LEAN Execution OEE

(1)

1. Scheduled Production Time or Planned Production Time 1. Scheduled Production Time or Planned Production Time

5. NOT = Net Operating Time (Net Available Time - Unplanned Down Time) 5. NOT = Net Operating Time (Net Available Time - Unplanned Down Time) 6. IOT = Ideal Operating Time (Time to Produce All Parts at Rate) 6. IOT = Ideal Operating Time (Time to Produce All Parts at Rate)

7. LOT = Lost Operating Time Due to Production of Scrap or Non-Saleable Product. 7. LOT = Lost Operating Time Due to Production of Scrap or Non-Saleable Product.

Although we will provide examples of these calculations, the following formulas are used to calculate each of

Although we will provide examples of these calculations, the following formulas are used to calculate each of the OEE factors and overall OEE:the OEE factors and overall OEE:

1. Availability % = NOT / NAT * 100 1. Availability % = NOT / NAT * 100

3. Quality = (1

3. Quality = (1 - (LOT / - (LOT / IOT)) * 100 IOT)) * 100 OR OR Quality = (IOT - Quality = (IOT - LOT) / IOT * LOT) / IOT * 100100

4. OEE =

4. OEE = AvailabilitAvailability * y * Performance * QualityPerformance * Quality

Production Schedule: Production Schedule: LEAN

LEANExecutionExecution"Defining Excellence: "Defining Excellence: Solutions in real timSolutions in real time for real results"e for real results" OEE is comprised of three factors

OEE is comprised of three factors: : Availability, PerformAvailability, Performance, and Quality. ance, and Quality. While calculating thWhile calculating these factors is fairly straigese factors is fairly straightforward, it is imhtforward, it is important to recognize thportant to recognize that a standard definiat a standard definition for OEE does not existtion for OEE does not exist. . It isIt is important to understand the assumpt

important to understand the assumptions you are making to make ions you are making to make sure that you understand the final OEE result.sure that you understand the final OEE result.

OEE measures how effectively TIME is used to produce a quality product.

OEE measures how effectively TIME is used to produce a quality product. We have established the following definitions of TIMWe have established the following definitions of TIME to be used to calculate OEE:E to be used to calculate OEE:

2. Planned Down T

2. Planned Down Time: ime: Scheduled down tScheduled down time eventsime events 3. Unplanned Dow

3. Unplanned Down Time: n Time: Unscheduled dowUnscheduled down time eventsn time events 4. NAT = Net Available Time (Scheduled Production Time -

4. NAT = Net Available Time (Scheduled Production Time - Planned Down Time)Planned Down Time)

2. Performance % = IOT / NOT * 100 2. Performance % = IOT / NOT * 100

You will notice that a

You will notice that a quick way to check your OEE quick way to check your OEE result is to calculate the time rresult is to calculate the time r equired to make good parts divided by the Net equired to make good parts divided by the Net Available Time:Available Time:

(IOT - LOT) / NAT (IOT - LOT) / NAT

Calculating

Calculating OEE: OEE: A real A real life examplelife example

An 8 hour shift is scheduled to produce three parts a

An 8 hour shift is scheduled to produce three parts as shown in the schedule below. s shown in the schedule below. The shift has two 10 minute breaks and a 5 minute clean up periodThe shift has two 10 minute breaks and a 5 minute clean up period..

M/C:

M/C: A A Part Part #: #: A123, A123, Cycle: Cycle: 10 10 (seconds), (seconds), Produced: Produced: 2240, 2240, SCRAP: SCRAP: 50, 50, Unplanned Unplanned Downtime: Downtime: 32 32 minutesminutes M/C:

M/C: B B Part Part #: #: B456, B456, Cycle: Cycle: 45 45 (seconds), (seconds), Produced: Produced: 450, 450, SCRAP: SCRAP: 25, 25, Unplanned Unplanned Downtime: Downtime: 18 18 minutesminutes M/C:

(2)

Calculating OEE Calculating OEE

Calculating OEE starts by calculating the Net Available Time, Net Operating Time, Ideal

Calculating OEE starts by calculating the Net Available Time, Net Operating Time, Ideal Operating Team, and Lost Operating Time as shown in the Operating Team, and Lost Operating Time as shown in the table below.table below.

M

Maacchhiinnee PPaarrt t NNuummbbeerr DDeeppaarrttmmeenntt CCuussttoommeerr

P

Prroodduuccttiioon n TTiimme e RReeppoorrt t ((MMiinnuutteess)) QQuuaannttiittyy Calculated Times (Minutes)Calculated Times (Minutes) Scrap

Scrap A

A AA112233 WWeelldd PPaarraaddiiggmm 1100 448800 2255 3322 22224400 5500 445555..00 442233..00 337733..33 88..33 336655..00 B

B BB445566 AAsssseemmbbllyy ACACMMEE 4455 448800 2255 1188 445500 2255 445555..00 443377..00 333377..55 1188..88 331188..88 C

C CC778899 AAsssseemmbbllyy PaParraaddiiggmm 7700 336600 1155 2222 222299 1111 334455..00 332233..00 226677..22 1122..88 225544..33 T

Toottaallss 11332200 6655 7722 22991199 8866 12125555..00 11118833..00 979788..00 3399..99 993388..11

Now we can calculate the OEE for each process and for the

Now we can calculate the OEE for each process and for the shift. shift. We will also calculate the weighted factors and overall equipmenWe will also calculate the weighted factors and overall equipment effectiveness.t effectiveness.

M

Maacchhiinnee PPaarrt t NNuummbbeerr DDeeppaarrttmmeenntt CCuussttoommeerr AAv_P_Prrova_ocaiilla_ce_esab_ssbiilliitty _s y ((NNOOT T / / NNAATT)) PeP_P_Prroerrffo_oc_ceorrm_esma_ss_sanncce e ((IIOOT T / / NNOOTT)) _Prro_P_ocQQu_ceua_esalliitty _ss_sy ((VVAAT T / / IIOOTT)) _Prro_P_oc_ceOEO_es_ssEE _sE ((A A * * P P * * QQ)) _P_Prro_oc_ceOOE_esEE _ss_sE ((VVAAT T / / NNAATT)) A

A AA112233 WWeelldd PPaarraaddiiggmm 1100 9933..00%% 3333..77%% 8888..33%% 3311..66%% 9977..88%% 3377..33%% 8800..22%% 2299..11%% 8800..22%% 2299..11%% B

B BB445566 AAsssseemmbbllyy AACCMMEE 4455 9966..00%% 3344..88%% 7777..22%% 2288..55%% 9944..44%% 3322..66%% 7700..11%% 2255..44%% 7070..11%% 2255..44%% C

C CC778899 AAsssseemmbbllyy PPaarraaddiiggmm 7700 9933..66%% 2255..77%% 8822..77%% 2222..66%% 9955..22%% 2266..00%% 7733..77%% 2200..33%% 7373..77%% 2200..33%% T

Toottaallss 9944..33%% 9944..33%% 8822..77%% 8822..77%% 9955..99%% 9955..99%% 7744..77%% 7744..77%% 7744..77%% 7744..77%%

