OEE Calculation - Overall Equipment Effectiveness

My point of view on OEE Calculation.

✅ 3 Videos Worth Watching on OEE
Download the PDF here: https://leanlab.gumroad.com/l/OEE_Toolkit
📹 Related Video

OEE Quickly, Effectively, Efficiently
https://www.youtube.com/watch?v=WQDUnE_pepY
✏️ Here is the Transcript of the video:

▶ OEE Calculation

OEE Means Overall Equipment Effectiveness.
The OEE calculation gives the answer to 2 big questions:

A) Am I using the equipment in an effective way?

B) Where have I to do actions to improve the equipment effectiveness?

Before moving to the OEE Calculation is important to understand that OEE one of the indicators of the TPM and the TPM is one of the Lean Tools.

To understand the OEE it is crucial to introduce the 6 big losses.
As for the 7 wastes in a process, a machine does not produce value of one of the following losses occur.
▶ The six big losses are:

1) Breakdown

2) Changeover

3) Minor Stops

4) Reduced Speed

5) Scrap, Rework, Yield

6) Start-Up Losses
▶ The six big losses can be grouped into 3 categories:

Availability

Performance

Quality
▶ Let us go into details:

# Availability
Breakdown losses are unplanned stoppage requiring repair.
Changeover and adjustment losses occur when changing over between products

# Performance
Minor Stops and Idling are often defined as stops taking less than 10 minutes.
Reduced Speed Losses result from the machine running at less than the design speed.

# Quality
Defects result in scrap or rework and are the result of any problem that causes the machine to work outside of the specification limits.
▶ The OEE is the product of these 3 factors expressed in percentage:

OEE = 88% * 83% * 86% = 63%

The world-class OEE is recognized to be 85%

Are you ok so far?
▶ After the theory let me explain how to calculate OEE into reality:

Step 1 - Plan carefully which machine you want to perform the OEE Calculation. Is the machine a bottleneck? Is the machine overproducing?

Step 2 - Involve operators and create a cross-functional team. Typically operators love machine running without problems.

Step 3 - Start collecting reliable data. Believe me, this is the hardest part. A Lean Morning Meeting is the best way to involve people in data collection.

Step 4 - Analyze data, create graphs, discuss it at the morning meeting.

Step 5 - Implement actions to improve OEE, track it at the morning meeting. Continue measuring and improve.

Remember: The OEE calculation is not the goal. OEE Calculation is a way to understand what is limiting the productivity of a machine and indicate where to act to improve.

Well!

In the notes, you can find a link to have a PDF about the topic of this video.

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