{"id":2101,"date":"2023-02-20T22:10:25","date_gmt":"2023-02-20T19:10:25","guid":{"rendered":"https:\/\/hudutech.com\/complete-guide-to-calculating-improving-overall-equipment-effectiveness-oee\/"},"modified":"2023-02-20T22:10:25","modified_gmt":"2023-02-20T19:10:25","slug":"complete-guide-to-calculating-improving-overall-equipment-effectiveness-oee","status":"publish","type":"post","link":"https:\/\/hudutech.com\/ar\/complete-guide-to-calculating-improving-overall-equipment-effectiveness-oee\/","title":{"rendered":"Complete Guide to Calculating &#038; Improving Overall Equipment Effectiveness (OEE)"},"content":{"rendered":"<p><!DOCTYPE html PUBLIC \"-\/\/W3C\/\/DTD HTML 4.0 Transitional\/\/EN\" \"http:\/\/www.w3.org\/TR\/REC-html40\/loose.dtd\"><br \/>\n<html><body><\/p>\n<p><span style=\"font-weight: 400;\">Is my <a href=\"https:\/\/en.wikipedia.org\/wiki\/Manufacturing\" target=\"_blank\" rel=\"nofollow noopener\">\u0627\u0644\u062a\u0635\u0646\u064a\u0639<\/a> process efficient enough? Is my production quality above par?<\/span><span style=\"font-weight: 400;\"> I know this will be a question lingering in the minds of most manufacturers. Measuring the output always matters.\u00c2\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The manufacturing industry involves a lot of different processes and this makes it complex to track and improve efficiency.\u00c2\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This is possible, when you can find out the process flaws, machine malfunctions and employee efficiency with accurate data.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In short, measuring all the aforementioned components is critical for the manufacturing success. But, what KPI should you track? Is there one or many? I know this will be your next question.\u00c2\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Of course, you\u00e2&#8364;&#8482;ve some KPIs that are quite useful in monitoring and improving process efficiency. Out of all, <strong>Overall Equipment Effectiveness<\/strong><\/span> <span style=\"font-weight: 400;\"><strong>(OEE)<\/strong> is widely recommended for its ability to provide direct insights on machine utilization &#038; effectiveness. You can understand the importance and necessity of this metric from a reputed <\/span><span style=\"font-weight: 400;\">IoT app development company<\/span> <span style=\"font-weight: 400;\">\u0623\u0648<\/span> <span style=\"font-weight: 400;\">\u062e\u062f\u0645\u0627\u062a \u0627\u0644\u062a\u062d\u0648\u0644 \u0627\u0644\u0631\u0642\u0645\u064a<\/span><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Let\u00e2&#8364;&#8482;s find out what <strong>Overall equipment efficiency<\/strong> is, how it is calculated and how it helps in improving manufacturing process, productivity and efficiency. <\/span><\/p>\n<h3 style=\"text-align: center;\"><b>Guide to Calculating and Improving Manufacturing OEE<\/b><\/h3>\n<p><span style=\"font-weight: 400;\"><\/span><\/p>\n<p><span style=\"font-weight: 400;\">Why should you <strong>measure OEE data<\/strong> \u00e2&#8364;&#8220; to identify the reasons for downtime and improving the equipment effectiveness to streamline and accelerate production rate.\u00c2\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Don\u00e2&#8364;&#8482;t know how to <strong>calculate your OEE<\/strong> value? Don\u00e2&#8364;&#8482;t worry. You\u00e2&#8364;&#8482;re not alone. <\/span><\/p>\n<p><strong>The purpose of this guide is to help everyone understand everything about OEE and ways to improve it.\u00c2\u00a0<\/strong><\/p>\n<ul>\n<li style=\"font-weight: 400; text-align: left;\"><span style=\"font-weight: 400;\">What is OEE<\/span><\/li>\n<li style=\"font-weight: 400; text-align: left;\"><span style=\"font-weight: 400;\">Why OEE<\/span><\/li>\n<li style=\"font-weight: 400; text-align: left;\"><span style=\"font-weight: 400;\">Efficiency vs. Effectiveness<\/span><\/li>\n<li style=\"font-weight: 400; text-align: left;\"><span style=\"font-weight: 400;\">OEE benchmarks<\/span><\/li>\n<li style=\"font-weight: 400; text-align: left;\"><span style=\"font-weight: 400;\">OEE benefits<\/span><\/li>\n<li style=\"font-weight: 400; text-align: left;\"><span style=\"font-weight: 400;\">How to calculate OEE<\/span><\/li>\n<li style=\"font-weight: 400; text-align: left;\"><span style=\"font-weight: 400;\">How to improve OEE<\/span><\/li>\n<li style=\"font-weight: 400; text-align: left;\"><span style=\"font-weight: 400;\">OEE case study<\/span><\/li>\n<\/ul>\n<h3><strong>Let\u00e2&#8364;&#8482;s get started with OEE<\/strong><\/h3>\n<h4><span style=\"font-weight: 400;\"><strong>What is OEE?<\/strong> <\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Overall equipment effectiveness is a key KPI (includes a combination of a few key parameters) for real-time production monitoring and measuring. It is always calculated in percentage.<\/span><\/p>\n<h5><b>Practical definition to OEE<\/b><\/h5>\n<p><span style=\"font-weight: 400;\">OEE (Overall Equipment Effectiveness) is the Gold standard for measuring manufacturing productivity and efficiency.\u00c2\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Simply put \u00e2&#8364;&#8220; it identifies the percentage of manufacturing time that is truly productive.\u00c2\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">An OEE score of 100% means you are manufacturing only Good Parts, as fast as possible, with no Stop Time. In the language of OEE that means 100% Quality (only Good Parts), 100% Performance (as fast as possible), and 100% Availability (no Stop Time). (source: <a href=\"https:\/\/www.oee.com\/\" target=\"_blank\" rel=\"nofollow noopener\">oee.com<\/a>) <\/span><\/p>\n<h4><b>Why OEE as an important KPI for manufacturing success<\/b><\/h4>\n<p><span style=\"font-weight: 400;\"><strong>OEE<\/strong> is a key KPI for efficiency tracking. The data provides complete details about productivity rate, which in turn helps in reducing downtime, waste etc.\u00c2\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">While we have other KPIs like Overall Operations Effectiveness (OOE), Total Equipment Effective Performance (TEEP), measuring OEE is the most focused and measured KPI because it plays a critical role in identifying root cause issues and accelerating the productivity and RoI. <\/span><\/p>\n<h4><b>OEE benchmarks\u00c2\u00a0<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">While setting OEE as a KPI for measuring equipment effectiveness is a great move but what do you measure against. You need a baseline right? This is where the OEE benchmark comes in.\u00c2\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">An OEE score of 100% stands for perfect production.\u00c2\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">An OEE score of 85% is considered as a world-class benchmark for discrete manufacturers with a little room for improvement.\u00c2\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">An OEE score of 60% is for discrete manufacturers means there is some room for improvement.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">An OEE score of 40% is quite common among manufacturing companies that just start tracking and improving manufacturing performance. It is a low score and should be addressed quickly.<\/span><span style=\"font-weight: 400;\">\u00c2\u00a0 <\/span><\/li>\n<\/ul>\n<p style=\"text-align: center;\"><span style=\"font-weight: 400;\">(Source:oee.com)<\/span><\/p>\n<h4><b>How to calculate OEE and factors contributing to it<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">As far as OEE is concerned, there are 3 factors that contribute to the OEE data: Availability, Performance and Quality.\u00c2\u00a0<\/span><\/p>\n<h5 style=\"text-align: center;\"><strong><span style=\"color: #3366ff;\">OEE = Availability x Performance x Quality<\/span><\/strong><\/h5>\n<h4><b>How to calculate OEE \u00e2&#8364;&#8220; includes formula with examples\u00c2\u00a0<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">Let\u00e2&#8364;&#8482;s dive deep into each factor in the sections below and let us find out how they are calculated.\u00c2\u00a0\u00c2\u00a0<\/span><\/p>\n<h4><b>What is Availability in OEE<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">It is all about the availability of the machine during a planned schedule. Availability of the machine helps in identifying the losses whenever there is a STOP time or changeover.\u00c2\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The STOP time can be planned or unplanned or changeover, it can impact the availability of the machine leading to produce less than expected.\u00c2\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">While changeovers can\u00e2&#8364;&#8482;t be eliminated completely, reducing them is always viable to reduce availability loss.\u00c2\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Availability is calculated as shown below.\u00c2\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><i><span style=\"font-weight: 400;\">Produced in right time \u00e2&#8364;&#8220; availability\u00c2\u00a0<\/span><\/i><\/li>\n<\/ul>\n<h5 style=\"text-align: center;\"><strong><span style=\"color: #3366ff;\">Availability (%) = Run Time (operating time) \/Net available time<\/span><\/strong><\/h5>\n<p style=\"text-align: center;\"><span style=\"font-weight: 400;\">*Operating Time = Net Available Time \u00e2&#8364;&#8220; Unplanned Downtime<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-weight: 400;\">* Net Available Time = Shift Length \u00e2&#8364;&#8220; Planned Downtime<\/span><\/p>\n<h4><b>What is Performance in OEE<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">Performance in OEE provides data on the speed which the machine performs against the desired speed. While the ideal machine running time may be of a certain capacity, real-time running time might be relatively slower.