How to Calculate Overall Equipment Effectiveness (OEE) for Multiple Machines

Production facilities around the globe struggle with being able to accurately measure manufacturing productivity within their operation. As this struggle has become prominent among operations, overall equipment effectiveness (OEE) has become a viable solution. Overall equipment effectiveness (OEE) pertains to measuring manufacturing productivity, which gives operations managers clear insight within their operation. OEE can identify areas of production that are inefficient and lacking productivity - which can aid the operation through locating methods to help enhance these areas. In order to utilize OEE effectively, it is essential to understand the formula that is conducted in order to calculate OEE. In this blog, we will show the formula needed to calculate overall equipment effectiveness (OEE) for multiple machines.

Calculations for Overall Equipment Effectiveness (OEE)

The basic formula for OEE included Availability (A) x Performance (P) x Quality (Q) = Overall Equipment Effectiveness (OEE). To find the subcomponents of the formula, there are calculations needed to understand availability, performance, and quality. These calculations include the following:

Availability - To calculate availability, you have to divide runtime by planned production time (Run time / Planned Production Time). This component takes all events into account that will prevent any planned production from continuing, ultimately giving you a clear insight into how well production will be able to flow.

Performance  - When calculating performance, you will have to multiply ideal cycle time by the total count, then divide it by run time (Ideal cycle Time x Total Count / Run time). Performance takes into account all of the factors that may cause the operation to run at anything less than efficient. Performance is key for your operation to understand how healthy your overall supply chain is.

Quality - Quality is calculated by taking good count divided by total count (Good Count / Total Count). Quality pertains to accounting for manufacturing parts that aren’t able to meet quality standard, including any parts that are in need of rework. When quality is enhanced, there will be a reduced amount of parts sent back that will save the operation money and reduce waste.

When calculating OEE for multiple machines, you are able to to improve your manufacturing operation with ease. If your OEE is anything less than 100%, it means that there are areas of your facility that are in need of improvement. This correlates with improving the components of OEE such as quality, performance, and availability. With OEE, you can take your operation to the next level in terms of efficiency and waste elimination. Along with OEE, there are softwares available than can also provide insight into your production, such as Advanced Planning and Scheduling Software (APS).

Advanced Planning and Scheduling Software

Advanced Planning and Scheduling (APS) software has become a must for modern-day manufacturing operations due to customer demand for increased product mix and fast delivery combined with downward cost pressures. APS can be quickly integrated with a ERP/MRP software to fill gaps where these system lack planning and scheduling flexibility and accuracy. Advanced Planning and Scheduling (APS) helps planners save time while providing greater agility in updating ever-changing priorities, production schedules, and inventory plans.

Create optimized schedules balancing production efficiency and delivery performance

Maximize output on bottleneck resources to increase revenue

Synchronize supply with demand to reduce inventories

Provide company-wide visibility to capacity

Enable scenario data-driven decision making

Implementation of Advanced Planning and Scheduling (APS) software will take your manufacturing operations to the next level of production efficiency, taking advantage of the operational data you already have in your ERP.