OEE - HOURLY CALCULATION
OEE - HOURLY CALCULATION
(OP)
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:
OPTION 1:
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.
OPTION 2:
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,
Rabdatorul
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:
OPTION 1:
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.
OPTION 2:
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,
Rabdatorul
Talk To Other Members
RE: OEE - HOURLY CALCULATION
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
http://www.stryker-tech.com/
RE: OEE - HOURLY 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.
Rich.....
Richard Nornhold, PE
http://www.personna.com