During the last decades, both practitioners and researchers have raised the discussion about OEE in many ways. One of the most popular has led to modification and enlargement of individual original OEE tool to fit a broader perspective as supposed important for the companies1. With the evolution of OEE, different definitions have also come up in literature and in practice, coupled with their changed formulations. Some of these formulations (TEEP and PEE) are still at the equipment level, while the others (OAE, OFE and OPE) extended OEE to the factory level. Let’s go through the main features of each formulation.
TEEP stands for Total Equipment Effectiveness Performance and it was proposed firstly by Invancic2. TEEP is a performance metric that shows the total performance of equipment based on the amount of time the equipment was present. So OEE quantifies how well a manufacturing unit performs relative to its designed capacity, during the periods when it is scheduled to run. TEEP measures OEE effectiveness against Calendar Time, i.e.: 24 hours per day, 365 days per year.
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OEE and TEEP are thus two closely related measurements. Typically the equipment is on site and thus TEEP is metric that shows how well equipment is utilized. TEEP is useful for business analysis and important to maximize before spending capital dollars for more capacity.
PEE stands for Production Equipment Efficiency and it was firstly proposed by Raouf3. The main difference from OEE is that each item is weighted. So Availability, Performance, and Quality don’t have an equal importance as it happens for OEE.
At the level of the factory we found Overall Factory Effectiveness (OFE), Overall Production Effectiveness (OPE), and Overall Asset Effectiveness (OAE) metrics. OFE is the most widespread and well known in literature. It covers the effort to export the OEE tool to the whole factory. The question is what kind of method should be applied to OEE values from all pieces of equipment, to derive the factory level metric. There is no standard method or metrics for the measurement or analysis of OFE4. Huang5 stated that the factory level metric can be computed by synthesizing the subsystem level metrics, capturing their interconnectivity information.
OPE and OAE are extensively implemented in industry under different formulations. They involve a practical approach developed to fit the specific requirements of different industries.
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