Overall Equipment Effectiveness

Company XYZ’s constraint/bottleneck operation is produced on Machine A. Machine A is a single product machine and is theoretically capable of producing 1,000 units every hour. Company XYZ’s manufacturing operations are limited to two 8-hour shifts that operate 7 days/week.

On a particular day (16 hours) the machine had recorded a total of 2 hours of downtime events (scheduled and unscheduled maintenance). It was also idle for 1 hour during lunch and other scheduled breaks. It was also idle for 30 minutes when it ran out of WIP. Other than when the machine was down for maintenance or idle it was in production (producing product).   

During the shift the machine produced 12,132 units, however, 632 units were found to be defective.

For this time period (16 hours):

A. What is Machine A’s availability?

= uptime / total time (24hrs/day, 7 days/week)

B. What is Machine A’s performance rate

= (prod time / uptime) / ((units processed / prod time) / theoretical unit throughput)

C. What is Machine A’s quality rate?

= (total units - rejects) / total units produced

D. What is Machine A’s Standard OEE?

= availability * performance rate * quality rate

E. What is Machine A’s Simple OEE?  

= (actual unit output in time period) / (theoretical throughput in time period)