ISO 22400-2:2014

INTERNATIONAL ISO
STANDARD 22400-2
First edition
2014-01-15
Automation systems and
integration — Key performance
indicators (KPIs) for manufacturing
operations management —
Part 2:
Definitions and descriptions
Systèmes d’automatisation et intégration — Indicateurs de
la performance clé pour le management des opérations de
fabrication —
Partie 2: Définitions et descriptions
Reference number
©
ISO 2014
© ISO 2014
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ii © ISO 2014 – All rights reserved

Contents Page
Foreword .iv
Introduction .v
1 Scope . 1
2 Terms and definitions . 1
3 Symbols and abbreviated terms . 1
4 Structure of KPI description . 4
5 Elements used in KPI description . 5
5.1 Time elements . 5
5.2 Time model for work units . 7
5.3 Time model for production order . 8
5.4 Time model for personnel . 9
5.5 Logistical elements . 9
5.6 Quality elements .11
5.7 Quality elements .11
6 Description of KPIs.12
7 Conformance .37
Annex A (normative) Effect models .38
Annex B (informative) Alternative OEE calculation based on loss time model .57
Bibliography .60
Foreword
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different types of ISO documents should be noted. This document was drafted in accordance with the
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to Trade (TBT) see the following URL: Foreword - Supplementary information
The committee responsible for this document is Technical Committee ISO/TC 184, Automation systems
and integration, Subcommittee SC 5, Interoperability, integration and architectures of automation systems
and applications.
ISO 22400 consists of the following parts, under the general title Automation systems and integration —
Key performance indicators (KPIs) for manufacturing operations management
— Part 1: Overview, concepts and terminology
— Part 2: Definitions and descriptions
The following parts are under preparation:
— Part 3: Exchange and use
— Part 4: Relationships and dependencies
iv © ISO 2014 – All rights reserved

Introduction
This part of ISO 22400 focuses on key performance indicators (KPIs) for manufacturing operations
management.
KPIs are defined as quantifiable and strategic measurements that reflect an enterprise’s critical success
factors. KPIs are very important for understanding and improving manufacturing performance, both
from the lean manufacturing perspective of eliminating waste and from the corporate perspective of
achieving strategic goals.
Manufacturing operations management (MOM) is a term used in IEC 62264 to specify a portion of the
functional hierarchy model of a manufacturing enterprise. Figure 1 depicts the different levels of the
functional hierarchy model: business planning and logistics (Level 4), manufacturing operations and
control (Level 3), and batch, continuous, or discrete control (Level 1-2). The levels provide different
functions and work in different timeframes.
NOTE Adapted from IEC 62264-3.
Figure 1 — Functional hierarchy
IEC 62264 also specifies a hierarchical structure for the physical equipment (see Figure 2). Enterprise,
site and areas are generic terms, whereas there are specific terms for work centres and work units that
apply to batch production, continuous production, discrete or repetitive production, and for storage and
movement of materials and equipment.
NOTE Adapted from IEC 62264-3.
Figure 2 — Role based equipment hierarchy
This part of ISO 22400 specifies the KPIs “residing” at Level 3, i.e. related to MOM. These KPIs are
generated/calculated within Level 3. Some of these KPIs are forwarded to Level 4 for further usage. In
order to generate these KPIs, parameters from Levels 2 and 1 might be needed.
The KPIs in this part of ISO 22400 use the most generic terms possible (e.g. work centres and work
units), instead of industry specific terms.
MOM, sometimes referred to as manufacturing execution systems (MES), models four major categories
of operations management:
— production operations management;
— maintenance operations management;
— quality operations management;
— inventory operations management.
An activity model further details each category. Each activity model includes eight activities:
— detailed scheduling;
— dispatching;
— execution management;
— resource management;
— definition management;
— tracking;
vi © ISO 2014 – All rights reserved

— data collection;
— analysis.
These activities apply to production operations, quality operations, inventory operations and
maintenance operations.
