OEE

Overall Equipment Effectiveness & Capacity Training

O.E.E. definition Items which influence O.E.E. Applying O.E.E. - 3 Case Studies O.E.E. ‘Quiz’ Capacity Calculations S/D Group Current System for O.E.E. and capacity calculation Class Format

Become familiar with O.E.E. Understand Automotive Industry’s approach to capacity Class Purpose

What Is Overall Equipment Effectiveness? Overall equipment effectiveness is a measure of the how well lines or equipment are utilized in relation to their full potential.

What factors influence Overall Equipment Effectiveness? Overall equipment effectiveness is the product of 3 individual rates : Operating rate Performance rate Quality rate

Loading Time Refers to the net available time. Is the total time available for operation minus necessary downtime ( breaks and paid lunches) Equipment Loading Time 6 Big Losses O.E.E. in Relationship to the 6 Big Losses

Big Loss #1 Delays of 5-10 minutes or more which result from associate errors, electrical failure or mechanical breakdown. Loading Time 6 Big Losses Equipment 1. Frequent Breakdowns (Recorded Downtime) O.E.E. in Relationship to the 6 Big Losses

Big Loss #2 Losses during setup and adjustment resulting from downtime during changeover. Loading Time 6 Big Losses Equipment 1. Frequent Breakdowns (Recorded Downtime) 2. Set-up and Adjustment O.E.E. in Relationship to the 6 Big Losses

Operating Time Refers to the time during which the equipment is actually in operation. Downtime Losses Operating Time Loading Time 6 Big Losses Equipment 1. Frequent Breakdowns (Recorded Downtime) 2. Set-up and Adjustment O.E.E. in Relationship to the 6 Big Losses

Operating Rate The ratio of the Operating Time to the Loading Time OEE Formulas Loading Time - Downtime Loading Time Downtime Losses Operating Time 2. Setup and Adjustment Loading Time 6 Big Losses Equipment 1. Frequent Breakdowns (Recorded Downtime) OPERATING RATE O.E.E. in Relationship to the 6 Big Losses

Big Loss #3 Equipment delays of short duration (Short stoppages). Usually less than 5-10 minutes. Other unrecorded downtime. 3. Idling and Minor Losses (Unrecorded Downtime) OEE Formulas Loading Time - Downtime Loading Time Downtime Losses Operating Time 2. Setup and Adjustment Loading Time 6 Big Losses Equipment 1. Frequent Breakdowns (Recorded Downtime) OPERATING RATE O.E.E. in Relationship to the 6 Big Losses

Big Loss #4 Losses due to the difference between expected cycle time and actual cycle time. 3. Idling and Minor Losses (Unrecorded Downtime) OEE Formulas Loading Time - Downtime Loading Time Downtime Losses Operating Time 2. Setup and Adjustment Loading Time 6 Big Losses Equipment 1. Frequent Breakdowns (Recorded Downtime) OPERATING RATE 4. Drop in Cycle Time O.E.E. in Relationship to the 6 Big Losses

Net Operating Time Refers to the time the equipment is operating at a stable or constant speed. Net Operating Time Speed Losses 3. Idling and Minor Losses (Unrecorded Downtime) OEE Formulas Loading Time - Downtime Loading Time Downtime Losses Operating Time 2. Setup and Adjustment Loading Time 6 Big Losses Equipment 1. Frequent Breakdowns (Recorded Downtime) OPERATING RATE 4. Drop in Cycle Time O.E.E. in Relationship to the 6 Big Losses

Performance Rate Ratio of Net Operating Time to Operating Time. Compares time it should have taken vs. the time it did take to produce the products. Ideal Cycle Time x Output Operating Time Net Operating Time Speed Losses 3. Idling and Minor Losses (Unrecorded Downtime) OEE Formulas Loading Time - Downtime Loading Time Downtime Losses Operating Time 2. Setup and Adjustment Loading Time 6 Big Losses Equipment 1. Frequent Breakdowns (Recorded Downtime) OPERATING RATE 4. Drop in Cycle Time PERFORMANCE RATE O.E.E. in Relationship to the 6 Big Losses

Big Loss #5 Losses generated from rejected parts Ideal Cycle Time x Output Operating Time Net Operating Time Speed Losses 3. Idling and Minor Losses (Unrecorded Downtime) OEE Formulas Loading Time - Downtime Loading Time Downtime Losses Operating Time 2. Setup and Adjustment Loading Time 6 Big Losses Equipment 1. Frequent Breakdowns (Recorded Downtime) OPERATING RATE 4. Drop in Cycle Time PERFORMANCE RATE 5. In-Process Scrap O.E.E. in Relationship to the 6 Big Losses

