🔧 OEE & the 7 Major Losses – Turning Equipment Data into Performance 📊
Overall Equipment Effectiveness (OEE) is a powerful metric that reveals how effectively manufacturing equipment is utilized. It highlights hidden losses and drives focused improvement.
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⚙️ The 7 Major Equipment Losses
Availability Losses
⏱️ Equipment Breakdowns
🔄 Setup & Adjustment
🛑 Tool Change / Shutdown
Performance Losses
⏳ Minor Stoppages
🐢 Speed Losses
Quality Losses
❌ Defects
🔁 Rework & Startup Losses
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📐 How OEE is Calculated
1️⃣ Availability
«Measures equipment uptime»
Formula:
Availability = (Loading Time – Downtime) ÷ Loading Time × 100
Example:
(460 min – 60 min) ÷ 460 min × 100 = 87%
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2️⃣ Performance Rate
«Measures speed efficiency»
Formula:
(Standard Cycle Time × Total Units Produced) ÷ Operating Time × 100
Example:
100 units ÷ 200 units × 100 = 50%
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3️⃣ Quality Rate
«Measures good output»
Formula:
(Good Units ÷ Total Units Produced) × 100
Example:
(400 – 8) ÷ 400 × 100 = 98%
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📊 Overall Equipment Effectiveness (OEE)
OEE = Availability × Performance × Quality
👉 OEE = 0.87 × 0.50 × 0.98 × 100
✅ OEE = 42.6%
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🎯 Key Takeaway
A low OEE is not a failure—it is an opportunity.
Break down losses, attack the biggest gaps, and drive Lean, TPM, and Continuous Improvement initiatives with data-driven focus.
source : Six Sigma Manufacturing