Analysis is the performance of calculating KPIs using information from other activities. Workflows can
be used to illustrate the important events and steps needed in the calculation process for KPIs.
KPIs alone are not sufficient factors to perform the necessary management and execution operations for
an enterprise. For many of the indicators, a company specific threshold is defined. When the value of the
indicator exceeds or falls below the threshold, actions are initiated (e.g. to improve efficiency or quality).
Often it is necessary to define warning and action limits. Warning limits help to detect the trends in
process and equipment changes before company-specific thresholds are violated.
To improve the productivity of the manufacturing resources, information provided by industrial
automation systems and control devices about process, equipment, operator, and material can be useful
for providing critical feedback through KPIs.
A standardized schema for the expression of these KPIs is intended to:
a) facilitate the specification and procurement of integrated systems, in particular, the interoperability
requirements among MES applications;
b) provide a means to categorize productivity tools that can be used across applications.
ISO 22400 provides an overview of the concepts, the terminology and the methods to describe and to
exchange KPIs for the purpose of managing manufacturing operations. The audience is factory managers
responsible for production performance, software suppliers developing KPIs for factory management,
engineers engaged in process planning of products, planners and designers of manufacturing systems,
and equipment and device suppliers.
KPIs also reside at Level 4, i.e. KPIs related to business planning and logistics, which are outside the
scope of this part of ISO 22400. Level 4 KPIs are often related to economic, business, logistic and financial
factors. These KPIs are used to assess the progress or extent of compliance with regard to important
objectives or critical success factors within a company. Economic KPIs serve as a basis for decisions
(problem identification, presentation, information extraction), for economic control (target/actual
comparison), for financial documentation and for coordination (behaviour management) of important
facts and relationships within the company.
INTERNATIONAL STANDARD ISO 22400-2:2014(E)
Automation systems and integration — Key performance
indicators (KPIs) for manufacturing operations
management —
Part 2:
Definitions and descriptions
1 Scope
ISO 22400 specifies key performance indicators (KPIs) used in manufacturing operations management
(MOM).
This part of ISO 22400 specifies a selected number of KPIs in current practice. The KPIs are presented
by means of their formula and corresponding elements, their time behaviour, their unit/dimension and
other characteristics. This part of ISO 22400 also indicates the user group where the KPIs are used, and
the production methodology to which they correspond.
With reference to equipment, the KPIs in this part of ISO 22400 relate to work units, as specified in
IEC 62264.
2 Terms and definitions
For the purposes of this document, the following terms and definitions apply.
2.1
reference time
base timeline used for time models, corresponding to the planned maximum time interval available for
production and maintenance tasks
EXAMPLE A calendar day with 24 hours; a week.
2.2
planned time
planned duration of a specific time period
EXAMPLE The intended duration of an operation or a resource state according to the planning.
2.3
actual time
realized duration of a specific time period
EXAMPLE The actual duration of an operation or a resource state.
Note 1 to entry: Actual time may be less than, equal to, or greater than corresponding planned time.
2.4
time model
partition of the reference time
3 Symbols and abbreviated terms
ADET actual unit delay time
ADOT actual unit downtime
AOET actual order execution time
APAT actual personnel attendance time
APT actual production time
APWT actual personnel work time
AQT actual queuing time
AUST actual unit setup time
ATT actual transport time
AUBT actual unit busy time
AUPT actual unit processing time
CI consumables inventory
C machine capability index
m
CM consumed material
C critical machine capability index
mk
CMT corrective maintenance time
C process capability index
p
C critical process capability index
pk
EPC equipment production capacity
FE failure event
FGI finished goods inventory
GP good part
GQ good quantity
IGQ integrated good quantity
IP inspected part
LSL lower specification limit
LT loading time
MOM manufacturing operations management
NEE net overall equipment effectiveness index
NOT net operating time
OC operation cluster
OEE overall equipment effectiveness
OL other loss
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OPT operating time
PBT planned busy time
PL production loss
PMT preventive maintenance time
PO production order
POET planned order execution time
POQ planned order quantity
POS production order sequence
POT planned operation time
PQ produced quantity
PRI planned run time per item
PSQ planned scrap quantity
PUST planned unit setup time
RMI raw material inventory
RQ rework quantity
σ standard deviation
SQ scrap quantity
STL storage and transportation loss
TBF operating time between failure
TTF time to failure
TTR time to repair
USL upper specification limit
WG working group
WIP work in process inventory
WOP work process
WP work place
x
arithmetic average
x
average of average values

σ
estimated deviation
σ variance
4 Structure of KPI description
KPI specifications are expressed using the structure in Table 1 and are in accordance with ISO 22400-1.
