Making Common Sense Common Practice: Models for Manufacturing Excellence

Measuring Losses from Ideal

Figure 1-5 illustrates a general definition for uptime, overall equipment effectiveness (OEE), or asset utilization and the losses related thereto. The terms in Figure 1-5 are defined as follows: [6]


Figure 1-5: Uptime/OEE/Asset Utilization Model.
  • Asset utilization rate That percentage of ideal rate at which a plant operates in a given time period. The time period recommended is 8,760 hours per year, but this can be defined as any period, depending on how market losses are treated.

  • Uptime or Overall Equipment Effectiveness (OEE) That percentage of ideal rate at which a plant operates in a given time period, plus the time for no-market-demand losses.

  • Quality Utilization That percentage of ideal rate at which a plant operates in a given time period, plus market demand losses, and changeover and transition losses.

  • Potential Rate Utilization That percentage of ideal rate at which a plant operates in a given time period, plus market demand losses, changeover and transition losses, and quality losses.

  • Availability That period of time the plant is available to run at any rate.

These terms can be confusing, depending upon any individual's experience base hence the effort to define them. For example, many people refer to uptime as any time a line or plant is up and running.

For them, this does not mean that it is being run in an ideal way, just that it's up and running, regardless of rate, quality, or other losses from ideal. Further, it may be...

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