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As we all know OEE is a multiplication of Availability, Performance and Quality.
There is some debate here on what formula it should be used to calculate OEE every hour. We are a one piece flow environment having the automotive industry as a customer.
Here are some of the formulas that our corporate office came up with:

 The OEE by hour calculation should be:
 The total number of good parts produced for that hour/the goal  
 of parts for that hour.
 The goal is calculated using the available time we are running  
 during the hour/the Takt time.

 The hourly OEE calc is:
 Total assemblies produced - Rejects /Standard machine capability
 for one hour

Also during a visit at the plant near our corporate office I saw OEE majority over 100% and I was very surprised knowing that 85% is considered "World Class"

What are your thoughts on this metters?

Your comments and help are highly appreciated.

Best regards,





Option 1 seems like it could be well over 100% depending on factors in the equation. When ever I see "goal" as part of a metric I get worried.
The "goal" of parts per hour varies? That just doesn't seem right.

I would say Option 2

what can you produce, how much is good, and how much could you produce if everything was "reasonably" perfect

my machine is capable of putting out 100 parts an hour
I make 98 but 1 is bad. I am at 97%

StrykerTECH Engineering Staff
Milwaukee, WI


Option 1 seems closer to the classic calculation.  

Option 2 seems like it has the potential to hide issues with rejects by cranking out numbers.  

I would stick to the classic calculation of OEE and give visibility to all three areas of importance

Quality % - Rejects
Availabity % - Machine/Production Uptime
Throughput % - Machine/Production Stability

I've seen 100% plus OEE at some manufacturing facilities.  This could be a symptom of not setting appropriate standards to measure production.  


Richard Nornhold, PE

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