The structure in Table 1 identifies KPI descriptive elements in the left column and gives a description of
each element in the right column.
Table 1 — Structure of KPI description
KPI description
Content:
Name Name of the KPI
ID A user defined unique identification of the KPI in the user environment
Description A brief description of the KPI
Scope Identification of the element that the KPI is relevant for, which can be a work unit, work centre
or production order, product or personnel
Formula The mathematical formula of the KPI specified in terms of elements
Unit of measure The basic unit or dimension in which the KPI is expressed
Range Specifies the upper and lower logical limits of the KPI
Trend Is the information about the improvement direction, higher is better or lower is better
Context:
Timing A KPI can be calculated either in
• real-time - after each new data acquisition event
• on demand - after a specific data selection request
• periodically - done at a certain interval, e.g. once per day
Audience Audience is the user group typically using this KPI. The user groups used in this part of
ISO 22400 are
• Operators – personnel responsible for the direct operation of the equipment
• Supervisors – personnel responsible for directing the activities of the operators
• Management – personnel responsible for the overall execution of production
Production methodology Specifies the production methodology that the KPI is generally applicable for
• Discrete
• Batch
• Continuous
Effect model diagram The effect model diagram is a graphical representation of the dependencies of the KPI elements
that can be used to drill down and understand the source of the element values.
NOTE This is a quick analysis which supports rapid efficiency improvement by corrective
actions, and thus reduces errors
Notes Can contain additional information related to the KPI. Typical examples are
• Constraints
• Usage
• Other information
4 © ISO 2014 – All rights reserved

5 Elements used in KPI description
5.1 Time elements
5.1.1 Notations
In the time model of this part of ISO 22400, in order to process and complete a production order, one or
more tasks are performed using a set of production resources, e.g. production personnel, equipment and
materials.
NOTE 1 Since many continuous operations (e.g. refineries and other petrochemical facilities) define
“throughput” using an arbitrary time period (e.g. a day or a shift), rather than a production order based time
interval, KPIs derived using this production order time model need to be adjusted for those industries.
NOTE 2 The identifying element name abbreviations indicated in round brackets in this clause are used in KPI
calculations in Clause 6.
NOTE 3 Definitions of maintenance elements have been taken from IEC 60050-191.
NOTE 4 The term “time” in the element specifications refers to a duration of time.
5.1.2 Planned times
5.1.2.1 Planned order execution time (POET)
The planned order execution time shall be the planned time for executing an order.
NOTE It is often calculated from the planned run time per item multiplied by the order quantity plus the
planned setup time.
5.1.2.2 Planned operation time (POT)
The planned operation time shall be the planned time in which a work unit can be used. The operation
time is a scheduled time.
5.1.2.3 Planned unit setup time (PUST)
The planned unit setup time shall be the planned time for the setup of a work unit for an order.
5.1.2.4 Planned busy time (PBT)
The planned busy time shall be the planned operation time minus the planned downtime.
NOTE The planned down time can be used for planned maintenance work. The planned busy period is
available for the detailed planning of the work unit for expected production orders.
5.1.2.5 Planned run time per item (PRI)
The planned run time per item shall be the planned time for producing one quantity unit.
