What is OEE productivity?

Overall Equipment Effectiveness (OEE) is an indicator used to measure the actual efficiency of production equipment during the manufacturing process. It evaluates device performance through three key factors: availability, performance, and quality. The combination of these three factors can provide a comprehensive perspective to understand the efficiency and effectiveness of equipment in the production process.

How to use OEE to measure manufacturing productivity?

Overall Equipment Efficiency (OEE) is a powerful indicator that can provide rich information through a single value, effectively measuring manufacturing productivity. After correctly calculating and interpreting OEE, it can significantly improve production efficiency. Here are some methods for measuring manufacturing productivity using OEE:

1. As a benchmark indicator

OEE can be used as a benchmark to compare specific production situations with industry standards, internal equipment, or different shifts working on the same equipment. This helps identify gaps and set improvement goals.

2. Goal setting

The standard OEE benchmark is as follows:

100%: Considered as perfect production, that is, producing high-quality parts at maximum speed without downtime.

85%: Considered a world-class level for discrete manufacturers, it is a goal worth pursuing in the long term.

60%: This is a typical level for discrete manufacturers, indicating that there is still a lot of room for improvement.

40%: Considered low, but not uncommon for manufacturers who are just starting to track and improve performance.

3. Improve spatial recognition

By comparing the actual OEE with the ideal OEE, room for improvement can be identified. For example, if the OEE is 60%, it means there is still 40% potential room for improvement.

4. Take action

In most cases, low scoring OEE can be significantly improved through some simple measures. For example:

Improve availability: Reduce equipment downtime through preventive maintenance.

Improve performance: Improve equipment operating efficiency through optimizing operational processes and employee training.

Enhance quality: Reduce scrap rates through strict quality control measures.

5. Continuous monitoring and improvement

OEE is not a one-time measurement, but a continuous process. Regularly monitoring OEE and taking corresponding improvement measures can gradually approach world-class levels.

The overall equipment efficiency is not only a good tool for managers, but also has a significant impact on workshop employees. The key performance indicators of the workshop include:

Target: Real time production target

Actual production: Actual production volume

Efficiency: The ratio of target production to actual production, indicating whether the production schedule is ahead or behind schedule

Downtime: includes all unplanned downtime for each shift and is updated in real-time

Overall equipment efficiency: related terms

Fully Productive Time: The production time after deducting all losses

Planned Production Time: The total time that equipment or system is expected to be used for production

Ideal Cycle Time: The time required to produce a part

Run Time: The time during which the system plans to produce and is currently running

Total Count: The total number of produced parts, including defective parts

Good Count: The quantity of production parts that meet quality control standards

Good Parts: Parts that meet standards and do not require rework

Quality: Refers to production parts that have not passed quality control, including parts that require rework. The calculation formula is: quality=qualified output/total output

Performance: Consider the number of decelerations or brief shutdowns during production. The perfect performance score in OEE means that the production line runs as fast as possible. The calculation formula is: performance=(ideal cycle time x total output)/running time

Availability: Consider both planned and unplanned downtime. A perfect availability score means that the equipment is always in operation within the planned production time. The calculation formula is: availability=running time/planned production time

How to calculate overall equipment efficiency (OEE)?

Overall Equipment Effectiveness (OEE) is a key indicator used to measure the efficiency of manufacturing production equipment. It evaluates the performance of devices through three main factors: availability, performance efficiency, and quality rate. The product of these three factors is the value of OEE.

Availability: refers to the proportion of running time of equipment within the planned production time. If the equipment does not operate within the planned time due to downtime or other reasons, this portion of time is not counted towards availability.

The formula is: availability=actual running time ➗ Planned runtime availability

Performance efficiency: refers to the ratio of the actual output of the equipment during operation to the theoretical maximum output.

The formula is: performance efficiency=actual output ➗ Theoretical maximum output

Quality rate: refers to the proportion of qualified products produced to the total output.

The formula is: quality rate=quantity of qualified products ➗ total output

Finally, multiply these three ratios to obtain OEE:

OEE=availability ✖ Performance efficiency ✖ Quality rate

How to calculate overall equipment efficiency (OEE)?

一、 Availability loss

1. Equipment malfunction: The equipment failed to operate normally during planned production, resulting in unplanned downtime. Common situations include machine malfunctions, unplanned maintenance shutdowns, and tool damage.

2. Setting and adjustment: Production downtime caused by line changes, machine and tool adjustments, scheduled maintenance, inspections, and preheating.

二、 Performance loss

1. Idle and small shutdown: Sometimes referred to as small shutdown, it refers to the equipment stopping running for a short period of time. Common causes include jamming, flow blockage, incorrect settings or cleaning issues, which are usually resolved by operators.

2. Deceleration: Sometimes referred to as a slow cycle, it refers to equipment running at a speed lower than the ideal cycle time (the fastest production time). Common reasons include equipment aging or poor maintenance, improper lubrication, substandard materials, and poor environmental conditions.

三、Quality loss

1. Process defect: refers to any non-conforming parts produced during a stable production process, including scrapped parts and reworkable parts. Common reasons include machine setup errors, operator errors, or equipment malfunctions.

2. Production reduction: Production reduction refers to the production of non-conforming components from start-up to stable production process. Like process defects, reducing production may also result in scrapped or reworked parts. Production reduction usually occurs after changing lines, setting errors, or during machine preheating

Five benefits of using OEE to improve production?

Implementing OEE strategy is a powerful tool for achieving production goals. It allows you to proactively adjust production processes, reduce downtime, increase production capacity, lower costs, improve quality, and enhance efficiency. Here are the five main benefits brought by OEE:

Equipment return on investment (ROI): Companies typically invest heavily in machinery and equipment, so maximizing ROI is crucial. If you can produce 15% more products with the same equipment and in the same time through OEE strategy, it will greatly affect the company's financial situation.

Improving competitiveness: Manufacturers are always committed to reducing losses in the production process to achieve maximum competitiveness. The data from OEE reports can help identify production bottlenecks or weaknesses and take immediate action to improve. Quality and competitiveness are closely related, and OEE's quality indicators help you identify quality issues that lead to scrap or rework in production.

Reduce mechanical costs: OEE strategy helps you understand the actual performance of equipment and whether it operates efficiently. At the same time, it can also remind you of potential problems, help you predict faults in advance, reduce maintenance costs and downtime.

Maximizing employee productivity: Through OEE, you can understand why operator downtime occurs, reveal production data, and identify bottlenecks caused by prolonged line changes or settings. Through this information, you can allocate resources reasonably, identify areas with excess capacity, and determine where additional personnel are needed.

Easy visualization performance: OEE emphasizes visual management, allowing you to directly see production issues instead of relying on guesswork. By summarizing the largest sources of production losses into a percentage, everyone can clearly see which aspects are operating well and which ones need improvement.

I-Stock Software Function - OEE

Coordinate the sequence of device operation

Support APP remote control of devices

Visualize device data information