Big Loss #6 Losses from initial start-up to process stabilization Ideal Cycle Time x Output Operating Time Net Operating Time Speed Losses 3. Idling and Minor Losses (Unrecorded Downtime) OEE Formulas Loading Time - Downtime Loading Time Downtime Losses Operating Time 2. Setup and Adjustment Loading Time 6 Big Losses Equipment 1. Frequent Breakdowns (Recorded Downtime) OPERATING RATE 4. Drop in Cycle Time PERFORMANCE RATE 6. Start-up Scrap 5. In-process scrap O.E.E. in Relationship to the 6 Big Losses

Quality losses Valuable Oper. Time Valuable Oper. Time Time during which acceptable product is manufactured Ideal Cycle Time x Output Operating Time Net Operating Time Speed Losses 3. Idling and Minor Losses (Unrecorded Downtime) OEE Formulas Loading Time - Downtime Loading Time Downtime Losses Operating Time 2. Setup and Adjustment Loading Time 6 Big Losses Equipment 1. Frequent Breakdowns (Recorded Downtime) OPERATING RATE 4. Drop in Cycle Time PERFORMANCE RATE 6. Start-up Scrap 5. In-process scrap O.E.E. in Relationship to the 6 Big Losses

Quality losses Valuable Operating Time Quality Rate Ratio of the number of good products to total produced Ideal Cycle Time x Output Operating Time Net Operating Time Speed Losses 3. Idling and Minor Losses (Unrecorded Downtime) OEE Formulas Loading Time - Downtime Loading Time Downtime Losses Operating Time 2. Setup and Adjustment Loading Time 6 Big Losses Equipment 1. Frequent Breakdowns (Recorded Downtime) OPERATING RATE 4. Drop in Cycle Time PERFORMANCE RATE 6. Start-up Scrap 5. In-process scrap Total Produced - Scrap Total Produced QUALITY RATE O.E.E. in Relationship to the 6 Big Losses

Quality losses Valuable Operating Time O.E.E. = Availability X Performance X Quality Ideal Cycle Time x Output Operating Time Net Operating Time Speed Losses 3. Idling and Minor Losses (Unrecorded Downtime) OEE Formulas Loading Time - Downtime Loading Time Downtime Losses Operating Time 2. Setup and Adjustment Loading Time 6 Big Losses Equipment 1. Frequent Breakdowns (Recorded Downtime) OPERATING RATE 4. Drop in Cycle Time PERFORMANCE RATE 6. Start-up Scrap 5. In-process scrap Total Produced - Scrap Total Produced QUALITY RATE O.E.E. in Relationship to the 6 Big Losses

O.E.E. = Availability X Performance X Quality World Class O.E.E. = 90% X 95% X 99% = 85% O.E.E. - Goals

O.E.E. Case Study 1 1 2 3 The assembly line above has dedicated equipment and fixturing for making identical parts. It works one 8 hr shift each day 5 days per week according to this schedule: A time study was completed for the line and the following times were observed and determined to be standard process times for each station: Calculate O.E.E. for this line based on the following actual production data from the previous month: TOTAL PROD. FOR MONTH (good + scrap) : 6300 pcs TOTAL DAYS WORKED: 21 days TOTAL SCRAP 168 pcs TOTAL DOWNTIME 819 min Planned = 15 min/day meeting + cleanup = 315 Unplanned=504 min total (breakdowns, etc.) Background for Case Study 1: Dedicated Assembly Line Example

O.E.E. Case Study 1 Calculation of O.E.E. DAILY WORK TIME = 7:00-3:30 MINUS .5 HR LUNCH = 8 HOURS OR 480 MINUTES PLANNED BREAK = TWO 10 MINUTE BREAKS = 20 MIN WORKSHEET CALCULATION PLANNED DOWNTIME = (5 MINUTE MEETING + 10 MINUTE CLEANUP) = 15 MIN UNPLANNED DOWNTIME = (504 TOTAL MONTH / 21 WORKDAYS )= 24 MIN / DAY AVG WORKSHEET CALCULATION WORKSHEET CALCULATION OUTPUT / DAY (GOOD + SCRAP) = (6300 PCS PRODUCED/21 DAYS) =300 PCS / DAY AVG DAILY SCRAP = (168 PCS SCRAPPED / 21 DAYS)=8 PCS / DAY STANDARD / IDEAL CYCLE TIME = 74 SEC WORKSHEET CALCULATION WORKSHEET CALCULATION WORKSHEET CALCULATION WORKSHEET CALCULATION

