## iLine OEE Definition

OEE Definition- How To Calculate OEE

OEE (Overall Equipment Effectiveness) is a widely used and well recognised KPI (Key Performance Indicator) metric which evaluates how effectively a production line is utilised.

The most widely used way to calculate OEE is calculated by multiplying three individual metrics : Availability, Performance and Quality.

### OEE = Availability x Performance x Quality

Availability is a measure of the ratio of actual runtime to scheduled production time.
Availability = Total Line Runtime / Scheduled Line Runtime

Performance is a measure of the ratio of the line speed to the ideal line speed.
Performance = Line Speed / Ideal Line Speed

Quality is a measure of the ratio of total good units produced to total units started.
Quality = Good Count / Total (Good and Bad) Count

### Example

If we consider a simple example of a single standalone machine that is scheduled to produce 100 units of product per hour over an 8 hour shift. (for the purposes of keeping our example simple we will assume there are no scheduled breaks or no scheduled changeovers during our 8 hour shift).

Lets imagine now that we want to analyse what happened over one specific shift:

If we consider that the machine ran in total for 6 hours of this 8 hour shift.

When the machine ran it operated at a speed of 80 units per hour.

The machine produced 480 parts consisting of 432 good parts and 48 bad parts over the 8 hour shift.

## We can now calculate OEE as follows:

Availability = Total Line Runtime / Scheduled Line Runtime = 6 hours / 8 hours = 75%

Performance = Line Speed / Ideal Line Speed = 80 units per hour / 100 units per hours = 80%

Quality = Good Count / Total (Good and Bad) Count = 432 units / 480 units = 90%

OEE = Availability x Performance x Quality = 75% x 80% x 90% = 54%

This means that we have produced 54% of the planned amount for our given shift. If you would like to receive our monthly guideline documents relating to increasing the OEE of your production machines then feel free to sign up: