Overall Equipment Effectiveness

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What does the term Overall Equipment Effectiveness entail?

The products being manufactured on a daily basis are the result of a complex production process.  No matter how you look at it, fact remains that your business cannot run smoothly without the proper measuring tools and formula. That is why Overall Equipment Effectivenessallows you the opportunity to analyze out-of-the-ordinary issues, as well as offering you an established framework for improving your whole manufacturing process.
Overall Equipment Effectiveness can be seen as a tool which combines a number of manufacturing issues and data points to provide information about a process. Overall Equipment Effectiveness utilizes the various components of the manufacturing process (such as availability, performance, quality) to measure actual improvements on Six Sigma, Kaizen, TPM, Lean Manufacturing, WCM, and 5S. Used together with these management systems, the benefits of this Calculation become extremely useful.
After taking all factors into account, the Calculation result is converted into a percentage. The result (in %) can therefore be regarded as a preview of the existing production efficiency of a particular line, machine, or cell.

How does Overall Equipment Effectiveness operate?

A lot of formulas, systems, and metrics used to improve the manufacturing process can be found on the market these days. However, only Overall Equipment Effectiveness correctly reduces complex production problems into simple steps which are easy to follow with regards to the handling of information and data. By using basic measurements, this tool helps you to improve different processes.            

What are the Components of an Overall Equipment Effectiveness Calculation?

·        Availability
The availability component of Overall Equipment Effectiveness Calculation takes into account downtime. For example, when a machine is not running due to some or other problem, planned production time is being lost. 
Availability = Planned Production Time / Operating Time
·        Performance
The performance component of Overall Equipment Effectiveness Calculation is very interesting, seeing as many companies make use of a variation based on the Nett/Cycle calculation.
Performance = (Ideal Cycle Time * Pieces Produced) / Operating Time
Ideal Cycle Time is the maximum speed the machine can run expressed as a unit cycle time. It is sometimes referred to as the Name Plate Cycle Time. 
Performance is capped at 100%. This will ensure that if a cycled time is specified too low, the performance figure will not distort the calculation. 
The Quality component of Overall Equipment Effectiveness Calculation takes into account wastage because of poor quality. 
Quality = Good Pieces / Pieces Produced

A number of companies use the quality component to recharge suppliers if externally sourced components are faulty.

Click here to download a summary of Downtime Monitoring!