0 50 100 150 200 250 300 350 400 450 500 39 MIN DOWNTIME ACTUAL OPER. TIME = 421 MIN STD. TIME TO MAKE 300 PIECES 74”/PC = 370 MIN STD TIME TO MAKE 292 GOOD PIECES: 360 MIN 51 MIN LOST TIME OPERATING RATE 421MIN 460 MIN 91.52% PERFORMANCE RATE 370MIN 421 MIN 87.89% QUALITY RATE 292 PCS 300 PCS 97.33% 10 MIN SCRAP TIME MINUTES 480’ WORK TIME 20’ BREAKS AVAIL. OPER. TIME (LOAD TIME)= 460 MIN OVERALL EQUIPMENT EFFECTIVENES = X X = X X X X O.E.E. Case Study 1: O.E.E. Graph 78.3% =

0 50 100 150 200 250 300 350 400 450 500 39 MIN DOWNTIME ACTUAL OPER. TIME = 421 MIN STD. TIME TO MAKE 300 PIECES 74”/PC = 370 MIN STD TIME TO MAKE 292 GOOD PIECES: 360 MIN 51 MIN LOST TIME OPERATING RATE 421MIN 460 MIN 91.52% PERFORMANCE RATE 370MIN 421 MIN 87.89% QUALITY RATE 292 PCS 300 PCS 97.33% 10 MIN SCRAP TIME MINUTES 480’ WORK TIME 20’ BREAKS AVAIL. OPER. TIME (LOAD TIME)= 460 MIN OVERALL EQUIPMENT EFFECTIVENES = X X = X X AVAIL. OPER. TIME (LOAD TIME)= 460 MIN STD TIME TO MAKE 292 GOOD PIECES: 360 MIN OR: 360 MIN 460 MIN = 78.3% X X O.E.E. Case Study 1: O.E.E. Graph 78.3% =

The paint line above is a single line painting 10 different parts. Paint racks are spaced 3 feet apart. Line speed is 5.5 ft/min. Last month the paint line ran as follows: * Same schedule format for 2nd and 3rd shift Calculate O.E.E. for this line based on last month’s production data shown below: Production Data - For common / shared equipment such as this paint line, a combined standard cycle time for the group of parts must be determined: Standard Cycle Time = (3ft/rack)/(5.5ft/min) = .545 min/rack = 32.7 sec/rack - Total days worked = 21 days - Total Downtime = 4767 min Planned = (5’meeting + 15’ cleanup)X3shiftX21days=1260’/month Unplanned = 3507 recorded for the month ( Avg =167’/day) O.E.E. Case Study 2 Background for Case Study 2: Paint Line Example

O.E.E. Case Study 2 Calculation of O.E.E. DAILY WORK TIME = 3 SHIFTS X 8 HOURS = 24 HOURS = 1440 MINUTES PLANNED BREAK = (TWO 10 MIN BREAKS + 20 MIN LUNCH) X 3 SHIFT = 120 MIN WORKSHEET CALCULATION PLANNED DOWNTIME = (5 MIN MTG + 15 MIN CLEANUP)=20 MIN X 3 SHIFT=60 MIN UNPLANNED DOWNTIME = AVG 167 MIN / DAY (FROM PRODUCTION REPORT) WORKSHEET CALCULATION WORKSHEET CALCULATION OUTPUT/DAY (GOOD+SCRAP RACKS)=(29232 RACKS/21DAYS)=1392 RACKS/DAY AVG DAILY SCRAP RACKS=(8168 RACKS SCRAPPED / 21 DAYS)=47 RACKS / DAY COMBINED STANDARD C.T.= 32.7 SEC/RACK (CALC. ON BACKGROUND SHEET) WORKSHEET CALCULATION WORKSHEET CALCULATION WORKSHEET CALCULATION WORKSHEET CALCULATION

OVERALL EQUIPMENT EFFECTIVENESS = 82.8% X 69.41% X 96.92% = 55.5 % - OR - (STD TIME TO PAINT 1345 GOOD RACKS)/(LOADING TIME)=(733 MIN/1320 MIN)=55.5% 0 200 400 600 800 1000 1200 1400 1600 TOTAL COMBINED DOWNTIME = 227 MIN 120’ BREAKS 1320’ LOADING TIME 334 MIN LOST TIME 26 MIN STD TIME FOR 47 SCRAP RACKS OPERATING RATE 1093 MIN 1320 MIN = 82.8% PERFORMANCE RATE 759 MIN 1093 MIN = 69.41% QUALITY RATE 1345 RACKS 1392 RACKS = 96.62% O.E.E. Case Study 2: O.E.E. Graph STANDARD TIME TO MAKE 1345 GOOD RACKS = 733 MIN STANDARD TIME TO PAINT 1392 RACKS 759 MIN ACTUAL OPER. TIME 1093 MIN

