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Understanding Your Data Guide

Overview​

Understanding Performance Metrics​

MachineMetrics provides several key performance indicators to measure manufacturing efficiency. Understanding these metrics—OEE, OOE, and TEEP—is essential for identifying improvement opportunities and tracking progress.

Key Differences:

  • OEE: Measures efficiency during scheduled job time
  • OOE: Measures efficiency during total shift time (scheduled + unscheduled)
  • TEEP: Measures efficiency against all time (24/7/365)

Each metric serves a different purpose and provides unique insights into your operations.

OEE - Overall Equipment Effectiveness​

What is OEE?​

OEE (Overall Equipment Effectiveness) is the gold standard for measuring manufacturing productivity. It measures how effectively a machine performs during its scheduled production time.

World-Class OEE: ≥ 85%

When to Use OEE:

  • Measuring machine performance during production runs
  • Comparing efficiency across machines or lines
  • Tracking improvement initiatives
  • Benchmarking against industry standards

Important: OEE only accounts for time when machines are scheduled to run. It excludes breaks, unscheduled time, and optional shifts.

Three Components of OEE​

OEE is calculated by multiplying three factors:

OEE = Availability × Performance × Quality

[Recommended Image]: Visual diagram showing the three OEE components (Availability, Performance, Quality) with their formulas and how they multiply together

1. Availability​

Definition: Percentage of scheduled time that the machine is actually running.

Formula:

Availability = (Scheduled Time In Cycle / Scheduled Time) × 100%

Example:

Scheduled Time: 8 hours (480 minutes)
Time In Cycle (Active): 4 hours (240 minutes)
Availability = (240 / 480) × 100% = 50%

What It Measures:

  • Impact of unplanned downtime (breakdowns, waiting for material, etc.)
  • Impact of planned downtime (changeovers, maintenance, etc.)
  • Machine reliability

What Reduces Availability:

  • Equipment failures
  • Setup and changeovers
  • Material shortages
  • Operator breaks (if not excluded from scheduled time)
  • Quality issues causing stops

2. Performance​

Definition: Measure of actual production speed versus ideal/target speed.

Formula:

Performance = (Ideal Cycle Time / Actual Cycle Time) × 100%

Alternative:

Performance = (Actual Parts × Ideal Cycle Time / Scheduled Time In Cycle) × 100%

Example:

Ideal Cycle Time: 2 minutes per part
Actual Cycle Time: 2 minutes per part
Performance = (2 / 2) × 100% = 100%

Example with Slower Speed:

Ideal Cycle Time: 2 minutes per part
Actual Cycle Time: 2.5 minutes per part
Performance = (2 / 2.5) × 100% = 80%

What It Measures:

  • Whether machine is running at target speed
  • Impact of minor stoppages
  • Impact of reduced speed (feeds, speeds)

What Reduces Performance:

  • Slow cycles (feed rate too low)
  • Minor stoppages (chip clearing, inspection checks)
  • Operator inefficiency
  • Tool wear
  • Process parameter deviations

Note: Performance is the only OEE component that can exceed 100% if actual cycle time is faster than ideal.

3. Quality​

Definition: Percentage of parts produced that meet quality standards.

Formula:

Quality = (Good Parts / Total Parts) × 100%

Example:

Total Parts Produced: 200
Good Parts: 150
Rejected Parts: 50
Quality = (150 / 200) × 100% = 75%

What It Measures:

  • First-pass yield
  • Impact of scrap and rework
  • Process capability

What Reduces Quality:

  • Defective parts (scrap)
  • Parts requiring rework (non-conforming)
  • Process variation
  • Tool wear
  • Material defects

Calculating OEE: Single Machine Example​

Given:

  • Scheduled Time: 8 hours (480 minutes)
  • Time In Cycle: 4 hours (240 minutes)
  • Ideal Cycle Time: 2 minutes per part
  • Actual Cycle Time: 2 minutes per part
  • Total Parts: 200
  • Good Parts: 150
  • Rejected Parts: 50

Step 1: Calculate Availability

Availability = (240 / 480) = 50%

Step 2: Calculate Performance

Performance = (2 / 2) = 100%

Step 3: Calculate Quality

Quality = (150 / 200) = 75%

Step 4: Calculate OEE

OEE = 50% × 100% × 75% = 37.5%

Interpretation:

  • OEE of 37.5% indicates significant room for improvement
  • Primary issue is Availability (50%)
  • Performance is good (100%)
  • Quality could improve (75%)
  • Action: Focus on reducing downtime to increase Availability

Calculating Aggregated OEE (Multiple Machines)​

When calculating OEE across multiple machines, a weighted calculation is required.

