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OEE and TEEP Metrics for Operations

This document discusses key performance indicators for measuring equipment effectiveness in manufacturing and service operations. It introduces Overall Equipment Effectiveness (OEE) and Total Effective Equipment Performance (TEEP) as closely related metrics that measure actual performance compared to potential best performance. OEE considers loading, availability, performance, and quality. The document defines these components and discusses how OEE and asset utilization are calculated using operating time, calendar time, scheduled time, and rate. Finally, it acknowledges that custom indicators may also be used for specific services.

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4 views19 pages

OEE and TEEP Metrics for Operations

This document discusses key performance indicators for measuring equipment effectiveness in manufacturing and service operations. It introduces Overall Equipment Effectiveness (OEE) and Total Effective Equipment Performance (TEEP) as closely related metrics that measure actual performance compared to potential best performance. OEE considers loading, availability, performance, and quality. The document defines these components and discusses how OEE and asset utilization are calculated using operating time, calendar time, scheduled time, and rate. Finally, it acknowledges that custom indicators may also be used for specific services.

Uploaded by

RCherian
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Service Operations

metrics that matter

OEE
Overall Equipment Effectiveness

TEEP
Total Effective Equipment Performance

Developed by Seiichi Nakajima in the 1960s to evaluate how effectively


a manufacturing operation is utilized.
Based on the Harrington Emerson way of thinking regarding labor
efficiency.
May be used as a key performance indicator (KPI) in conjunction with
lean manufacturing / lean services providing.
May be useful for both production & service management.

OEE & TEEP


Overall Equipment Effectiveness (OEE)
Total Effective Equipment Performance (TEEP)
Closely related indicators that report the use of equipment, facilities
etc. as well as time and material for operations.
OEE and TEEP indicate the gap between actual and potentially best
performance.

metrics
Loading: The portion of the TEEP Metric that represents the percentage of
total calendar time that is actually scheduled for operation.
Availability: The portion of the OEE Metric that represents the percentage
of scheduled time that the operation is available to operate. Often referred
to as Uptime.
Performance: The portion of the OEE Metric that represents the speed at
which the Work Center runs as a percentage of its designed speed.
Quality: The portion of the OEE Metric that represents the Good Units
produced as a percentage of the Total Units Started. Commonly referred to
as First Pass Yield FPY.

OEE

OEE & AU (Asset Utilization)

Metrics

Operating Time is defined as the amount of time that


the system is actually operating.
Calendar Time is based on the 24/7/365 schedule.

Scheduled Time is defined as the amount of time the system


under analysis was planned or scheduled to operate.
Average Rate is the speed or efficiency of the system
under analysis over a given time period.
Best Demonstrated (possible better than the Design
Rate) or Design Rate is determined by the nameplate
capacity of the system or the best demonstrated rate
recorded.
A 100% RATE calculation would signal that the system
is operating consistently at its maximum
demonstrated speed.
if I operate system for six hours on one eight hour shift on a given
day, my UPTIME is 6/8 or 75%, while AVAILABILITY is 6/24 or 25%.

Decissions

Other, custom indicators in services

Year 1

Year 2

Year 3

Year 3

Year 4

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