Final answer:
Overall Equipment Effectiveness (OEE) is calculated by multiplying the ratios of availability, performance, and quality. There are no losses in availability as no downtime was reported, but there are losses in performance and quality, with the machine not running at maximum capacity and producing defective units.
Step-by-step explanation:
The Overall Equipment Effectiveness (OEE) is a measure of manufacturing productivity, which includes three components: availability, performance, and quality. To calculate OEE with respect to losses, we need to consider these components:
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- Availability Loss: The time the machine is not producing (due to downtime) in comparison to the planned production time. In this case, there is no downtime mentioned, so this part of the loss is zero.
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- Performance Loss: This is due to the machine not running at its maximum capacity. The machine's maximum capacity is 600 units per hour, but it produced 450 good units plus 20 defective units, totalling 470 units. To find the performance loss, one would calculate the performance ratio which is actual output (470 units) over potential output (600 units).
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- Quality Loss: This is represented by the defective items. Out of 470 produced units, 20 are defective. So, we calculate the quality ratio by dividing good units (450) by total produced units (470).
After finding all three ratios, the OEE is the product of these ratios, expressed as a percentage. This metric provides insight into different areas of loss in the production process, helping to pinpoint where improvements can be made.