Q: What is Asset Utilization and Capacity Utilization?
Daniel Högfeldt • It is important to measure utilization at the same time as measuring OEE. Here are a few different ways of doing that:
Asset Utilization
Asset Utilization is the percentage of the actual operating time and the total available time (calendar time, i.e. 24 hours per day).
Capacity Utilization
Capacity Utilization is the ratio between the total available time and the loading time. It shows the hidden operations potential. For example it would show the difference between 2 and 3 shifts.
TEEP (Total Effective Equipment Performance)
TEEP (Total Effective Equipment Performance) is the percentage of calendar time the equipment is running at speed and making good product. It is the ratio between the total available time (calendar time) and the actual effective production time. That is the same as the theoretical maximum amount of good products versus the actual amount of good products made during that time. It can be calculated by multiplying the Asset utilization, Performance rate and the Quality rate together.
Master’s Thesis: PLANT EFFICIENCY A value stream mapping and overall equipment effectiveness study
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