Overall Equipment Effectiveness (OEE) is a standard metric used to measure the productivity and operating efficiency of machinery and equipment assets. So which factors affect the OEE metric? Let's find out the details with sbiz.vn in the article below!
Factors affecting the OEE metric
Availability
The availability factor of OEE is the percentage of actual operating time in production compared with the time the machinery or process was scheduled to be available. Simply put, availability measures how much time a piece of equipment can operate at most after removing the effects of quality, performance and mandatory downtime.
Availability is the ratio of actual production time to planned production time
Availability formula
Formula for the availability factor of OEE
The analysis starts with the time the plant has available for production. From that, the business subtracts scheduled stops, including events that halt production such as material shortages, insufficient labor, equipment breakdowns and machine setup time. Machine setup time cannot be eliminated, but it can certainly be reduced.
Performance
The performance factor of OEE shows the machine's actual output during operation compared with its maximum design capacity, or its maximum output when running continuously. This factor depends entirely on the speed at which finished goods are produced, unaffected by availability or quality.
Performance is not affected by availability
Since performance is based only on production speed, the formula is:
Formula for the performance factor of OEE
Where:
Total Parts Produced includes rejected parts.
The performance factor can show results above 100%.
Quality
The quality factor of OEE is the ratio of acceptable finished goods to the total number of products produced (including defective products).
The quality factor is used to evaluate products that don't meet production standards
The quality factor is not affected by availability or performance.
Formula for the quality factor of OEE
Why calculate OEE in manufacturing?
OEE provides the simplest and most suitable formulas for measuring the effectiveness of equipment or production systems. OEE also measures direct losses. So businesses can use OEE to pinpoint gaps in the operating cycle, and managers can then make appropriate process improvements.
OEE is an ideal tool for measuring the effectiveness of equipment or production systems
In addition, applying OEE in manufacturing makes it possible to compare operating efficiency between plants to create a competitive advantage. Specifically, OEE helps:
Identify the losses that reduce the operating performance of the plant system.
Identify bottlenecks, which equipment is slow, which machines are underperforming... It is the basis for managers to make timely, appropriate decisions.
OEE is calculated as follows:
OEE = Availability x Performance x Quality
OEE is calculated by combining the factors that affect it
Where:
Availability is the availability factor.
Performance is the performance factor.
Quality is product quality.
The relationship between OEE and IoT
In the past, machine operating data was compiled at the end of the month for analysis and evaluation. This limited the system's ability to respond quickly or deal with urgent needs.
Industry 4.0, with OEE combined with IoT, is a great solution to this problem. This “alliance” lets plants know exactly what is happening in real time through continuous monitoring. Businesses can then immediately identify potential problems and respond promptly with appropriate corrective actions.
IoT combined with OEE quickly uncovers gaps in the production process
Combining IoT with OEE brings the following benefits:
Higher accuracy.
Less labor.
Traceability of defects.
Continuous consolidated reporting and analysis.
Immediate troubleshooting.
Motivating managers to tap the business's potential.
OEE in manufacturing combined with IoT broadens a business's vision, enabling smarter decisions about improving operating processes. A system that integrates OEE and IoT solves three core problems in measuring equipment productivity and operating efficiency:
Analyzing and evaluating operating history and performance data to optimize the plant's maintenance processes, schedules and resources.
Integrating IoT and OEE provides continuous access to operating history and performance data
Getting early warnings of equipment deterioration in the plant through preventive maintenance to limit downtime.
Reducing maintenance, material and supply costs.
The operating quality of the production line is closely monitored. This lets the business track parameters during operation to know the calibration, temperature, operating speed and production time of the machinery.
Effectively supporting the business's supply chain management. Managers can compare previous production results with the latest reports, so the business can decide what needs to be done in the future.
As you can see, availability, performance and production quality are 3 separate factors that don't affect one another and are decisive in strongly driving the OEE metric. At the same time, combining IoT and OEE is an ideal solution for businesses to resolve the backlogs of old management models and bring huge benefits. For more details, please contact sbiz.vn today for advice on the right solution for your organization!