OEE, TEEP, and OOE are terms often used in the manufacturing industry. What do they mean, however, how do you calculate them, and why are they important?
OEE, TEEP, and OOE are different methods of defining the availability of your production line. In other words, they measure the difference between how much good products you could theoretically make in a perfect world compared to how much you actually make. This difference shows where you can make improvements to increase capacity without investing in new machines or production facilities.
Three main factors influence OEE, TEEP, and OOE:
- Availability
- Quality
- Performance
OEE – Overall Equipment Effectiveness
You calculate OEE based on the time you have a machine scheduled to run. OEE is the performance of that machine compared to its maximum capacity, i.e. what the machine could do if everything worked absolutely perfectly.
You measure OEE by looking at:
- Availability – the time you have the machine scheduled to run minus planned and unplanned stops
- Performance – when the machine doesn’t run at its full capacity for whatever reason
- Quality – the impact of defective products and reduced yield as a result of defective products
Here’s the calculation for working out OEE:
OEE = Performance x Quality x (Actual Production Time / Scheduled Time)
Note: Actual Production Time / Scheduled Time = Availability
TEEP – Total Effective Equipment Performance
TEEP takes into account all the factors that influence OEE, plus it includes periods of time when your production line or machine is not scheduled to run. This is sometimes referred to as schedule losses and includes periods of time when your production line is not open or operational. Overnight hours and weekends are the most common example.
So, 100 percent TEEP would mean a machine running 24/7 while producing perfect products as fast as it can with no stops.
Here’s the calculation for TEEP:
TEEP = Performance x Quality x (Actual Production Time / All Time)
Note: Actual Production Time / All Time = Availability
OOE – Overall Operations Effectiveness
OOE is a lesser used method of measuring production line availability. It is a slight variation on OEE as it makes a distinction between the time your plant is operating and the time a machine is scheduled to run.
So, for example, when you use the OOE metric, planned machine maintenance time is included in the OOE calculation but not in the OEE calculation. This is because, during planned maintenance, the machine is not scheduled to run. Other factors also impact OOE, such as shift changeover times.
In other words, OOE measures availability from the minute a shift starts until the minute it ends. In most production facilities, it is not possible to start and finish production exactly between these times as there will be inevitable waiting/changeover periods. So, where OOE is used as a manufacturing metric, it falls between TEEP and OEE:
- TEEP – total time
- OOE – operating time
- OEE – scheduled time
Here’s the calculation:
OOE = Performance x Quality x (Actual Production Time / Operating Time)
Note: Actual Production Time / Operating Time = Availability
Improves Decision Making
In summary, OEE, TEEP, and OOE are all used to improve the decision-making process. This applies when you are increasing manufacturing capacity as well as when improving productivity and/or building flexibility and scalability into your operations.
So, for example, before investing in new machines, you can look at improving OEE to ensure you are getting the most out of your machines during the times they are scheduled to be operational. Once this gets close to maximum, you can then start looking at TEEP to decide whether an additional shift or other solution can give you the capacity expansion you need.
In all situations, OEE, TEEP, and, where it is used, OOE, ensure you have the information you need when making critical business decisions.