Why Weighting Matters:

Example:

  • Machine A runs 30 minutes at 50% OEE
  • Machine B runs all day (8 hours) at 100% OEE
  • Simple average: (50% + 100%) / 2 = 75% ❌ INCORRECT
  • True aggregated OEE must weight by production time/capacity

Weighted OEE Calculation Method​

Each component is weighted by factors related to its nature, preserving the OEE product invariant.

VALUE_FUNCTION: A weighting factor applied consistently to all three components (default: ideal part time).

Weighted Availability​

Weighted Availability = 
  SUM(Availability × ((Scheduled Time / Ideal Part Time) × VALUE_FUNCTION)) /
  SUM((Scheduled Time / Ideal Part Time) × VALUE_FUNCTION)

Simplified (when VALUE_FUNCTION = idealPartTime):

Weighted Availability = SUM(Availability × Scheduled Time) / SUM(Scheduled Time)

What This Does: Weights availability by the number of parts that could theoretically be produced during scheduled time.

Weighted Performance​

Weighted Performance = 
  SUM(Performance × ((Scheduled Time In Cycle / Ideal Part Time) × VALUE_FUNCTION)) /
  SUM((Scheduled Time In Cycle / Ideal Part Time) × VALUE_FUNCTION)

Simplified (when VALUE_FUNCTION = idealPartTime):

Weighted Performance = SUM(Performance × Scheduled Time In Cycle) / SUM(Scheduled Time In Cycle)

What This Does: Weights performance by the number of parts that could theoretically be produced during active execution time.

Weighted Quality​

Weighted Quality = 
  SUM(Quality × (Total Parts × VALUE_FUNCTION)) /
  SUM(Total Parts × VALUE_FUNCTION)

Simplified (when VALUE_FUNCTION = idealPartTime):

Weighted Quality = SUM(Quality × Total Parts) / SUM(Total Parts)

What This Does: Weights quality by actual production volume.

Overall Weighted OEE​

Aggregated OEE = Weighted Availability × Weighted Performance × Weighted Quality

Impact of Setup and Categorized Downtime on OEE​

Categorized Downtime:

  • Categorizing downtime (planned or unplanned) does NOT impact OEE calculation
  • All downtime reduces Availability equally
  • Categorization is for analysis only (identifying root causes)

Setup Time:

  • Setup is treated differently from other downtime
  • Planned Setup: Excluded from Scheduled Time (does not impact Availability or Performance)
  • Unplanned Setup: Included in Scheduled Time (impacts Availability and Performance)
  • All Setup (planned + unplanned): Impacts Quality calculation

Availability Calculation with Setup:

Availability = (Scheduled Time In Cycle) / (Scheduled Time - Planned Setup)

Performance Calculation with Setup:

Performance is calculated over (Scheduled Time - Planned Setup)

Quality Calculation with Setup:

Quality is calculated over entire Scheduled Time (including all setup)

Note: If no expected setup time is defined, all setup is considered unplanned.

OOE - Overall Operations Effectiveness​

What is OOE?​

OOE (Overall Operations Effectiveness) measures machine performance across the entire shift, including both scheduled and unscheduled time.

Difference from OEE:

  • OEE: Measures efficiency during scheduled job time only
  • OOE: Measures efficiency for the full shift (scheduled + unscheduled)

When to Use OOE:

  • Measuring overall shift efficiency
  • Accounting for time between jobs
  • Understanding total shift productivity
  • Evaluating scheduling effectiveness

Why OOE?​

OOE provides a more comprehensive view of operations by including:

  • Time waiting for jobs
  • Time between operations
  • Unscheduled but available time
  • Entire shift from start to finish

Example:

Shift Duration: 8 hours
Scheduled Job Time: 6 hours (machine running jobs)
Unscheduled Time: 2 hours (waiting for jobs, between operations)

OEE: Measures efficiency of the 6 hours
OOE: Measures efficiency of all 8 hours

Components of OOE​

Availability (OOE)​

Definition: Percentage of total shift time (scheduled + unscheduled) that machine is active.

