Total Productive Maintenance Overall Equipment Effectiveness

Training Pack
Module: Total Productive Maintenance

Element: Overall Equipment Effectiveness
Aims and Objectives
Target Audience :
Engineering, Maintenance, Facilities, Operations.
Purpose of Module :
To understand the key reasons for equipment losses by measuring

performance effectively.
Aims & Objectives :

• Understand the 6 Big Losses
• How the Lean Toolbox can be used
•OEE as a measure of performance
Contents
• Introduction
• Overall Equipment Effectiveness Overview
• Measuring OEE / 6 Big Losses
• Data Collection
• How to Eliminate Losses
• What are the benefits?

What is OEE ?
Overall Equipment Effectiveness (OEE) is a total measure of

performance that relates the availability of the process to the
productivity and quality
What does that mean ?
OEE is a Key Performance Indicator (KPI) that can measure the

impact of change on a process caused by eliminating process,
or equipment losses
Why is OEE so important ?
• If you were told that your department was running flat out you might reasonably assume that the
equipment was running efficiently and effectively.
• What if the equipment only ran for 75% of the time?
• What if when it ran it ran at 80% of its speed ?
• What if only 90% of the parts it made are good?
• Individually these performance measures seem to indicate an OK piece of equipment, but is it a

true picture?
• What’s impacting on these performance figures?

How do I measure OEE?
OEE =
AVAILABILITY
x PRODUCTIVITY
x QUALITY
OEE and the Six Big Losses
Equipment Six Big Losses
Planned Downtime
Total Available time
1 Breakdowns
Available time
2 Setup / adjustment
Available operating time
3 Idling / minor
stoppages
Actual operating
time 4 Speed
Effective Defects in process

operating 5 and rework
time
6 Start up losses
Availability
“The percentage of time equipment is actually running when we need it”
AVAILABILITY= AVAILABLE TIME – UNPLANNED DOWNTIME x 100%

AVAILABLE TIME
Where:-
Available Time = Total Available Time – Planned Downtime*
*Note :- Planned Downtime could be PM, no scheduled work, breaks, etc.
1 Breakdowns
Available time
Planned v Unplanned Downtime
• Planned
– Excess capacity.
– Planned breaks.
– Planned Maintenance.
– Communications briefs / team meetings.
• Unplanned (Losses)
– Breakdowns.
– Set Ups and Adjustments.
– Late deliveries (material).
– Operator availability.
Note :
Planned time such as breaks, meetings and maintenance can be considered as losses (useful for
encouraging ideas on how to minimise their disruption) as long as a consistent approach is taken.
Productivity
“The difference between the potential output and actual output, when the equipment was
available”
PRODUCTIVITY = IDEAL CYCLE TIME x ACTUAL OUTPUT* x 100%

AVAILABLE OPERATING TIME
*Note :- Actual Output is the Quantity of good & bad parts

3 Idling / minor
stoppages
Actual operating
time 4 Speed
Operating Speed v Productivity
• Operating Speed Rate

– The % of actual cycle time against ideal cycle time.
• Productivity
– The Operating Speed Rate factored with interruptions to constant processing, i.e. idling and
minor stoppages.
Quality
“The total good parts produced expressed as a % of the total parts produced”
QUALITY= PARTS MADE – DEFECT QUANTITY x 100%

PARTS MADE
Actual operating
time 5 Defects in process
and rework
Effective
operating 6 Start up losses
time
Processed v Defect Quantity
• Parts Made
– The total quantity of parts produced in the available time.
• Defect Quantity
– The quantity of parts that did not meet the required standard (including rework) in the available
time.
OEE and the Six Big Losses
Equipment Six Big Losses
1 Breakdowns
Available time
3 Idling / minor
stoppages
Actual operating
time 4 Speed
Effective Defects in process

operating 5 and rework
time
6 Start up losses
Six Big Losses - What Are They ?
Six Big Losses

The time lost due to key equipment breaking down
or deterioration which causes the production to
1 Breakdowns be stopped for more than 10 min.
3 Idling / minor
stoppages
4 Speed
5 Defects in process
and rework
6 Start up losses
Six Big Losses

The time lost through “product change over and
1 Breakdowns adjustment ” to the point where the production
of the new product is completely satisfactory.
3 Idling / minor
stoppages
4 Speed
and rework
6 Start up losses
Six Big Losses

The time lost through key equipment being
1 Breakdowns stopped for less than 10 min.
Time lost during the standard cycle when the

equipment is not adding value.
3 Idling / minor
stoppages
4 Speed
and rework
6 Start up losses
Six Big Losses

The time lost through key equipment not
1 Breakdowns producing parts at its optimum rate.
3 Idling / minor
stoppages
4 Speed
and rework
6 Start up losses
Six Big Losses

1 Breakdowns producing parts that meet the specified quality
standard.
The time lost through key equipment being

2 Setup / adjustment utilised to rework sub-standard parts.
3 Idling / minor
stoppages
4 Speed
and rework
6 Start up losses
Six Big Losses

1 Breakdowns producing parts to the specified quality
standard, following start up and before the
equipment achieves controllable production
conditions.
3 Idling / minor
stoppages
4 Speed
and rework
6 Start up losses
How to collect data for OEE
• Key Points
– OEE is a measure of the equipment or process, not the operators productivity.

