By calculating mechanical efficiency of a plant we can evaluate overall scenario. Overall productivity depends on how better the mechanical efficiency. In below we explained elaborately that how to calculate efficiency of the plant.
Calculating Earned Time :
Earned time is an important concept used to evaluate equipment efficiencies. Earned time is the amount of time that would be used by equipment performing consistently at the standard rate to produce a given volume.
It is calculated by dividing the total number of salable cartons produced by the standard rate. For example, if the total number of salable cartons produced in one day is 10,000, the standard production rate of beverage plant is 200 bottles per minute, or bpm, and there are 24 bottles per cartons,
Earned time = (10000 cartons * 24 bottles)/ 200 bpm
= 1200 minutes = 20 hours
Calculating Line Utilization :
Line utilization can be used to determine how well paid time was utilized.
To calculate line utilization, the earned time is divided for the shift by the paid time, and multiplied by 100. The answer gives the utilization.
For example, if earned time is 20 hours and 24 hour shift that is paid time then,
Line Utilization = (Earned Time/Paid Time) * 100 = (20/24) * 100 = 83.33 %
To increase line utilization, the management team needs to evaluate why production time was lost during the planned shift.
Calculating Line Mechanical Efficiency :
Line mechanical efficiency is defined as earned time divided by scheduled production time and multiplied by 100. This gives the percent of efficiency.
For example, the paid time is 24 hours, which includes lunch, breaks, and changeovers totaling 1 & 1/2 hours. If the planned downtime of 1 & 1/2 hours is subtracted from the paid time, the scheduled production time is 22 & 1/2 hours(1350 minutes).
As calculated earlier, the earned time is 20 hours(1200 minutes). So when the earned time of 1200 minutes is divided by the scheduled time of 1410 minutes hours and multiplied by 100,
Line mechanical efficiency = (1200 / 1350) * 100 = 88.88 %