\u00c2\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This can be due to minor stops, idle time or reduced speed.\u00c2\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Addressing these challenges will help improve the speed on the work centre and reduce performance loss.\u00c2\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This is how Performance is calculated.\u00c2\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Producing product within a stipulated time \u00e2&#8364;&#8220; Performance\u00c2\u00a0<\/span><\/li>\n<\/ul>\n<h5 style=\"text-align: center;\"><strong><span style=\"color: #3366ff;\">Performance = (Ideal Cycle Time \u00c3&#8212; Total Count) \/ Run Time<\/span><\/strong><\/h5>\n<h4><b>What is Quality in OEE<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">Quality in OEE represents the number of goods produced without any defect. If you\u00e2&#8364;&#8482;ve 100% of goods produced without any defect, then the work centre is performing phenomenally. However, this rarely happens. It is all about reducing the defective products and producing only good quality ones.\u00c2\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This is how Quality is calculated.\u00c2\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Produced in right way \u00e2&#8364;&#8220; Quality\u00c2\u00a0<\/span><\/li>\n<\/ul>\n<h5 style=\"text-align: center;\"><strong><span style=\"color: #3366ff;\">\u00c2\u00a0Quality(%) = (Total Parts Produced \u00e2&#8364;&#8220; Total Scrap) \/ Total Parts Produced\u00c2\u00a0<\/span><\/strong><\/h5>\n<h4><b>OEE Calculation Example<\/b><\/h4>\n<h5 style=\"text-align: center;\"><span style=\"color: #3366ff;\"><strong>OEE = Availability x Performance x Quality = 88 x 85 x 97 = 72.5%<\/strong><\/span><\/h5>\n<h3><b>How to improve OEE Using IoT, mobile app, predictive maintenance\u00c2\u00a0<\/b><\/h3>\n<h4><b>OEE Automation Software<\/b><\/h4>\n<p>An industrial IoT application coupled with a strong predictive maintenance system can improve overall equipment effectiveness by at least 10x.<\/p>\n<p><strong>Availability<\/strong><span style=\"font-weight: 400;\"> \u00e2&#8364;&#8220; Capturing and tracking real-time machine efficiency using IoT (for manufacturing) helps in meeting the targets expected for machines and humans involved in the process.<\/span><\/p>\n<p><span style=\"font-weight: 400;\"><br \/><\/span><strong>\u0627\u0644\u0623\u062f\u0627\u0621<\/strong><span style=\"font-weight: 400;\"> \u00e2&#8364;&#8220; The IoT data collected from machine and human operations helps identify the frequent downtime and plan for reducing STOP times.\u00c2\u00a0<\/span><\/p>\n<p><strong><i>\u0627\u0644\u062c\u0648\u062f\u0629<\/i><\/strong><span style=\"font-weight: 400;\"> \u00e2&#8364;&#8220; Thought Quality can\u00e2&#8364;&#8482;t be improved directly through such a system, it can be achieved by improving the Availability and Performance of the process.\u00c2\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This is how the system works.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">IoT \u00e2&#8364;&#8220; the IoT devices (with sensors) would be fixed on the machines and its real-time downtime and performance under different conditions is captured and pushed to mobile data and to the cloud IoT Platform.\u00c2\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The data captured is then fed into the AI and ML-based predictive maintenance system to predict unplanned downtimes in the future. The entire system provides a massive volume of real-time data that helps in improving the OEE at the work center.\u00c2\u00a0<\/span><\/p>\n<h4><b>Effectiveness vs. efficiency \u00e2&#8364;&#8220; What to measure<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">A short comparison would be:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Effectiveness \u00e2&#8364;&#8220; the rate of what is expected with respect to what is produced\u00c2\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Efficiency \u00e2&#8364;&#8220; Maximum performance of machines under different conditions.\u00c2\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The debate between effectiveness and efficiency is always on and many still presume that both mean the same. However, effectiveness is all about how much can be produced with respect to what is expected and depends on required raw materials, machine availability and other resources.\u00c2\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">On the other hand, efficiency is all about how much the machine itself can produce to its capacity under different conditions.