Many systems in use today do not fulfill their expectations when operating, and are in a non-operating state much of the time due to maintenance. The accomplishment of maintenance often turns out to be costly and may significantly influence performance and the competitive position of a factory. In response to maintenance problems in the industrial environment, “Total Productive Maintenance (TPM)” is rapidly becoming the reliable, efficient, and cost-effective approach to maintaining the system to be operated at the full capacity with high productivity and low production cost.

“Overall Equipment Effectiveness (OEE)” has been developed to measure the effectiveness of a given maintenance approach. It involves all of the operation and maintenance parameters required to measure the overall operating condition of the factory and its equipment. Measuring in terms of the OEFE assists in identifying the production losses experienced in a factory, and aids in planning possible countermeasures to eliminate those losses.

The concept of TPM and the steps involved in TPM implementation is introduced. A specific measure of TPM effectiveness, OEE, is defined, employed, and the results are analyzed. A computerized OEE model is developed to facilitate the measurement and evaluation process. The countermeasures necessary to eliminate the losses defined in TPM are also discussed. Application of OEE measurement and evaluation is illustrated through a case study assuming a hypothetical factory environment. A cost-effectiveness analysis in terms of the total product cost and the resultant OEE value is also illustrated through the case study. The application of these methods for continuous factory improvement is the objective.