# Artisan Spirit: Winter 2018

ING V O R P M I R O ES F C I T C A R P T S BE

L L A R E V O T N E M P EQUI S S E N E V I T C E F F E N Y SHANNO WRITTEN B

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OEE = Overall Equipment Effectiveness

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f you work in bottling for beer, wines, or spirits, you have probably heard this term thrown around like it is the hottest new craze since alcoholic seltzer. Leaders use the term to describe the productivity or efficiency of a line or facility. So, what does OEE actually mean? How is it calculated? And how can you use it to help drive your business in a positive direction? OEE is a metric by which an organization benchmarks its manufacturing performance. OEE may be used to analyze individual pieces of equipment, entire systems, or even entire factories. To put it simply, OEE is the product of three performance metrics. It is often expressed using this basic equation:

OEE = Availability x Performance x Quality As with creating the best spirits, it begins with having the best ingredients. To properly calculate OEE, you need to understand the underlying components that make up the calculation and correctly identify their values.

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AVAILABILITY Availability describes the percentage of time that equipment can run and create product. The percentage describes the time that equipment operates relative to the amount of time that it is designed to operate. Let’s say that you have a bar called Ray’s Tavern. Ray, the owner, has the bar open 10 hours per day, but he is only standing behind the bar serving drinks for six hours per day. The Availability of Ray’s Tavern is 6/10 or 60 percent. Why isn’t Ray behind the bar? Well, he could be yelling at a drunk regular, sweeping the floors, paying bills or attending to other matters. These times away from the bar all count towards reductions in the Availability Percentage. Reductions in manufacturing availability often include:

&gt;&gt; Scheduled and unscheduled maintenance

&gt;&gt; Extended equipment breakdowns &gt;&gt; Changeovers &gt;&gt; Material unavailability

&gt;&gt; Plant interruptions or shutdowns &gt;&gt; Significant equipment adjustments &gt;&gt; Equipment warm-ups &gt;&gt; Cleaning

&gt;&gt; Operator unavailability/shift changes

PERFORMANCE Performance compares the best-case speed at which the equipment will perform (ideal rate) to the actual speed. Blockages or small stops (defined as five minutes or less) are generally considered Performance reductions rather than Availability reductions. Getting back to Ray, when he is at his best he can serve five drinks per minute. However, he is often distracted by conversations with customers or the game on the TV, and it typically takes him a longer time than normal to open a new bottle. So when he is serving, he only

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