Notes

Notes Formula to calculate Formula to calculate weighted factors and Overall Equipment Effectivenessweighted factors and Overall Equipment Effectiveness 1

1 WeiWeighghted ted AvAvailailabiabilitlity = Ay = Avaivailablabiliility % ty % * (N* (Net Aet Avaivailablable Tle Time ime / To/ Total tal Net Net AvaAvailailablble Time Time)e) The total weighted Availability is the SUM of the

The total weighted Availability is the SUM of the individuindividual processes.al processes. 2

2 WeiWeighghted ted PerPerforformanmance = ce = PerPerforformanmance % ce % * (N* (Net Oet Operperatiating Tng Time ime / To/ Total tal Net Net OpOperaeratinting Tig Time)me) The total weighted Performance is the SUM of

The total weighted Performance is the SUM of the individual processes.the individual processes. 3

3 WeiWeighghted ted QuQualiality = ty = QuQualiality % ty % * (I* (Ideadeal Opl Operaeratinting Tig Time / me / TotTotal Ial Ideadeal Opl Operaeratinting Tig Time)me) The total weighted Quality is the SUM of

The total weighted Quality is the SUM of the individual processes.the individual processes. 4

4 WeWeigighthted ed OEOEE = OE = OEE % EE % * (N* (Net et AvAvaiailalablble Te Timime / Te / Tototal Nal Net et AvAvaiailalablble Te Timime)e) The total weighted OEE is the

The total weighted OEE is the sum of the individual processes.sum of the individual processes.

Note that the weighted OEE and factors are not simply arithmetic averages.

Note that the weighted OEE and factors are not simply arithmetic averages. We have calculated the averages for each of the factors as We have calculated the averages for each of the factors as an extension of the example above to demonstrate this fact.an extension of the example above to demonstrate this fact.

A

Avveerraaggeess 9944..22%% 8822..77%% 9955..88%% 7744..77%% 7744..77%%

Using the data from the example above we can easily calculate the OEE for each department as shown in the table below: Using the data from the example above we can easily calculate the OEE for each department as shown in the table below:

P

Prroodduuccttiioon n TTiimme e RReeppoorrt t ((MMiinnuutteess)) QuQuaannttiittyy CCaallccuullaatteed d TTiimmees s ((MMiinnuutteess))

Scrap Scrap W Weelldd 448800 2255 3322 22224400 5500 454555..00 442233..00 337733..33 88..33 336655..00 A Asssseemmbbllyy 884400 4040 4400 667799 3366 880000..00 776600..00 660044..77 3311..66 557733..11 Totals Totals 11332200 6655 7722 22991199 8866 11225555..00 11118833..00 997788..00 3399..99 993388..11 Department

Department AAvvaaiillaabbiilliitty y ((NNOOT T / / NNAATT)) PPeerrffoorrmmaanncce e ((IIOOT T / / NNOOTT)) QQuuaalliitty y ((VVAAT T / / IIOOTT)) OOEEE E ((A A * * P P * * QQ)) OOEEE E ((VVAAT T / / NNAATT)) P

Prroocceessss PPrroocceessss PPrroocceessss PPrroocceessss PPrroocceessss W Weelldd 9933..00%% 3333..77%% 8888..33%% 3311..66%% 9977..88%% 3377..33%% 8800..22%% 2299..11%% 8800..22%% 2299..11%% A Asssseemmbbllyy 9955..00%% 6060..66%% 7799..66%% 5511..11%% 9494..88%% 5588..66%% 7711..66%% 4455..77%% 7711..66%% 4455..77%% Totals Totals 9944..33%% 9944..33%% 8282..77%% 8822..77%% 9955..99%% 9955..99%% 7744..77%% 7744..77%% 7744..77%% 7744..77%%

The OEE calculations suggest that the Assembly process is not as effective as The OEE calculations suggest that the Assembly process is not as effective as welding.welding.

Cycle Time Cycle Time Seconds

Seconds ProductionProduction Time Time Periods Periods Breaks Breaks Unplanned Unplanned Downtime Downtime Total Total Produced Produced NAT - Net NAT - Net Available Available NOT - Net NOT - Net Operating Operating IOT - Ideal IOT - Ideal Operating Operating LOT - Lost LOT - Lost Operating Operating VAT - Value VAT - Value Added Added Cycle Time Cycle Time Seconds

Seconds WeightedWeighted11 _Weighted_Weighted22 _Weighted_Weighted33 _Weighted_Weighted44 _Weighted_Weighted44

Production Data and Production Data and Time Calculations by Time Calculations by Department Department Department Department Calculate Total Times for each Calculate Total Times for each Department.

Department. Note QuantitNote Quantities are shies are shownown for reference only. for reference only.

Planned Planned Production Production Time Time Planned Rest Planned Rest Periods Periods (Breaks) (Breaks) Unplanned Unplanned Downtime Downtime Total Total Produced Produced NAT - Net NAT - Net Available Available NOT - Net NOT - Net Operating Operating IOT - Ideal IOT - Ideal Operating Operating LOT - Lost LOT - Lost Operating Operating VAT - Value VAT - Value Added Added OEE Calculated by OEE Calculated by Department Department Weighted

(3)

Trusted by over 1 million members

Try Scribd

FREE for 30 days to access over 125 million titles without ads or interruptions!

Start Free Trial

Cancel Anytime.

Using the same bas

Using the same base line data is possible for us to calculate line data is possible for us to calculate the OEE for each customer. e the OEE for each customer. When reviewing tWhen reviewing the data note how the "weighhe data note how the "weighted" factors have changedted" factors have changed. . Also note that the overall OEE remaiAlso note that the overall OEE remains the same.ns the same.

P

Scrap Scrap A ACCMMEE 448800 2255 1188 445500 2255 454555..00 443377..00 333377..55 1188..88 331188..88 P Paarraaddiiggmm 884400 4400 5544 22446699 6611 880000..00 774466..00 664400..55 2211..22 661199..33 Totals Totals 11332200 6655 7722 22991199 8866 11225555 11118833 997788..00 3399..99 993388..11 Customer

Customer AAvvaaiillaabbiilliitty y ((NNOOT T / / NNAATT)) PPeerrffoorrmmaanncce e ((IIOOT T / / NNOOTT)) QQuuaalliitty y ((VVAAT T / / IIOOTT)) OOEEE E ((A A * * P P * * QQ)) OOEEE E ((VVAAT T / / NNAATT)) P

Prroocceessss PPrroocceessss PPrroocceessss PPrroocceessss PPrroocceessss A ACCMMEE 9966..00%% 3434..88%% 7777..22%% 2288..55%% 9944..44%% 3322..66%% 7700..11%% 2255..44%% 7700..11%% 2255..44%% P Paarraaddiiggmm 9933..33%% 5599..44%% 8855..99%% 5544..11%% 9966..77%% 6633..33%% 7777..44%% 4949..33%% 7777..44%% 4499..33%% Totals Totals 9944..33%% 9944..33%% 8282..77%% 8822..77%% 9955..99%% 9955..99%% 7744..77%% 7744..77%% 7744..77%% 7744..77%%

The OEE calculations in this case suggest that the processes for Paradigm are

The OEE calculations in this case suggest that the processes for Paradigm are more effective than ACME.more effective than ACME.

