Bailey Tool Institutes Operational Equipment
ffectiveness Program for Better Equipment Utilization

Operation Equipment Effectiveness (OEE) is a best practice way to monitor and improve the effectiveness of your manufacturing process.  The key factors in OEE measurement includes:


Availability takes into account Down Time Loss and any event that stops planned production (equipment failures, material shortages and changeover time)
Availability = Operating Time / Planned production time

Performance takes into account Speed Loss (includes factors that cause the process to run at less than maximum possible speed) Examples include machine wear, substandard materials, mis-feeds, and operator inefficiency.
Performance = (Total Pieces / Operating Time) / Ideal Run Rate

Quality takes into account Quality Loss   (production pieces that do not meet quality standards, and pieces that require rework)
Quality = Good Pieces / Total Pieces


OEE = Availability x Performance x Quality


Using Six-Sigma Project Methodology

We started this project by using the Six Sigma methodology DMAIC:  1) Define; 2) Measure; 3) Analyze; 4) Improve; and 5) Control.

I.    Define Phase

The project definition was established using the project charter shown below:

Transfer Units

II. Measure Phase

The measure phase began with adapting the Daily Production Log (DPL) to accommodate the data needed to track the OEE. This form is used by each operator on every piece of equipment to track all hours, down time and production.


Transfer Units

III. Analyze Phase

The collected data is analyzed and the results are posted in the appropriate departments in the form of a line graph as shown below:

Sum of OEE


IV. Improve Phase

A team meeting is called to discuss the OEE for the equipment.  Six Sigma tools such as YX diagrams fish bone diagrams to identify potential causes for low OEE.  The potential causes are addressed with the appropriate tools such as 5S, a Kaizen event or employing Advanced Statistical Analysis

V. Control Phase

In the control phase data is continuously monitored to ensure that all control parameters are within desired ranges.