5.1.3 Actual times
5.1.3.1 Actual personnel work time (APWT)
The actual personnel work time shall be the time that a worker needs for the execution of a production
order.
5.1.3.2 Actual unit processing time (AUPT)
The actual unit processing time shall be the time needed for setup and for the production.
5.1.3.3 Actual unit busy time (AUBT)
The actual unit busy time shall be the actual time that a work unit is used for the execution of a production
order.
5.1.3.4 Actual order execution time (AOET)
The actual order execution time shall be the time difference between start time and end time of a
production order. It includes the actual busy time, the actual transport and the actual queuing time.
5.1.3.5 Actual personnel attendance time (APAT)
The actual personnel attendance time shall be the actual time that a worker is available to work on
production orders. It does not include actual time for company authorized break periods (e.g. lunch). It
shall be the difference between login and logout excluding breaks.
5.1.3.6 Actual production time (APT)
The actual production time shall be the actual time during which a work unit is producing. It includes
only the value-adding functions.
5.1.3.7 Actual queuing time (AQT)
The actual queuing time shall be the actual time in which the material is either in transport or progressing
through a manufacturing process, i.e. the material is waiting for the process to begin.
5.1.3.8 Actual unit down time (ADOT)
The actual unit down time shall be the actual time when the work unit is not executing order production
although it is available.
5.1.3.9 Actual unit delay time (ADET)
The actual unit delay time shall be the actual time associated with malfunction-caused interruptions,
minor stoppages, and other unplanned time intervals that occur while tasks are being completed that
lead to unwanted extension of the order processing time.
5.1.3.10 Actual unit setup time (AUST)
The actual unit setup time shall be the time consumed for the preparation of an order at a work unit.
5.1.3.11 Actual transport time (ATT)
The actual transport time shall be the actual time required for transport between work units.
5.1.3.12 Actual unit processing time (AUPT)
The actual unit processing time shall be the actual production time plus the actual unit setup time.
5.1.3.13 Actual unit busy time (AUBT)
The actual unit busy time shall be the actual unit processing time plus the actual unit delay time.
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5.1.3.14 Actual order execution time (AOET)
The actual order execution time shall be the time from the start of the order until the time of the
completion of the order.
5.1.4 Maintenance times
5.1.4.1 Time between failures (TBF)
The time between failures shall be the actual unit busy time (AUBT) between two consecutive failures of
a work unit including setup time, production time and repair time related to the orders being processed
and without delay times.
5.1.4.2 Time to repair (TTR)
The time to repair shall be the actual time during which a work unit is unavailable due to a failure.
5.1.4.3 Time to failure (TTF)
The time to failure shall be the time between failures minus the time to repair.
5.1.4.4 Failure event count (FE)
The failure event count shall be the count over a specified time interval of the terminations of the ability
for a work unit to perform a required operation.
5.1.4.5 Corrective maintenance time (CMT)
The corrective maintenance time shall be the part of the maintenance time during which corrective
maintenance is performed on a work unit, including technical delays and logistic delays inherent in
corrective maintenance (see IEC 60050-191).
5.1.4.6 Preventive maintenance time (PMT)
The preventive maintenance time shall be that part of the maintenance time during which preventive
maintenance is performed on a work unit, including technical delays and logistic delays inherent in
preventive maintenance (see IEC 60050-191).
5.2 Time model for work units
This time model applies to time considerations for the use of work units. Figure 3 shows the relationship
between specific periods. In Figure 3, the difference between time elements constitutes a loss of
operation time.
Figure 3 — Time lines for work units
NOTE Annex B provides a time model for work units with different time element partitions for which KPIs
(e.g. OEE) generated using that model are different from those specified in Clause 6.
5.3 Time model for production order
This time model is valid for executing the production order. Figure 4 shows the production order
processing time line consisting of multiple occurrences of operations equipment time lines (see Figure
3). The work unit time lines for a production order may be carried out in separate operations at several
work units.
