Understanding the OEE Calculation

Overview | What is TPM? | The Six Big Losses | Definition OEE | OEE in Relation to TPM | The OEE Formula | Outline of the OEE Calculation | Advantages of the OEE Calculation | Exercise OEE Calculation | Advantages of OEE Software

Overview
Introduction An ideal machine operates continuously (100% of the time), at full capacity (100% of the maximum speed) and manufactures products of perfect quality (100%). In actual practice, however, this is not feasible.
Objective Overall Equipment Effectiveness (OEE) measures the losses occurring on machines in order to be able to increase the productivity and effectiveness of those machines.
Theory Before you can use the OEE Toolkit, you must master the basics of the OEE measurement. Chapter I of this manual guides you through the basic concepts and features of the OEE measurement and explains how OEE relates to Total Productive Manufacturing (TPM).
Calculation

In order to be able to calculate where a machine incurs losses you will need some information beforehand. The main elements of the OEE calculation are:

  • The availability rate of the machine; is the machine operating or not?
  • The performance rate of the machine; is the machine operating at maximum speed?
  • The quality rate of the machine; is the machine producing good products?

With these three factors the OEE calculation provides a clear picture of the machine’s total effectiveness or Overall Equipment Effectiveness.
Result The OEE calculation results in a goal-oriented approach when improving the effectiveness of the machine; after all, now you know where the losses occur.

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