Implementation of OEE / TEEP Management
Implementation of OEE / TEEP Management
Setting Goals for all Key Metrics
During the last decade, much was written regarding the fact that setting numerical goals can be the cause of sub-optimization, or even sandbagging. Fortunately, this trend has passed and current philosophy, particularly applied to OEE, recognizes the critical nature of knowing where the business needs to be and pushing hard to attain that end.
OEE - A General Discussion on its Benefits
Benefits of OEE / TEEP Management
Management of Overall Equipment Effectiveness (OEE) implies much more than posting a monthly scorecard. Unfortunately, many companies attempt to perform top-level OEE calculations as a stand-alone key success metric, but without the ability to say much more about it.
OEE FAQ
Do you define everything in units of parts and units of time?
The answer depends on what's most intuitive for you and your operators. Down Time Loss is usually described in units of hours or minutes. Speed Loss is most often defined in terms such as pieces per hour (rate) or seconds per piece (cycle time). Quality Loss is typically looked at as a ratio of rejects to total production. Other quantity related measurements like pounds, kilos or meters may also be used. All of these eventually are converted (normalized) to a percentage that shows actual vs. potential.
Defining the OEE Six Big Losses
One of the major goals of TPM and OEE programs is to reduce and/or eliminate what are called the Six Big Losses ?the most common causes of efficiency loss in manufacturing. The following table lists the Six Big Losses, and shows how they relate to the OEE Loss categories.
World Class OEE
OEE is essentially the ratio of Fully Productive Time to Planned Production Time. In practice, however, OEE is calculated as the product of its three contributing factors:
OEE = Availability x Performance x Quality
This type of calculation makes OEE a severe test. For example, if all three contributing factors are 90.0%, the OEE would be 72.9%. In practice, the generally accepted World-Class goals for each factor are quite different from each other, as is shown in the table below.
Calculating OEE
The Formulas
The OEE calculation is based on the three OEE Factors: Availability, Performance, and Quality. Here’s how each of these factors is calculated.
Availability
Availability takes into account Down Time Loss, and is calculated as:
Measuring and Prioritizing the Improvements
Today, no one questions the utility of these methodologies: They have been implemented successfully in several companies. Nevertheless, there are problems in prioritizing the importance of an implementation, as well as problems in the way that increased improvements are measured. In this book, a classification of improvement methodologies is presented based on a known production rate: overall equipment efficiency.