Should we calculate OEE when there is no demand?

Q: Some of our machines are not being used every day: We lack the demand of the product. So, I don’t evaluate those machines when they remain idle. But, as per my boss, those idle machines should also be evaluated (i.e. OEE =0) and should be presented in monthly graphical reports. Is it correct to calculate OEE of those machines while they are not running?

Arno Koch • OEE is primarily a shop floor tool to identify effectiveness losses of the equipment.

What is the problem of ‘no demand’?

Whenever the machine is unscheduled because there is no demand (a good decision, specially if you compare it to producing stock) this is not a problem of the equipment yet a problem of the operation; i.e. there is a sales problem. However this problem pops up at the machine.

This is the reason why there are 3 measures based on the same data:

3 KPI’s from the same data

  1. OEE (Overall EQUIPMENT Effectiveness) is being calculated over the time the equipment is normally supposed to be scheduled; usually this equals the regular shift-time (ie 510 minutes in an 8 hrs operation -480 working minutes + 30 min break). If the machine has to be un-scheduled due to no-demand, this time in subtracted from the OEE time, yet it will become visible in the next measure:
  2. OOE (Overall OPERATIONS Effectiveness) is basically the same as OEE, yet it also includes un-scheduled times like whenever the machine is not running due to a lack of demand.
  3. Ultimately TEEP (Total Effective Equipment Performance) is calculated. Again basically the same as the normal OEE yet it takes 24/7 as maximum time. So in a full shift operation, the TEEP will be the same as the OEE.

Visualize ‘OEE’ at ‘No Demand’ without bothering the operating crew

Your boss is right: ‘No Demand’ should be clearly identified and visualized by the management team. And at the same time you are right: There is no need to bother people with such information if they can not influence it!

So use the OEE metric as KPI for the shopfloor team and OOE or TEEP for the management team

Also see:

OEE Industry Standard: Unscheduled Time

How does OEE compare to ‘TEEP’ and ‘Utilization’?

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