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

Exercise ‘OEE Calculation’
Introduction This exercise explains the most important technical aspects of the OEE. First of all, you will receive an unstructured description of a lifelike situation from which you will have to extract the relevant data. With the aid of a pre-printed form you will learn the method of executing the OEE calculation for a production line.
Background of Monastery Beer & Bubbles MBB (Monastery Beer & Bubbles) is a producer of beer and soft drinks. Recently, MBB installed a new and very modern bottling and packaging machine, the BP-4. The BP-4 replaces the BP-2 and the BP-3. These old production lines had regular breakdowns and usually operated on a low speed.
The BP-4’s workload is extremely high. Employees work overtime on a regular basis in order to meet the demands of the customers. They even work overtime on weekends and during holidays.
After visiting a TPM conference, the manager of MBB is convinced that it must be possible to produce the desired quantity during regular production hours. The production line manager of the BP-4 does not agree with this at all. Everyone in his team is working under enormous pressure to keep the line operating and complete the job day after day.
The production line manager is particularly conscious of producing quality. The BP-4 rejects about 1300 bottles per shift. This low rejection level is, among other things, due to the fact that the highly trained operators receive 2 short breaks of 10 minutes and a 60-minute lunch break during each 8-hour shift.
The BP-4 is designed to fill 27,000 bottles per hour. During a shift of 400 minutes the line should, therefore, be able to produce 180,000 bottles. The production registration, however, shows that, per shift, an average of only 80,000 bottles are filled.
The manager and the production line manager decide that facts and figures are required. Registration indicates that about 30 minutes per shift are lost due to breakdowns. Minor stoppages occur about 20 times per shift. About 15 different products are made every month. The average changeover time amounts to 50 minutes per shift. The production line manager did some research and came to the conclusion that the filling speed measured 0.004 minute per bottle.
The production line manager asks a trainee to calculate the OEE of the BP-4 production line. Among some TPM documentation, the trainee discovers an outline for an OEE calculation, which he uses as a guideline.
Exercise 1 Complete the form below using the data of the BP-4.
Worksheet 1: OEE calculation exercise – one shift
Machine: BP-4
Production Time   Total operations time
(Often 480 minutes per shift)
minutes
  Unscheduled time (no personnel available, no orders, no machine required, etc.) minutes
A Loading time minutes
Availability   Time loss (breakdowns, waiting, changeover, line restraints, breaks) minutes
B Running time minutes
  Availability rate (B/A x 100) %
Performance C Theoretical output units
D Actual output units
  Performance rate (D/C x 100) %
Quality E Actual output (= D) units
  Quality losses (scrap, rework) units
F Good output units
  Quality rate (F/E x 100) %
OEE = Availability x Performance x Quality = %
Exercise 2 Complete the form below using the data of the BP-4: calculate the OEE for each shift and for the total day.
Worksheet 2: OEE calculation exercise – three shifts and total day.
Machine: BP-4
Production Time     early late night total
  Total operations time
480 480 300 minutes
  Unscheduled time 0 120 0 minutes
A Loading time minutes
Availability   Time loss 80 120 10 minutes
B Running time minutes
  Availability rate (B/A x 100) %
Performance C Theoretical output units
D Actual output 102.000 56.500 81.000 units
  Performance rate (D/C x 100) %
Quality E Actual output (= D) 102.000 56.500 81.000 units
  Quality losses 8.100 4.800 4.500 units
F Good output units
  Quality rate (F/E x 100) %
OEE = Availability x Performance x Quality %
OEE total day: %