Maintenance Management Resources Six sigma and lean manufacturing, it's all about money:
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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.
Example:50% Availability (0.5) X70% 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.
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…
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.
After researching, we have found two persons who make reference to "TEEP", and their material looks shared.
We believe the division of the OEEusage 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
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%
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