
This article is adapted from Chapter 3 of my book titled Measuring Manufacturing Effectiveness.
The book is organized as a structured, multi-chapter exploration of how manufacturing organizations define, measure, and interpret “effectiveness.” Rather than focusing on isolated metrics or tools, it examines measurement as a system; one that shapes decisions, priorities, and behavior across operations, quality, reliability, and management.
Each chapter is written to stand on its own, while also contributing to a larger, integrated framework for understanding manufacturing performance.
Chapter 3 focuses on three of the most commonly used, and most frequently misunderstood, manufacturing effectiveness metrics:
- Total Effective Equipment Performance (TEEP)
- Overall Operations Effectiveness (OOE)
- Overall Equipment Effectiveness (OEE)
Although these measures are often treated as variations of the same idea, they differ in important and meaningful ways. This chapter clarifies what each metric is designed to measure, the assumptions embedded in each definition, and the types of questions each metric is and is not capable of answering.
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