Figure 4 — Time lines for production order processing
8 © ISO 2014 – All rights reserved

5.4 Time model for personnel
This time model applies to time considerations for personnel.
Figure 5 — Time lines for personnel
5.5 Logistical elements
5.5.1 Planned order quantity (POQ)
The planned order quantity shall be the planned quantity of products for a production order (lot size,
production order quantity).
5.5.2 Scrap quantity (SQ)
The scrap quantity shall be the produced quantity that did not meet quality requirements and either has
to be scrapped or recycled.
5.5.3 Planned scrap quantity (PSQ)
The planned scrap quantity shall be the amount of process-related scrap that is expected when
manufacturing the product (e.g. at the start or ramp-up phases of the manufacturing systems).
5.5.4 Good quantity (GQ)
The good quantity shall be the produced quantity that meets quality requirements.
5.5.5 Rework quantity (RQ)
The rework quantity shall be the quantity that fails to meet the quality requirements, but where these
requirements can be met by subsequent work.
5.5.6 Produced quantity (PQ)
The produced quantity shall be the quantity that a work unit has produced in relation to a production
order.
5.5.7 Raw materials (RM)
The raw materials shall be the materials that are changed into finished goods through the production.
5.5.8 Raw materials inventory (RMI)
The raw materials inventory shall be the inventory of materials that are changed into intermediates or
finished goods through production.
5.5.9 Finished goods inventory (FGI)
The finished goods inventory shall be the amount of acceptable quantity which can be delivered.
5.5.10 Consumable inventory (CI)
The consumable inventory shall be material which is transformed in quantity or quality during the
production process and which is no longer available for use in production operations.
EXAMPLE Fuel.
NOTE Consumables are specified in detail in IEC 62264-1.
5.5.11 Consumed material (CM)
The consumed material shall be the summed quantity of materials consumed by a process.
NOTE In the process industry (e.g. oil refining and chemicals), consumed material is usually used in the
denominator to calculate the related KPIs. In some industrial processes, input can be less than the output. Many
chemical and physical changes occur during production, and product yield has fluctuation and uncertainty. It is
therefore difficult to calculate and measure the output.
5.5.12 Integrated good quantity (IGQ)
The integrated good quantity shall be the summed product count or quantity resulting from a multi-
product production process used in KPI calculations instead of GQ.
EXAMPLE If the quality of a product has not reached a higher level “A”, it can be sold as a product with a
lower quality level “B”. Then the ratio of products of level “B” raises as the ratio of products of level “A” declines.
Therefore, KPIs are calculated from the view of all related products, e.g. the level “A” plus level “B” products.
NOTE Since IGQ represents the quantity of all products during production, all products need to be measured
in the same unit of measure, or be converted to the same unit of measure. A list of conversion coefficients can be
used to unify the measurement modes of different products.
5.5.13 Production loss (PL)
The production loss shall be the quantity lost during production, calculated as output minus input.
NOTE Used in batch and continuous manufacturing.
5.5.14 Storage and transportation loss (STL)
The storage and transportation loss shall be the quantity lost during storage and transportation, e.g.
inventory lost during an inventory calculation or material lost during movement from one place to
another.
NOTE Used in batch and continuous manufacturing.
5.5.15 Other loss (OL)
Other loss shall be the quantity lost due to extraordinary incidents, e.g. natural disasters.
NOTE Used in batch and continuous manufacturing.
5.5.16 Equipment production capacity (EPC)
Equipment production capacity is the maximum production quantity of production equipment.
NOTE Used in batch and continuous manufacturing.
10 © ISO 2014 – All rights reserved

5.6 Quality elements
5.6.1 Good part (GP)
A good part shall be the count of individual identifiable parts, e.g. by serialization, which meets the
quality requirements.
NOTE In discrete manufacturing, a part is typically a single produced item. In batch manufacturing, a party
refers to a specified material lot.
5.6.2 Inspected part (IP)
An inspected part shall be the count of individual identifiable parts, e.g. by serialization, which was
tested against the quality requirements.
