Overall Line Efficiency | Matics (2024)

What is Overall Line Efficiency?

Overall Line Efficiency is a metric found in manufacturing that rides off of OEE measurement (Overall Equipment Effectiveness) – a formula used to measure the percentage of planned production, in order to reduce cost and optimize processes. OLE, not to be confused with OEE, is a separate metric that is used to analyze the current performance of a production line and contrast it with how well it could actually be performing. In addition to analyzing data relating to machines or equipment, this formula also takes into consideration the productivity of staff in order to best optimize the relationship between data and human resources.

Efficiency vs Productivity:

Two key terms are often used while attempting to measure how well a factory is operating: productivity and efficiency. Productivity is used when calculating the ratio of output to input in production. Meaning, how much time does it take to create a product? Efficiency, on the other hand, calculates both the quality and effectiveness of a job by evaluating how much time is needed to produce something without waste. This is typically expressed in a percentage form.

It’s important to note that increased productivity does not necessarily mean increased efficiency. In order to optimize manufacturing efficiency, you must produce more output in the same amount of time.

How to Calculate OLE (Overall Line Efficiency)?

To calculate OLE on a regular basis, you need to gather various points of information, such as how many minutes are produced by staff working in the production line, as well as how much time staff spend producing products (output). The calculation itself is based on the output data from the production line and is typically expressed in percentage form.

Prior to calculating OLE, manufacturers must first gather the following data:

  • Line output – the total number of pieces produced by the line
  • Garment SAM – Standard minutes of a garment (including machine SAM and manual SAM)
  • Manpower – the total manpower worked in the line (including all departments)
  • Shift hours – the total hours factory works in a day.

The Overall line Efficiency Formula

The formula for calculating overall line efficiency is as follows:

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Overall Line Efficiency vs Overall Equipment Effectiveness

For manufacturers, using a combination of OEE and OLE calculations to monitor the performance of production is an extremely useful tool for manufacturing managers to ensure an optimized factory. OEE measurement assists manufacturers in their mission of evolving their business by focusing on and optimizing various sectors of the production floor. OLE also assists manufacturers by exposing problematic patterns and uncovers the data to determine root-cause analysis.

Overall Line Efficiency | Matics (2024)

FAQs

What is a good line efficiency? ›

In a factory where there is a single dry food being fed through a production line and there's no need to factor in time for a product switch/changeover or resetting a machine, a good efficiency rate might be anywhere between 90% up to 99%.

How do you calculate overall line efficiency? ›

In process manufacturing, the simplest way to calculate it is to add up the OEE of all the machines in the process, then divide the total by the total number of machines.

What does 60% efficiency mean? ›

If the machine is 60% then that means machine is capable of converting 60% work from input to output. For better understanding we take an example like we apply 100 J work as input in machine and machine efficiency is 60% then we will get only 60 J work as output.

What does 80% efficient mean? ›

AFUE measures a furnace's efficiency in converting fuel to energy. For instance, 80% AFUE for a gas furnace means it uses 80% of the gas energy it consumes and turns it to heat.

What is a good OEE score? ›

OEE Benchmarks

85% OEE is considered world class for discrete manufacturers. For many companies, it is a suitable long-term goal. 60% OEE is fairly typical for discrete manufacturers, but indicates there is substantial room for improvement.

What does line efficiency indicate? ›

Overall Line Efficiency is a metric found in manufacturing that rides off of OEE measurement (Overall Equipment Effectiveness) – a formula used to measure the percentage of planned production, in order to reduce cost and optimize processes.

What are the 3 components of OEE? ›

OEE is a combination of three factors that tell you how efficient an asset is during the manufacturing process: asset availability, asset performance, and production quality. Each one can tell you something different about how an asset operates.

What does 40% efficiency mean? ›

The meaning of the statement “ An efficiency of the engine is 40 percent “ is that only 40 percent of input energy is utilised to do output work. The ratio of output and input energy is 0.4. Or, in terms of percentage, it is 40 percent.

What does 30% efficiency mean? ›

If a certain machine is 30% efficient, this means that the machine will convert 30% energy input into useful work and 70% of the energy input will be wasted. Efficiency means how much amount of input can a machine converts into useful work.

What does the efficiency is 75% mean? ›

If a machine is 75% efficient, it means that 75% of the work input to the machine is obtained as the useful work output. The remaining 25% of the work input has been lost in overcoming the friction.

What happens if efficiency is 100%? ›

A machine cannot be 100% efficient because the Second Law of thermodynamics forbids it. The Second Law of thermodynamics states that a transformation whose only final result is to transform to work, heat extracted from a source which is at the same temperature throughout is impossible.