What if we want to know what to focus on for

What if we want to know what to focus on for the assembly operation or what if the customer only cares about their processes?the assembly operation or what if the customer only cares about their processes? To calculate the OEE for Paradigm alone, we use the same process as in

To calculate the OEE for Paradigm alone, we use the same process as in the previous examples.the previous examples. In the Customer example below, the weighted OEE

In the Customer example below, the weighted OEE and factors are based on and factors are based on ALL processes.ALL processes.

PARADIGM OEE

PARADIGM OEE CalculationsCalculations

Ma

Machchininee PaPart rt NuNumbmberer

P

Scrap Scrap

A

A AA112233 WWeelldd PPaarraaddiiggmm 1100 448800 2255 3322 22224400 5500 445555..00 442233..00 337733..33 88..33 336655..00 C

C CC778899 AAsssseemmbbllyy PaParraaddiiggmm 7700 336600 1155 2222 222299 1111 334455..00 332233..00 226677..22 1122..88 225544..33 Totals

Totals 884400 4400 5544 22446699 6611 880000..00 774466..00 664400..55 2211..22 661199..33

M

Maacchhiinnee PPaarrt t NNuummbbeerr CCuussttoommeerr AAvvaaiillaabbiilliitty y ((NNOOT T / / NNAATT)) PPeerrffoorrmmaanncce e ((IIOOT T / / NNOOTT)) QuQuaalliitty y ((VVAAT T / / IIOOTT)) OOEEE E ((A A * * P P * * QQ)) OEOEE E ((VVAAT T / / NNAATT)) P

Prroocceessss PPrroocceessss PPrroocceessss PPrroocceessss PPrroocceessss A

A AA112233 WWeelldd PPaarraaddiiggmm 1100 9933..00%% 3333..77%% 8888..33%% 3311..66%% 9977..88%% 3377..33%% 8800..22%% 2299..11%% 8800..22%% 2299..11%% C

C CC778899 AAsssseemmbbllyy PPaarraaddiiggmm 7700 9933..66%% 2255..77%% 8822..77%% 2222..66%% 9955..22%% 2266..00%% 7733..77%% 2200..33%% 7373..77%% 2200..33%% Totals

Totals 9933..33%% 5599..44%% 8585..99%% 5544..11%% 9966..77%% 6633..33%% 7777..44%% 4499..33%% 7777..44%% 4499..33%%

It appears that the assembly process for Paradigm parts shou

It appears that the assembly process for Paradigm parts should be improved compared to the welding operation. ld be improved compared to the welding operation. Focus should be applied to assembly performFocus should be applied to assembly performance from an efficiency perspective.ance from an efficiency perspective. Production Data and

Production Data and Time Calculations by Time Calculations by Customer Customer Customer Customer

Calculate Total Times for each Customer. Calculate Total Times for each Customer. Note Quantities are shown for reference Note Quantities are shown for reference

only. only. Planned Planned Production Production Time Time Planned Rest Planned Rest Periods Periods (Breaks) (Breaks) Unplanned Unplanned Downtime Downtime Total Total Produced Produced NAT - Net NAT - Net Available Available NOT - Net NOT - Net Operating Operating IOT - Ideal IOT - Ideal Operating Operating LOT - Lost LOT - Lost Operating Operating VAT - Value VAT - Value Added Added OEE Calculated by OEE Calculated by Customer Customer Weighted

Weighted11 _Weighted_Weighted22 _Weighted_Weighted33 _Weighted_Weighted44 _Weighted_Weighted44

Customer Customer Calculate Total Times for all parts Calculate Total Times for all parts

supplied to Paradigm supplied to Paradigm Planned Planned Production Production Time Time Planned Rest Planned Rest Periods Periods (Breaks) (Breaks) Unplanned Unplanned Downtime Downtime Total Total Produced Produced NAT - Net NAT - Net Available Available NOT - Net NOT - Net Operating Operating IOT - Ideal IOT - Ideal Operating Operating LOT - Lost LOT - Lost Operating Operating VAT - Value VAT - Value Added Added Weighted

(4)

If Paradigm is ONLY interested in

If Paradigm is ONLY interested in how their processes are running, then the weighting of the how their processes are running, then the weighting of the OEE and factors should be cOEE and factors should be c alculated for their process as shown in alculated for their process as shown in the table below.the table below. Note that the only change is the Weighted OEE.

Note that the only change is the Weighted OEE. Comparing this table to the above weighted calculatComparing this table to the above weighted calculations, you can see how Paradigms processes contributions, you can see how Paradigms processes contribute to the overall OEE e to the overall OEE for the shift.for the shift.

M

Maacchhiinnee PPaarrt t NNuummbbeerr CCuussttoommeerr AAvvaaiillaabbiilliitty y ((NNOOT T / / NNAATT)) PPeerrffoorrmmaanncce e ((IIOOT T / / NNOOTT)) QuQuaalliitty y ((VVAAT T / / IIOOTT)) OOEEE E ((A A * * P P * * QQ)) OEOEE E ((VVAAT T / / NNAATT)) P

Prroocceessss PPrroocceessss PPrroocceessss PPrroocceessss PPrroocceessss A

A AA112233 WWeelldd PPaarraaddiiggmm 1100 9933..00%% 5252..99%% 8888..33%% 5500..00%% 9977..88%% 5577..00%% 8800..22%% 4455..66%% 8800..22%% 4455..66%% C

Totals 9933..33%% 9933..33%% 8585..99%% 8855..99%% 9966..77%% 9966..77%% 7777..44%% 7777..44%% 7777..44%% 7777..44%%

ASSEMBLY Department OEE ASSEMBLY Department OEE

To calculate the OEE for the

To calculate the OEE for the Assembly departmenAssembly department, again, we use the same process as in the t, again, we use the same process as in the previous examples.previous examples. Note that we have kept the weighted factors relative to the TOTALS for ALL parts in the f

Note that we have kept the weighted factors relative to the TOTALS for ALL parts in the f irst OEE summary table.irst OEE summary table.