NOTE In discrete manufacturing, a part is typically a single produced item. In batch manufacturing, a party
refers to a specified material lot.
5.6.3 Upper specification limit (USL)
An upper specification limit is a value below which performance of a product or process is acceptable. It
represents the maximum acceptable value of a variable.
5.6.4 Lower specification limit (LSL)
A lower specification limit is a value above which performance of a product or process is acceptable. It
represents the minimum acceptable value of a variable.
5.7 Quality elements
5.7.1 Arithmetic average ( x )
If, in a series of n measurements, each measured value x ,…,x ,…,x was measured independently based
1 i n
on repetition conditions, then x (“x-bar”) represents the arithmetic average value from these n
individual values.
5.7.2 Average of average values ( x )
x is calculated from the average of single sample average values ( x ).

5.7.3 Estimated deviation (σ )
The estimated deviation is calculated by the average value of the standard deviation from a sequence
of samples with constant random inspection size, multiplied by a confidence factor depending on the
random inspection size of the standard deviations.
5.7.4 Standard deviation (σ)
The standard deviation is a measure for the dispersion of measured values around its average value, and
is determined from the square root of the variance.
5.7.5 Variance (σ )
The variance is a measure which describes how strongly a measured variable (characteristic) strews. It
is calculated as the distances of the measured values from the average value are squared, summed up
and divided by the number of measured values.
6 Description of KPIs
Tables 2 to 35 describe the KPIs for MOM. Annex A specifies the logical relation among the KPI elements.
Annex A is mandatory for any implementation of this part of ISO 22400, although not all elements of
Annex A are required in all implementations.
Table 2 — Worker efficiency
KPI description
Content
Name Worker efficiency
ID
Description The worker efficiency considers the relationship between the actual personnel work
time (APWT) related to production orders and the actual personnel attendance time
(APAT) of the employee.
Scope Worker, workgroup, work unit
Formula Worker efficiency = APWT / APAT
Unit of measure %
Range Min: 0%
Max: 100%
Trend The higher the better
Context
Timing Periodically
Audience Supervisor, management
Production methodology Discrete, batch, continuous
Effect model diagram see Figure A.1
Notes When calculating worker efficiency be careful of possible double counts if the worker is
working on several work units or production orders simultaneously
12 © ISO 2014 – All rights reserved

Table 3 — Allocation ratio
KPI description
Content
Name Allocation ratio
ID
Description The allocation ratio is the relationship of the complete actual busy time over all work
units (AUBT) involved in a production order to the actual order execution time of a
production order (AOET).
Scope Product, production order, and plant
Formula Allocation ratio = ∑AUBT / AOET
∑AUBT = sum of the AUBT of all work units involved in a production order.
Unit of measure %
Range Min: 0%
Max: 100%
>100% is possible in case of overlapping of production operations
Trend The higher the better
Context
Timing Periodically
Audience Supervisor, management
Production methodology Discrete, batch, continuous
Effect model diagram see Figure A.2
Notes The allocation ratio is an index for the wait times and delay times. It shows how much of
the throughput time of a production order is caused by actual processing. Too much wait
and down time extend the throughput time.
Table 4 — Throughput rate
KPI description
Content
Name Throughput rate
ID
Description Process performance in terms of produced quantity of an order (PQ) and the actual
execution time of an order (AOET).
Scope Product, production order, and plant
Formula Throughput rate = PQ/AOET
Unit of measure Quantity unit / Time unit
Range Min: 0 quantity units / time unit
Max: product-specific
Trend The higher the better
Context
Timing On demand, periodically
Audience Supervisor, management
Production methodology Discrete, batch
Effect model diagram see Figure A.3
Notes The Throughput rate is an index for the performance of a process. This performance
indicator is an important index for the efficiency in production
The performance indicator is calculated per order after order closing. Hours or days are
typical time-units to rate throughput specific for a product.
