What is Overall Line Efficiency?
Overall Line Efficiency is a metric found in manufacturing that rides off of OEE measurement (Overall Equipment Effectiveness) – a formula used to measure the percentage of planned production, in order to reduce cost and optimize processes. OLE, not to be confused with OEE, is a separate metric that is used to analyze the current performance of a production line and contrast it with how well it could actually be performing. In addition to analyzing data relating to machines or equipment, this formula also takes into consideration the productivity of staff in order to best optimize the relationship between data and human resources.
Efficiency vs Productivity:
Two key terms are often used while attempting to measure how well a factory is operating: productivity and efficiency. Productivity is used when calculating the ratio of output to input in production. Meaning, how much time does it take to create a product? Efficiency, on the other hand, calculates both the quality and effectiveness of a job by evaluating how much time is needed to produce something without waste. This is typically expressed in a percentage form.
It’s important to note that increased productivity does not necessarily mean increased efficiency. In order to optimize manufacturing efficiency, you must produce more output in the same amount of time.
How to Calculate OLE (Overall Line Efficiency)?
To calculate OLE on a regular basis, you need to gather various points of information, such as how many minutes are produced by staff working in the production line, as well as how much time staff spend producing products (output). The calculation itself is based on the output data from the production line and is typically expressed in percentage form.
Prior to calculating OLE, manufacturers must first gather the following data:
- Line output – the total number of pieces produced by the line
- Garment SAM – Standard minutes of a garment (including machine SAM and manual SAM)
- Manpower – the total manpower worked in the line (including all departments)
- Shift hours – the total hours factory works in a day.
The Overall line Efficiency Formula
The formula for calculating overall line efficiency is as follows:
Overall Line Efficiency vs Overall Equipment Effectiveness
For manufacturers, using a combination of OEE and OLE calculations to monitor the performance of production is an extremely useful tool for manufacturing managers to ensure an optimized factory. OEE measurement assists manufacturers in their mission of evolving their business by focusing on and optimizing various sectors of the production floor. OLE also assists manufacturers by exposing problematic patterns and uncovers the data to determine root-cause analysis.