Ma

Machchininee PaPart rt NuNumbmberer

P

Scrap Scrap

B

B BB445566 AAsssseemmbbllyy ACACMMEE 4455 448800 2255 1188 445500 2255 445555..00 443377..00 333377..55 1188..88 331188..88 C

C CC778899 AAsssseemmbbllyy PaParraaddiiggmm 7700 336600 1155 2222 222299 1111 334455..00 332233..00 226677..22 1122..88 225544..33 Totals

Totals 884400 4400 4400 667799 3366 880000..00 776600..00 660044..77 3311..66 557733..11

M

Maacchhiinnee PPaarrt Nt Nuummbbeerr AAsssseemmbblly Dy Deeppaarrttmmeenntt AAvvaaiillaabbiilliitty y ((NNOOT T / / NNAATT)) PPeerrffoorrmmaanncce e ((IIOOT T / / NNOOTT)) QQuuaalliitty y ((VVAAT T / / IIOOTT)) OOEEE E ((A A * * P P * * QQ)) OOEEE E ((VVAAT T / / NNAATT)) P

Prroocceessss PPrroocceessss PPrroocceessss PPrroocceessss PPrroocceessss B

Totals 9955..00%% 6600..66%% 7979..66%% 5511..11%% 9944..88%% 5588..66%% 7711..66%% 4455..77%% 7711..66%% 4455..77%%

M

Maacchhiinnee PPaarrt Nt Nuummbbeerr AAsssseemmbblly Dy Deeppaarrttmmeenntt AAvvaaiillaabbiilliitty y ((NNOOT T / / NNAATT)) PPeerrffoorrmmaanncce e ((IIOOT T / / NNOOTT)) QQuuaalliitty y ((VVAAT T / / IIOOTT)) OOEEE E ((A A * * P P * * QQ)) OOEEE E ((VVAAT T / / NNAATT)) P

Prroocceessss PPrroocceessss PPrroocceessss PPrroocceessss PPrroocceessss B

Totals 9955..00%% 9955..00%% 7979..66%% 7799..66%% 9944..88%% 9944..88%% 7711..66%% 7711..66%% 7711..66%% 7711..66%%

How do we determine which operation to work on?

How do we determine which operation to work on? Based on the Assembly departmenBased on the Assembly department above, it appears that Process B needs improvement in both performance and quality to improve the overall OEE.t above, it appears that Process B needs improvement in both performance and quality to improve the overall OEE. While there may be no "right" answer, we affirm that the opportunity to pursue is the one that will have the greatest impact to the bottom line.

While there may be no "right" answer, we affirm that the opportunity to pursue is the one that will have the greatest impact to the bottom line. Weighted

Assembly Department Assembly Department Calculate Total Times for all parts Calculate Total Times for all parts manufactured in the assembly area. manufactured in the assembly area.

Planned Planned Production Production Time Time Planned Rest Planned Rest Periods Periods (Breaks) (Breaks) Unplanned Unplanned Downtime Downtime Total Total Produced Produced NAT - Net NAT - Net Available Available NOT - Net NOT - Net Operating Operating IOT - Ideal IOT - Ideal Operating Operating LOT - Lost LOT - Lost Operating Operating VAT - Value VAT - Value Added Added Weighted

Weighted

(5)

Trusted by over 1 million members

Try Scribd

FREE for 30 days to access over 125 million titles without ads or interruptions!

Start Free Trial

Cancel Anytime.

THE Cost FACTORS: THE Cost FACTORS:

Refer to the

Refer to the "OEE Documentation" Tab for a more "OEE Documentation" Tab for a more detailed presentation usidetailed presentation using actual cost data.ng actual cost data.

Availability: Availability:

The point is that when a machine goes down, there is a price to be paid.

The point is that when a machine goes down, there is a price to be paid. The real question is, "How much?"The real question is, "How much?"

Performance: Performance:

Quality: Quality:

Sorting, Repair, or any other type of containment activitiy will result in NON-VALUE ADDED Costs.

Sorting, Repair, or any other type of containment activitiy will result in NON-VALUE ADDED Costs. These costs should be part of These costs should be part of the consideration when determining procethe consideration when determining proce ss improvements.ss improvements.

M

Maacchhiinnee PPaarrt t NNuummbbeerr DDeeppaarrttmmeenntt CCuussttoommeerr AAvvaaiillaabbiilliitty y ((NNOOT T / / NNAATT)) PPeerrffoorrmmaanncce e ((IIOOT T / / NNOOTT)) QQuuaalliitty y ((VVAAT T / / IIOOTT)) OOEEE E ((A A * * P P * * QQ)) MMaatteerriiaall LLaabboouurr OOvveerrhheeaadd P

Prroocceessss PPrroocceessss PPrroocceessss PPrroocceessss A

A AA112233 WWeelldd PPaarraaddiiggmm 1100 9933..00%% 3333..77%% 8888..33%% 3311..66%% 9977..88%% 3377..33%% 8800..22%% 2299..11%% B

B BB445566 AAsssseemmbbllyy ACACMMEE 4455 9966..00%% 3344..88%% 7777..22%% 2288..55%% 9944..44%% 3322..66%% 7700..11%% 2255..44%% C

C CC778899 AAsssseemmbbllyy PPaarraaddiiggmm 7700 9933..66%% 2255..77%% 8822..77%% 2222..66%% 9955..22%% 2266..00%% 7733..77%% 2200..33%% T

Toottaallss 9944..33%% 9944..33%% 8822..77%% 8822..77%% 9955..99%% 9955..99%% 7744..77%% 7744..77%% Availability will have a direct and indirect impact on both Labo

Availability will have a direct and indirect impact on both Labour and Burden. ur and Burden. It could be argued that if a machine is down for an extended period of time, the direct labour could be redeployed to run another machine orIt could be argued that if a machine is down for an extended period of time, the direct labour could be redeployed to run another machine or work center.

work center. While this makes for a good While this makes for a good business case, it also business case, it also implies that the direct labimplies that the direct labour will be redeployed to run pour will be redeployed to run parts that weren't arts that weren't required to begin with. required to begin with. This isn't exactly This isn't exactly Lean Thinking. Lean Thinking. Also, depending on Also, depending on thethe length of time that the machine is

length of time that the machine is down, overtime costs may be incurred to make down, overtime costs may be incurred to make up for lost production.up for lost production.

Performance has a direct impact on the Labour and to some degree the burden cos

Performance has a direct impact on the Labour and to some degree the burden costs of the operation. ts of the operation. Again, this will depend on the net effect of the performance loss. Again, this will depend on the net effect of the performance loss. If the loss is significant enough to drive your plantIf the loss is significant enough to drive your plant into working overtime, then there will be

into working overtime, then there will be increased labour and burden costs.increased labour and burden costs.

Quality impacts all three costs being consi

Quality impacts all three costs being considered. dered. Material, Labour, and BurdMaterial, Labour, and Burden are all lost when a part is scrapped. en are all lost when a part is scrapped. In addition to these process costIn addition to these process costs, there are the administrative and other handling costs ass, there are the administrative and other handling costs associated withsociated with the scrapped materi

the scrapped materials. als. Even if the material is reworked, typiEven if the material is reworked, typically the only cost recovered is mcally the only cost recovered is material. aterial. Reworking produReworking product also introduces new ct also introduces new administrative and administrative and handling costs ahandling costs associated with the rewssociated with the rework process. ork process. NewNew burden costs not normally incurred in

burden costs not normally incurred in the original process are the original process are also introduced when repairing product.also introduced when repairing product.

Cycle Time Cycle Time Seconds

(6)

Overall Equipment Effectiveness (O.E.E.) Overall Equipment Effectiveness (O.E.E.)