\u00c2\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In short, a 100% efficient machine is one of the factors that will improve effectiveness on the manufacturing floor.\u00c2\u00a0<\/span><\/p>\n<h3><b>OEE benefits<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">All-in-one metric for measuring manufacturing productivity<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Helps map production efficiency with reporting<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Maximize equipment RoI<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Improve quality<\/span><\/li>\n<\/ul>\n<h4>Measurement of OEE for a Leading Manufacturing Company<\/h4>\n<p><span style=\"font-weight: 400;\">Our client is leading Industrial Packaging manufacturer supplies to some of the major oil distributors in the region. One of the key challenges they are facing is they were running additional shifts with overtime to meet the production demands. But the production demands were well within the production capacity of the plant. Identifying the reasons for inefficiency and bringing in transparency to all the stakeholders were the expected output of the projects.\u00c2\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\"><\/span><\/p>\n<p><span style=\"font-weight: 400;\">The shop floor \u00e2&#8364;&#8220; assembly line had seven stages and two variants of the products were produced on any given day. Measuring the productivity at each stage in real-time both machine &#038; labour was the key piece of the puzzle.\u00c2\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Additionally, the machine downtime has to be captured and notified to the shop floor supervisor to act promptly and reduce the impact to ensure operations are back on track. Having real-time machine productivity data enabled the supervisors to rectify the problems instantly rather than waiting for a mishap to happen.\u00c2\u00a0\u00c2\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">We implemented the connected factory solution by fixing sensors at each stage to measure the output and detect the downtime of the machines. The sensors are connected to the IoT hub, which in turn sends the data to an \u00e2&#8364;&#339;IoT Platform\u00e2&#8364;, on top of which an analytics engine was built.\u00c2\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">We digitized the shop floor operations management right from operator allocation, product change over to measuring labour &#038; machine productivity (OEE &#038; LE) through Industry 4.0 solution.\u00c2\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">With access to data on-the-go (Mobile &#038; Web Dashboards), clients were able to identify the bottlenecks and rectify them to improve productivity by 20%. The transparency was created for shop-floor operators by TV displays in the shop floor which in turn helped in increased productivity.<\/span><\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"291\" src=\"https:\/\/www.hakunamatatatech.com\/wp-content\/uploads\/2019\/06\/Digital-Transformation-Consultation-1024x291.jpg\" alt=\"\" class=\"wp-image-11801\" title=\"\"><figcaption><\/figcaption><\/figure>\n<p><\/body><\/html><\/p>","protected":false},"excerpt":{"rendered":"<p>Is my manufacturing process efficient enough? Is my production quality above par? I know this will be a question lingering in the minds of most manufacturers. Measuring the output always matters.\u00c2\u00a0 The manufacturing industry involves a lot of different processes and this makes it complex to track and improve efficiency.\u00c2\u00a0 This is possible, when you<\/p>","protected":false},"author":1,"featured_media":2102,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[17],"tags":[],"class_list":["post-2101","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-digital-transformation"],"_links":{"self":[{"href":"https:\/\/hudutech.com\/ar\/wp-json\/wp\/v2\/posts\/2101","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hudutech.com\/ar\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hudutech.com\/ar\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hudutech.com\/ar\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/hudutech.com\/ar\/wp-json\/wp\/v2\/comments?post=2101"}],"version-history":[{"count":0,"href":"https:\/\/hudutech.com\/ar\/wp-json\/wp\/v2\/posts\/2101\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/hudutech.com\/ar\/wp-json\/wp\/v2\/media\/2102"}],"wp:attachment":[{"href":"https:\/\/hudutech.com\/ar\/wp-json\/wp\/v2\/media?parent=2101"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hudutech.com\/ar\/wp-json\/wp\/v2\/categories?post=2101"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hudutech.com\/ar\/wp-json\/wp\/v2\/tags?post=2101"}],"curies":[{"name":"\u062f\u0628\u0644\u064a\u0648 \u0628\u064a","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}