O.E.E. Case Study 3 Background for Case Study 3: Shared Equipment Example PRODUCTION AREA OF ANALYSIS = (2) 750 TON PLASTIC INJECTION MOLDING PRESSES LAST MONTH’S PRODUCTION SCHEDULE = 3 SHIFTS, 7 DAYS PER WEEK (STANDARD WORKWEEK) OPERATORS ARE RELIEVED FOR BREAKS / LUNCHES (BREAKTIME = 0) TOTAL # OF TOOLS WHICH RUN IN EITHER OF THE PRESSES = (9) PRODUCTION DATA FROM LAST MONTH IS SHOWN BELOW: Standard Cycle Time = (Total Standard Hours / Total Pieces) = ( 1076.1 hrs X 3600 sec/hr) / 189294 pieces = 20.5 sec/pc - Total days worked = 30 days - Total Planned Downtime = 6240 minutes / 30 days = avg 208 min/day - Total Unplanned Downtime = 9060 minutes / 30 days = avg 302 min/day - For common / shared equipment such as these molding presses with a family of tools, a combined standard cycle time must be determined: * TOTAL STD HOURS = ((C/A) X B) / 3600 A B C D E

O.E.E. Case Study 3 Calculation of O.E.E.

0 500 1000 1500 2000 2500 3000 3500 OVERALL EQUIPMENT EFFECTIVENESS = 82.3% X 91.0% X 96.2% = 72.0 % - OR - (STD TIME TO MOLD 6069 GOOD PIECES)/(LOADING TIME)=(2074 MIN/2880 MIN)=72.0% 2880’ LOADING TIME (Relief Style Breaks) 214 MIN LOST TIME 82 MIN STD TIME FOR 241 SCRAP PARTS OPERATING RATE 2370 MIN 2880 MIN = 82.29% PERFORMANCE RATE 2156 MIN 2370 MIN = 90.97% QUALITY RATE 6069 PCS 6310 PCS = 96.18% STANDARD TIME TO MOLD 6069 GOOD PIECES 2074 MIN STANDARD TIME TO MOLD 6310 PIECES 2156 MIN ACTUAL OPER. TIME 2370 MIN TOTAL COMBINED DOWNTIME = 510 MIN O.E.E. Case Study 3: O.E.E. Graph

O.E.E. Class Example 1 Calculations: Background: Process: Weld Cell w/ dedicated fixturing Shifts: 2 ( 8 hours each ) Lunch: Unpaid - Outside of 8 hours (do not include) Breaks: 2 per shift ( 10 minutes each ) Cycle Time: 27 seconds per piece Last Month Total Output: 34221 pcs Scrap: 934 out of 34221 were scrapped Days Worked Last Month: 22 Planned Downtime = 10 min / shift ( 5’mtg + 5’ cleanup) Unplanned Downtime Total for Last Month: 1232 min

O.E.E. Class Example 1: Answer Process: Weld Cell w/ dedicated fixturing Shifts: 2 ( 8 hours each ) Lunch: Unpaid - Outside of 8 hours (do not include) Breaks: 2 per shift ( 10 minutes each ) Cycle Time: 27 seconds per piece Calculations: 2 sh x 8 hr x 60 min = 960 min 960 2 x 10 min ea x 2 shift = 40 min 40 920 Last Month Total Output: 34221 pcs Scrap: 934 out of 34221 were scrapped Days Worked Last Month: 22 Planned Downtime = 10 min / shift ( 5’mtg + 5’ cleanup) Unplanned Downtime Total for Last Month: 1232 min 2 sh x 10 min per shift = 20 min 20 1232 month / 22 days = 56 min 56 76 844 Background: 34221 pcs / 22 days = 1556 pcs / day 1556 934 pcs / 22 days = 43 pcs / day 43 27 .92 .83 .97 74%

S/D Approach to Capacity Expressed as a Percentage of Available Time Based on actual performance ( Previous Month O.E.E.) Basic Capacity Formula: (Standard Hours Required by Demand) O.E.E. ( ) Actual Standard Hours Available to Produce

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