# Building an OEE System to our Production Lines - New concepts to me

R

#### Ramizz

Hi all,

I am doing a study to help in building an OEE system to our production lines. I have downloaded many OEE materials and it seems that it's easier than what I thought.

The funny thing is that I am stuck with some simple concepts that I couldn't find a definition from any of the materials. These include:

1- Line efficiency (is it the performance or the availability part of the OEE, or maybe both)
2- Line effectiveness
3- Actual line capacity
4- Theoritical line capacity
5- Utilization or line utilization?

Could you please tell me the definition and/or the benefit of the above?

Thank you

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#### somashekar

Leader
Admin
Also take some time to have a look at This which I had posted few weeks back.

R

#### Ramizz

Thank you Somashekar.

I still need to know the definition of those terms or at least their formulas (mainly the line efficiency, effectiveness, utilization and productivity).

We are developing an OEE calculator and the above listed are the missing items.

Please have a look at the attached image for the OEE calculator which would be the initial stage for having an OEE system for our production lines.

Note: Don't worry about the numbers because they're unreal.

Thanks

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#### Chennaiite

##### Never-say-die
Trusted Information Resource
Thank you Somashekar.

I still need to know the definition of those terms or at least their formulas (mainly the line efficiency, effectiveness, utilization and productivity).

We are developing an OEE calculator and the above listed are the missing items.

Please have a look at the attached image for the OEE calculator which would be the initial stage for having an OEE system for our production lines.

Note: Don't worry about the numbers because they're unreal.

Thanks
In your example:
OEE = Availability * Performance * Quality

Availability = (Total time - planned down time - Breakdown loss )/(Total time - planned down time), which is (365)/(480) i.e 76%

Performance = Actual no. of cans produced/(Theoretical can that could be produced in 365 min) with theoretical cycle time 2250 cans/min
Hence, Performance = (346320)/(2250*365) i.e 42%

Quality = Total good Cans/Total cans produced, which is 1 - (17777/346320) i.e 94.9%

With that, OEE = 30% approx.

For the definitions/formulae you needed, as far as my understanding goes..

Line Efficiency = Performance considering total time i.e 480 min.
Utilization = (Total time - planned down time - Breakdown loss )/(Total time)

Hope it helps to some extent.

R

#### Ramizz

Thank you very much Chennaiite.

So is it true in the real world that:

1- Line utilization = (Total time - planned down time - Breakdown loss )/(Total time)

2- Line efficiency = Total production / line capacity

Or does they vary from business to business or there is no fixed way to calculate them?

Thx.

#### Chennaiite

##### Never-say-die
Trusted Information Resource
Thank you very much Chennaiite.

So is it true in the real world that:

1- Line utilization = (Total time - planned down time - Breakdown loss )/(Total time)

2- Line efficiency = Total production / line capacity

Or does they vary from business to business or there is no fixed way to calculate them?

Thx.
I have come across different approach for calculating OEE, but the concept is expected to remain intact.

Last edited:
R

#### Ramizz

I have another question:

What is the difference between the Capacity Utilization and the Line efficiency?

Thanks

#### Chennaiite

##### Never-say-die
Trusted Information Resource
I have another question:

What is the difference between the Capacity Utilization and the Line efficiency?

Thanks
Normally,
Utilization is the number of hours a facility is productive against the theoretical hours available. Like, in a given day, theoretically we have 24 hrs. But if a machine was in operation for only 12 hrs and rest of the hrs were not utilized on account of say, Scheduled stoppage, Breakdown, Material unavailability, etc, Utilization is 50% (12/24).

For Line Efficiency, lets consider the same hypothetical case above. Out of productive 12 hrs, say, the theoretically expected production is 1000 nos, but if the actual is 800 nos, Machine efficiency is 80% (800/1000)

P

#### palmer

Hi all,

I am doing a study to help in building an OEE system to our production lines. I have downloaded many OEE materials and it seems that it's easier than what I thought.

The funny thing is that I am stuck with some simple concepts that I couldn't find a definition from any of the materials. These include:

1- Line efficiency (is it the performance or the availability part of the OEE, or maybe both)

There are other threads in this topic section that have debated this question. I think the answer lies with who is viewing this material? If it is for the people performing the work on the line it should be performance. They understand this. Under availability, are you wanting 24/7/365 numbers or actual shifts and days worked? I personally don't care for 24/7/365 unless your operation runs like that. The numbers that come from that are misunderstood by most who look at them. For instance, we are taught to strive for 100%. Unless you run 24/7/365 you will NEVER achieve this number. That is disheartening to those who don't view it the way the numbers were meant to be viewed.

2- Line effectiveness

See #1. What do YOU want from this number? Then use that for this question

3- Actual line capacity

See #1. Depending on what you want to use for capacity (24/7/365) or actual hours during a normal work week. Then do you base it on highest output achieved or an average. It should be an average for accurate predictions and forecasting.

4- Theoritical line capacity

See #1. (again) This probably should be based on 24/7/365 since it is theoretical along with the highest output achieved or calculated output. It doesn't mean that it will be met under normal circumstances. I have had to adjust #'s in the past that came up one way through calculation but NEVER met when actually produced.

5- Utilization or line utilization?

I'm not sure on this one. I've never used it.

Could you please tell me the definition and/or the benefit of the above?

Thank you
Most of the questions depend on your answer to #1. Once that is defined you can make your answers for the other questions.

Good luck.

P

#### pthareja

I have another question:

What is the difference between the Capacity Utilization and the Line efficiency?

Thanks

Capacity Utilization = actual production/ rated plant capacity
e.g. some Fertiliser companies in India were working at a capacity utilisation of more than 100 % (say 125 %, due to the restrictions on profit retention, applicable only till 100%, necessitated due to price control on agricultural produce.)

Line efficiency? = the production efficiency of a line (output/ input)

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