four year old posts.
But thank you very much for your valuable contribution. (That was sarcasm, just in case you were too tired to think about it.  I know how mind-numbing it can be to live in Wisconsin.)

Hi,
how do i calculate the daily performance,avaliability,quality and OEE  and Pareto analyse the losses for a manufacturer of specialist radiators and heat exchangers when given a comprehensive TD tube machine OEE data.
Hope to hear 4rm you ASAP

hi i’m studing in london i know to use oee. but i want to know how to apply pareto analysis to reduce losses. i dont have frequency in my problem.i got tube leangth good and bad time of operation, time losses in terms of material breaks, set ups etc,,, m/c speed. can u mail me before thursday