OEE, TEEP, and OOE, What’s the Difference? [With Examples]
OEE, TEEP, and OOE are different approaches for determining the availability of the production line. In short, they calculate the distinction between the number of good items you could hypothetically make contrasted with the amount you actually create. This distinction shows where you can make enhancements to increment the ability without putting resources into new equipment or manufacturing facilities.
Let’s take a look at every single approach separately to make things clear!
What is OEE?
The OEE stands for Overall Equipment Effectiveness. It is a self-explained term as the “highest standard of estimating production effectiveness” and is viewed as a tool that can assist with conveying constant improvement. In other words, OEE is a well-known term used to assess how efficiently an assembling plant is being used.
Overall Equipment Effectiveness is a technique that scores three vital aspects of your organization’s assembling processes out of 100 to convey insights and find opportunities to get better within the ongoing approach by pinpointing basic misfortunes. The three terms it measures are:
- Availability: This basically implies the measure of time during manufacturing runs that are really devoted to the current tasks. Both planned and unplanned postpones will cut your score down.
- Performance: This term highlights the speed of manufacturing, meaning little pauses and slow processes will cut the score down. Different elements associated with staff, protocols, and machines could have an impact as well.
- Quality: The quality measurement relates to the last products being delivered. Any mistakes, deformities, or shortcomings that either require extra work or must be eliminated will influence the score.
The outcomes and consequences of every three measurements are then added before taking a mean average to create the final OEE score out of 100. Generally, the objective of all operation executives and maintenance managers is to get the ideal score.
How to Calculate OEE?
Probably, the initial step before we get to measuring overall equipment effectiveness is to learn the difference between the two basic yet significant terms efficiency and effectiveness.
Generally, effectiveness is the connection between what is ideally possible to create and the real item delivered at the end of a manufacturing process. For instance, if you have hardware that technology can deliver 100 items each hour and it creates just 80, then we can conclude that your hardware is 80% effective. Quite easy, right?
However, this estimation doesn’t involve numerous points that go into a manufacturing cycle, incorporating the no. of operators, materials, and energy expected for the equipment to make 80% effectiveness. Thusly, the above estimation doesn’t let us know about the efficiency of the equipment. Let’s suppose a piece of equipment executes at 60% effectiveness when used by one person, yet a similar piece executes at 75% effectiveness when used by 2 persons. Indeed, we can say that piece of equipment is currently executing tasks at 75% effectiveness, yet efficiency has diminished by half due to the amount of work.
There are various approaches to calculating OEE. But we’ll check out two fundamental ones in this article:
- Basic Calculation: This is apparently the least complex approach to measuring OEE and is still determined by the proportion of complete production time to planned production time.
Overall Equipment Effectiveness= (Ideal Process Time x Good Count) / Planned Production Time.
- Preferred Calculation: It is a regularly utilized equation and it’s determined in terms of three OEE factors (Availability, Performance, & Quality).
Overall Equipment Effectiveness = Availability x Performance x Quality.
The term has probably been introduced because of its comprehensive nature in estimating OEE. This basically implies you not just get a precise OEE to score on how well you’re doing yet in addition, you get significant scores of the three elements, consequently telling you significant reasons for your misfortunes.
How about we check out the preferred calculation? Let’s do that!
In a specific assembling plant, a typical shift requires 480mins. Those working as equipment operators take pauses during their shift which is about an hour. They likewise complete 2 changeovers during the shift with an hour of equipment downtime bringing about a total of 180mins of lost time. Hence, we can measure the availability by deducting 180mins out of 480mins, which results in 300mins or 62.5% of availability.
Now, coming to the second part, the performance of a similar assembling plant, we should expect the plant produces 60 items each min. From the availability mins (300mins) over, the plant can deliver 18000 items. Suppose the machines are not executing at a 100 percent limit, rather, they are executing slower at 1.5 secs of process duration, subsequently, slowing down the ideal speed by 66%. Hence, the real performance is fundamentally decreased to 12,000 items or 66.7% of performance.
Now have a look at how to compute the quality part of this assembling plant. Suppose, out of the 12,000 units created, 3,000 don’t satisfy quality-control guidelines, thus making the quality ratio of the units delivered to be 75% for example (12,000 – 3,000 imperfections) / (12,000 * 100) = 75% of quality.
From the above information, we can now ascertain the OEE by taking a product of those three measurements:
OEE=Availability x Performance x Quality
By putting values, OEE = 62.5% * 66.7% * 75% = 31.25%.
This implies the plant has the ability to create 28,800 units, yet it is just delivering 9,000.
