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

Outline of the OEE Calculation
Outline of the OEE calculation The outline for determining the OEE shows how losses in availability, performance, and quality relate to each other and reduce the effectiveness of the machinery.
Outline Outline of the OEE Calculation
Components The above-mentioned outline contains the following components:
Bar Indicates
Total operations time The total operations time indicates the total time that a machine is available to manufacture products. Usually 480 minutes per 8-hour shift (or 510 minutes including a break).
A Loading time Loading time is the time available for production (Total operations time) minus the planned time unscheduled for production (e.g. due to holidays, no orders, or no personnel available).
B Running time Running time is the time during which actual output was produced, i.e., the loading time minus times losses (e.g. breakdowns, waiting, changeover, line restraints.
C Theoretical output The theoretical output is the expected output of the machine during the actual production time based on the theoretical maximum speed (Running time x theoretical maximum speed).
D Actual output The actual output contains all the actual number of units produced: the difference between the theoretical and actual output indicates that speed losses occur, such as minor stoppages and/or reduced production speed.
E Actual output Same as D
F Good product All products that were ‘IN SPEC’: in other words, the actual output minus quality losses like scrap and rework.
Interconnection The darkgrey area in the outline shows the total loss of effectiveness of the machine and is the result of the availability loss, performance loss and quality loss.
The three components of the OEE clearly indicate that several courses of action are open to increase good output of the machine. Assessing the effort it takes to eliminate these different losses will generate a clear idea of where to start with the improvement process.