Certified Maintenance & Reliability Professional (CMRP) Practice Exam

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How is Overall Equipment Effectiveness (OEE) calculated?

  1. Availability + Performance + Quality

  2. Availability x Performance x Quality

  3. (Performance + Quality) / Availability

  4. Quality / (Availability x Performance)

The correct answer is: Availability x Performance x Quality

Overall Equipment Effectiveness (OEE) is calculated by multiplying three key factors: Availability, Performance, and Quality. This multiplicative approach reflects how effectively a manufacturing operation is utilized. Availability represents the percentage of scheduled production time that the equipment is actually operating. Performance measures how well the equipment performs compared to its maximum potential output during the time it is available. Quality indicates the proportion of produced items that meet quality standards, thus excluding defective products. By using multiplication, OEE provides a single percentage that encapsulates the efficiency of the equipment, taking into account all three dimensions of effectiveness. If any one of these factors is low, it significantly impacts the overall effectiveness, reinforcing the importance of optimizing all areas of operation for improved productivity. The focus on multiplying the dimensions highlights that an improvement in one area alone (e.g., better quality) won't fully compensate for poor performance or availability. In contrast, other proposed methods of calculation, such as addition or division, do not accurately represent the interdependent relationship between these variables in the context of efficiency in manufacturing.