Improving production performance relies on a precise analysis of equipment efficiency. In this context, three key metrics are used: OEE (Overall Equipment Effectiveness), OOE (Overall Operations Effectiveness), and TEEP (Total Effective Equipment Performance). These metrics measure machine tool usage, identify inefficiencies, and optimize production planning.
Although these indicators are interconnected, each provides a different perspective on industrial performance. This article explores their definitions, how they are calculated, and how they are applied for effective machine management.
OEE (Overall Equipment Effectiveness) is the most widely used indicator to evaluate equipment productivity. It measures overall equipment efficiency by taking into account three key elements:
Availability: The percentage of time the machine is operational relative to the total planned time.
Performance: How efficiently the machine operates when running, accounting for slowdowns and minor stops.
Quality: The ratio of good parts to defective parts produced.
OEE Formula:
For example, if:
Availability = 90%
Performance = 85%
Quality = 95%
Then:
An OEE of 72.6% means the equipment is operating efficiently 72.6% of the total planned time. The goal is to maximize this indicator to improve production planning and equipment utilization.
OOE (Overall Operations Effectiveness) extends OEE by including unplanned production periods in its calculation. Unlike OEE, which only considers planned time, OOE takes into account all periods during which the machine could have been running but wasn't, due to lack of staff, maintenance, or poor resource management.
OOE Formula:
If a factory operates 24/7 but production is only scheduled for 16 hours, OOE provides a broader view of equipment efficiency over the total available time.
OOE helps identify if improvements are needed in workforce planning, resource management, or maintenance.
TEEP (Total Effective Equipment Performance) is the most comprehensive indicator, as it measures actual equipment usage over the full available time, including non-working periods like weekends or holidays.
TEEP Formula:
TEEP shows the maximum potential use of a machine tool if all available time were utilized. A low TEEP indicates underuse of equipment, which can be improved through adjustments in live planning and downtime management.
| Metric | What does it measure? | Time Period Considered | Application |
|---|---|---|---|
| OEE | Equipment efficiency during planned production time | Planned production time | Machine optimization and waste reduction |
| OOE | Actual equipment use, including unplanned periods | Total available production time | Workforce and resource management improvement |
| TEEP | Maximum possible equipment use | 24/7 | Production potential analysis and global optimization |
1. Optimize Production Planning
Production planning software helps maximize equipment use by optimizing cycle times and reducing unnecessary downtime. Live planning allows for quick schedule adjustments to increase overall equipment effectiveness.
2. Automate Machine Monitoring
Machine monitoring software provides real-time visibility of machine tools, allowing quick detection of inefficiencies and reducing unexpected stops.
3. Reduce Changeover Times
Changeover times can be optimized using the SMED method, which reduces downtime and improves production line flexibility.
4. Improve Workforce Management
OOE can be improved by adjusting workforce planning to ensure machines are operational during all possible usage hours.
5. Maximize Machine Utilization
Monitoring CNC programs enables analysis and optimization of machining based on real equipment performance. Improving maintenance and resource management can also raise TEEP.
A metal parts manufacturing plant aimed to improve its OEE, which was at 60%. After implementing machine monitoring and production planning software, it was able to:
Increase its OEE to 78% by reducing unplanned downtime
Improve OOE by 15% through optimized workforce management and maintenance
Maximize TEEP by adjusting production hours and reducing idle periods
Thanks to these adjustments, the factory improved its overall equipment efficiency and reduced production costs.
Understanding the difference between OEE, OOE, and TEEP is essential to optimize production planning and maximize machine tool efficiency. By implementing strategies such as real-time monitoring, preventive maintenance, and cycle time optimization, manufacturers can boost productivity and reduce losses.
Adopting machine monitoring software, combined with optimized workforce planning, allows full utilization of equipment potential and ensures more profitable and efficient production.