1. Defining OEE & The Six Big Losses
Originally conceived by Seiichi Nakajima within Total Productive Maintenance (TPM), Overall Equipment Effectiveness (OEE) is the global benchmark for measuring industrial manufacturing productivity. OEE identifies hidden plant capacity by tracking losses across three distinct dimensions:
The Six Big Losses categorize the root drivers behind degraded capacity:
| OEE Factor | Loss Category | Industrial Example |
|---|---|---|
| Availability | 1. Unplanned Breakdowns | Catastrophic pump seizure, broken conveyor chain |
| 2. Planned Setups & Changeovers | Product tooling change, die swap, clean-in-place (CIP) | |
| Performance | 3. Minor Stoppages (< 5 min) | Sensor optical misfire, momentary bottle jam, feed starve |
| 4. Reduced Operating Speed | Running filler at 80% nameplate to avoid motor overheating | |
| Quality | 5. In-Process Scrap & Defects | Dimensional out-of-spec parts, weight rejections |
| 6. Startup / Warm-Up Losses | Extruder temperature stabilization scrap, print misregistration |
2. OEE vs TEEP: Uncovering Plant True Capacity
While OEE evaluates productivity strictly during Planned Production Time, Total Effective Equipment Performance (TEEP) measures utilization against total calendar time (24/7/365 = 8,760 hours/year).
If a packaging line achieves 80% OEE but only operates 2 shifts for 5 days a week (Utilization = 47.6%), its TEEP is only 38.1%. TEEP highlights whether plant expansion requires capital expenditure on new lines or simply unlocking dormant weekend capacity.
Compute Your Complete OEE & TEEP Waterfall
Calculate Availability, Performance, Quality, OEE, and TEEP with exact loss waterfall breakdowns, benchmarked against world-class manufacturing standards.