Industrial Intelligence

Overall Equipment Effectiveness (OEE): How to Improve the Efficiency of Your Equipment?

In this article
  1. The Fundamentals of TEEP and OEE: Understanding the Basic Formulas
  2. Strategies for Improving OEE by Component
  3. Enabling Technologies for Optimization
  4. Implementing an Improvement Plan
  5. Conclusion
Performance and OEE2 min read

The Fundamentals of TEEP and OEE: Understanding the Basic Formulas

TEEP is calculated by multiplying four factors:

EquationUtilization Calculation
Utilization=Operating TimeCalendar Time\text{Utilization} = \frac{\text{Operating Time}}{\text{Calendar Time}}
EquationAvailability Calculation
Availability=Effective Operating TimeOperating Time\text{Availability} = \frac{\text{Effective Operating Time}}{\text{Operating Time}}
EquationPerformance Calculation
Performance=Actual Cycle TimeTheoretical Cycle Time\text{Performance} = \frac{\text{Actual Cycle Time}}{\text{Theoretical Cycle Time}}
EquationQuality Calculation
Quality=Good PartsTotal Parts Produced\text{Quality} = \frac{\text{Good Parts}}{\text{Total Parts Produced}}

OEE uses only the last three factors. A perfect equipment would have an OEE of 100%, but in reality, an OEE of 85% is considered "world-class".

Common Pitfalls in Calculation

Several frequent errors can skew the analysis:

  • Confusion between operating time and calendar time
  • Incorrect categorization of planned downtime
  • Omission of micro-stops in the calculation
  • Use of unvalidated theoretical cycle times
  • Double counting of certain losses
  • Exclusion of changeover times
  • Neglecting start-of-shift and end-of-shift losses

Strategies for Improving OEE by Component

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Overall Equipment Effectiveness (OEE): How to Improve the Efficiency of Your Equipment?

Optimization of Machine Availability

Systematic preventive maintenance:

Structured preventive maintenance is the foundation of machine availability.

Reduction of changeover times:

The application of SMED allows for optimizing changeovers.

Improvement of Machine Performance

Validation of performance data:

  • Regular verification of standard times
  • Calibration of measurement systems
  • Audit of production parameters
  • Documentation of best practices
  • Standardization of calculation methods
  • Certification of master data
  • Training of operators on standards

Maximization of Production Quality

First Pass Yield (FPY):

The FPY approach measures the percentage of compliant products on the first try, without rework or reprocessing.

Total quality principles:

  • Self-inspection at each step
  • Standardization of processes
  • Structured problem solving
  • Quality maintenance
  • Poka-yoke (mistake-proofing)

Enabling Technologies for Optimization

Solutions by Maturity Level

Beginner level:

  • Structured manual collection
  • Visual display of performance

Intermediate level:

  • Basic production sensors
  • Simple SCADA systems
  • Automated dashboards

Advanced level:

  • Industrial IoT
  • Edge computing
  • Artificial intelligence
  • Digital twins

MES Systems vs. QuickMES

Full MES:

  • Complete and integrated solution
  • Extensive features
  • Complex deployment
  • Significant investment

QuickMES:

  • Rapid deployment
  • Essential features
  • Moderate cost
  • Progressive scalability

Implementing an Improvement Plan

To achieve tangible results, it is crucial to follow a structured approach to improving OEE/TEEP:

OEE Improvement Plan

  1. 01

    Initial Analysis

    In-depth Diagnostics: Pareto analysis of loss causes over a minimum of 6 months.

    Downtime Segmentation:

    • Planned downtime
    • Technical breakdowns
    • Changeovers
    • Organizational stops
    • Micro-stops
  2. 02

    Action Plan

    Kaizen Prioritization:

    • Quick wins (< 1 month)
    • Medium-term actions (1-6 months)
    • Structural projects (> 6 months)

    SMART Goals: Definition of specific objectives by loss type.

  3. 03

    Deployment

    Phased Approach: Phased deployment with validation of results.

    Progress Measurement: Weekly monitoring of key indicators.

Conclusion

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