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See OEE, production and performance of data of all your production machines, any where, any time--- in real-time with a Web browser, or in the past with Excel----under $500 per machine. (click here)

Production Process - Automate your OEE data collection

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Understanding Overall Equipment Effectiveness (OEE), then advancing to Total Effective Equipment Productivity (TEEP).


The overall performance of a single piece of equipment, or even an entire factory, will always be governed by the cumulative impact of the three OEE factors:

  • Measures the percent of time that the equipment can be used (usualy total hours of 24-7-365), divided by the equipment uptime (actual production).Percent of (scheduled production - reliability) or (calendar 24/7/365 - equipment utilization), that equipment is available for production.

  • Performance efficiency is the percentage of available time that the equipment is producing product at its theoretical speed for individual products.  It measures speed losses. (e.g., inefficient batching, machines jams)Percent of parts produced per time frame, of maximum rate OEM rated production speed at. If OEM specification not available, use best known production rate. 

  • Determining the percent of the total output (i.e. all products including production, engineering, rework and scrap ) that is good.Percent of good sellable parts out of total parts produced per time frame.

OEE Calculator

Availability Performance Quality OEE
X X = %
Example: 50% Availability (0.5) X 70% Performance Rate (0.7) X 20% Quality Reject Rate (results in 80%(0.8) acceptable) = 30%OEE

A complete understanding of OEE is required to make sound decisions.


Thanks to Justin Havens at
OEE Consulting, we can spread this knowledge with one of the best power point presentations we have ever seen.

Click here to download the presentation

OEE can be used to save companies from making inappropriate purchases, and help them focus on improving the performance of machinery and plant equipment they already own.

Business Industrial Network's CEO recently gave a presentation in Las Vegas, on The True Cost of Downtime. To his surprise, most attendees were not aware of what OEE is, or how to use it.

If you work in  manufacturing , there is no substitute for going out to the shop floor, and taking some rough measurements of OEE. You will be surprised by what you find!


The operative word is…

Overall Equipment Efficiency

  • At least monitoring OEE per equipment brings focus on the equipment itself, but may not provide true cause of major cost, unless the cause is obvious.

  • For example OEE can appear improved by actions such as purchasing oversize equipment, providing redundant supporting systems and increasing the frequency of overhauls.

True Downtime Cost

  • TDC brings focus on where ever an issue may be, with equipment, manpower, procedures, departmental, etc.

  • TDC enhances OEE accuracy, and places it in perspective.


Where to start…

OEE per equipment (profit center)

  • When making every financial decision about a piece of equipment, the OEE should be considered.

  • If you have not seen Money and Machine Power Point, please do so now. Excellent example of Acme Co.

Improve on OEE with TDC

Total Effective Equipment Productivity (TEEP).

After researching, we have found two persons who make reference to "TEEP", and their material looks shared.

We believe the division of the OEE usage concept was intended for simplicity, which is also our cause. So we have included this lesser known acronym/methodology (TEEP), in our discussion.

After viewing the material above, you should be aware of how the OEE formula can help you identify the lack of efficiency in your production process. The next step is to maximize your equipment utilization with TEEP. As you strive for World Class productivity in your facility, this simple formula will make an excellent benchmarking tool.


Where to start with TEEP…

OEM specified production rate

  • Using OEM specifications and other documentation, you determine the amount of parts your equipment/production should be capable of producing per hour.

Decide Sample time frame

  • Usually 7 days, a month, or a year, and always times 24 hours. (1 week = 168 hours)

Record number of good parts per time frame

  • Examples: You might have calculated theoretically a machine could run 2 parts per hour. But with changeovers, downtime, meetings, etc. you only put out 150 parts on the 168 hour time frame.

Let's say you start out on a bottleneck machine in your facility (Good choice!). Use the examples above. You benchmark a TEEP of a little less than 50%. Use OEE to find your greatest areas of improvement, through changeover, quality, machine reliability improvements, and working through breaks, you now record a TEEP of 74%! That is an excellent Return On Asset, not to mention improvements to your bottom line.

PPH Goal - The maximum Parts Per Hour the equipment is capable of running as per OEM.

Total Time - The sample time frame. IE: week, month, quarter, or year.

PPH Actual - The total actual good sellable Parts Per Hour ran on equipment during time frame.

TEEP Calculator

PPH Actual Total Time PPH Goal TEEP
( X ) / = %

Example: (2 Parts Per Hour (idealistically) X 1 week Total Time sampled (168 hours)) x = (336 parts (idealistically))

 (336) / 112 parts (actually produced in 1 week) = 33% TEEP


See Also:  

reliability engineering ebooksFeed Forward Reliability - engineering ebooks, CDs and publication has reduced their prices under new ownership. Now you can receive maintenance and reliability training at a great price! Check out the new website at www.feedforward.com.au 


Also be sure and visit the sponsor of this website to see the great downtime cost savings from PLC Training customized to your facility and personnel. (Click banner below please)
The Best for Less = Greatest Training ROI


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Business Industrial Network was founded in 1995 Copyright © 1995 [Business Industrial Network]. 

All rights reserved. Revised: January 14, 2005.

This web site provided by Business Industrial Network and we make no manner of an endorsement, representation or warranty regarding any contents located on this site. It is recognized that there is a great deal of uncertainty and honest scientific difference of opinion surrounding parameter selection for these future-looking cost analyses. This web site content is provide as a starting point for improving manufacturing cost analysis. Viewers understands that any content or other information offered on or through BIN95.com are provided for informational purposes only. Viewers should evaluate any content or other information offered on or through BIN95.com in light of viewer's own individual circumstances.