Mathematics · Overall Equipment Effectiveness (OEE)
The TPM team at a high-speed cheque processing unit calculated the Overall Equipment Effectiveness (OEE) for their primary machine to be 72.0%. The machine's rates were: Availability = 90% and Quality = 80%. To achieve a target OEE of 85.0%, assuming Availability remains at 90% and Quality is maximized to 100%, what is the minimum required Performance Rate, and what type of loss does this address?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Minimum Performance Rate is 75.0%; it addresses Defect Losses.
- 2Minimum Performance Rate is 85.0%; it addresses Breakdown Losses.
- 3Minimum Performance Rate is 90.0%; it addresses Setup and Adjustment Losses.
- 4Minimum Performance Rate is 94.4%; it addresses Reduced Speed Losses.✓
Correct answer
Minimum Performance Rate is 94.4%; it addresses Reduced Speed Losses.
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