OEE is to be tracked for each major cell for every shift of production. OEE is to be tracked for each major cell for every shift of production.

OEE OEE

Overall Equipment Effectiveness is the measure of Productive Time / Planned Production Time Overall Equipment Effectiveness is the measure of Productive Time / Planned Production Time In other words, it is

In other words, it is the measure of VALUE ADDED Time / Planned Production Timethe measure of VALUE ADDED Time / Planned Production Time

O

Ovveerraalll l OOEEE E == ToTottaal l TTiimme e TTo o MMaakke e a a QQuuaalllliitty y PPaarrt t @ @ SSttaannddaarrdd Total Planned Production Time Total Planned Production Time

Definitions: Definitions:

OEE - Overall Equipment Efficiency = Performance * Availability * Quality OEE - Overall Equipment Efficiency = Performance * Availability * Quality

-- World Class = 85%World Class = 85%

A

Avvaaiillaabbiilliittyy:: 9900..00%% DDOOWWNNTTIIMME E LLOOSSS S - - BBrreeaakkddoowwnnss, , SSttoocckkoouuttss P

Peerrffoorrmmaannccee:: 9955..00%% SSPPEEEED D LLOOSSS S - - CCyycclle e TTiimme e EEffffiicciieennccyy Q

Quuaalliitty y ((FFTTTT)):: 9999..55%% YYIIEELLD D LLOOSSS S - - SSccrraapp, , RReewwoorrkk, , CCoonnttaaiinnmmeenntt O

OEEEE 8855..11%%

Performance Performance

-- CyclCycle Time Time (Stae (Standandard Labrd Labor)or) --Stampings - Actual Strokes per MinuteStampings - Actual Strokes per Minute

--Assembly - Button to Button Cycle Time Assembly - Button to Button Cycle Time - NO Efficiency Factors Added- NO Efficiency Factors Added

-- StStanandadard rd LaLabobor r

-- Headcount of personnel required to staff each operation with Headcount of personnel required to staff each operation with no sort, rework, or no sort, rework, or containmentcontainment --Acceptable = Rework included in Acceptable = Rework included in Standard Process only or Standard Process only or Customer mandated Product LaunchCustomer mandated Product Launch

Availability Availability

Total Available Time Total Available Time

-- Gross Available Time = Gross Available Time = Actual SCHEDULED Time, Maximum 1 ShiftActual SCHEDULED Time, Maximum 1 Shift 480480 minutesminutes

-- PPllaannnneeddDDoowwnnttiimmee FFrreeqquueennccyy TTiimmee TToottaallss

-- BBrreeaakkss((1100mmiinnuutteessxx22)) 22 1100 2200

-- LLuunncchh((2200mmiinnuutteessxx11)) 11 2200 2200

-- CClleeaannUUpp((55mmiinnuutteessxx11)) 11 55 55

-- PPllaannnneeddDoDowwnnttiimmee 4455

--Net Available Time = Total Net Available Time = Total Available Time - Planned DowntimeAvailable Time - Planned Downtime 435435 minutesminutes

-- UnpUnplanlanned ned DowDowntintimeme -- ChangeoveChangeover (Dies r (Dies / Tools)/ Tools) -- BreakdownBreakdown -- Tip ChangesTip Changes -- Coil ChangesCoil Changes -- Material HandlingMaterial Handling -- Any Other Any Other Unscheduled EventsUnscheduled Events

Quality (FTT) Quality (FTT)

-- Parts ScrappedParts Scrapped -- Weld DestructWeld Destruct -- Coil EndsCoil Ends -- Rework on the LineRework on the Line -- ContainmentContainment

--0% is automatically assumed for any product subject to:0% is automatically assumed for any product subject to: -- Online or 3rd Online or 3rd party containmentparty containment

-- Rework that is not part of Rework that is not part of the standard processthe standard process

Calculating OEE Calculating OEE

-- OEE = PeOEE = Performanrformance % X Availce % X Availabiliability % X Quaty % X Quality %lity %

Note:

Note: Quantities of partQuantities of parts are a measure of TIME. s are a measure of TIME. Quantity X Cycle Time = Time ReqQuantity X Cycle Time = Time Required to Produce Pauired to Produce Partsrts

Total Equipment Effectivenss Performance Total Equipment Effectivenss Performance

-- TEEP = ATEEP = Asset Avaisset Availabillability / Net Tity / Net Time Avaiime Available * Olable * OEEEE

This provides a measure of how well

(7)

Trusted by over 1 million members

Try Scribd

FREE for 30 days to access over 125 million titles without ads or interruptions!

Start Free Trial

(8)

Trusted by over 1 million members

Try Scribd

FREE for 30 days to access over 125 million titles without ads or interruptions!

Start Free Trial

Cancel Anytime.

--

Weighted OEE factors for PERFORMANCE, AVAILABILITY, and QUALITY

OEE = Productive Time / Planned Production Time

OEE % =

OEE % = Net VALUE ADDED Operating Time Net VALUE ADDED Operating Time @ Standard_{Planned Operating Time or Net Available Time}_{Planned Operating Time or Net Available Time}@ Standard Productive Time ONLY occurs when a quality part is produced at rate.

Productive Time ONLY occurs when a quality part is produced at rate. (Time to make parts that can be sold or used in subsequent processes).(Time to make parts that can be sold or used in subsequent processes).

Although alternative methods are presented to calculate the weighted values for the OEE factors, all resolve back to the same fundamental formulas. Although alternative methods are presented to calculate the weighted values for the OEE factors, all resolve back to the same fundamental formulas. OEE Measures how effectively the time for a piece of equipment or process is utilized.

OEE Measures how effectively the time for a piece of equipment or process is utilized. Be cognizant of processes that yield more than 1 part per machine cycle.Be cognizant of processes that yield more than 1 part per machine cycle. Although Quality (FTT) appears to measure quality based on Quantity of parts, this is directly correlated to the TIME required to produce the parts. Although Quality (FTT) appears to measure quality based on Quantity of parts, this is directly correlated to the TIME required to produce the parts.

-- EXAMPLE: EXAMPLE: (Working (Working Model) Model) Data Data input fieinput fields lds are iare indicated ndicated by the by the TAN BaTAN Backgroundckground

P

Paarrtt TToottaallPPaarrttss SSccrraapp TToottaallGGoooodd

A A 7575 229900 1100 228800 448800 4400 B B 7575 115500 00 151500 224400 1155 C C 1515 11225500 00 12125500 448800 4400 7.5 7.5 11000000 11000000 00 224400 1155 52 52 550000 550000 00 448800 4400 T Toottaall 33119900 15151100 11668800 1.

