What is Total Equipment Effectiveness Performance (TEEP) , TEEP Formula and Calculation , Difference between OEE and TEEP

Total Equipment Effectiveness Performance (TEEP) is an extended version of overall equipment effectiveness (OEE) to measure machine or equipment overall output in terms of time basis. Each and every organization planning to procure new equipment or asset must backside plan to utilize assets in the best possible way and focus on minimizing the cycle of return on investment. When calculating the equipment effectiveness of any organization two activities are playing a key role, the firstly is planned activity and the second one is unplanned activity.

Overall equipment effectiveness (OEE) focused on areas of control within the organizational level. In OEE calculations organization has the power to decide equipment available time per shift and is also able to decide break time during the shift. The very important thing we require to understand is that, if we focused on ROI generation on overall basis equipment planned production time and break time during a shift are playing a key role.

So basically, total equipment effectiveness performance is focused on calculating each day during the year whether it is a holiday as well as a weekend. It’s also not excluding planned break time between shifts or counted total hours for a period.

Review the attached formula for TEEP calculations.

Now a day’s in an industrial environment many key performance indicators are available to measure the performance of equipment. It is very important to decide which KPI you choose based on your industry standard for measuring machine or equipment performance. The main goal of operational excellence is not focusing on which parameters you measure the equipment performance but focusing on the trend of parameters you measure, whether it’s improving or not.

Difference between Overall equipment effectiveness (OEE) and Total Equipment Effectiveness Performance (TEEP)

Example

One of the plastic component manufacturing companies measuring the performance of different machines with total equipment effectiveness performance parameters. The organization has different computer numerical control machines and one operator operating one machine. The organization is running five days per week and 3 shifts per day. The organizational management plan 8 hours per shift and other activities are listed simultaneously. Planned break time per shift consider as (Lunch break – 30 min, 20 Min – Refreshment time). Production in-charge plan, planned maintenance of machine 60 Min, & 30 min emergency breakdown happened, four times per shift tool changeover happened (Each 7 Min), operator late came & early going shift start (7 Min Each), during shift running operator spend 7 min to searching time of needed items. As Per Quality Point of View out of 5000 Pcs 100 Pcs Rework & 60 Pcs Rejections. Also calculate the percentage of availability, performance & quality. Taking the assumption for TEEP calculation, consider the one-shift OEE to the weekly average.

Solution

Given data in terms of TEEP parameters

Available time per shift = 8 hours = 480 min.

Planned break time per shift = 30 (lunchtime) + 20 (refreshment time) = 50 min.

Planned downtime = 60 min (planned maintenance)

Unplanned downtime = 30 min. (emergency breakdown)

Tool changeover = 4 * 7 = 28 min (four times tool change)

Operator irregularity = 7 * 2 = 14 min (shift starting & shift ending)

Searching time = 7 min.

The number of good products produced = 5000 (total product produced) – 100 (rework) – 60 (rejection) = 4840 Nos.

Number of defective product produced = 100 (rework) + 60 (rejection) = 160 Nos.

Availability calculation

Planned available time = 480 (shift time) – 50 (planned break time) = 430 min.

Actual available time = 430 (planned available time) – 60 (planned downtime) – 30 (unplanned downtime) = 340 min.

Availability = 340 (actual available time) / 430 (planned available time) = 0.79069 = 79.06%

Performance calculation

Planned production time = actual available time = 340 min.

Actual production time = 340 (planned production time) – 28 (tool changeover time) – 14 (operator irregularity) – 7 (searching time) = 291 min.

Performance = 291 (actual production time) / 340 (planned production time) = 0.8558 = 85.58%

Quality calculation

Quality = no of good quantity produced / no of total quantity produced

Quality = 4840 / 5000 = 0.968 = 96.8 %

OEE calculation

OEE = Availability * Performance * Quality

OEE = 0.7906 * 0.8558 * 0.968 = 0.6549 = 65.49%

TEEP calculation

In this example, we are calculating TEEP parameters weekly as per mention in the example.

Schedule time = 5 * 8 * 3 = 120 hours

In this example, we calculate TEEP parameters weekly. Schedule time is calculated based on equipment working time frame in hours. (5 day / 8 hours / 3 shift)

Calendar time = 7 * 8 *3 = 168 hours

Calendar time is calculating the total available time per week including weekends, holidays, and other planned activities. (7 days / 8 hours / 3 shifts)

Utilization = Schedule time / Calendar time

Utilization = 120 / 168

Utilization = 0.7142 = 71.42%

TEEP = OEE * Utilization

TEEP = 0.6549 * 0.7142

TEEP = 0.46772 = 46.77%             

Total Equipment Effectiveness Performance (TEEP) improvement plan

Any organization planning to improve TEEP parameters first requires understanding and improving OEE parameters. When any organization is successfully stable at measuring, monitoring, and improving OEE parameters the next target is to focus on TEEP parameters. Understand TEEP is directly proportional to OEE but not only dependent on OEE. Understanding the utilization factor is very important for TEEP improvement.

If any organization’s product demand is on the higher side with advanced visibility, TEEP is a very effective tool for improving equipment performance. Plan a structural schedule in such a way that equipment is running each day for improving utilization factor. Meanwhile, the machine operator leaves planning on an alternate day. Improve OEE parameters as well as plan to run the machine each day for improving TEEP.