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OEE Industry Standard
OEE Calculation
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OEE CalculationAvailabilityPerformanceQualityOEE Formula
Base
The OEE Calculation
The basis of the OEE calculation is as simple as it is
brilliant; it assumes a theoretical maximumcapacity on the one hand
and the actual output on the other. The first point is the point on
the horizon,and the second is the current position. The genius of
the OEE calculation is that it not only maps outthe loss landscape
between these two points clearly and unequivocally but, more
importantly, that itis also understandable to those who must make
their way through it, such as the operators, technicalstaff
members, engineers and so forth.
As far as is known, the OEE calculation is the only production
indicator with a balance effect (that wewould normally only find in
the financial world). If anything is forgotten or exaggerated, a
gap willappear somewhere else.In addition, the OEE calculation
combines the factors of time, speed and quality in a useful
andresponsible way.
Simply put, the OEE calculations poses three questions:
The three questions
Availability
1. Is the machine operating or not?
If the machine is producing product while it was available to
the production-team we know it wasrunning. At this point we do not
know whether the product is good, and we know nothing about
thespeed at which the machine is operating; all we know is that it
is running).
The availability rate indicates the relationship between the
time that the machine could theoreticallyhave been in operation
(there was demand) and the time that there was actual output.
Example:
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With respect to the time that the machine is operating (in this
case 75% of the shift), OEE now asksthe second question:
Performance
2. How fast is the machine running?
Say that the machine is designed to produce 10 pieces a minute,
in which case you would expect tohave 3,600 pieces after 360
minutes. Of course, this is only possible if the machine performs
while itis running, at 100% speed. The performance rate determines
whether this is true:
In the performance rate, theoretical output is the output that
the machine could have made in theoryif the machine had operated at
maximum speed during the time that it actually operated.
Example:
Now the machine may have operated at high speed, but only
produced products that did not meet thespecification.So when we
know how long the machine ran and how fast it ran, the next
question is:
3. How many products met the specifications?
Once we have measured the time and speed losses, we focus our
attention on the quality of theproducts that are ultimately being
made.
The relationship between the number of units produced and the
number of the units produced thatmeet the specification is the
quality rate.
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Quality
Example:
OEE
When we line up the answers to the three questions, the total
OEE Calculation looks like this:
The OEE is calculated by multiplying the availability rate,
performance rate and quality rate:
OEE = availability x performance x quality
= (B/A) x (D/C) x (F/E) x 100%Example:
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The definition of all the factors of the OEE calculation is
being described in this OEE standard 2014 OEE Industry Standard All
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