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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:

• Percent of (scheduled production - reliability) or (calendar 24/7/365 - equipment utilization), that equipment is available for production.

• 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. 

• Percent of good sellable parts out of total parts produced per time frame.

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…

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 Front End: Incorporate TDC in your data collection (click to view power point). Back End: Incorporate TDC in you software reporting by requiring it of your software vendor.

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.

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:  

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