“Overall Equipment Effectiveness”, known in the jargon as “OEE”, is a composite metric which quantifies how far a factory is from its optimal performance – the performance level for which it was designed to.

OEE is an aggregation of three separate factors:

1. Availability - Represents the percentage of the scheduled time that the operation has to operate.

Formula:

Availability = Uptime / Available Time

Example:

Operational Time = 450 Scheduled Min – 60 Non-Scheduled Downtime Min = 390 Minutes

Availability = 390 Minutes / 450 Minutes = 86,6%

2. Productivity - The speed at which each work center works as a percentage of the optimal productivity for which it is designed to.

Formula:

Productivity = (Parts Produced * Optimal Cycle Time) / Produced Time

Example:

Time to produce units = 242 Units * 1,5 Minute/Unity = 363 Minutes
Productivity = 363 Minutes / 390 Minutes = 93,0%

3. Quality - The good units produced as a percentage of all the units produced.

Formula:

Quality = (Units Produced – Defective Units) / Units Produced

Example:

(242 units produced – 21 defective units) = 221 good units

Quality = 221 good units / 242 units produced = 91,32%

In these examples:

OEE = Availability * Productivity * Quality = 86,6% * 93,0% * 91,32% = 73,55%

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