Formula:

OOE Availability = OEE Availability × (Scheduled Time / Non-Optional Time)

Where:

  • OEE Availability: Scheduled Time In Cycle / Scheduled Time
  • Non-Optional Time: Total shift time (excluding optional shifts)

Example:

Shift Duration: 8 hours (480 minutes)
Scheduled Job Time: 6 hours (360 minutes)
Time In Cycle: 4 hours (240 minutes)

OEE Availability = (240 / 360) = 66.7%
OOE Availability = 66.7% × (360 / 480) = 50%

Performance (OOE)​

Same as OEE: Performance calculation is identical.

Performance = (Ideal Cycle Time / Actual Cycle Time) × 100%

Quality (OOE)​

Same as OEE: Quality calculation is identical.

Quality = (Good Parts / Total Parts) × 100%

Calculating OOE​

Formula:

OOE = OEE × (Scheduled Time / Non-Optional Time)

Alternative:

OOE = (Scheduled Time / Non-Optional Time) × Availability × Performance × Quality

Example:

OEE: 60%
Scheduled Time: 6 hours
Total Shift Time: 8 hours

OOE = 60% × (6 / 8) = 45%

Interpretation:

  • OEE of 60% means machine runs efficiently during scheduled jobs
  • OOE of 45% accounts for 2 hours of unscheduled time
  • Gap indicates scheduling inefficiency or lack of work

TEEP - Total Effective Equipment Performance​

What is TEEP?​

TEEP (Total Effective Equipment Performance) measures machine performance against all time (24 hours/day, 7 days/week, 365 days/year).

TEEP assumes machines can run continuously without breaks, maintenance, or downtime.

When to Use TEEP:

  • Evaluating total equipment utilization
  • Understanding true capacity
  • Assessing scheduling effectiveness
  • Identifying opportunities for additional shifts

Key Insight: TEEP is always lower than OEE and OOE because it includes all time (nights, weekends, holidays).

Components of TEEP​

Availability (TEEP)​

Definition: Percentage of all time that machine is scheduled to run.

Formula:

TEEP Availability = Scheduled Time / All Time

Example:

Scheduled Time: 6 hours/day (Mon-Fri)
All Time: 24 hours/day, 7 days/week

Weekly Scheduled Time: 6 hrs × 5 days = 30 hours
Weekly All Time: 24 hrs × 7 days = 168 hours

TEEP Availability = (30 / 168) = 17.9%

Performance (TEEP)​

Same as OEE: Performance calculation is identical.

Performance = (Ideal Cycle Time / Actual Cycle Time) × 100%

Quality (TEEP)​

Same as OEE: Quality calculation is identical.

Quality = (Good Parts / Total Parts) × 100%

Calculating TEEP​

Formula:

TEEP = (Scheduled Time / All Time) × Performance × Quality

Or:

TEEP = TEEP Availability × Performance × Quality

Example:

Scheduled Time: 30 hours/week
All Time: 168 hours/week
Performance: 85%
Quality: 95%

TEEP = (30 / 168) × 85% × 95%
TEEP = 17.9% × 85% × 95% = 14.5%

Interpretation:

  • TEEP of 14.5% indicates machine is productive 14.5% of all available time
  • Low TEEP often due to limited scheduled time (not running nights/weekends)
  • Opportunity: Add shifts to increase TEEP

Comparing OEE, OOE, and TEEP​

Visual Comparison​

Time Breakdown Example:

All Time (24/7):          ████████████████████████████████ 168 hours/week
                          ↓
Non-Optional Time (Shifts): ██████████ 80 hours/week (2 shifts × 5 days)
                          ↓
Scheduled Time (Jobs):    ██████ 50 hours/week (jobs scheduled)
                          ↓
Time In Cycle (Active):   ████ 40 hours/week (actually cutting)

[Recommended Image]: Visual diagram showing the differences between TEEP, OOE, and OEE with nested time periods

Metrics:

  • TEEP: Measures 40 hours / 168 hours = 23.8% (all time)
  • OOE: Measures 40 hours / 80 hours = 50% (shift time)
  • OEE: Measures 40 hours / 50 hours = 80% (scheduled job time)

Which Metric to Use?​

Use OEE when:

  • Measuring machine efficiency during production
  • Comparing machines or operations
  • Benchmarking against industry standards
  • Tracking continuous improvement

Use OOE when:

  • Evaluating total shift productivity
  • Including unscheduled time in analysis
  • Measuring operational efficiency (not just machine efficiency)
  • Understanding gaps between jobs

Use TEEP when:

  • Assessing total equipment utilization
  • Evaluating scheduling strategies
  • Considering additional shifts
  • Understanding maximum capacity

Relationship Between Metrics​

TEEP ≤ OOE ≤ OEE

Example:
TEEP: 15%
OOE: 45%
OEE: 75%

Why This Order?