What are the Losses Associated with Overall Equipment Effectiveness (OEE)?
As we all know, the aim of embracing the Overall Equipment Effectiveness (OEE) measure is to lessen or diminish the most well-known reasons for equipment-based production misfortune. They are broadly known as the 6 big losses. These misfortunes or losses are then partitioned into three primary OEE classes, availability, performance, and quality.
Losses Due to OEE Availability
Losses brought by machine failure, are misfortunes happening because of machines, not executing when they are planned for manufacturing, hence resulting in unplanned downtimes. A few common instances of hardware failure incorporate, equipment breakdown, tooling disappointment, and unplanned maintenance pauses.
Losses because of changes and setups, are misfortunes because of the manufacturing downtime brought by machines, changeovers, tooling changes, scheduled maintenance, examinations, and other adjustments.
Losses Due to OEE Performance
Misfortunes are brought by idling and little pauses. Generally, known as little stops since it is the point at which a machine stops for a brief timeframe. Idling and little pauses occur because of jams, flow deterrents, wrong setups, or cleaning processes. As you know, they are little issues typically settled by the operators.
Misfortunes because of diminished speed. These are misfortunes experienced when equipment isn’t executing at the most elevated speed known as ideal cycle time (the quickest time). Sometimes, decreased speed is referred to as slow cycles. A few normal reasons for decreased speed are, terrible environmental circumstances, broken down or ineffectively maintained machinery, and poor lubrication.
Losses Due to OEE Quality
Tasks Defects. These are misfortunes because of any defective part delivered during stable manufacturing. These parts can be rejected parts requiring revamp. Task defects happen because of wrong equipment settings, operator, or machinery blunders.
Diminished yield. They are pretty much equivalent to handling defects just that they are created from startup until stable creation is accomplished. They additionally incorporate rejected parts requiring revamp. Very much like task defects, diminished yields occur because of changeovers, wrong setups, or machine warm-ups.
Why Does OEE Matter?
Enormous downtimes diminish in manufacturing, expanded maintenance expenses, and short equipment lifespan will all add to significant misfortunes. It is essential to optimize the OEE to further develop cost-effective manufacturing processes. Monitoring this KPI additionally offers all the below-referenced key points:
- Empowers manufacturing plants to guarantee the full functional capability of the gear.
- Diminishes pointless equipment expenses.
- Narrow down the problem spots and assist in focusing on high-risk issues, offering a superior outline of the assembling system.
- Expands the general production limit.
- Staying up with the latest and new technology and market thus, makes plants competitive.
- Permits you to calculate quality, performance, and availability to decrease scrap creation, upgrade production cycle time, and work on quality.
What is TEEP?
TEEP stands for Total Effective Equipment Performance, also referred to as Total Equipment Effectiveness Performance. It calculates your all-out potential for machine capability. It let you know regarding availability as a component of all available time. That implies 365 days every year, 7 days per week, 24hrs per day. Estimating TEEP answers how you actually be manufacturing if there were no restrictions to planning.
TEEP is a sort of assembling maintenance metric that falls into a similar classification as OEE (Overall Equipment Effectiveness) and OOE (Overall Operations Effectiveness). These three measurements calculate overall machine performance by considering resource availability, item quality, and machine performance. But these measurements contrast by the way they interpret availability.
Now, we’ll go through each aspect of TEEP to give more clarity.
How to Calculate TEEP?
TEEP is determined by taking a product of machine performance, item quality, and resource availability. Availability is determined as the ongoing manufacturing time divided by every available time.
For instance, if you execute on a machine 24 hours for a week and it delivered great units without creating any defective pieces or requiring any pauses, TEEP would be 100 percent. If that similar machine executes 16 hours per day without any breaks, availability would be 67 percent (like 16hrs divided by 24hrs). Suppose it likewise worked at 90% of expected throughput or performance (It could handle 100 units in 60 minutes, yet you just cycle 90 units in 60 minutes) and delivered amazing items 88% of the time (that’s quality). For this situation, the resource’s TEEP would be 53 percent as:
0.9 x 0.88 x 0.67
In reality, no plant can work 24 hours per day, 365 days per year. Some proportion of performance misfortune is likewise unavoidable. That is the reason ascertaining total equipment effectiveness performance is especially helpful as contrasted with different measurements like OEE and OOE.
What are the Losses Associated with Total Effective Equipment Performance (TEEP)?
Related to TEEP, planned losses address the units or time lost if the hardware was not planned to execute. Planned losses could incorporate holidays, breaks, weekends, lunches, or the absence of demand for the item. Time for PMs and income improvement tasks must be viewed as a planned misfortune.