What does 100% efficient mean? ›

An efficiency of 100% means that there is no loss and the output energy (or work) of the machine is equal to the input energy (or work). In real machines, there is always some loss of energy to overcome friction and air resistance.

Can efficiency be over 100%? ›

Efficiency is the percent of work put into a machine by the user (input work) that becomes work done by the machine (output work). The output work is always less than the input work because some of the input work is used to overcome friction. Therefore, efficiency is always less than 100 percent.

What does 85% OEE mean? ›

100 percent OEE is considered perfect production. 85 percent OEE reflects world-class operations. 60 percent OEE is typical and average. 40 percent OEE is low but not uncommon.

What does 100% OEE mean? ›

An OEE score of 100% means you are manufacturing only Good Parts, as fast as possible, with no Stop Time. In the language of OEE that means 100% Quality (only Good Parts), 100% Performance (as fast as possible), and 100% Availability (no Stop Time).

Is 100 OEE possible? ›

Is it possible for OEE or any of its underlying metrics to exceed 100%? No. An OEE score of 100% represents perfect production – manufacturing only good parts, as fast as possible, with no stop time.

Is high or low efficiency better? ›

Lower Utility Bills – High efficiency systems with higher SEER ratings use less energy, which translates to less money you spend on energy bills. In fact, switching from an old 8 SEER unit to a 16 SEER one can save you 50% on your energy bill. Bottom line: higher efficiency = lower bills.

Is lower efficiency better? ›

Since a bank's operating expenses are in the numerator and its revenue is in the denominator, a lower efficiency ratio means that a bank is operating better. An efficiency ratio of 50% or under is considered optimal.

What is efficient output level? ›

At the efficient level of output, it is impossible to produce greater consumer surplus without reducing producer surplus, and it is impossible to produce greater producer surplus without reducing consumer surplus. This efficient level is the market equilibrium!

How is OEE performance measured? ›

Calculating Performance for OEE

Performance is calculated by dividing your Total Count by Run Time and comparing it to your Ideal Run Rate or Performance = (Total Count / Run Time) / Ideal Run Rate.

What is the ideal run rate? ›

Ideal Run Rate is the theoretical maximum production rate. The inverse of Ideal Cycle Time. Used to calculate OEE Performance. A variation of the calculation uses Ideal Cycle Time instead.

What is the difference between OEE and efficiency? ›

Overall equipment effectiveness means to use machines up to the limit; Overall equipment efficiency means to use machines up to the limit and with minimal resources.

What does an efficiency of 40% mean? ›

40% efficiency means that. 40% of the heat given is used to do useful work and the 60% was not useful to the device or system.

What is a good mechanical efficiency? ›

According to a survey by Ratchet+Wrench, less than a third of the percent of shop owners had technician productivity levels of 90%+ while the industry benchmarks for efficiency view 130-150% as good starting points.

What is a good building efficiency ratio? ›

What is a Good Building Efficiency Ratio? Office and industrial buildings generally have a higher building efficiency ratio than multifamily developments, generally between 80-85%. In contrast, apartments are somewhat less efficient, with an average building efficiency ratio of 70-75%.

What does 50% efficiency mean? ›

If a power supply with 50% efficiency is required to provide a 50W power to a load, it will draw 100 W from the wall. The other 50% gets wasted as heat and other losses.

What are efficiency levels? ›

The term "efficiency" refers to the peak level of performance that uses the least amount of inputs to achieve the highest amount of output. Efficiency requires reducing the number of unnecessary resources used to produce a given output, including personal time and energy.

What does highest efficiency mean? ›

A process with high efficiency requires only a little work to produce big results. Definitions of efficiency. skillfulness in avoiding wasted time and effort. “she did the work with great efficiency” Antonyms: inefficiency.

What makes a high efficiency? ›

High efficiency furnaces are typically between a 90 and 98 percent AFUE rating and include features like two heat exchangers, variable speed fans, sealed combustion chamber, and smart controls.

What do you mean by 70% efficiency? ›

If a machine is 70% efficient, it means that 70% of the work input to the machine is obtained as the useful work output.

Can efficiency be more than 1 or 100%? ›

Even though the energy efficiency calculated using common methods exceeds 100%, more than 100% of the theoretical energy content of the fuel, expressed as the Higher Heating Value (HHV), is naturally not recovered.

How do you measure building efficiency? ›

A very commonly used metric for building energy performance is the energy use index (EUI), defined as the energy consumption per unit conditioned floor area. In the U.S., this metric is expressed in Btu per square foot, and it is the metric used by the widely accepted Energy Star Portfolio Manager.

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