Industrial Performance Formulas for proffesionals.docx

Industrial Performance Formulas

1. Industrial Performance Formulas
Production Metrics
Measures for entire production lines and processes.
Overall Line Effectiveness (OLE)
A holistic measure of production line
performance.
Formula: OLE = AR_line × PR_line × QR_line
Capacity Utilization
Measures how much of the maximum possible
output is being achieved.
Formula: Capacity Utilization = (Actual Output /
Max Possible Output) × 100
Throughput
The average rate of production per hour.
Formula: Throughput = Total Units Produced /
Total time (in hours)
Takt Time

2. The production pace required to meet customer
demand.
Formula: Takt Time = Available Production Time /
Customer Demand
On-Time Delivery (OTD)
The percentage of orders shipped by the
promised date.
Formula: OTD = (Orders Delivered on Time /
Total Orders) × 100
Labor Cost per Unit
The direct labor cost required to produce one
unit.
Formula: Labor Cost per Unit = Total Labor Cost /
Units Produced
Machine Metrics

3. Measures for individual pieces of equipment.
Overall Equipment Effectiveness (OEE)
The gold standard for measuring machine
productivity.
Formula: OEE = AR_m/c × PR_m/c × QR_m/c
Machine Utilization
The percentage of total available time a machine
is running.
Formula: Machine Utilization = (Machine Runtime
/ Available Time) × 100
Machine Efficiency
Compares a machine's actual output to its
standard output.
Formula: Machine Efficiency = (Standard Output /
Actual Output) × 100
Mean Time Between Failures (MTBF)
The average time a machine operates between
breakdowns.

4. Formula: MTBF = Total Operating Time / Number
of Failures
Mean Time to Repair (MTTR)
The average time required to repair a failed
machine.
Formula: MTTR = Total Repair Time / Number of
Repairs
Energy Efficiency per Machine
Units produced per unit of energy consumed.
Formula: Energy Efficiency per Machine = Units
Produced / Energy Consumed (kWh)