These address item misfortunes related to unscheduled machine downtime because of hardware failure, absence of assets, lack of materials, item changes, or cleaning.
This misfortune class incorporates all items lost due to being not able to execute the hardware at the ideal or planned working speed.
This class addresses items lost from being not able to meet first pass yield quality norms. It must be noticed that regardless of whether the item is revamped in any manner and sold, it actually must be considered a quality loss.
Great Product Manufactured
This addresses a great item made right at the initial try within the planned time. This item must meet all first-pass yield quality principles and the number can’t surpass the scheduled rate.
With these conventional assertions, your organization can now add standards to make every class more well-defined for your business. Whenever you have settled upon what belongs in every classification, the trick here is to never alter it under any circumstance.
Why Does TEEP Matter?
The main objective of estimating OEE and TEEP is to comprehend the dependability of the basic resources in the manufacturing plant and decide the misfortunes to evaluate the resource and utilize the right reliability tools to diminish these losses, further develop products and consequently work on the effectiveness of the resource.
The worth of estimating TEEP is that it catches all, each and every moment of time regardless of the downtime for PM (preventive maintenance) operations or the time taken to do an item change in the schedule as a point of TEEP or OEE.
By knowing TEEP and OEE, the makers can precisely forecast, plan, and schedule the creation with a high level of accuracy. This empowers them to plan what and how much manufacturing can happen in that predetermined time.
TEEP gives an understanding in regards to every one of the misfortune classes, quality, speed, functional, and planning exercises, assisting the client with selecting the right choices on improving the proficiency of production. TEEP is utilized to get a potential sales capability as it ponders the full capability of the assembling plant.
How to Define Goals Around OEE & TEEP?
As expressed before, the goal of estimating OEE and TEEP is to have the chance to figure out the reliability of your basic resources and figure out where your misfortunes are happening. So, one can utilize the right reliability gadgets to diminish those misfortunes and further develop reliability.
While constant improvement must be your objective always, be mindful in regards to some traps of TEEP and OEE. Back in the late 80s, one can find models where somebody made the expression that if your machine had an OEE of 85% or better, you had out-class machine reliability. But there are two strong instances of why this statement is not right at all:
If company X is a utility that gives electrical supply to countless individuals living somewhere on the planet and the OEE of its power supply hardware was 85%, the organization would presently not be good to go.
Company Y is a food organization that makes a batch item that requires clean-up between batches. If it did everything accurately and consistently for a month, the best OEE it can accomplish is 78%. This is well above top-notch for its industry.
Once again, the way to define objectives around OEE and TEEP boils down to constant improvement and understanding what tools/devices to use to diminish or wipe out the misfortunes. Whenever you have diminished or wiped out your misfortunes, your objective must be to sustain the superior number. Keep in mind, that one of the best advantages of solid machinery is the capacity to correctly schedule and plan creation precisely. If you can precisely schedule and plan creation, then you must have the option to effortlessly plan your PM and PdM (Predictive Maintenance) operations too.
Who Must Collect & Post OEE/TEEP Numbers?
Nothing is more surprising than seeing a quality specialist gathering OEE and TEEP data and revealing the numbers to plant supervisors, meanwhile neglecting to incorporate the operators and upkeep professionals who all have the best capability to influence the numbers.
OEE and TEEP information gathering and reporting must be performed by your activities group leaders and reported toward the finish of each shift. Doing so will bring about the best shift trade your organization has at any point experienced if your lead administrators currently have information and data to examine. For instance, assuming that the normal OEE for a given resource is somewhere in the range of 81% and 83%, and the following shift comes in and sees that the earlier shift executes at 76%, don’t you accept these executives will have something to discuss?
Gathering this data at the right level is a critical piece of commitment at all levels of the organization. Gathering the information at the right level connects with the hardware operators and maintenance specialists. Then you need to interpret the information and this is where your reliability expert comes to the rescue. After evaluating the information and understanding the misfortunes, the person can now engage individuals and executives from all sections of the business to diminish losses.
What is OOE?
OOE stands for Overall operations effectiveness. It is a support metric used to quantify the availability of general manufacturing lines, from start to end. This incorporates planned maintenance for equipment, although, the equipment is not useful during maintenance periods. Different variables that are considered additionally incorporate changeover time periods.
OOE is a sort of assembling maintenance metric that falls into a similar class as TEEP (Total Effective Equipment Performance) and OEE (Overall Equipment Effectiveness. These three measurements calculate overall machine performance by considering machine availability, performance, and quality.