1. Parts D & E are ON CONTAINParts D & E are ON CONTAINMENT = All Parts ScrappedMENT = All Parts Scrapped

-- AVAVAIAILALABIBILILITYTY

Availability %

Part Part A A 440440 1010 430430 97.73%97.73% 24.29%24.29% B B 225225 3030 195195 86.67%86.67% 11.02%11.02% C C 440440 2020 420420 95.45%95.45% 23.73%23.73% 225 225 9292 133133 59.11%59.11% 7.51%7.51% 440 440 55 435435 98.86%98.86% 24.58%24.58% Total Total 17701770 157157 16131613 9911..1133%% 9911..1133%% Availability =91.13% Availability =91.13%

-- PEPERFRFORORMAMANCNCEE

Performance % = Performance % = OROR

Performance %

Part Part A A 88.9788.97 336622..55 8844..3300%% 8844..3300%% 2222..4477%% B B 78.0078.00 118888 9966..1155%% 9966..1155%% 1111..6622%% C C 20.1620.16 331133 7744..4400%% 7744..4400%% 1199..3377%% 7.98 7.98 112255 9933..9988%% 9933..9988%% 77..7755%% 52.20 52.20 443333 9999..6622%% 9999..6622%% 2266..8877%% Total Total 14211421 88.09%88.09% 8888..0099%% 8888..0099%% Performance = 88.09% Performance = 88.09%

From the example below, the overall weighted

From the example below, the overall weighted OEE =OEE = ((Total Time to Produce A Quality Part @ StandardTotal Time to Produce A Quality Part @ Standard))//((Total Planned Production TimeTotal Planned Production Time))

Standard Cycle Time Standard Cycle Time

(Seconds)

(Seconds) Scheduled Production TimeScheduled Production Time(Maximum 1 Shift = 480 minutes)(Maximum 1 Shift = 480 minutes) Planned Down TimePlanned Down Time(Minutes)(Minutes)

D D11 E E11 AVAILABILITY AVAILABILITY (Time Available to Produce Parts) (Time Available to Produce Parts) Net Available Time

Net Available Time

Total Available Time - Planned Down

Time

(Planned Production Time)

(Minutes) (Minutes) Unplanned Unplanned Down Time Down Time (Minutes) (Minutes)

Actual Operating Time

(Net Operating Time Actual)

(Minutes) (Minutes) Availability - (1&2) Availability - (1&2) % %

Planned Time Planned Time Availability Weighted Availability Weighted % %

Availability % * Planned Time Availability % * Planned Time

Total Planned Time Total Planned Time

D D11 E E11 Actual Rate (pcs / hr) Actual Rate (pcs / hr) Standard Rate (pcs / hr) Standard Rate (pcs / hr)

Standard Cycle Time Standard Cycle Time Actual Cycle Time Actual Cycle Time

Performance Performance (Time to Produce ALL Parts @ Standard) (Time to Produce ALL Parts @ Standard)

Actual Cycle Time Actual Cycle Time

Actual Operating Time * 60 Actual Operating Time * 60 Total Parts Produced Total Parts Produced

(Seconds) (Seconds)

Gross Operating Time

@ Standard

(Time to Produce Total Parts

@ Standard Cycle) @ Standard Cycle) (Minutes) (Minutes) Performance (1) Performance (1) % %

Performance (2) Performance (2)

(%) (%)

Standard Cycle Time Standard Cycle Time Actual Cycle Time Actual Cycle Time

Performance Weighted Performance Weighted

% %

Performance % * Actual Operating Time Performance % * Actual Operating Time

Total Actual Operating Time Total Actual Operating Time

D D11

E E11

Refer to Notes for Unplanned Downtime event details.

Refer to Notes for Unplanned Downtime event details. Actual Operating Time = Net Available Time - Unplanned Down TimeActual Operating Time = Net Available Time - Unplanned Down Time

Total Actual Operating Time Total Actual Operating Time Total Net Available Time Total Net Available Time

Gross Operating Time = (Standard Cycle Time / 60) X Total Parts Made Gross Operating Time = (Standard Cycle Time / 60) X Total Parts Made

Note: Unit of Measure = Minutes Note: Unit of Measure = Minutes

T

Total Operatotal Operat ing Time to ing Time to Produce TProduce Total Parts otal Parts @ Standard@ Standard Total Actual Operating Time Total Actual Operating Time

(9)

(10)

Trusted by over 1 million members

Try Scribd

FREE for 30 days to access over 125 million titles without ads or interruptions!

Start Free Trial

Cancel Anytime.

Quality %

Part Part A A 335500..00 9966..5555%% 96.55%96.55% 24.63%24.63% 24.63%24.63% B B 118877..55 110000..0000%% 100.00%100.00% 13.20%13.20% 13.20%13.20% C C 331122..55 110000..0000%% 100.00%100.00% 21.99%21.99% 21.99%21.99% 0 0..00 00..0000%% 0.00%0.00% 0.00%0.00% 0.00%0.00% 0 0..00 00..0000%% 0.00%0.00% 0.00%0.00% 0.00%0.00% Total Total 850.0850.0 5599..8822%% 5959..8822%% 5599..8822%% Quality = 59.82% Quality = 59.82% Part

Part

OEE %

A A B B 79.55%79.55% 7799..55%% 1199..7777%% C C 83.33%83.33% 8833..33%% 1100..5599%% 71.02% 71.02% 7711..00%% 1177..6666%% 0.00% 0.00% 00..00%% 00..0000%% Total Total 0.00%0.00% 00..00%% 00..0000%% 48.02% 48.02% 48.02%48.02% 4488..0022%% 4488..0022%%

Total Net (VALUE ADDED) Time / Total Planned = 48.02% Total Net (VALUE ADDED) Time / Total Planned = 48.02%

Using OEE to Manage Change

General: General:

Understandi

Understanding OEE and it's ng OEE and it's related factors, is key related factors, is key to managing "process" changes.to managing "process" changes.

While OEE determines how efficiently time is being used

While OEE determines how efficiently time is being used by a particular machine or across tby a particular machine or across t he entire plant - it he entire plant - it doesn't measure the TOTAL cost of doesn't measure the TOTAL cost of inefficiencies!inefficiencies!

Availability:

Availability: DOWNTIME DOWNTIME LOSSLOSS Performanc

Performance: e: SPEED LOSS (SPEED LOSS (Cycle Time Inefficiency)Cycle Time Inefficiency) Quality:

Quality: YIELD YIELD LOSSLOSS

Labour Variance: Labour Variance:

OEE can be used to measure L

OEE can be used to measure Labour Variances: abour Variances: Availability X PerformanceAvailability X Performance

Availability:

Availability: Time lost due to inability to produTime lost due to inability to produce parts.ce parts. Performanc

Performance: e: Time lost (for all parts) due to cycle time inefficieTime lost (for all parts) due to cycle time inefficiencyncy

Direct Labour Impact: Direct Labour Impact:

When deciding which process to address first, consider the

When deciding which process to address first, consider the total direct labour required to run it.total direct labour required to run it. Two processes running at the same overall OEE may

Two processes running at the same overall OEE may have considerable cost implications (differencehave considerable cost implications (differences).s).

