OSCM Assignment - Equipment Effectiveness
Every successful Manager must evaluate the operating efficiencies of the enterprise. A mathematical measuring system known as Equipment Effectiveness (EE) was developed to meet this need. EE can be used to measure the effectiveness of an individual piece of machinery, a production line, a motorized vehicle, almost anything related to operations.
• EE measures three (3) different components: Time, Speed (sometimes called Rate), and Quality. Each of these factors is measured by decimal equivalent.
• The overall measurement, Equipment Effectiveness, is a product of multiplying the three (3) components in a chain, using decimal equivalent then converting into a percentage. For example, .875 = 87.5%.
1. Time = (elapsed time in minutes - recorded downtime in minutes) / elapsed time in minutes
2. Speed = (number of units produced / up-time minutes) / standard speed
Note: uptime is the opposite of downtime used in calculating Time, above.
3. Quality = (total units produced - discards or unsalable units) / total units produced
EE % = T x S x Q (all in decimal equivalents); expressed as a percentage
Problem
We need to know how effective our bottle filler operated for the past month.
Data for month:
Number of working days 22
Actual elapsed time worked per day in hours 8.5
Minutes of downtime recorded during month 871
Rated speed (bottles per minute) 240
Total bottles filled 2,345,272
Bottles discarded 72,727
Assignment: Calculate the filler’s Equipment Effectiveness
• Time
• Rate/Speed
• Quality
• Equipment Effectiveness = T x R x Q