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Key performance efficiency for a work center in SAP PP R3

Dear all,

     Every manufacturing line works with certain amount of efficiency and every industrial engineer or production departments knows this well in manufacturing shop floor about it. And while doing capacity planning and production planning in shop floor, planners will consider this factor to calculate the processing time of a production of a product. This efficiency factor percentage can be considered for any standard value key in a work center in SAP.

Most of us may be aware of it, but this is an attempt to make people who are in search of it & looking for it. Many people asked this question in the forum on how to introduce this OEE or key performance factor.

Apart from advanced options of SAP OEE & MII, if you considers option available in SAP PP R3, We can build this in work center.

Calculating this factor through SAP PP R3 is not possible, but if we know the percentage factor we can input this as a key performance efficiency in work center in front of standard value key, which can be considered for scheduling.

What it does? Considering this factor, wherever this work center is used and this standard value key timings are maintained in routing, while creating planned order or production order, overall time for this operation gets multiplied by this factor and increases operation processing time by this factor.

For example i maintain 50% efficiency for below standard value keys

Find below are the routing master data for base quantity 1

See the result of it in production order for order quantity of 1 EA, standard routing ti me for machine & labor gets doubles due to 50% efficiency.

Configuration for this scenario in SAP:

You can define key performance efficiency rate in below configuration path or in transaction OP28

Define performance efficiency factor

Click on Performance efficiency rates & validity and select this efficiency rate validity and with settings of whether this parameter considered while calculating cost of the operation or activity wherever this work center with efficiency rate is used and whether this parameter to be considered in Scheduling.

What are the benefits of it?

1. We can consider the performance efficiency rate for a work center, which is equal to actual in shop floor.

2. Production planning times are accurate, and planning will consider actual timings of the operations.

3. Helps in scheduling of production orders on shop floor etc

We can also do this for the combination of recipe (routing) and material, if you do not want this at work center level. Any feedback or questions welcome on this, and i am happy to share this with you all. Few of automotive or other industry look for this efficiency factor to be considered in planning, so i believe this will be good input.

Thank you all.

Sharat Sugur

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  • Hi Sharat,

         Nice and informative one.I would want to know how it will be differ from efficiency rate which we mentioned again machine/labor capacity in capacity detail screen?


    • Dear SKA,

      You are right. When we maintain the Capacity utilization rate (percent) in capacity tab of the work center will help us to know, out of available working time the capacity of this work center to do job. For example i have a drilling machine in my production area, where as my working hours of shift is 8 hours & drilling machine available is for all 8 hours. But this machine can only work for 6 hours for me, which means it’s capacity for my production is only 75% which i maintain in this field which helps me to plan my capacity on work center.

      Example: Where as this machine has certain stoppages say tool change over time for every 2 hours, or due to overheating i have to stop it in production area which further reduce this machine efficiency and say that is another 5%. So this percentage i want to consider in my planning which can also be termed as OEE %, and when i maintain this in the area specified by SAP, this helps me to consider this in my scheduling of production in SAP. Based on this factor, i come to know against 100 mins of routing standard operation my processing operation changes to 200min. So this is how it helps me to plan my shiftwise or daywise produciton if i use this factor.

      Hope i clarified you query.

      Thank you,

      Sharat Sugur

      • hi sharat

        thanks for sharing nice document . i want to know in capacity tab is it necessary to define setup fourmula & processing fourmula & in sceduling tab we have to define setup fourmula or we can define in costing tab with activity type  setup fourmula.

        Thanks & Regards

        Sandeep Kumar Praharaj

        • Hi Sandeep,

          Thank you Sandeep for the comments and if you maintain in resource or work center in key performance field then no need of addition in processing formula.

          Reason being we add this option in configuration, this is used in calculating time in scheduling & for costing through below settings.



          • Hi Sharat,

            Good one. Thanks for sharing 🙂

            You may also wish to add the details on the node where this configuration setting is available –

            • SPRO – Production – Basic Data – Capacity Planning – Define Key for Performance Efficiency Rate (OP28).