Material Variance: Material Variance:

Quality:

Quality: Material lost duMaterial lost due to scrap parts, coie to scrap parts, coil endsl ends

When deciding which process to address first, consider the

When deciding which process to address first, consider the cost of material required to make cost of material required to make the parts.the parts. Two process running at the same

Two process running at the same overall OEE and Quality may have significant differences with respect to overall OEE and Quality may have significant differences with respect to cost impact.cost impact. Salvage / Recovery revenue should also be considered in the

Salvage / Recovery revenue should also be considered in the overall part assessment.overall part assessment. Learn to app

Learn to appreciate the differereciate the difference in value of mnce in value of materials. aterials. Example: Example: Gold and SGold and Silver.ilver.

Burden Variance: Burden Variance:

Availability:

Availability: Unexpected machine repUnexpected machine repairs, replacement partsairs, replacement parts Performanc

Performance: e: Equipment repaiEquipment repairs required to address machines running at reducers required to address machines running at reduced speeds due to wear and tear.d speeds due to wear and tear. Quality:

Quality: Rework, ContainmenRework, Containment, Inspection, Material Handling suppot, Inspection, Material Handling support.rt. Quality

Quality

Time to Produce Quality Parts @ Standard Time to Produce Quality Parts @ Standard

Net Operating Time

@ Standard

(Time to Produce Quality Parts

@ Standard Cycle) @ Standard Cycle) (Minutes) (Minutes) Quality (1) Quality (1) % %

Net Operating Time

Quality (2) Quality (2) (%) (%) Good Parts Good Parts Total Parts Total Parts Quality Weighted Quality Weighted % %

Planned Operating Time * A% * P% Planned Operating Time * A% * P% Total Planned Operating Time * TA% * TP% Total Planned Operating Time * TA% * TP%

Quality Weighted Quality Weighted

% %

Gross Operating Time @ Standard Gross Operating Time @ Standard Total Gross Operating Time @ Standard Total Gross Operating Time @ Standard

D D11 E E11 OEE (1) OEE (1) % % A * P * Q A * P * Q OEE (2) OEE (2) % % A * P * Q A * P * Q Weighted OEE Weighted OEE

OEE % * Planned Time OEE % * Planned Time Total Planned Time Total Planned Time

D D11

E E11

(Cycle Time @ Standard / 60) X Good Parts Made (Cycle Time @ Standard / 60) X Good Parts Made

Total Time to Produce Quality Parts @ Standard Total Time to Produce Quality Parts @ Standard Total Time to Produce Total Parts @ Standard Total Time to Produce Total Parts @ Standard

Net Operating Time @ Standard Net Operating Time @ Standard

Total Net Available Time Total Net Available Time

(11)

(12)

Trusted by over 1 million members

Try Scribd

FREE for 30 days to access over 125 million titles without ads or interruptions!

Start Free Trial

Cancel Anytime.

VOLUME: VOLUME:

The effect of volume should be clear as

The effect of volume should be clear as the cost differences will vary accordingly.the cost differences will vary accordingly.

EXAMPLE of Cost Implications:

EXAMPLE of Cost Implications: NOTE That the OEE NOTE That the OEE is the SAME for both is the SAME for both processesprocesses..

P Prroocceessss DDiirreeccttLLaabboouurr $$2277..2200 AA PP QQ A A 88 $$221177..6600 9595%% 9900%% 7700%% B B 22 $$5544..4400 9595%% 9900%% 7700%%

Direct Labour Cost -

Direct Labour Cost - Variance CalculationVariance Calculationss

Direct Labour is Redeployed while machine is down Direct Labour is Redeployed while machine is down

P Prroocceessss PP LLaabboouurrVVaarriiaannccee A A 9900% % $$224411..778 8 $$2244..1188 B B 9900% % $$6600..444 4 $$66..0044

Direct Labour Cannot be redeployed while machine is down Direct Labour Cannot be redeployed while machine is down

P Prroocceessss AA**PP LaLabboouurrVVaarriiaannccee A A 8866% % $$225544..550 0 $$3366..9900 B B 8866% % $$6633..663 3 $$99..2233 Material Cost -

Material Cost - Variance CalculationsVariance Calculations

P

Prroocceessss QQ SSttaannddaarrddMMaatteerriiaallCCoosstt AAccttuuaallCCoosstt MaMatteerriiaallVVaarriiaannccee A

A 7700%% $$00..2255 $0.36 $0.36 $0.11$0.11

B

B 7700%% $$115500..0000 $214.29 $214.29 $64.29$64.29

RECOVERY / SALVAGE Costs RECOVERY / SALVAGE Costs

Scrap material may be sold and as a

Scrap material may be sold and as a result could return revenue to offset the overall cost impact.result could return revenue to offset the overall cost impact.

Putting it ALL

Putting it ALL Together:

Together: From the

From the example above:

example above:

Process

Process VariancesVariances SalvageSalvage

L

Laabboouurr MMaatteerriiaall TToottaall A A $24.18 $24.18 $0.11 $0.11 $24.28 $24.28 $0.02$0.02 B B $6.04 $6.04 $64.29 $64.29 $70.33 $70.33 $9.64$9.64 A - B A - B $$1188..1133 $$((6644..1188)) $$((4466..0055)) $$((99..6633)) EFFECT of Volume EFFECT of Volume P

Prroocceessss AAnnnnuuaallVVoolluummee RReeccoovveerryy NNeettIImmppaacctt((RReeccoovveerryy)) A A 117700,,00000 0 $4$4,,112288,,443366..551 1 $$22,,773322..114 4 $$44,,112255,,770044..3377 B B 5500,,00000 0 $$33,,551166,,550077..994 4 $4$48822,,114422..886 6 $3$3,,003344,,336655..0088 A - B A - B 112200,,00000 0 $$661111,,992288..557 7 $$((447799,,441100..7711) ) $1$1,,009911,,333399..2299

In this example, it is clear t

In this example, it is clear t hat while the labour cost for process A presents a hat while the labour cost for process A presents a cause for concern and should be addressed before looking at Process B, the material cost variance presents a much greater opportunity cause for concern and should be addressed before looking at Process B, the material cost variance presents a much greater opportunity for process B.for process B. Putting it all together, based on

Putting it all together, based on Volume, the real process to focus on is Process A.Volume, the real process to focus on is Process A.

Making it Happen - NEXT Steps

Establish Clear Standards - Material, Cycle Time, Labour Establish Clear Standards - Material, Cycle Time, Labour

Quick Die Change Quick Die Change

Inventory Management Initiatives:

Inventory Management Initiatives: Min-Max Targets, Inventory TurnsMin-Max Targets, Inventory Turns, PULL, PULL

Quality:

Quality: Scrap, RScrap, Rework, Containmework, Containmentent

Process Cycle Efficiency (Lean Metric) Process Cycle Efficiency (Lean Metric)

Value-Added Time / Total Lead Time Value-Added Time / Total Lead Time

Direct Labo

Direct Labour Cost ur Cost for for NetNet Quantity Required Quantity Required (Performance) (Performance)

Direct Labo

Direct Labour Cost ur Cost for for NetNet Quantity Required Quantity Required (Performance) (Performance)

Total Cost Impact due to Total Cost Impact due to

Variances Variances

(13)

(14)

Trusted by over 1 million members

Try Scribd

FREE for 30 days to access over 125 million titles without ads or interruptions!

