OEE stands for Overall Equipment Effectiveness and is used to measure the efficiency of a machine. In a broader sense, the OEE can also be used to measure the performance of a production process. The OEE shows how much of your total planned production time is actually productive. The OEE takes into account the 6 major losses

  1. unplanned downtime losses
  2. planned downtime losses
  3. speed losses due to small stops
  4. speed losses due to slow cycles
  5. production defects
  6. quality defects due to start-ups

The OEE is determined by 3 factors:

  • Availability: how much available production time do we have (0-100%)
  • Performance: how well are we performing against the target (0-100%)
  • Quality: how many good products do we make (0-100%)

Within some companies, a fourth factor is taken into account when calculating the OEE.

  • utilization: how much time do we use to produce (0-100%)

It is therefore also referred to as TEEP: Total Equipment Effectiveness Performance. the TEEP shows how much of your total available time is actually productive. THE TEEP takes into account the 6 major losses and planning losses.

The TEEP is used, among other things, in investment and capacity analyses. After all, the TEEP indicates what potential is still available with the current machines.

The OEE is calculated by multiplying the three factors. With the TEEP we multiply the 4 factors.

OEE = Availability (D/C) x Performance (F/E) x Quality (H/G)

TEEP = Utilization (B/A) x Availability (D/C) x Performance (F/E) x Quality (H/G)

An OEE of 100% means that we only make good parts as fast as we can without stops.

A TEEP of 100% means that we do this 24/7.

as you can see, the OEE/TEEP is easy to measure. you don't need (expensive) software to start with OEE measurements. Of course, with a fully automated OEE measurement you have the results in real time and you can therefore make adjustments more quickly.

By calculating the OEE of a machine and providing feedback to the operators, you can gradually improve the effectiveness of the machine.

the 6 big losses

The 6 big losses can be split into 3 x 2 losses.

downtime losses and availability

The downtime losses consisting of setup time and order changes on the one hand and breakdowns (outage times) on the other. They determine availability. Some examples are:

  • mechanical or electrical breakdowns
  • change between two shifts where the machine is stopped
  • waiting for materials to be processed
OEE vs TEEP downtime losses

speed losses and performance

The speed losses consist of reduced speed on the one hand and small disturbances on the other. They determine the performance of the machine. Some examples are:

  • raw materials that are difficult to process
  • large variations in processability between batches
  • poorly trained operators
  • wear and tear on machines
  • wrong parameter settings
OEE vs TEEP speed losses

quality losses and quality

The quality losses consisting of rejected start-up products on the one hand and rejected production products on the other hand. They determine the quality. Some examples are:

  • failure when setting up the machine
  • B-quality products
  • products that need to be reworked

One OEE is not the other

OEE vs TEEP quality losses

planning losses and utilization

The planning losses indicate how much potential you still have in your 'hidden factory'. They determine the utilization of the machine. As indicated earlier, the utilization is taken into account in investment and capacity analyses. Since the utilization gives you an idea of ​​how far you you can still increase the output of your current machine It is often the case that exploiting the potential of your "hidden factory" i.e. of the "hidden time" is cheaper than buying a new machine to increase capacity.

OEE vs TEEP planning losses


Keep in mind that the OEE consists of 3 of the above categories and TEEP consists out of the 4 categories. Each category has its own characteristics. Would you agree to increase OEE by 5% by increasing performance by 10% if this results in a 5% drop in quality? Probably not because the total cost is higher, not to mention any image damage.


An example.

in a company the following applies:

  • 1 shift is worked during the day
  • the shift lasts 8 hours
  • A product change is implemented. The changeover time from product A to product B takes 20 minutes.
  • The operator has 3 breaks: 1 of 30 minutes and 2 of 10 minutes. During the break, the machine is stopped.
  • There are 12 short material jams of 30 seconds per jam that will stop the machine.
  • 48 pieces produced are bad. Making a piece takes 5 seconds.
OEE vs TEEP example

The OEE = 410/430 x 404/410 x 400/404 = 93.0%

The TEEP = 430/1440 x 410/430 x 404/410 x 400/404 = 27.7%