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Introduction 
Improving productivity is essential for organizations striving to enhance operational efficiency. This diagram introduces key metrics for evaluating and optimizing productivity: 

• TEEP – Total Effective Equipment Performance
• OOE – Overall Operations Effectiveness
• OEE – Overall Equipment Effectiveness

Each metric evaluates different levels of productivity losses related to **quality, performance, and availability**, ultimately contributing to improved output, reduced downtime, and optimized equipment usage. 

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1. Key Metrics to Measure Productivity 

1.1 Total Effective Equipment Performance (TEEP): 
TEEP measures the **total production time available** over 365 days, 24 hours a day. It represents the theoretical maximum capacity of a factory. 

Formula: 
TEEP = (Fully Productive Time / Total Available Time) × 100 

1.2 Overall Operations Effectiveness (OOE): 
OOE focuses on **scheduled production activities** and evaluates performance losses during planned production shifts. 

Formula: 
OOE = (Fully Productive Time / Scheduled Time) × 100 

1.3 Overall Equipment Effectiveness (OEE): 
OEE is the most widely used metric for measuring **actual equipment effectiveness**. It identifies and quantifies the **three primary losses**: 

• Availability Losses
• Performance Losses
• Quality Losses

Formula: 
OEE = Availability × Performance × Quality 

Example: 
A machine operating for 16 hours in a 24-hour shift produces 80% of its theoretical output with a 5% defect rate. 
- Availability = 16/24 = 66.7% 
- Performance = 80% 
- Quality = 95% 
- OEE = 66.7% × 80% × 95% = 50.7% 

This indicates room for significant improvement.

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2. Analyzing Productivity Losses 

The diagram categorizes losses into Availability, Performance, and Quality, each affecting productivity at different levels.

Category	Description	Example
Availability Loss	Planned or unplanned downtime reduces operating time.	Machine maintenance stops production for 2 hours.
Performance Loss	Loss of productivity due to speed reduction or microstops.	Reduced conveyor belt speed lowers output.
Quality Loss	Production of defective goods that require rework or scrap.	5% of output is scrapped due to defects.

2.1 Quality Loss (Scrap & Rework): 
- Represents defects and rework that cause a loss of **effectiveness**. 
- Example: A manufacturing plant producing 100 items per hour identifies 10 items with defects. 

2.2 Speed Loss (Reduced Speed, Microstops): 
- Occurs when machines operate below their theoretical maximum speed. 
- Example: A machine running at 70% speed due to wear and tear reduces total output. 

2.3 Time Loss (Planned Stops): 
- Scheduled stops, such as routine maintenance or breaks, reduce total operating time. 
- Example: A shift includes 1 hour for machine setup and calibration. 

2.4 Unscheduled Time (Downtime): 
- Machine failures or unplanned stoppages disrupt operations outside planned activities. 
- Example: A sudden breakdown causes a 4-hour production halt. 

2.5 Not Scheduled Time: 
- Time when no activities are planned, such as factory downtime during holidays. 

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3. Improving Productivity Through OEE Analysis 

To improve productivity, organizations must address losses at all levels: 

• Reduce Availability Losses: Implement Preventive Maintenance to minimize breakdowns and unscheduled stops.
• Optimize Performance: Monitor equipment speed and reduce microstops through Continuous Improvement programs.
• Enhance Quality: Improve defect detection and minimize rework using Quality Maintenance practices.

Example: 
A food processing company identified that performance losses (microstops) were reducing OEE by 10%. By addressing minor equipment adjustments and operator training, they improved OEE by 7%.

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4. The Productivity Improvement Framework 

The process for improving productivity involves: 

Step	Action
1	Measure OEE to establish a performance baseline.
2	Identify the root causes of Availability, Performance, and Quality losses.
3	Implement corrective measures such as Preventive Maintenance, operator training, and process optimization.
4	Continuously monitor TEEP, OOE, and OEE to ensure sustained improvement.

Example: 
A pharmaceutical company achieved a 15% productivity gain by combining OEE measurement with Lean tools like **5S** and **Kaizen** to eliminate downtime and performance losses.

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Conclusion 

Improving productivity requires a systematic approach to identifying and addressing Availability, Performance, and Quality losses. By leveraging metrics like TEEP, OOE, and OEE, organizations can: 

• Maximize equipment efficiency.
• Reduce downtime and defects.
• Optimize operating time.

Continuous improvement, preventive maintenance, and quality assurance play critical roles in achieving sustained productivity gains. Monitoring these metrics empowers organizations to deliver greater value while enhancing competitiveness in dynamic market environments.