In Manufacturing, when can we say that we are doing our production efficiently? When we do our job well, successfully, in stipulated time without wasting much energy, resources, efforts and time in doing a particular job assigned to us, then we say that our job was done efficiently. Right! If this is the case with human beings, then what about the machineries used in industries / factories? The technical term used to calculate TEEP or to track the performance of all machineries together is called Total Effective Equipment Performance (TEEP).
Total Effective Equipment Performance (TEEP) can be defined as a method of measuring the performance of the machineries against their total capacity, facilitating the manufacturers understand the performance and improve utilization.
Before calculate TEEP, we should be aware of the losses in the production plant. There are mainly 2 losses i.e., Equipment Losses (measured by OEE) and Scheduled Losses (measured by Utilization). TEEP can be calculated using the formulae listed below.
TEEP = OEE * Utilization
OEE = A * P * Q (Availability, Performance and Quality)
Utilization = Planned Production Time / All Time
In a manufacturing industry, for example, imagine on a normal workday with 2 working shifts. The scheduled operation time is 16 hours (8+8) i.e., 960 minutes. Let the number of pieces produced be 25,000.
When we consider the employee – shift changes and the time machine take to power up, it accumulates to 40 minutes of downtime in each shift (assumption) i.e., 80 minutes. The actual production time is then 880 minutes (960-80).
i.e., OEE = 0.916 * 0.946 * 0.98 = 0.849
– To calculate TEEP, the formula is
TEEP = OEE * Utilization
– But Utilization = Planned Production Time / All Time = 880 / 960 = 0.916
i.e., TEEP = 0. 815 * 0.916 = 0.7473 (74.7%)
If the TEEP score is 100%, it means that there is no Schedule Losses and no OEE Losses which means the machine produces only Good Parts, as fast as possible, without any stop, working round the clock for 24hrs a day, 7 days a week.
Practically, even the best production plant will have a maximum TEEP ranging from 85% to 90%.
There has been a significant transformation in the industrial areas regarding the way manufacturing industries produce the product and the credit goes to digitization of manufacturing. Industry 4.0 represents the 4th revolution that has occurred in the manufacturing industries. Let us briefly see how industries have arrived at the 4th revolution.
By calculate TEEP and OEE aided with Industry 4.0 enables the manufacturers optimize their operations more effectively and efficiently to monitor the machine utilization. This technology provides more reliability in productions by viewing utilization metrics in real time from anywhere across the globe. It gives an insight to the production performance which helps in assessing production schedules, forecast the demand, enhance manufacturing process, increase the product quality, improve the efficiency of manufacturing process and therefore hit the peak utilization of the machineries.
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In most of the manufacturing industries, equipments’ are not used to its full capacity. Measuring the TEEP and OEE gives clarity on the asset performance to its total capacity to understand the performance, loses and peak utilization of the assets. This helps the manufacturers take appropriate decision in improving the production, asset management, predict production time, avoid loses thereby improving the efficiency of the plant.
SFactrix.ai entrenched with Industry 4.0 is the new sunrise area in manufacturing industry which enhances the factories with smart and autonomous systems powered by data and machine learning. Determining the TEEP and OEE gives an in-depth knowledge of what exactly is happening in the production plant, what is the production capacity, what is the actual production rate, what improvements is to be incorporated to improve production, predict the quality and rate of production etc. taking industry standards to different heights.