  • OEE is highest (measures only scheduled production time)
  • OOE is lower (adds unscheduled shift time)
  • TEEP is lowest (adds nights, weekends, holidays)

Scheduled Time​

What is Scheduled Time?​

Scheduled Time is the time period when a machine is expected to be running production jobs.

Scheduled Time Excludes:

  • Breaks (lunch, coffee breaks)
  • Planned setup time (if configured)
  • Unattended shifts (optional shifts)
  • Non-production time

Scheduled Time Includes:

  • Time between start and end of shift
  • Time when operations are assigned
  • Unplanned downtime during shifts

How Scheduled Time is Determined​

Method 1: First Active Time + Shifts

  • Machine's "First Active Time" starts the clock
  • Continues through configured shifts
  • Ends at shift end time

Method 2: Operation Scheduling

  • Operations have start and end times
  • Scheduled time = time when operations are running
  • More granular than shift-based

Example:

Shift: 6:00 AM - 2:00 PM (8 hours)
First Active Time: 6:00 AM
Breaks: 10:00-10:15 AM, 12:00-12:30 PM (45 min)

Scheduled Time = 8 hours - 45 min = 7 hours 15 min

Impact on OEE​

Scheduled Time is the denominator for Availability:

Availability = Time In Cycle / Scheduled Time

Accurate Scheduled Time is Critical:

  • Too high → Availability appears artificially low
  • Too low → Availability appears artificially high

Best Practice: Configure First Active Time and Shifts accurately for each machine.

Historical Baselines​

What is a Baseline?​

A baseline is a historical reference point representing typical performance, used to detect changes and identify outliers.

Company Dashboard Baselines​

Calculation:

  • Lookback Period: 6 months
  • Method: Median of weekly median values
  • Metrics: Utilization, OEE, Availability, Performance

Example:

Week 1: 78% utilization
Week 2: 82% utilization
Week 3: 75% utilization
...
Week 26: 80% utilization

Baseline = Median of 26 weekly values = 79%

Why Median (not Average)?

  • Robust to outliers
  • Extreme weeks don't skew baseline
  • Represents "typical" performance

Machines Page Baselines (Cycle Time)​

Calculation:

  • Lookback Period: 3 months (shorter than company baseline)
  • Applied To: Individual operations
  • Purpose: Detect process drift

Example:

Baseline Cycle Time: 120 seconds
Current Cycle Time: 140 seconds
Variance: +20 seconds (16.7% slower)

Why 3 Months?

  • Operations change more frequently than company-wide metrics
  • Shorter window captures recent improvements
  • More responsive to process changes

Using Baselines​

Performance Alerts:

  • "Utilization: Lower than expected" widget uses baselines
  • "Cycle Times: Slower than expected" uses cycle time baselines

Trending:

  • Compare current period to baseline
  • Track improvement over time
  • Baseline adjusts as performance improves

Example:

Month 1: 75% utilization (5 pp below 80% baseline)
Month 2: 78% utilization (2 pp below baseline)
Month 3: 82% utilization (2 pp above baseline)
→ Baseline adjusts upward as performance improves

Using These Metrics​

Starting Your Improvement Journey​

Step 1: Establish Current State

  1. Review OEE for each machine
  2. Identify lowest-performing machines
  3. Understand which component (Availability, Performance, Quality) is limiting

Step 2: Prioritize Improvement Areas

  • Low Availability (< 85%): Focus on reducing downtime
  • Low Performance (< 90%): Focus on cycle time optimization
  • Low Quality (< 98%): Focus on quality improvements

Step 3: Set Targets

  • Short term: Return to baseline (if below)
  • Medium term: Achieve 85% OEE (world-class threshold)
  • Long term: Continuous improvement toward 90%+

Analyzing OEE Components​

If Availability is Low:

  • Review Top 5 Downtime Pareto
  • Identify most frequent downtime reasons
  • Implement countermeasures:
    • Reduce changeover time (SMED)
    • Improve maintenance (preventive → predictive)
    • Optimize material flow
    • Increase operator training

If Performance is Low:

