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OEE is a measure of Machine
or Equipment Effectiveness
It tells you how much of the
theoretical capacity you are
using ( and how much is lost)
OEE is the product of
Availability, Performance
and rate of quality product
that reduce
Planned Downtime losses

• Start-ups
• shift changes
• coffee and lunch breaks
• planned maintenance shutdowns
Unplanned Downtime Losses

• Equipment breakdown
• Changeovers
• Lack of material
Reduced Speed Losses

• Idling and minor stoppages

• Slow-downs
Poor Quality Losses

• Process non-conformities
• Scrap
What is Total Productive
• TPM is a plant improvement
methodology which enables continuous
and rapid improvement of the
manufacturing process through use of
employee involvement, employee
empowerment, and closed-loop
measurement of results
Breakdown of TPM
• TOTAL = All encompassing by
maintenance and production
individuals working together
• PRODUCTIVE = Production goods and
services that meet or exceed
customers’ expectations
• MAINTENANCE = Keeping equipment
and plant in as good as or better than
the original conditions at all times
TPM - History

• Productive maintenance (PM) originated in

the U.S. in late 1940’s & early 1950’s
• Japanese companies modified and enhanced
it to fit the Japanese industrial
• The first use the term TPM was in 1961 by
Nippondenso, a Japanese auto components
• Seiichi Nakajima – head of JIPM, one of
the earliest proponents, known as the
Father of TPM
TPM - Evolution

• Breakdown maintenance
• Preventive maintenance (PM)
• Productive maintenance
• Total productive maintenance
Goals of TPM
1. Aims at getting the most effective use of
2. Builds a comprehensive PM system
3. Brings together people from all departments
concerned with equipment
4. Requires the support and cooperation of
everyone from top managers down
5. Promotes and implements PM activities based
on autonomous small group activities.
6. Maintaining Equipment for life
7. Encouraging input from all employees
8. Using teams for continuous improvement
Three Principles of Prevention

• Maintenance of normal conditions

• Early discovery of abnormalities
• Prompt response
Autonomous Maintenance

Kobetsu Kaizen

Planned Maintenance

Quality Maintenance


Office TPM

Safety, health and

Kick off TPM
Launching TPM- Preparatory Stage

• Announce top management’s decision

to introduce TPM
• Launch an educational campaign to
introduce TPM
• Create an organizational structure to
promote TPM
• Establish basic policies
• Form a master plan for implementing
Launching TPM- Preliminary
Launching TPM- TPM Implementation

• Improve the effectiveness of each critical

piece of equipment
• Set up and implement autonomous
• Establish a planned maintenance system in
the maintenance department
• Provide training to improve operator and
maintenance skills
• Develop an early equipment management
Launching TPM- Stabilization

• Perfect TPM
implementation and raise
TPM levels
Eliminating Equipment Losses
Improvement Goals for Chronic Losses
What is OEE

• OEE (overall equipment efficiency) is

a “best practices” way to monitor and
improve the efficiency of your
manufacturing processes
– machines
– manufacturing cells
– assembly lines
OEE Factors
• Plant Operating Time
• Planned production time
– planned downtime ie. breaks
• Availability
– downtime losses
• Performance
– Speed losses
• Quality
– Quality losses
World Class OEE

OEE Factor World Class

Availability 90.0%
Performance 95.0%
Quality 99.9 %
OEE 85.0%
Calculating OEE

• Availability = Operating time/planned

• Performance = Ideal Cycle Time / Total
Pieces or
(total pieces / Operating time)/Ideal Run time
• Quality = Good Pieces / Total Pieces
• OEE = Availability X Performance X
Example OEE Calculation
Item Data
Shift length 8 hrs = 480 min.
Short Breaks 2@ 15 min. = 30 min
Meal Break 1 @ 30 min = 30 min
Down Time 47 min
Ideal Run Time 60 pieces per min
Total Pieces 19,271 pieces
Reject Pieces 423 pieces
Availability =

Operating time
Planned production time
• = 373 minutes / 420 minutes
• = 0.8881 (88.81%)
Performance =

(Total pieces /Operating time)

Ideal Run Time
• = (19,271 pieces/373 minutes)/60
pieces per minute
• = 0.8611 (86.11%)
Quality =

Good Pieces
Total Pieces

• = 18,848 / 19,271 pieces

• = 0.9780 (97.80 %)

Availability X Performance X Quality

• = 0.8881 X 0.8611 X 0.9780
• = 0.7479 (74.79%)
TPM - Benefits

• Improved equipment eliminates the root cause of

• Defects are prevented through planned
• Preventive maintenance costs are reduced as
equipment operators conduct autonomous
• Improved equipment designs ensure that new
equipment naturally produces fewer defects
• Simplified products designs and a redesigned
process produce with few defects
• Engineers, technicians and managers are trained in
maintenance and quality
TPM - Benefits

(Japanese TPM Prize winners during 1982-

• Equipment failures reduced from
1,000/month to 20/month
• Quality defects reduced from 1.0% to 0.1%
• Warranty claims reduced by 25%
• Maintenance costs reduced by 30%
• WIP decreased by 50%
• Productivity improved by 50%. (Patterson &
Fredendall, 1995)
TPM – Success stories

• USPS Albany, New York: annual save of

$86,000; could save $4.5 million if applied
• Yamato Kogyo Corp., Japan:
- productivity up by 130%,
- accidents cut by 90%,
- defects reduced by 95%,
- employee suggestion rate increased by
over 300%