Table 5 — Allocation efficiency
KPI description
Content
Name Allocation efficiency
ID
Description The allocation efficiency is the ratio between the actual allocation time of a work unit
expressed as the actual unit busy time (AUBT) and the planned time for allocating the
work unit expressed as the planned unit busy time (PBT).
Scope Product, production order, and work unit
Formula Allocation efficiency = AUBT / PBT
Unit of measure %
Range Min: 0%
Max: 100%
Trend The higher the better
Context
Timing On-demand
Audience Operator, supervisor, management
Production methodology Discrete, batch, continuous
Effect model diagram see Figure A.4
Notes The allocation efficiency indicates how strongly the planned capacity of the work unit is
already used and how much planned capacity is still available
The allocation efficiency is only affected by the actual unit idle time while the availabil-
ity KPI takes the actual unit delay time into account.
Table 6 — Utilization efficiency
KPI description
Content
Name Utilization efficiency
ID
Description The utilization efficiency is the ratio between the actual production time (APT) and the
actual unit busy time (AUBT)
Scope Work unit
Formula Utilization efficiency = APT / AUBT
Unit of measure %
Range Min: 0%
Max: 100%
Trend The higher the better
Context
Timing On-demand, periodically, real-time
Audience Operator, supervisor, management
Production methodology Discrete, batch, continuous
Effect model diagram See Figure A.5
Notes This indicator identifies the productivity of work units. Because only the production
time affects an added value which will be paid by the market, the goal should be to get a
high indicator value.
14 © ISO 2014 – All rights reserved

Table 7 — Overall equipment effectiveness index
KPI description
Content
Name Overall equipment effectiveness index
ID
Description The OEE index represents the availability of a work unit (see Table 9), the effectiveness
of the work unit (see Table 10), and the quality ratio (see Table 11) KPIs integrated in a
single indicator.
Scope Work unit, product, time period, product, defect types
Formula OEE index = Availability * Effectiveness * Quality ratio
Unit of measure %
Range Min: 0%
Max: 100%
Trend The higher, the better
Context
Timing On-demand, periodically, real-time
Audience Operator. supervisor, management
Production methodology Discrete, batch, continuous
Effect model diagram See Figure A.6
Notes Overall equipment effectiveness (OEE) is an indicator for the efficiency of work units,
work centres and areas with several work units or an entire work centre. The OEE index
forms the basis for improvements by better production information, identification of
production losses, and improvement of the product quality by optimized processes.
The calculation of OEE based on the hierarchy structure (see Figure 2) is only useful if
the characteristic of the work unit processes would be comparable. Before starting a
benchmark based on the OEE index the criteria for comparability should be checked.
Table 8 — Net equipment effectiveness index
KPI description
Content
Name Net equipment effectiveness index
ID
Description The net equipment effectiveness (NEE) index combines the ratio between actual unit
processing time (AUPT) and planned busy time (PBT), the effectiveness KPI (see
Table 10) and the quality ratio KPI (see Table 11) into a single indicator
Scope Work unit, product, time period, product, defect types
Formula NEE index = AUPT / PBT * Effectiveness * Quality ratio
Unit of measure %
Range Min: 0%
Max: 100%
Trend The higher, the better
Context
Timing On-demand, periodically
Audience Supervisor, management
Production methodology Discrete, batch, continuous
Effect model diagram See Figure A.7
Notes The net equipment effectiveness (NEE) index is comparable with the OEE index but it
includes the setup time within a modified availability KPI that is calculated as the ratio
between the actual unit processing time and the planned busy time.
The NEE index indicates losses by work unit delays, cycle time losses and losses by
rework.
Table 9 — Availability
KPI description
Content
Name Availability
ID
Description Availability is a ratio that shows the relation between the actual production time (APT)
and the planned busy time (PBT) for a work unit.
