What is OEE? A Free Calculation Example and How MES Can Elevate OEE Without Manual Calculations
When discussing metrics that indicate the efficiency of production systems and machinery, OEE is undoubtedly one of the key answers. Incorporating OEE as a component in assessing the capabilities of a factory is crucial for modern manufacturing. But how can OEE be calculated, and how can business owners simplify this calculation process? This article has the answers for you.
What is OEE ?
OEE stands for Overall Equipment Effectiveness, a key metric used to measure the efficiency of machinery in a factory. OEE is calculated based on three main components: Availability, Performance, and Quality, which together provide a comprehensive indication of the overall effectiveness of a machine.
Availability
Availability, or machine uptime, is calculated by dividing the actual operating time of the machine by the total time it should have been operational during a given period. Issues that cause machine downtime, such as maintenance or technical problems, will reduce the availability rate. Therefore, an Availability rate of 100% indicates that the machine has operated continuously without any interruptions.
Performance
Performance refers to the efficiency of the machine or equipment during the actual operating time. It measures how close the machine's performance is to the established standard, expressed as a percentage. Performance is assessed by comparing the actual output of the machine to the expected output. A Performance rate of 100% means the machine has produced the desired output as required.
Quality
Quality, or the quality rate, indicates the standard of the products or outcomes produced by the machine or equipment during operation. It helps in understanding how well the machine or equipment is producing quality products compared to the set standard. For instance, if the products manufactured by the machine are free of defects or damages, the Quality rate would be considered 100%.
Calculating OEE
The calculation of OEE (Overall Equipment Effectiveness) is relatively straightforward, using data from the three main components: Availability, Performance, and Quality, as follows
Example of OEE Calculation
If a machine operates for 420 minutes out of a scheduled 480 minutes and produces 320 units out of an expected 400 units, with 280 of those meeting the quality standard, the following data can be obtained:
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Availability Calculation
Net Operating Time = 420 Mins
Planned Production Time = 480 Mins
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Performance Calculation
Actual Production Count = 320 Units
Ideal Production Count = 400 Units
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Quality Calculation
Good Count = 280 Units
Total Count = 320 Units
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OEE Calculation
The calculated OEE result is 61.25%, which is considered only moderate. This indicates areas for improvement or specific issues that need to be addressed, enabling more precise problem-solving. Therefore, business operators should focus on enhancing quality and aim to achieve an OEE of 100% for optimal performance.
What Are the Impacts of Low OEE?
Problems commonly encountered in factories when OEE is low can be categorized into short-term, medium-term, and long-term impacts as follows:
Short-Term Impact (Immediate Impact)
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Impact on Customer Production Plans: A low OEE may result in insufficient product output to meet customer demand, potentially affecting the company's credibility and future operations.
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Increased Costs: Low OEE can result from several factors, such as inefficient production, leading to excessive use of raw materials or failure to meet production timelines, thus increasing overall costs.
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Loss of Time: Low OEE directly affects work efficiency and product quality, which may lead to time lost in machine repairs and maintenance to keep production running.
Medium-Term Impact
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Frequent Maintenance: Low OEE may stem from inadequate machine maintenance. If this issue is not addressed, it can lead to more frequent machine repairs, necessitating a preventive maintenance plan to avoid further loss of time and money.
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Increased Material Procurement: Low OEE reflects operational errors, which may require additional materials to replace those used in flawed production.
Long-Term Impact
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Reduced Market Competitiveness: A declining OEE indicates a trend of decreasing factory competitiveness, as it is a metric that directly measures production efficiency. If not corrected, it can negatively affect the company's image, operations, and long-term production.
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Higher Risk of Losses: All the trends, including errors, inefficiencies, and extended production times, will directly increase costs and reduce profit margins. Ultimately, this may lead to unnecessary losses for the business.
It is evident that if business operators do not improve OEE to its full potential, overall operational efficiency will decline in all aspects. Therefore, regular monitoring and optimization of OEE should be a priority for business operators.
MES System: Your OEE Calculation Assistant
A low OEE value is not always a cause for alarm, as an MES (Manufacturing Execution System) can be a crucial tool in managing and controlling the production processes within a factory. The relationship between OEE and MES lies in MES's ability to efficiently collect and analyze data related to OEE, helping to quickly and accurately identify and resolve production issues. This leads to significant improvements in OEE and overall production efficiency.
The ciMES system, an MES from ARES, automatically calculates OEE by gathering real-time production data from machinery and various production processes. The system tracks and records the critical data needed to calculate the three main components of OEE: machine uptime (Availability), operational efficiency (Performance), and quality rate (Quality). This allows for quick and accurate assessment and analysis of production efficiency without the need for manual calculations.
Conclusion on OEE
OEE is a key metric for measuring and indicating the effectiveness of a production system within an organization. A higher OEE signifies that production is more aligned with the set goals. However, if the OEE is low, business operators should take steps to improve it in order to enhance production efficiency. The ciMES system from ARES is designed to manage, monitor, and plan production while providing real-time OEE metrics without the need for manual calculation. This enables operators to precisely improve machine operations and other factors within the system.
Contact us
For a demo, please contact us at Contact Us or for further inquiries:
Phone: 0633253640 or 02-6863000 ext. 3042
Email: support@aresth.co.th
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