EQUIPMENT FAILURE
Equipment Failure accounts for any substantial amount of time during which equipment is scheduled for production but is not working due to some form of malfunction. A more abstract way of thinking about failure of the equipment is like any unplanned stop or downtime. Insufficiency of equipment is a lack of quality.Examples of common causes for failure of the equipment include machine malfunction, breakdowns and unplanned maintenance. From the broader perspective of unplanned stops, other common reasons include no operators or materials, being starved by upstream equipment or being blocked by downstream equipment.
There is flexibility on where to set the threshold between equipment failure (an Availability Loss) and a minor stop (a Performance Loss). A good rule of thumb is to set that threshold based on your policy for tracking reasons. For example, your policy might be that any downtime longer than two minutes should have a reason associated with it – and thus shall be considered equipment failure.
SETUP AND ADJUSTMENTS
Setup and Adjustments accounts for any consequential periods of time in which equipment is scheduled for engenderment but is not running due to a changeover or other equipment adjustment. A more generalized way to cerebrate of Setups & Adjustments is as any orchestrated stop. Setup and Adjustments is an Availability Loss.Examples of prevalent reasons for Setup and Adjustments include setup, changeovers, major adjustments, and tooling adjustments. From the broader perspective of orchestrated ceases, other prevalent reasons include cleaning, warmup time, orchestrated maintenance, and quality inspections.
The most sizably voluminous source of Setup and Adjustment time is typically changeovers (additionally referred to as make yare or setup), which can be addressed through a SMED (Single-Minute Exchange of Dies) program.
IDLING AND MINOR STOPS
Idling and Minor Stops accounts for time where the equipment stops for a short period of time (typically a minute or two) with the stop resolved by the operator. Another name for Idling and Minor Stops is small stops. Idling and Minor Stops is a Performance Loss.Examples of common reasons for Idling and Minor Stops include misfeeds, material jams, obstructed product flow, incorrect settings, misaligned or blocked sensors, equipment design issues, and periodic quick cleaning.
This category usually includes stops that are well under five minutes and that do not require maintenance personnel. The underlying problems are often chronic (same problem/different day), which can make operators somewhat blind to their impact. Most companies do not accurately track Idling and Minor Stops.
REDUCED SPEED
Reduced Speed accounts for time where equipment runs slower than the Ideal Cycle Time (the theoretical fastest possible time to manufacture one part). Another name for reduced speed is slow cycles. Reduced speed is a Performance Loss.Examples of common reasons for reduced speed include dirty or worn out equipment, poor lubrication, substandard materials, poor environmental conditions, operator inexperience, startup, and shutdown.
This category includes anything that keeps the process from running at its theoretical maximum speed (a.k.a. Ideal Run Rate or Nameplate Capacity) when the manufacturing process is actually running.
PROCESS DEFECTS
Process Defects account for defective parts produced during stable (steady-state) production. This includes scrapped parts as well as parts that can be reworked, since OEE measures quality from a First Pass Yield perspective. Process defects are a Quality Loss.Examples of common reasons for process defects include incorrect equipment settings, operator or equipment handling errors, and lot expiration (e.g., in pharmaceutical plants).
REDUCED YIELD
Reduced Yield accounts for defective parts produced from startup until stable (steady-state) production is reached. This includes scrapped parts as well as parts that can be reworked, since OEE measures quality from a First Pass Yield perspective. Reduced Yield can occur after any equipment startup, however, it is most commonly tracked after changeovers. Reduced Yield is a Quality Loss.Examples of common reasons for Reduced Yield include suboptimal changeovers, incorrect settings when a new part is run, equipment that needs warmup cycles, or equipment that inherently creates waste after startup