– Keep it simple.
– Ensure the process of measuring and applying OEE involves the people who use the
equipment.
– Make data collection second nature not a hindrance.
– Understand the process.
– Obtain the data on fixed frequency.
– Snap shot v continuous.
– Units of time (1 min, 10 mins, 30 mins, etc.).
– Automatic or manual data collection.
– Ownership.
– Partnership – those completing sheets and those collecting/collating.
– Regular communication of results.
– Response to trends, peaks and troughs.
• Example : Three Hourly Data Sheet

AVAILABILITY
AVAILABILITY
Gross
GrossTime
Time (in minutes)
(in minutes) AA
Planned
PlannedDown
DownTime
Time (in minutes)
(in minutes) BB
Net
NetAvailable
AvailableTime
Time (in minutes)
(in minutes) C=A-B
C=A-B
Non
Nonplanned
plannedstoppages
stoppages (in minutes)
(in minutes) DD
Operating
OperatingTime
Time (in minutes)
(in minutes) E=C-D
E=C-D
AVAILABILITY
AVAILABILITY FF==E/C
E/C
PRODUCTIVITY
PRODUCTIVITY
Output
Output GG
Standard
StandardCycle
Cycletime
time (mins/ unit)
(mins/ unit) HH
PRODUCTIVITY
PRODUCTIVITY I=I=(HxG)/E
(HxG)/E
QUALITY
QUALITY
Defect
DefectQuantity
Quantity JJ
QUALITY
QUALITY KK==(G-J)/G
(G-J)/G
How to Eliminate Losses ?
How Do We Use OEE?
• OEE is only a measure, its benefits will be lost if the shortfalls it identifies are not acted upon.
• OEE is a total measure of performance but the data used to produce it must be used to prioritise
improvement tasks.
• The purpose of measurement is to identify losses, remove waste and drive improvement.
• OEE should be used to support the Total Productive Maintenance (TPM) approach and the tools it
supplies.
What are the benefits of OEE?
• FOCUS
– Highlight priorities for change.
• SIMPLICITY
– Even complex processes can be measured.
• FEEDBACK
– Before and after change.
• BENCHMARKING
– Objective comparisons.
• TARGET SETTING
– Setting achievable goals.
Solving Problems
Production
MRP
M/c # 1 Weekly
Daily Support NC OPS
OEE
OEE Log. Maint. Quality
X Hours
M/c # 2 OEE
OEE
LVER 2 24
Hours
X Hours Customer protection

M/c # 3
M/c # 4 2
Weeks
Counter measure
Improve Performance
Improve Quality
Equip. uptime

Total Productive Maintenance Overall Equipment Effectiveness

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Training Pack

Module: Total Productive Maintenance

Engineering, Maintenance, Facilities, Operations.

To understand the key reasons for equipment losses by measuring

Aims & Objectives :

• Overall Equipment Effectiveness Overview

• Measuring OEE / 6 Big Losses

• How to Eliminate Losses

• What are the benefits?

Overall Equipment Effectiveness (OEE) is a total measure of

OEE is a Key Performance Indicator (KPI) that can measure the

• What if the equipment only ran for 75% of the time?

• What if when it ran it ran at 80% of its speed ?

• What if only 90% of the parts it made are good?

• Individually these performance measures seem to indicate an OK piece of equipment, but is it a

• What’s impacting on these performance figures?

Effective Defects in process

“The percentage of time equipment is actually running when we need it”

AVAILABILITY= AVAILABLE TIME – UNPLANNED DOWNTIME x 100%

Available Time = Total Available Time – Planned Downtime*

*Note :- Planned Downtime could be PM, no scheduled work, breaks, etc.

PRODUCTIVITY = IDEAL CYCLE TIME x ACTUAL OUTPUT* x 100%

*Note :- Actual Output is the Quantity of good & bad parts

Available operating time

• Operating Speed Rate

QUALITY= PARTS MADE – DEFECT QUANTITY x 100%

Equipment Six Big Losses

Effective Defects in process

Six Big Losses

Six Big Losses

Six Big Losses

Time lost during the standard cycle when the

Six Big Losses

Six Big Losses

The time lost through key equipment being

Six Big Losses

– OEE is a measure of the equipment or process, not the operators productivity.

• Example : Three Hourly Data Sheet

X Hours Customer protection

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