OEE for Pharma Industry


India is a prominent and rapidly growing presence in the global pharmaceutical industry. It is the largest provider of generic medicines globally, occupying a 20% share in global supply by volume, and also supplies 62% of the global demand for vaccines. India ranks 3rd worldwide for production by volume and 14th by value. India has the highest number of US-FDA compliant Pharma plants outside of the USA and is home to more than 3,000 pharma companies with a strong network of over 10,500 manufacturing facilities.

All these plants have requirements for cooling systems, air handling units, pumps, compressors, and conveyor belts. There is an average of 300 VFDs in each manufacturing unit for starting and controlling the motors. In certain factories, it is as high as 1500.

The major operations in the typical pharma factory include unit operations such as milling, granulation, compression, coating, and encapsulation.


Key Requirement

  1. OEE – Overall Equipment Effectiveness

  2. Condition Based Monitoring

  3. Preventive Maintenance with respect to Drives/Capacitors and other OTs

  4. Preventive Maintenance with respect to Drives/Capacitors and other OTs

Digitization Gap

As per best Industry practices, all the important assets should be digitized. Performance / Operational / Energy data has to be recorded and stored for Analysis, Efficient Operations, and Benchmarking with historical data.

  • Batch Manufacturing Planning is not linked with machine availability

  • Batch and/or shift wise machine utilization/production records

  • Overall Equipment Effectiveness (OEE) data is not available to all stakeholders

  • Manual Data Collection for energy data and operation data

  • Equipment Idle Time or Status of operation is not available digitally

  • Run time and Planned production time capture is not available

  • Performance parameters like Actual production time to Ideal production time are not available

  • Quality parameters from Actual production count to total count produced with respect to manufacturing to understand the production losses due to quality control needs monitoring and thereby improvement planning

Scope of a typical Pharma Factory

Digitization presents scope for real-time monitoring of the assets, making the operation process efficient, visibility in machines' overall effectiveness, and helping in batch manufacturing planning. The major operations in the Chennai factory include unit operations such as milling, granulation, compression, coating, encapsulation, packing automation, and storage of finished goods before delivery
Data collected from VFD, Energy Meters PLCs, etc. will help is to determine the following parameters

  • Run Time of Machine

  • Idle Time of Machines

  • Production By Wight/Count/Volume

  • SEC Trend analysis for each product line

  • OEE ( Overall Equipment Effectiveness)

The diagram below is for reference to how we connect these devices/equipment


Annexure: OEE - Overall Equipment Effectiveness

OEE stands for Overall Equipment Efficiency, and this has three parameters that will be attributed to OEE.


OEE is calculated as a multiplication of factors,
  • Availability

  • Performance

  • Quality


Availability is calculated as the ratio of Run Time to Planned Production Time:

Availability = Run time / Planned production time


The Run time is calculated as the difference between the Planned Production Time and the actual Run time:

Run Time = Planned production Time − Stop Time


Performance is the ratio of Net Run Time to Run Time. It is calculated as:

Performance = (Ideal Cycle Time ×Total Count) / Run Time

Ideal Cycle Time is the fastest cycle time that your process can achieve in optimal circumstances. Therefore, when it is multiplied by Total Count the result is Net Run Time (the fastest possible time to manufacture the parts).
Since rate is the reciprocal of time, Performance can also be calculated as:

Performance = (Total Count / Run Time) / Ideal Run Time

Performance should never be greater than 100%. If it is, that usually indicates that Ideal Cycle Time is set incorrectly (it is too high).

Quality :

Quality is calculated as:

Quality = Good Count / Total Count

And hence, the OEE is calculated as,

OEE=Availability × Performance × Quality

Expected Results:

Achieve such metrics with respect to each milli-gram of tablet produced and for each milliliter of liquid medicines produced are based on the data collection /acquisition of the existing systems and operation technologies (OTs) with which the factory will be able to achieve the objective Availability, Performance and Quality are the comprehensive factors in deciding the OEE.

Source: LinkedIn