Would you like to have your company's OEE calculated and, if necessary, improved? We would be happy to provide you with more information about the formula for calculating your OEE and help you with your OEE-measurement. Agilitec is a company specialized in software solutions for companies. The OEE-System, MyPlantFloor, allows you to perform realtime OEE registration.
The abbreviation OEE stands for “Overall Equipment Effectiveness” In other words, it is an indication of how effectively a company or department uses its production line(s). OEE is an essential metric in Lean Manufacturing and TPM. The OEE calculation is expressed as a percentage from 0 to 100%. The formula for calculating OEE is as follows: availability rate * performance rate * quality rate.
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An ideal production line produces only salable products at full speed without interruptions, and thus achieves a score of 100% in the OEE-measurement. In practice, such a score is unattainable and a score of 85% is considered world class. The use of realtime OEE registration makes visible which losses need to be tackled in order to increase the utilization rate.
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The theoretical yield (Name Plate Capacity) of a machine is 17 st/min. In an eight-hour shift, the total downtime was 200 minutes. Within this actual production time, the machine could produce 280*17 = 4760 products, but it ended up being only 4100 because of too low a speed. Of the products produced, 95 were reworked and another 10 were rejected. Ultimately, this means an availability rate of (480-200)/480 = 58%, a performance rate of 4100/4760 = 86% and a quality rate of (4100-105)/4100 = 97%. In this example, the calculation of the OEE using the formula is as follows: 58% * 86% * 97% = 48%.
This may seem like an extremely bad result, but in reality it is not an exception in companies without an OEE-System. There is therefore sufficient improvement potential to get started.
In order to improve the OEE, information is needed about the most important losses. The six main losses that occur are:
Availability losses
· Waiting for changeover
· Technical failure
Speed losses
· Short stoppages
· Machine not at full speed
Quality losses
· Rework
· Rejection of products
OEE = availability rate performance rate quality rate = B/A * D/C * F/E
Improving real-time OEE is a lucrative process, because with a result of 48% (as in the example above), a 5% improvement in the OEE measurement equates to a 10% increase in output. And that's with the same resources!
However, the improvement result stands or falls with the improvement culture. Because real-time OEE registration and OEE measurement is one thing, effectively improving the OEE is another. As long as the information does not lead to behavioral change and an effective OEE system, the score will not improve.
MyPlantFloor OEE software combines automatic collection and analysis of real-time OEE registration with real-time production planning and documentation. The result is reliable data and a contribution to the culture of improvement. Thanks to the OEE System, you can improve production processes in a highly targeted manner and thus increase your turnover enormously. It is therefore an indispensable tool for every company.
Let's take a closer look at some frequently asked questions.
The Overall Equipment Effectiveness (OEE) is determined by multiplying availability, performance (or efficiency) and quality. This is calculated as follows: B/A x D/C x F/E, where:
B = the actual production time
A = the planned production time
D = the actual production quantity
C = the theoretical production quantity
F = the good products (excluding rejects)
E = the total production (including rejects)
Certainly, for example: availability rate = 58%, performance rate = 86%, quality rate = 97%. The OEE calculation is then 58% * 86% * 97% = 48%.
Accurate calculation of OEE provides insight into the actual efficiency of production lines, enabling optimization opportunities to be identified. This is crucial for improving processes.
With the right software, you can automate and improve the OEE improvement process. It provides detailed information for improvement methods and contributes to a culture of improvement without placing an additional burden on operators. It replaces manual Excel calculations for a more efficient approach.
Is it wrong to call OEE 'Overall Equipment Efficiency'? It is fundamentally wrong to call OEE 'Overall Equipment Efficiency', because efficiency relates to the input side of the process, while effectiveness (which OEE measures) relates to the output side.
OEE and OAE are both performance indicators in production, but they measure different aspects:
OEE (Overall Equipment Effectiveness): Focuses on the efficiency of the equipment, measured in terms of availability, performance, and quality. It compares the actual output with the maximum theoretical output.
OAE (Overall Asset Effectiveness): The Overall Asset Effectiveness (OAE) indicator is based on the OEE method. However, it is broader than OEE, as it assesses the effectiveness of all assets, including people, materials, and systems, in the production process. It includes, for example, personnel efficiency, raw material consumption, and system performance.
The MyPlantFloor software offers you all the information you need to visualize and analyze result-oriented. Would you like to install the OEE-System in your company? Or would you like to first calculate the OEE of your company to see in which area you need to improve? Then contact us quickly on +31 76 5156572 or via info@agilitec.nl. You can count on us for excellent service.
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