So as a benchmark, what is considered a good OEE score?
An OEE score of 100% is perfect production manufacturing on!" good parts, as fast as possib!e, with no down time# An OEE score of $%% is considered wor!d c!ass for discrete manufacturers# &or man" companies, it is a suitab!e !ong'term goa!# An OEE score of (0% is fair!" t"pica! for discrete manufacturers, but indicates there is substantia! room for impro)ement# An OEE score of *0% is not at a!! uncommon for manufacturing companies that are +ust starting to track and impro)e their manufacturing performance# ,t is a !ow score and in most cases can be easi!" impro)ed through straightforward measures -e#g# b" tracking down time reasons and addressing the !argest sources of down time . one at a time/# 0enchmark "our OEE score against industr" standards for discrete manufacturing and stri)e for wor!d c!ass resu!ts# Calculating OEE The Simple Way So how is the OEE score ca!cu!ated? ,n simp!est terms, OEE is the ratio of &u!!" 1roducti)e 2ime to 1!anned 1roduction 2ime# ,n practice this is ca!cu!ated as -3ood 1ieces 4 ,dea! 5"c!e 2ime/ 6 1!anned 1roduction 2ime 7et8s define some terms 3ood 1ieces -pieces that are manufactured without an" defects/ ,dea! 5"c!e 2ime -the theoretica! fastest possib!e time to manufacture one piece/ 1!anned 1roduction 2ime -the tota! time that the production asset is schedu!ed for production/ &u!!" 1roducti)e 2ime -producing on!" good pieces, as fast as possib!e, with no down time/ Calculating OEE The Preferred Way 2he preferred wa" to ca!cu!ate OEE is mathematica!!" e9ui)a!ent to the simp!e formu!a described abo)e, but pro)ides a much richer understanding of waste in the manufacturing process b" breaking it down into three measurab!e categories A)ai!abi!it" 1erformance :ua!it" OEE is the ratio of &u!!" 1roducti)e 2ime to 1!anned 1roduction 2ime# 1!anned Shutdown is not inc!uded in OEE ca!cu!ations since there is no intention of running production# Availability A)ai!abi!it" takes into account !"n Time #!ss, which inc!udes a!! e)ents that stop p!anned production for an appreciab!e !ength of time -t"pica!!" se)era! minutes or !onger/# ,t is ca!cu!ated as the ratio of Operating 2ime to 1!anned 1roduction 2ime, where Operating 2ime is simp!" 1!anned 1roduction 2ime !ess ;own 2ime Operating 2ime 6 1!anned 1roduction 2ime Perf!rmance 1erformance takes into account Speed #!ss, which inc!udes a!! factors that cause the production asset to operate at !ess than the ma4imum possib!e speed when running# ,t is ca!cu!ated as the ratio of <et Operating 2ime to Operating 2ime# ,n practice, it is ca!cu!ated as -,dea! 5"c!e 2ime 4 2ota! 1ieces/ 6 Operating 2ime ,dea! 5"c!e 2ime is the theoretica! fastest possib!e time to manufacture one piece# 2herefore, when it is mu!tip!ied b" 2ota! 1ieces the resu!t is <et Operating 2ime . the theoretica! fastest possib!e time to manufacture the tota! 9uantit" of pieces# =ere is a simp!e e4amp!e of a 1erformance ca!cu!ation ,tem >a!ue E4p!anation ,dea! 5"c!e 2ime 1 minute 2heoretica! fastest time to produce this part# 2ota! 1ieces ?00 2ota! 9uantit" of pieces manufactured during this shift# Operating 2ime ??0 minutes @un time of this shift -p!anned production time !ess down time/# 1erformance A0#A% -,dea! 5"c!e 2ime 4 2ota! 1ieces/ 6 Operating 2ime B -1 4 ?00/ 6 ??0 $uality :ua!it" takes into account $uality #!ss, which factors out manufactured pieces that do not meet 9ua!it" standards, inc!uding pieces that re9uire rework# ,t is ca!cu!ated as the ratio of &u!!" 1roducti)e 2ime -fastest possib!e time for 3ood 1ieces/ to <et Operating 2ime -fastest possib!e time for 2ota! 1ieces/# ,n practice it is ca!cu!ated as 3ood 1ieces 6 2ota! 1ieces OEE OEE takes into account a!! !osses -;own 2ime 7oss, Speed 7oss, and :ua!it" 7oss/, resu!ting in a measure of tru!" producti)e manufacturing time# ,t is ca!cu!ated as the ratio of &u!!" 1roducti)e 2ime to 1!anned 1roduction 2ime# ,n practice, it is ca!cu!ated as A)ai!abi!it" 4 1erformance 4 :ua!it" ,f the e9uations for A)ai!abi!it", 1erformance, and :ua!it" are substituted in the abo)e e9uation and then reduced to their simp!est terms the resu!t is -3ood 1ieces 4 ,dea! 5"c!e 2ime/ 6 1!anned 1roduction 2ime 2his is the simp!est OEE ca!cu!ation described ear!ier# Cith a bit of ref!ection, it can be seen that mu!tip!"ing 3ood 1ieces b" ,dea! 5"c!e 2ime resu!ts in &u!!" 1roducti)e 2ime -manufacturing on!" good parts, as fast as possib!e, with no down time/# Perfect Pr!ducti!n Ear!ier, an OEE score of 100% was described as perfect production manufacturing on!" good parts, as fast as possib!e, with no down time# 7et8s tie this notion of perfect production to the OEE ca!cu!ation Danufacturing on!" good partsEmeans a :ua!it" score of 100% As fast as possib!eEmeans a 1erformance score of 100% Cith no down timeEmeans an A)ai!abi!it" score of 100% Corking through rea!'wor!d e4amp!es is a great wa" to master the OEE ca!cu!ation# &or free worked e4amp!es, temp!ates, spreadsheets, and other too!s )isit www#oee#com6resource'center# %etrics &!r The Plant &l!!r OEE is a great too! for managers, but for p!ant f!oor emp!o"ees it can be a bit abstract# 1!ant f!oor emp!o"ees wi!! perform best when the" are gi)en goa!s that are rea!'time, easi!" interpreted and high!" moti)ationa!# A good e4amp!e of an effecti)e set of p!ant f!oor metrics is 2AE; 2arget -a rea!'time production target dri)en b" the p!anned rate of production/ Actua! -the actua! production count/ Efficienc" -the ratio of 2arget to Actua!F how far ahead or behind production is running in terms of a percentage/ ;own 2ime -accumu!ated down time for the shift updated in rea!'timeF this keeps a strong focus on a ke" actionab!e impro)ement area/ 3et something for nothing . down!oad free too!s 7earn more and get inspired . +oin our !ean mai!ing !ist
The Impact of Information Technology and Innovation To Improve Business Performance Through Marketing Capabilities in Online Businesses by Young Generations