serves an average of four drinks per minute, giving him a Performance Rate Percentage of 4 out of 5 or 80 percent. Performance reductions in the manufacturing realm often include:
>> Product flow obstructions
>> Substandard materials
or equipment jams
>> Underperformance due to
>> Operation below nameplate or design
>> Unbalanced line control that cannot
keep machines primed and running
unmitigated equipment wear or aging
>> Operator lack of training, attention, or inefficiency
QUALITY Quality is simply a comparison of acceptable, first-run units to total units produced. If Ray serves 20 beers but the first two were nothing but head due to a recent keg change, Ray has a Quality Percentage of 90 percent. Quality reductions often include:
>> Damaged product
>> Scrap during test runs, start-
>> Flushed product (for liquid processes)
up, and changeovers
>> Rejected product
WHERE TO AIM
The driving concept behind an OEE program is that it should be created to expose areas for improvement. It is a benchmark and not necessarily a “grade” to compare one operation to a different one, or one plant to another. The value of establishing an OEE program comes from developing realistic, honest criteria for the initial Availability, Performance, and Quality metrics and using those initial values to identify opportunities for improvement. Unless the equipment is state-of-the-art, in a climate of high demand, and the operating team is highly trained, the expectation should be that the initial OEE value will be relatively low. Your OEE target may be substantially less than world-class, and that’s OK. The exercise for calculating your OEE has identified where you have extra capacity for production (Availability), room to improve when you are running (Performance), and how well your operational assets yield salable product (Quality). To sum it up, the point of calculating OEE is to help your operation improve. Ray needs to figure out where he is in order to understand how to get to where he wants to go.
World class OEE in beer, wine, and spirits manufacturing industries is generally accepted to be 85 percent. This OEE is calculated using the following component values:
Let’s take a second and calculate Ray’s Tavern’s OEE:
RAY’S TAVERN %
60% x 80% x 90% = 43% Ray’s OEE percentage is starting at 43 percent. That doesn’t seem too great, but it gives him a benchmark, and because it’s broken down by the different components, he can understand that Availability is where he needs to improve the most. So how does Ray compare to actual beer, wine, and spirits manufacturers?
WORLD CLASS %
In a recent survey performed by Food Engineering Magazine, manufacturers responded by stating they were achieving the following OEE values:
>> Targeted OEE (average): 79% >> Average OEE (average): 72% For comparison, if you fell seven percentage points below world class in availability and performance and fell one percentage point in quality, your OEE calculations would be:
Ray could say that the availability percentage could be calculated using the time he spends behind the bar, as opposed to the time the bar is open. This would give him an availability percentage of 100 percent and an OEE of 72 percent. That seems much better, but hides the fact that Ray needs to improve his availability percentage.
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