      • Hi Sharat,

            As per your example, WC utilization rate as 75% and the tool change & stoppage time as 5% So, we have to mention Key performance rate as 70%(75-5), is it right?   As you mentioned this OEE (Overall Equipment Efficiency) rate, Is it possible to see this value in any of report like Capacity requirement (CM01) or Production Information system (COOIS) ?


        • Hi SKA,

          You are right, if 5% stoppage is derived with the performance of this work center and is considered in the OEE % (availability X Performance X quality) calculation and is tend to have this stoppage in average then you can definitely consider this.

          This value we set in work center is used and considered during processing time scheduling & costing and resulted times you can see in COOIS and CM01. But you can not see the efficiency rate as a field in these reports.



          • Hi Sharat,

                       Thanks for your clarification. I will test with data and check the output if any i will come back to you again.Actually our client want OEE% report, At right time i found your document. It’s really helpful to me to understand and will use in real time business.

      • Hi ear Sharat,

        I did the same calculation, I just did the same calculationg, but using standar work center formula, where I  created a %Efficiency Machine parameter. It is working fine for scheduling and cost calculation.

        Today I found the standard customizing that you have showed on this post. Very nice, I liked.

        However, for one work center, the efficiency of machine depends on the material is being produced. And I saw, the stahdard “key for performance efficiency rate” doesn´t able us to change the key in the routing detail (the key is displayed but not opened to change).

        Do you know how to able this field to be changed? Because here in my automotive company we really need to maintaing this by routing (not only in work center level).

        Thank you/all,

        Marcelo Garcia

  • Hi Sharat,

    Thanks for sharing the information. Was wondering if anyone has tried option of being able to change the performance efficiency key in the operation of a routing. The requirement is considering a scenario where we would use the PEK to determine the yield of an operation . In this scenario, the yield is specific to the each operation in a routing rather than applying a fixed percentage at work center.

    Another option would be to use user defined fields in operation, and have it accounted for in scheduling, capacity and costing formulas. But being able to edit PEF in routing itself is a desirable option

    Appreciate any pointers in this regard.

    • Hi Nitin,

      Yes agree with the points you mentioned, if you refer last para of my blog, mentioned there about maintaining the same option in operations in routing and you are right we need to use user fields for this.

      We can also do this for the combination of recipe (routing) and material, if you do not want this at work center level.

      In practical situation based on business, rather than maintaining this parameter at work center business asks to maintain it at combination of material & operation and that time we have to use the routing option as you mentioned.

      Thank you for the interpretation and comment.

      Best regards,


    • Hi,

      It seems rather different as per my understanding for the OEE,

      OEE is the measurement of the Total Productive Maintainance, The TPM is the vast concept basicall depends upon the Machine performace,

      It can be measured through OEE ,Whether M/C ,Equipment perform as per requirement.

      The formula for the OEE =Availability x  performance x Quality.

      This will really give the results,



      • hi,

        for OEE Initiative u have the data in hand as Good count, Ideal Cycle time and planned production time,

        Above formula gives u ,how the M/C is performed,what measures are requires to update the performance of the m/c.


  • Hi,

    Thanks for all the comments, but I have a question. When I put 50% the system doubles the time wich is perfect as the example that Sharat Sugur posted. But if I put 70%, the percentaje that increase is 43%, or if i put 80% the percentaje that increase is 25%, does anybody know why?.

    Thanks in advanced.

  • Hello Sharat,
    Thanks for sharing above information . I am SAP PP person.  Is the performance efficiency key has any effect on cost of the product.

    Best Regards,

  • Hi Dear Sharat/ All,

    I just did the same calculation, but using standard work center formula. It is working fine for scheduling and cost calculation as well.

    Only today I found the standard customizing you have showed on this post. Very nice, I liked.

    However, for one work center, the efficiency of machine depends on the material is being produced. And I saw, the standard “key for performance efficiency rate” doesn´t able us to change the key in the routing detail (the key is displayed but not opened to update).

    Do you know how how to able this field to be changed? Probably by enhancement? Because here in my automotive company we really need to maintain tye rate  routing/material (not only in work center level).

    Thank you/all,

    Marcelo Garcia

    • Thank you Sharat for the excellent explaination,

      I have a similar scenario and want to enable this key in routing. any inputs on how it can be done would be highly appreciated.

      thank you/all

      Mayur Sonawane