Start Free Trial

Cancel Anytime.

Total Equipment Effectiveness (Performance)

-- DeDefifininititionon::

Measures how well assets in the plant are being utilized in an area or total plant.

Measures how well assets in the plant are being utilized in an area or total plant. This is typically based on a 24 hour day, 7 days / week, 365 day base line.This is typically based on a 24 hour day, 7 days / week, 365 day base line. For a shift the TEEP will be based on a full 8 hour day (480 minutes).

For a shift the TEEP will be based on a full 8 hour day (480 minutes).

T

TEEEEPP OORR

It is possible for

It is possible for OEE to show continued improvement, however, equipment utilization is affected by OEE to show continued improvement, however, equipment utilization is affected by volume and product mix based on customer volume and product mix based on customer demand.demand.

The weighted OEE does not provide an indicator of how effectively the equipment is being utilized.

The weighted OEE does not provide an indicator of how effectively the equipment is being utilized. Consider 1 High performance job running in 1 of 2 machines versus 2 Lower performance jobs runninConsider 1 High performance job running in 1 of 2 machines versus 2 Lower performance jobs running in 2 of 2 machines.g in 2 of 2 machines.

Example:

Example: Shift Shift ComparisonsComparisons

SHIFT A SHIFT A P

Paarrt t / / PPrroocceessss OEOEE E %% AAvvaaiillaabblle e AAsssseet t TTiimmee NNeet t AAvvaaiillaabblle e TTiimmee WWeeiigghhtteed d OOEEEE TTEEEEP P ((AAsssseet t UUttiilliizzaattiioon n %%)) WWeeiigghhtteed d TTEEEEPP

A A 9900%% 448800 444400 9900%% 8833%% 2288%% B B 8855%% 448800 00 00%% 00%% 00%% C C 8800%% 484800 00 00%% 00%% 00%% T TEEEEPP 11444400 444400 9900%% 2288%% 2288%% Shift B Shift B P

Paarrt t / / PPrroocceessss OEOEE E %% AAvvaaiillaabblle e AAsssseet t TTiimmee NNeet t AAvvaaiillaabblle e TTiimmee WWeeiigghhtteed d OOEEEE TTEEEEP P ((AAsssseet t UUttiilliizzaattiioon n %%)) WWeeiigghhtteed d TTEEEEPP

A A 9900%% 448800 444400 3300%% 8833%% 2288%% B B 8855%% 448800 444400 2288%% 7788%% 2266%% C C 8800%% 484800 444400 2277%% 7733%% 2244%% T TEEEEPP 11444400 11332200 8855%% 7788%% 7788%%

-- TETEEP EP SuSummmmararyy

Improved OEE performance will yield a lower TEEP as more capacity is made available.

Improved OEE performance will yield a lower TEEP as more capacity is made available. The objective then becomes filling this available capacity.The objective then becomes filling this available capacity.

Total Net Available Time * OEE Total Net Available Time * OEE Total Available Asset Time Total Available Asset Time

Total Net Value Added Time Total Net Value Added Time Total Available Asset Time Total Available Asset Time

Extreme caution should be exercised when comparin

Extreme caution should be exercised when comparing the OEE between two shifts, production areas, or plants based on overall perg the OEE between two shifts, production areas, or plants based on overall performance unless they present the same "product / process" mix. formance unless they present the same "product / process" mix. In the example below, Shift A has a higher weighted OEE wIn the example below, Shift A has a higher weighted OEE whenhen compared to Shift B although there is real no difference between them.

compared to Shift B although there is real no difference between them. When considering the TEEP, Shift B actually outperforms shift A by a large margin because more asset capacity was used to make parts. When considering the TEEP, Shift B actually outperforms shift A by a large margin because more asset capacity was used to make parts. When comparing line item processes, both ranWhen comparing line item processes, both ran equally well.

equally well.

Net Available Time * OEE Net Available Time * OEE TOTAL Net Available Time TOTAL Net Available Time

Net Available Time * OEE Net Available Time * OEE Available Asset Time Available Asset Time

Net Available Time * OEE Net Available Time * OEE TOTAL Available Asset Time TOTAL Available Asset Time

Weighted OEE used Weighted OEE used for Overall TEEP for Overall TEEP

Net Available Time * OEE Net Available Time * OEE TOTAL Net Available Time TOTAL Net Available Time

Net Available Time * OEE Net Available Time * OEE Available Asset Time Available Asset Time

Net Available Time * OEE Net Available Time * OEE TOTAL Available Asset Time TOTAL Available Asset Time

Weighted OEE used Weighted OEE used for Overall TEEP for Overall TEEP

TEEP (Asset Utilization %): TEEP (Asset Utilization %): Total Net Available Time * WEIGHTED OEE Total Net Available Time * WEIGHTED OEE

Total Available Asset Time Total Available Asset Time

TEEP (Asset Utilization %): TEEP (Asset Utilization %): Total Net Available Time * WEIGHTED OEE Total Net Available Time * WEIGHTED OEE

Total Available Asset Time Total Available Asset Time

(15)

(16)

Trusted by over 1 million members

Try Scribd

FREE for 30 days to access over 125 million titles without ads or interruptions!

Start Free Trial

Cancel Anytime.

Refer to Notes for Unplanned Downtime event details. Refer to Notes for Unplanned Downtime event details.

G138: G138:

Actual Operatin

Actual Operating Time = g Time = Net Available Time - Net Available Time - Unplanned Down TimeUnplanned Down Time

H138: H138:

Total Actual Operating Time Total Actual Operating Time Total Net Available Time Total Net Available Time

H145: H145:

Gross Operating Time = (Standard Cycle Time / 60) X Total Parts Made Gross Operating Time = (Standard Cycle Time / 60) X Total Parts Made Note: Unit of Measure = Minutes

Note: Unit of Measure = Minutes

G156: G156:

Total Operating Time to Produce Total Parts @ Standard Total Operating Time to Produce Total Parts @ Standard Total Actual Operating Time

Total Actual Operating Time

G163: G163:

(Cycle Time @ Standard / 60) X Good Parts Made (Cycle Time @ Standard / 60) X Good Parts Made

F172: F172:

Total Time to Produce Quality Parts @ Standard Total Time to Produce Quality Parts @ Standard Total Time to Produce Total Parts @ Standard Total Time to Produce Total Parts @ Standard

F179: F179:

Net Operating Time @ Net Operating Time @ StandardStandard Total Net Available Time Total Net Available Time

E195: E195:

TEEP (Asset Utilization %): TEEP (Asset Utilization %): Total Net Available Time * WEIGHTED OEE Total Net Available Time * WEIGHTED OEE Total Available Asset Time Total Available Asset Time

J336: J336:

TEEP (Asset Utilization %): TEEP (Asset Utilization %): Total Net Available Time * WEIGHTED OEE Total Net Available Time * WEIGHTED OEE Total Available Asset Time Total Available Asset Time

J348: J348:

(17)