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, important insights can be gained on how to systematically improve the manufacturing process. OEE is an effective metric for identifying losses, bench-marking progress, and improving the productivity of manufacturing equipment (i.e., eliminating waste). The best way for reliable OEE monitoring is to automatically collect all data directly from the machines.

The OEE of a manufacturing unit are calculated as the product of three separate components:

  • Availability: percentage of scheduled time that the operation is available to operate. Often referred to as Uptime.

  • Performance: speed at which the Work Center runs as a percentage of its designed speed.

  • Quality: Good Units produced as a percentage of the Total Units Started. It is commonly referred to as the first pass yield (FPY). Quality can be modeled in ChiAha, but typically is measured and the OEE is adjusted post experiment.

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).

To calculate the Total Effective Equipment Performance(TEEP), the OEE is multiplied by a fourth component:

  • Loading: percentage of total calendar time that is actually scheduled for operation.

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