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Overall equipment effectiveness [1] (OEE) is a measure of how well a manufacturing operation is utilized (facilities, time and material) compared to its full potential, during the periods when it is scheduled to run.
Utilization factor (solid line) with blade-to-gas speed ratio. The utilization factor or use factor is the ratio of the time that a piece of equipment is in use to the total time that it could be in use. It is often averaged over time in the definition such that the ratio becomes the amount of energy used divided by the maximum possible to be used.
Capacity utilization or capacity utilisation is the extent to which a firm or nation employs its installed productive capacity (maximum output of a firm or nation). It is the relationship between output that is produced with the installed equipment, and the potential output which could be produced with it, if capacity was fully used. [ 1 ]
Capacity can be increased through introducing new techniques, equipment and materials, increasing the number of workers or machines, increasing the number of shifts, or acquiring additional production facilities. Capacity is calculated as (number of machines or workers) × (number of shifts) × (utilization) × (efficiency).
OLE also accounts for labor utilization. Understanding where downtime losses are coming from and the impact they have on production can reveal root causes—which can include machine downtime, material delays, or absenteeism—that delay a line startup. Calculation: Availability = Time operators are working productively / Time scheduled Example:
In lean manufacturing, machine operator efficiency (MOE) is the performance of an employee who operates industrial machinery. [1] The operator's efficiency is measured as the time spent producing product divided by the time the operator is on duty. [ 2 ]
By using the utilization percentage of each production unit, it is possible to determine the machine which uses the highest percentage of its capacity. This machine is bottlenecking the other machines by 'forcing' them to operate at a lower capacity.
Looked at simply, there are two methods to calculate the utilization rate. The first method calculates the number of billable hours divided by the number of hours recorded in a particular time period. For example, if 40 hours of time is recorded in a week but only 30 hours of that was billable, the utilization rate would then be 30 / 40 = 75%.