Google Answers Logo
View Question
 
Q: Engineering terminology ( Answered,   0 Comments )
Question  
Subject: Engineering terminology
Category: Miscellaneous
Asked by: teanman-ga
List Price: $10.00
Posted: 27 Mar 2004 09:27 PST
Expires: 26 Apr 2004 10:27 PDT
Question ID: 321093
What is the difference between utilisation and performance in terms of machinery

Clarification of Question by teanman-ga on 27 Mar 2004 09:58 PST
I have found that there are two ways to calculate the OEE of a machine one is 
Availibility x performance x quality

the other is 

utilisation x availibility x quality

does this mean that utilisation is the same as performance or not
Answer  
Subject: Re: Engineering terminology
Answered By: denco-ga on 27 Mar 2004 10:50 PST
 
Howdy teanman-ga,

No, utilization and performance are not the same, at least
not when it comes to machinery.  Utilization is one of the
two ways to measure availability, specifically, when that
availability is described in the number of hours that piece
of equipment is available.  Utilization = Availability

The performance rate is the percentage of parts that is
produced versus the maximum rate possible.  This is also
called efficiency.  Performance = Efficiency

The above are two of three factors (quality being the third)
of calculating "operating equipment effectiveness" or OEE.

From the Business Industrial Network web site.
http://www.bin95.com/Overall_Equipment_Effectiveness_OEE.htm

"OEE = Availability X Performance Rate X Quality Rate

Availability

Percent of scheduled production (to measure reliability) or
calendar hours 24/7/365  (to measure equipment utilization),
that equipment is available for production.

...

Performance Rate

Percent of parts produced per time frame, of maximum rate OEM
rated production speed at.

...

Quality Rate

Percent of good sellable parts out of total parts produced per
time frame."

The Business Industrial Network has an online OEE calculator,
if you want to play around with figuring OEE.
http://www.downtimecentral.com/OEE_TEEP.htm

Any description of OEE that states: "utilisation x availibility
x quality" would appear to be incorrect, which could lead to
confusion.

If you need any clarification, feel free to ask.


Search Strategy:

Google search on: utilization availability quality OEE
://www.google.com/search?q=utilization+availability+quality+OEE

Looking Forward, denco-ga - Google Answers Researcher

Request for Answer Clarification by teanman-ga on 28 Mar 2004 09:56 PST
I have since found that one of the founders of OEE, Denso Manufacturing use the 

utilisation x availability x quality

calculation, for which I believe that there is some benefit to using
because if there are 24 hours in a day and the machine is only used
for 8 of them, then this may be seen as a manufacturing loss. I have
also since found more evidence of another OEE calculation which is

availability x utilisation x performance x quality

which also seems to recognise the requirement for including
utilisation in an OEE calculation.

Thanks for the answer but still not sure which one is correct.

Clarification of Answer by denco-ga on 28 Mar 2004 13:24 PST
Howdy teanman-ga,

Confusion on how to do the OEE calculation is exactly why many
organizations do not use it.  That said, the two calculations
that you present just don't make any sense, as utilization is
just one way of figuring the availability of a machine.

Utilization = Availability

There is no problem with substituting the percentage of "real"
hours the machine is available (reliability) instead of using
the potential number of hours (24/7/365) the machine could be
used (utilization.)  Indeed, many places calculate OEE that way.

Reliability = Availability

The Plant Maintenance Resource Center states it as plainly as it
can be.
http://www.plant-maintenance.com/articles/tpm_intro.shtml

"OEE ( Overall Equipment Efficiency ) :  OEE = A ...

A - Availability of the machine. Availability is proportion of time
machine is actually available out of time it should be available."

As an example, if the machine is normally only used 8 hours a
day, then there is no problem with calculating the that machine's
availability as a percentage of the hours that the machine is
actually used during that 8 hour period.  So, if that machine has 
an actual running time of 6 hours out of the 8 hours that it
should have been available, then you have a 75% (.75) availability.

There are even differing methods of calculating "performance" (and
"quality," too!) as well, again some ways taking into account "real
world" numbers of what that machine can realistically produce versus
the possible maximum numbers of what the vendor says that machine can
produce.  Machines are often ran at slower speeds than the "maximum"
so as to prevent jamming or undue stress on the machine.

Ultimately it doesn't matter which method is used to calculate
"availability" or "performance" or "quality" as long as you are
consistent in your method.   You are just comparing one of your own
OEE numbers against another one of your OEE numbers from one point to
another, and not against any kind industry "standard" of some sort.

Regardless, the consistent formula of calculating OEE is:

Availability x Performance x Quality

Some people substitute "utilization" for "availability," but that
just confuses matters.  Availability is the more accurate, and
more consistent, term.

Yes, I have seen the following web page:
http://www.maintenanceresources.com/referencelibrary/ezine/TPMimplementation.htm

Wherein it is stated:

"OEE = Availability x Uptime Utilisation x Process Performance x Quality Yield"

In this case they are using "Uptime Utilisation" to mean "idling /
engineering time" which is a different concept than when "utilization"
is used in the context of machine availability.  All the more reason
to consistently use the term "availability" in the calculation.

The following article from the Maintenance Technology web site might
interest you, as it presents three(!) ways of calculating OEE.
http://www.mt-online.com/current/06-98mm.html

"Using the example, three methods of calculating OEE are shown. Note
that accurate OEE can be determined from theoretical cycle time, number
of good units, and scheduled time."

Back to your original question of whether "utilisation and performance"
are the same, again, they are different things, as utilization (more
correctly, availability) is the percentage of time the machine is in
actual use versus the amount of time it is open to use, and performance
is a measure of pieces made versus the number of pieces that could have
possibly been made with that machine.

Looking Forward, denco-ga - Google Answers Researcher
Comments  
There are no comments at this time.

Important Disclaimer: Answers and comments provided on Google Answers are general information, and are not intended to substitute for informed professional medical, psychiatric, psychological, tax, legal, investment, accounting, or other professional advice. Google does not endorse, and expressly disclaims liability for any product, manufacturer, distributor, service or service provider mentioned or any opinion expressed in answers or comments. Please read carefully the Google Answers Terms of Service.

If you feel that you have found inappropriate content, please let us know by emailing us at answers-support@google.com with the question ID listed above. Thank you.
Search Google Answers for
Google Answers  


Google Home - Answers FAQ - Terms of Service - Privacy Policy