I am working on implementing OEE in one of our machines that makes centertubes for automotive oil filters. The steel is rolled and each part number has specific diameter and length. However, the run-rates vary for each part numbers. I am somewhat able to calculate Takt time for each part number based on the standard run-rate. However, the problem for me is to determine Ideal Cycle Time. The machine can run as fast as 65 PPM for one part number while it runs as slow as 13 PPM for some other part number. In this case, what would be the optimal way to calculate Ideal Cycle Time for each part numbers? As you know, Ideal Cycle time is required to calculate Performance Metric of OEE.

Frederick Winslow Taylor , the father of scientific management , introduced what are now called standardization and best practice deployment. In * Principles of Scientific Management * , (1911), Taylor said: "And whenever a workman proposes an improvement, it should be the policy of the management to make a careful analysis of the new method, and if necessary conduct a series of experiments to determine accurately the relative merit of the new suggestion and of the old standard. And whenever the new method is found to be markedly superior to the old, it should be adopted as the standard for the whole establishment."

Hi Carlo, thanks for the compliments.

As for 1) First I that the “unit processing time” does not include losses/waste, otherwise it would be a takt. For the cycle time I would exclude the set up time. In lean there is to my knowledge no need for a cycle time plus proportional set up time. If you want the overall speed, you use a takt. If you want to calculate a target speed of the workers similar to MTM, this would also include other parts like personal breaks.

As for 2), that is a good point, especially if it is NOT a batch process. I would consider the 5 minutes (without losses) a cycle time, and the 2 hours a process time. The question is what do you need the time for. If you want to determine the OEE based on line takt and cycle time, then you would use 5 minutes. Same if you want to determine the number of kanban.