How to Calculate OOE?
OOE is a proportion of the exhibition of production lines or different resources. There are different elements that influence the viability of resource performance. The real performance of a resource is the estimated level of hypothetically total performance.
Real performance or execution is rarely 100 percent due to the following points:
Performance is estimated as a proportion of the full conceivable performance. Equipment or production lines will be unable to run at a similar speed consistently throughout the day. It additionally relies upon the kind of item being created. For instance, a production line could take a longer time to deliver a bigger versus a smaller version of an item.
Quality implies the number of good quality items as a proportion of the total number of items created. If organizations plan to have no imperfections consistently, equipment and manufacturing lines will still deliver a small level of flawed items.
Availability is estimated as a proportion of full scheduled availability. The equipment may not be 100 percent accessible if there are faults in the actual machine, or on the other hand if the equipment is down for maintenance.
In this context, availability implies planned accessibility, so unexpected imperfections are excluded from the estimation. Different periods in which the machine doesn’t deliver are likewise excluded, for example, scheduled maintenance or item change.
Considering that OOE takes the maximum of total activity time, the equation used to ascertain OOE is given below:
Quality x Performance x Availability (where availability = real production time/uptime)
An organization that deals with its creation well will have an OOE of around 85%.
What is the Difference Between OEE, TEEP, and OOE?
The significant differentiator between these 3 measurements is the way you define ‘Availability’. The core objective of every one of these measurements is to decide how much good an item was made versus how much might have been made.
Choosing which metric to utilize is subjected to the time period you consider. To get a better understanding, think about a year’s creation in a shop. Should your manufacturing be based on 365 days per 24hrs? every day? Or on the other hand, maybe you must only look at the times when you had a shift planned? Or perhaps, you just need to take a look at the planned shifts at the time you executed?
Obviously, there are various ways of contemplating your availability and this requires various measurements to address each time period. Once again, the major contrast between OEE, TEEP, and OOE is the availability of time that is utilized in every estimation.
In short, the main changing variable between these three computations is the most extreme time that we characterize as the availability of a resource to execute on. OEE, TEEP, and OOE all take performance, quality, and availability into account. Here is a detailed look at the computations for both OOE and TEEP:
- TEEP (Total Effective Equipment Performance) takes the maximum time to be All Available Time – that’s 24hrs, 365 days each year.
In this way, TEEP = Quality x Performance x Availability (when Availability = Actual Production Time/All-Time).
- OOE (Overall Operations Effectiveness) takes unplanned time into account, taking a look at Overall Operations Time as the maximum.
Quality x Performance x Availability (when Availability = Actual Production Time/Operating Time)
- OEE (Overall Equipment Effectiveness) just thinks about planned time. If the equipment is down because of upkeep, and it’s not planned for work, OEE disregards this time.
Quality x Performance x Availability (when Availability = Actual Production Time/Planned Time)
How to Improve OEE, TEEP, and OOE?
It’s now obvious that every one of this three support KPIs relies upon performance, availability, and quality. Anything that influences any of these will constantly cause OEE misfortune. OEE loss or misfortune implies less effectiveness and normally less-effective outcomes too.
So, to improve all three metrics, you must consider:
- Avoiding machinery breakdowns that diminish accessibility or availability.
- Speeding up scheduled fixes to guarantee the most extreme accessibility.
- Limiting the interferences that increment manufacturing time and halt execution.
- Troubleshooting hardware changes to stay away from execution downtimes.
- Working on quality control to diminish the quantity of defective final products.
- Giving the ideal conditions so the equipment can fulfill quality guidelines.
OOE, OEE, and TEEP are all utilized to further develop the decision-making tasks. This applies when you are expanding production limits as well as while further developing efficiency and additionally incorporating adaptability and scalability into your processes.
Thus, for instance, prior to putting resources into new machines, you can consider further developing OEE to guarantee that you are capitalizing on your machines during the times they are planned to be functional. When this gets near to the maximum, you can then begin considering TEEP to conclude whether an extra shift or other arrangements can give you the capacity development you really want. In all conditions, OEE, TEEP, and, where it is utilized, OOE, guarantee that you have the data you want while settling on basic business choices.
The significance of measuring OEE, OOE, and TEEP is fundamental, so we can precisely estimate, schedule, and plan production. Regardless of what the numbers are, if they have been reliable, we can now, with higher accuracy, plan what we can produce for our clients. When we comprehend these actions, we can then start considering every one of the misfortune classifications, speed, quality, functions, and schedules, and utilize the suitable reliability tools to diminish the losses.