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FLEXO Magazine : April 2014
WORLD CLASS OEE So you've got your OEE, but is it a good OEE or one that needs to be improved? According to Vorne, the following calculations for the different elements of OEE are considered to be " world class": • Availability -- 90 percent • Performance -- 95 percent • Quality -- 99.9 percent • OEE -- 85 percent As the company notes, "this type of calculation makes OEE a severe test. For example, if all three contributing factors are 90 percent, the OEE would be 72.9 percent." In practice, while one measurement may be a high percent- age, another may come out significantly lower. When analyzing the metrics that contribute to a particular OEE, Vorne provides a key insight by way of two hypothetical calculations: OEE Factor Shift 1 Shift 2 Availability 90.0% 95.0% Performance 95.0% 95.0% Quality 99.5% 96.0% OEE 85.1% 86.6% In this example, Shift 2 has a high- er OEE. However, in examining the measurements that compute to an OEE, Shift 2 boosted Availability and Decreased quality. "Very few compa- nies, however would want to trade a 5 percent increase in Availability for a 3.5 percent decline in Quality," Vorne notes. OEE FAQ Some common questions and con- cerns from companies implementing OEE programs, provided in Vorne's efficiency guide: Do you define everything in units of parts and units of time? The answer depends on what's most intuitive for you and your operators. Downtime Loss is usually described in units of hours or minutes. Speed Loss is most often defined in terms, such as pieces per hour (rate) or seconds per piece (cycle time). Quality Loss is typically looked at as a ratio of rejects to total production. Other quantity related measurements like pounds, kilograms or meters might also be used. All of these eventually are converted to a per- centage that shows actual vs. potential. Is OEE data subject to misinterpretation? Without a doubt! The two shift example demonstrates this. OEE reveals nothing about how much resources actually cost in dollars, what the easiest improve- ment actually is or how much it will cost to make that improvement. What should be looked for in OEE are losses and bottlenecks that can be eliminated for 32 FLEXO APRIL 2014 www.flexography.org