Understanding the OEE Calculation

What is TPM?
The basis …	The difference between the ideal and actual situation are the losses. Daily, the employees who operate and maintain the machinery are confronted with these losses.
Definition	TPM is the acronym for Total Productive Manufacturing, a strategy to improve the effectiveness of the production environment throughout the company. This is realized by using methods that allow currently used machinery to generate more good products.
Objective	TPM strives for an ideal production situation, without breakdowns, without defects, without losses due to rejects or poor product quality, without accidents, injuries, and health problems. That ideal situation can be achieved by means of a continuous improvement process requiring total commitment from every employee, from the operators on the shop floor to the highest level of management.
Background	Total Productive Maintenance is a concept that was introduced by JIPM (Japan Institute of Plant Maintenance) in 1971. By now, TPM has evolved into Total Productive Manufacturing. In the late eighties, the TPM concept became known on a wider scale in the western world when Productivity Inc. published the English translations of two books written by JIPM expert Seiichi Nakajima: Introduction to TPM and TPM Development Program.
Emphasis on machines	Implementing TPM means applying methods for continuous improvement with the aim to reduce losses in a structured way. Because the actual process of adding value to products usually involves machines and equipment, TPM activities focus primarily on machinery related losses.
Link to ‘Lean’ and ‘Flow’	Apart from registering machinery related losses, the OEE Toolkit also indicates losses caused by the production line or logistics. After all, the effectiveness of a piece of equipment is also influenced by the way in which the line supplies input and demands output.
Strategy	The strategy of TPM aims at identifying and reducing the Six Big Losses.

next >>>