Calculating Overall Equipment Effectiveness

Watch this short example and learn how to calculate Overall Equipment Effectiveness (OEE).

As we’ve learned here, OEE is a metric which integrates availability, performance and quality metrics.

Formulae needed for OEE calculation are:

OEE = Availability x Performance x Quality

Availability = Operating Time / Planned Production Time

Performance = (Total Pieces / Operating Time) / Ideal Run Rate

Quality = Good Pieces / Total Pieces

Don’t forget to check your measurement units!

Want to know more?

Vorne Industries offers their OEE Pack for free, which includes:

• OEE Training Guide
• OEE Pocket Guide
• Calculating OEE Worksheet
• Calculating OEE Spreadsheet (xls)
• Top 25 Lean Tools
• Seven Deadly Losses

All the materials are concise and to the point so you can immediately start with your OEE calculations.

Jasiulewicz—Kaczmarek, et al (2014), present several different ways to calculate OEE and a case study. Vijayakumar and Gajendran (2014) present a case study from injection moulding process industry, detailing how they calculated and improved OEE.

References

Jasiulewicz—Kaczmarek, M., Drozynerz, P., Kolmasiak, C. and Szczuka, M., 2014. Analysis of performance by overall equipment efficiency – case study. International Journal of Operations & Production Management, 20(12), pp.1488-1502.

Vijayakumar, S.R. and Gajendran, S., 2014. Improvement of overall equipment effectiveness (OEE) in injection moulding process industry. IOSR Journal of Mechanical and Civil Engineering (IOSR-JMCE), pp.47-60.

This post was originally written for The Lean Presentation.