OEE

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OEE

(Overall Equipment Effectiveness)

By:
DELO BENKA
HAILE SIME

OEE Definition
OEE Is an abbreviation for the manufacturing metric
Overall Equipment Effectiveness.
OEE takes into account the various sub components of
the manufacturing process Availability, Performance
and Quality.
OEE is a Key Performance Indicator (KPI) that can
measure the impact of change on a process caused by
eliminating process, or equipment losses
OEE is used to measure the performance of equipment
and the process - not the operator.

OEE Objectives / Goals


Zero Losses
Zero Breakdowns
Zero Defects
Zero Accidents
Sustainable Continuous Improvement
Team based activities
Not depend on certain people
World Class Manufacturing company

OEE calculation three factors


OEE = Availability X Performance X Quality
Availability

Is the machine operating or not?

AVAILABILITY=

AVAILABLE TIME UNPLANNED DOWNTIME x 100%


AVAILABLE TIME

Where:Available Time

Total Available Time Planned Downtime*

*Note :- Planned Downtime could be PM, no scheduled work, breaks, etc.

Performance
How fast is the machine running?
Speed at which the Work Center runs as a percentage of its
designed

speed or ideal cycle time or most often considered the

Standard.
PERFORMANCE =

Total minute produced


x 100%
Total available (operating) time

Quality
The total good parts produced expressed as a % of the total parts
produced
How many products good?

QUALITY=

Good Products (Accepted) x 100%


Total product produced

OEE and the Six Big Losses


Six Big Losses

Equipment
Total
Available
operating time )

time

(plant

Planned Downtime

Breakdowns

Available time
2

Setup / adjustment

Available operating time


3

Actual operating
time
Effective
operating
time

Idling / minor
stoppages
4

Speed

Defects in process
and rework
6

Start up losses

Benefits of OEE
Monitoring and controlling of sudden machine breakdowns,
Analysis

and

improvement

in

set-up

time

for

machines/equipments,
Machines/equipments idleness due to unavailability of
material as a result of poor line balancing or wrong
planning,
Highlighting poor machine conditions (those machines
which have regular interruptions and speed losses),

Benefits of OEE
Highlighting

operators

inefficiencies

with

the

key

problems; further training/skill development can be


planned accordingly,
Improved work place design by highlighting issues with
Man-Machine and Material placement,
Highlighting

quality-related

machine/equipment or process.

issues

from

particular

Thank you

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