Question

The theoretical output of a piece of equipment “A” is 500 parts per hour for 8 hours per day and 5 days per week. Equipment “A” actually produced 11,000 parts in a week with 1000 of those being scrapped. Setup time is not tracked and the downtime log is blank. The following planned events occurred during the week:

Daily morning production meeting (15 min)

Daily end of shift cleanup (15 min)

Daily lunch (30 min)

Weekly maintenance (2 hours)

What is the “macro” overall equipment effectiveness (OEE) for equipment “A”?

If the OEE for equipment “A” is higher than equipment “B” by 6%, is equipment “A” better? Why or why not?  

Answer 1

Scheduled time available = 8*5 = 40 hours

Planned downtime = (30+15+15)*5 + 120 mins = 420 mins = 7 hours

Net available time = 40 - 7 = 33 hours

Output possible in 33 hours = 33 * 500 = 16,500

Output produced = 11,000

Run time for 11,000 output = 11,000 / 500 = 22 hours

Scrapped = 1000

Performance = Output produced/ Output possible in net available time = (11,000/16,500) = 66.7%

Quality = (11,000-1000) / 11000 = 90.91%

OEE = Availability * Performance * Quality = 66.7% * 66.7% * 90.91% = 40.44%

If the OEE of equipment A is higher by 6%, it means utilization of machine A is higher than utilization of machine B i.e. in same planned time A would produce more quanityt. However, both A & B have poor OEE. Comparatively A is better.

Also, please note a high OEE without the appropriate market demand leads to overproduction/waste,