Overall Equipment Effectiveness (OEE) and Total Equipment Effectiveness Performance (TEEP): In Brief
Key Points
- Confusion between operating time and calendar time - Incorrect categorization of planned downtime - Omission of micro-stops in the calculation - Use of unvalidated theoretical cycle times
- Double counting of certain losses
Total Effective Equipment Performance (TEEP), equivalent to Overall Equipment Effectiveness (OEE), differs slightly in scope. The fundamental difference lies in their perimeter: TEEP integrates the equipment utilization rate over a given period, while OEE focuses on performance during planned production periods. These indicators are essential tools for driving the continuous improvement of industrial performance.
The Fundamentals of TEEP and OEE: Understanding the Basic Formulas
TEEP is calculated by multiplying four factors:
Utilization Calculation
Availability Calculation
Performance Calculation
Quality Calculation
OEE uses only the last three factors. A perfect equipment would have an OEE of 100%, but in reality, an OEE of 85% is considered "world-class".
Common Pitfalls in Calculation
Several frequent errors can skew the analysis:
- Confusion between operating time and calendar time
- Incorrect categorization of planned downtime
- Omission of micro-stops in the calculation
- Use of unvalidated theoretical cycle times
- Double counting of certain losses
- Exclusion of changeover times
- Neglecting start-of-shift and end-of-shift losses
Strategies for Improving OEE by Component
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Optimization of Machine Availability
Systematic preventive maintenance:
Structured preventive maintenance is the foundation of machine availability.
Reduction of changeover times:
The application of SMED allows for optimizing changeovers.
Improvement of Machine Performance
Validation of performance data:
- Regular verification of standard times
- Calibration of measurement systems
- Audit of production parameters
- Documentation of best practices
- Standardization of calculation methods
- Certification of master data
- Training of operators on standards
Maximization of Production Quality
First Pass Yield (FPY):
The FPY approach measures the percentage of compliant products on the first try, without rework or reprocessing.
Total quality principles:
- Self-inspection at each step
- Standardization of processes
- Structured problem solving
- Quality maintenance
- Poka-yoke (mistake-proofing)
Enabling Technologies for Optimization
Solutions by Maturity Level
Beginner level:
- Structured manual collection
- Visual display of performance
Intermediate level:
- Basic production sensors
- Simple SCADA systems
- Automated dashboards
Advanced level:
- Industrial IoT
- Edge computing
- Artificial intelligence
- Digital twins
MES Systems vs. QuickMES
Full MES:
- Complete and integrated solution
- Extensive features
- Complex deployment
- Significant investment
QuickMES:
- Rapid deployment
- Essential features
- Moderate cost
- Progressive scalability
Implementing an Improvement Plan
To achieve tangible results, it is crucial to follow a structured approach to improving OEE/TEEP:
OEE Improvement Plan
Initial Analysis
In-depth Diagnostics: Pareto analysis of loss causes over a minimum of 6 months.
Downtime Segmentation:
- Planned downtime
- Technical breakdowns
- Changeovers
- Organizational stops
- Micro-stops
Action Plan
Kaizen Prioritization:
- Quick wins (< 1 month)
- Medium-term actions (1-6 months)
- Structural projects (> 6 months)
SMART Goals: Definition of specific objectives by loss type.
Deployment
Phased Approach: Phased deployment with validation of results.
Progress Measurement: Weekly monitoring of key indicators.
Conclusion
Takeaways
Improving OEE requires:
- A clear understanding of the difference between TEEP and OEE
- A rigorous Pareto analysis of losses
- A reliable and validated measurement system
- A structured continuous improvement approach
To maximize performance:
- Prioritize actions based on Pareto analysis
- Systematically validate baseline data
- Deploy technologies suited to your maturity level
- Maintain a constant Kaizen approach
Operational excellence is achieved through a methodical progression based on reliable data and targeted actions.