Reference no: EM131234513

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