Overall Equipment Effectiveness [OEE]

The main difference between OEE, OOE and TEEP is the time or Availability that is used in each calculation.

Overall Equipment Effectiveness (OEE) only considers scheduled time. If a machine is down due to maintenance, and it’s not scheduled for work, OEE ignores this time.

Performance x Quality x Availability (where Availability = Actual Production Time / Scheduled Time)


Overall equipment effectiveness (OEE) is a measure of how well a manufacturing operation is utilized (facilities, time and material) compared to its full potential, during the periods when it is scheduled to run. It identifies the percentage of manufacturing time that is truly productive. An OEE of 100% means that only good parts are produced (100% quality), at the maximum speed (100% performance), and without interruption (100% availability).

Measuring OEE is a manufacturing best practice. By measuring OEE and the underlying losses, you will gain important insights on how to systematically improve your manufacturing process. OEE is the single best metric for identifying losses, bench-marking progress, and improving the productivity of manufacturing equipment (i.e., eliminating waste)

Total effective equipment performance (TEEP) is a closely related measure which quantifies OEE against calendar hours rather than only against scheduled operating hours. A TEEP of 100% means that the operations have run with an OEE of 100% 24 hours a day and 365 days a year (100% loading).

The term OEE was coined by Seiichi Nakajima. It is based on the Harrington Emerson way of thinking regarding labor efficiency.[citation needed] The generic form of OEE allows comparison between manufacturing units in differing industries. It is not however an absolute measure and is best used to identify scope for process performance improvement, and how to get the improvement. OEE measurement is also commonly used as a key performance indicator (KPI) in conjunction with lean manufacturing efforts to provide an indicator of success. OEE can be illustrated by a brief discussion of the six metrics that comprise the system (the "Six Big Losses").

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