Metrics That Matter
Most manufacturing shops have two primary focus points when considering metrics: efficiency and performance. Understanding efficiency and performance is essential to increase production output, improve operations effectiveness, and enable competitiveness. Uncovering just what is holding your shop back from high performance and efficiency can drastically improve the shop flow and prevent unnecessary expenses in the hope of artificially correcting these numbers. Shops that want to increase efficiency and performance must measure and utilize two key metrics in their manufacturing operations: TEEP (Total Effective Equipment Performance) and OEE (Overall Equipment Effectiveness). Utilizing these metrics through machine monitoring provides shops with an intuitive understanding of performance and equipment efficiency.
What are TEEP and OEE
While TEEP and OEE might sound like similar metrics, they are significantly different and best used together. Understanding TEEP and OEE as two separate yet equally important metrics can completely revise your manufacturing process and machining operations for the better.
TEEP:
As mentioned earlier, TEEP stands for Total Effective Equipment Performance. TEEP is calculated by multiplying four measured factors: utilization, availability, performance, and quality. It also takes into account equipment losses, unscheduled time, and schedule losses. Because of this, it is impossible to have a 100% TEEP because that would mean that your shop would have to produce flawless parts every hour of every day. You can also think of TEEP as calculated by multiplying OEE by Utilization, which is planned production time divided by all possible times. This metric gives a comprehensive view of manufacturing performance, providing insight into whether the scheduled time is fully optimized.
OEE:
Alternatively, OEE, which stands for Overall Equipment Effectiveness (OEE), is calculated by multiplying three of the same factors as TEEP. Availability, which is the percentage of actual production time the machine has scheduled availability. Performance, the machine’s operation speed compared to maximum capacity. And quality, which measures the rate of successful production. This allows shops insight into potential improvements for uptime, speed, and production output quality.
What’s the Difference Between Both Metrics
To fully optimize these metrics, shops need to understand the main difference between TEEP and OEE so they can utilize them both to their full potential. As highlighted above OEE only is calculated using only three of the same factors as TEEP whereas TEEP also includes utilization. The utilization factors allow TEEP to provide insights on whether machine optimization is being hindered by a lack of scheduled availability. A shop that is trying to ensure that all CNC machines in the factory are being fully realized would greatly benefit from tracking TEEP, as it would show them which machines would benefit from scheduling another shift so that all machines can be run to their full potential. However, if a shop is not concerned with downtime they might prefer to utilize OEE as it excludes downtime from its calculation and instead allows stakeholders to hone in on the efficiency of the machine during scheduled production. The only difference between these two metrics is a factor of utilization, giving each a unique focus.
Selecting a Metric: TEEP vs OEE
Choosing between TEEP and OEE can be a difficult choice, requiring stakeholders to consider their shop’s short-term objectives and long-term goals. For the shop that wants a more in-depth view of machine optimization during production and the quality of the parts produced, OEE might be the better option. However, shops that want a more holistic view of same equipment utilization and can create flexible scheduling would greatly benefit from using TEEP as their metric of choice. It is also worth noting that for shops with the time and availability it could be beneficial to track both metrics to create the most balanced understanding of the shop’s CNC machining operations and overall operations effectiveness. This allows stakeholders to have the most comprehensive view of efficiency and performance throughout the shop leading to continuous growth and improvement throughout the shop.
An Example:
Consider a factory that operates two scheduled shifts per day. By analyzing TEEP, the management realizes that by adding an additional shift, they can significantly improve their current equipment utilization. On the other hand, OEE analysis might reveal that during the existing shifts, an equipment failure is causing downtime, indicating a need for maintenance improvements.
About the Author: Katie Ruffing
