1. OEE is measured by combining a machine’s performance, availability, and quality. In this way, OEE helps you to identify potential losses and understand where your process is falling short. But OEE alone is just the first step to fully understanding your performance.
2. Today we will explore two other important and related metrics to help round out your continuous improvement strategy: Overall Operations Effectiveness (OOE) and Total Effective Equipment Performance (TEEP).
1. Productivity is defined as outputs ÷ inputs. Productivity increases when the same quantity of inputs results in more outputs, or when you get the same output quantity using fewer inputs.
2. When calculating productivity at a whole economy scale, economists often measure the ratio of gross domestic product (GDP) to labour hours.
3. Similarly, productivity in manufacturing measures the number of units produced or net sales, relative to employee labour hours.
4. It’s important to note that measuring labour hours as the sole input is only a partial measure of productivity. In practical terms, this is a useful benchmark, as labour is an input to almost all production. However it does not capture the full productivity picture, and other measures including Capital Productivity, Multifactor Productivity and Total Productivity are also used (see below).