Scope Work unit, product, time period, product
Formula Availability = APT / PBT
Unit of measure %
Range Min: 0%
Max: 100%
Trend The higher, the better
Context
Timing On-demand, periodically
Audience Supervisor, management
Production methodology Discrete, batch, continuous
Effect model diagram See Figure A.8
Notes Availability indicates how strongly the capacity of a work unit for the production is used
in relation to the available capacity.
The term availability is also called degree of utilization or capacity factor.
Table 10 — Effectiveness
KPI description
Content
Name Effectiveness
ID
Description Effectiveness represents the relationship between the planned target cycle and the
actual cycle expressed as the planned runtime per item (PRI) multiplied by the produced
quantity (PQ) divided by the actual production time (APT).
Scope Work unit, work centre, area, product, time period, product
Formula Effectiveness = PRI * PQ / APT
Unit of measure %
Range Min: 0%
Max: 100%
Trend The higher, the better
Context
Timing On-demand, periodically, real-time
Audience Operator, supervisor, management
Production methodology Discrete, batch, continuous
Effect model diagram See Figure A.9
Notes The effectiveness can be calculated in short periods and indicates how effective a work
unit will be during the production time.
The specification uses the element planned runtime per item (PRI) also known as cycle
time. This specifies how long it takes to produce a fixed quantity of produced material.
Batch and continuous production methodologies typically express the expected output
per time as the quantity that can be produced in a specified period of time (e.g. HL per
hour). This value is reciprocal to the PRI element and can be converted into a PRI by
specifying a fixed quantity of the produced material.
16 © ISO 2014 – All rights reserved

Table 11 — Quality ratio
KPI description
Content
Name Quality ratio
ID
Description The quality ratio is the relationship between the good quantity (GQ) and the produced
quantity (PQ).
Scope Work unit, work centre, area, product, time period, product, defect types
Formula Quality ratio = GQ / PQ
Unit of measure %
Range Min: 0%
Max: 100%
Trend The higher, the better
Context
Timing On-demand, periodically, real-time
Audience Operator, supervisor, management
Production methodology Discrete, batch, continuous
Effect model diagram See Figure A.10
Notes This indicator is usable as real-time indicator for the operator level.
Table 12 — Setup ratio
KPI description
Content
Name Setup ratio
ID
Description The setup ratio is the ratio of actual unit setup time (AUST) to actual unit processing
time (AUPT). It specifies the percentage time used for setup compared to the actual time
used for processing.
Scope Work unit, product, production order
Formula Setup ratio = AUST / AUPT
Unit of measure %
Range Min: 0%
Max: 100%
Trend The lower, the better
Context
Timing On-demand, periodically
Audience Supervisor, management
Production methodology Discrete, batch, continuous
Effect model diagram See Figure A.11
Notes The setup ratio indicates the relative loss of value adding opportunity for the work unit.
The higher the value of the indicator is the higher is the setup time in relation to the
processing time of a production order which adds value to the product. For an enterprise
a high setup ratio means a consumption of (potential) value added time.
The setup ratio has to be considered especially when the order lot size is decreasing
which may happen in a response to the demand for a flexible supply chain.
Table 13 — Technical efficiency
KPI description
Content
Name Technical efficiency
ID
Description The technical efficiency of a work unit is the relationship between the actual production
time (APT) and the sum of the actual production time (APT) and the actual unit delay
time (ADET) which includes the delays and malfunction-caused interruptions.
Scope Work unit, product, and production order
Formula Technical efficiency = APT / (APT + ADET)
Unit of measure %
Range Min: 0%
Max: 100%
Trend The higher, the better
Context
Timing On-demand, periodically, real-time
Audience Operator, supervisor, management
Production methodology Discrete, batch, continuous
Effect model diagram See Figure A.12
Notes The technical efficiency does not include setup time in contrast to the utilization effi-
ciency.
100% corresponds to maximum attainable technical efficiency without malfunction-
caused interruptions.
Table 14 — Production process ratio
KPI description
Content
Name Production process ratio
ID
Description The production process ratio specifies the relationship between the actual production
time (APT) over all work units and work centres involved in a production order and
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