  • Review cycle time trends
  • Compare actual vs ideal cycle time
  • Investigate causes:
    • Feed rates too conservative
    • Tool wear
    • Process parameter drift
  • Optimize:
    • Review programs (speeds/feeds)
    • Implement tool management
    • Process optimization

If Quality is Low:

  • Review reject reasons
  • Analyze scrap trends
  • Root cause analysis:
    • Tool wear
    • Process variation
    • Material defects
    • Setup errors
  • Implement:
    • First article inspection
    • Statistical process control
    • Better tool management

Continuous Improvement Cycle​

1. Measure → Establish baseline OEE
2. Analyze → Identify limiting factor (Availability/Performance/Quality)
3. Improve → Implement countermeasures
4. Control → Verify improvement sustained
5. Repeat → Target next improvement area

Reporting Tools​

OEE Reports in MachineMetrics​

Out-of-the-Box OEE Report:

  • Pre-configured OEE report
  • Navigate to Reports → OEE Report
  • Select date range, machines, shifts
  • View OEE with Availability, Performance, Quality breakdown

Report Builder:

  • Customizable reporting tool
  • Build custom OEE reports
  • Add filters, groupings, visualizations
  • Schedule automated delivery

To Build OEE Report in Report Builder:

  1. Navigate to Reports → Report Builder
  2. Click New Report
  3. Select OEE metric
  4. Add dimensions (Machine, Date, Shift, Operation)
  5. Configure visualizations
  6. Save and schedule

Additional Reports:

  • OOE Reports: Select OOE in Report Builder
  • TEEP Reports: Select TEEP in Report Builder
  • Utilization Reports: Focus on Availability component
  • Cycle Time Reports: Focus on Performance component
  • Quality Reports: Focus on Quality component

Dashboards​

Company Dashboard:

  • Displays OEE for entire company
  • Variance from baseline
  • Trend vs previous period

Machine Overview:

  • OEE tab shows machine-specific OEE
  • Breakdown by day/shift/operation
  • Chart and table views

Glossary of Terms​

All Time:

  • The queried date range (e.g., "Last 7 Days", "January 2025")

Non-Optional Time:

  • Time covered by shifts that are normally staffed
  • Excludes optional shifts (e.g., unmanned overnight)

Scheduled Time:

  • Time machine is scheduled to operate
  • Excludes planned setup, breaks, optional shifts
  • Used as denominator in OEE Availability

Scheduled Time In Cycle:

  • Time machine is actively executing during scheduled time
  • Excludes downtime and idle periods
  • Used as numerator in OEE Availability

Ideal Part Time (Ideal Cycle Time):

  • Theoretical shortest time to complete one part
  • Target cycle time for the operation
  • Used in Performance calculation

Actual Cycle Time:

  • Measured time to complete one part
  • Can be slower or faster than ideal
  • Used in Performance calculation

Total Parts:

  • All parts produced during queried time range
  • Includes good parts, scrap, and non-conforming

Good Parts:

  • Parts that pass quality inspection
  • Used as numerator in Quality calculation

Scheduled Total Parts:

  • Parts produced during scheduled time
  • Excludes parts from unscheduled time

First Active Time:

  • Time when machine is expected to start each day
  • Used to define start of Scheduled Time
  • Configure in machine settings

Getting Help​

Before Contacting Support​

Common Questions:

"Why is my OEE low?"

  • Check which component is lowest (Availability/Performance/Quality)
  • Review corresponding data (downtime/cycle time/reject rate)
  • Look for trends over time

"Why does OEE differ from OOE?"

  • OOE includes unscheduled time
  • If significant difference, review scheduling practices

"My OEE seems wrong"

  • Verify Scheduled Time is configured correctly
  • Check First Active Time setting
  • Confirm shifts are assigned to machine
  • Verify ideal cycle time is accurate

"How do I improve OEE?"

  • Identify limiting factor (Availability/Performance/Quality)
  • Use reports to find root causes
  • Implement targeted improvements

Contact Support​

MachineMetrics Support:

  • Email: support@machinemetrics.com
  • Include:
    • Machine name
    • Date range in question
    • Specific metric (OEE/OOE/TEEP)
    • Screenshot of report or dashboard
    • What you expected vs what you're seeing

For Training:

  • Request OEE/OOE/TEEP training session
  • Ask about best practices for your industry
  • Schedule continuous improvement workshop

Next Steps:

Questions? Contact support@machinemetrics.com