Decoding TEEP (Total Equipment Effective Performance)
What is TEEP (Total Equipment Effective Performance)?
My security guard is willing to guard my house 24hours a day, but I tell him to guard my house for only 12 hours. OEE measures how effectively he is doing the job in 12 hours. TEEP, whereas, measures the same, and in addition, also measures the extent of my stupidity in stating him to work only 12 hours a day while he was willing to work for 24 hours straight.
Losses on the shop floor can be classified as Equipment losses and Schedule losses. Loss occurred when the machine is scheduled to run are called as Equipment loss. We can measured it by OEE.
Schedule losses are concerned to the period when the machine was not scheduled to run but was still available to do so. For example, Lunch and tea breaks, non-working shifts, holidays, and no orders. This is measured as Utilization.
OEE vs. TEEP
- TEEP considers both equipment and schedule losses, i.e. OEE & Utilization
- OEE measures how efficiently you spent your scheduled production time
- TEEP measures how efficiently you utilized the entire calendar time
- Utilization = Planned Production Time divided by Total Available Calendar Time
- TEEP = OEE and Utilization multiplied
A machine’s OEE is 70 %. It runs 24 hours a day without a break, 5 days a week.
The Utilization is 5/7, or 71.42 %.
TEEP = 100 x ((OEE/100) x (Utilization/100)) = 50 %
A machine’s OEE is 60 %.
It works 12 hours a day, with lunch and tea breaks totaling 1.5 hour, 6 days a week, the Utilization is (10.5 x 6)/(24 x 7) = 37.5 %
TEEP = 100 x ((OEE/100) x (Utilization/100)) = 22.5 %
If I take out a bank loan to purchase a machine, the bankers expect to be paid the principle + interest on the loan every month. They don’t care how long I operate the machine. If I only run the machine for 12 hours a day, my revenue is half of what it might be if I operated it 24 hours a day. If orders are not a limitation, it makes sense for me to operate my machine for longer periods of time — 24 hours, across breaks, and so on. TEEP makes more sense as a measure of my capacity to repay the bank loan than OEE. The TEEP definition, TEEP computation and OEE vs. TEEP differences are therefore important to understand.
Industry 4.0 standard?!
The term Industry 4.0 standard is meaningless. There is no specific designed criteria by which you can claim, “This system complies with the Industry 4.0 standard.” Industry 4.0 is simply a term for a type of automation defined by the collection, transfer, and analysis of data via sensors connected to machines, the internet, and the cloud.
However, Industry 4.0 is based on a set of design principles:
Interoperability: A system’s or component’s ability to work well with other systems or components.
Information transparency: The ability to collect and process machinery activity using electronic sensors for other uses.
Technical assistance: First, the ability to assist people by reporting and informing them so that they can make decisions. Second, the ability to assist people by completing unpleasant, tedious, or dangerous jobs.
Decentralized decisions: The ability to decide and execute tasks as autonomously as feasible. Decisions and duties are only delegated to humans when they become particularly complex or have conflicting objectives.
The extent to which each of these principles are implemented can vary, and will likely rise as technology advances in the next years.
There are several standards for the various components of Industry 4.0 like sensors, cloud, IoT, etc. and how they are work like protocols, securities, etc. but there are no specific standard that states “This is Industry 4.0 and this is not”. If there is any system that follows the design principles listed above, that is Industry 4.0
230 years ago, in Industry 1.0 there were no specific standards revolving around the number of machines run on steam and steam used. Similar to that, seen today, there is no set rigid conformance to Industry 4.0 standards.
Industry 4.0: BREAKING THE JARGONS
There are multiple terms related to Industry 4.0. Professionals associated directly/indirectly with Industry 4.0 are supposed to know about these terms and jargons. This blog is especially for the users who are puzzled by the terms and jargons thrown at them while attempting to figure out what Industry 4.0 is, and how can it assist, and how much does it cost.
As with any equipment, portions of Industry 4.0 are the domain of the developers of the equipment, while others are the domain of equipment users (this is you). For example, with a CNC machine, you need to know about accuracies, vibration levels, speeds, and so on — in other words, what the machine can accomplish, not how it accomplishes it.
Here is a collection of helpful jargons that you should know, unnecessary stuff that you should avoid, and misinformation that you should avoid.
- What you’re going to know
The term “cloud” refers to Internet-accessible servers as well as the software and databases that operate on those servers. Cloud servers are located in many data centers across the world.
IOT (Internet of Things) and IIOT (Industrial Internet of Things):
The Internet of Things, or IoT, refers to the billions of physical gadgets that are linked to the internet and collecting and exchanging data all over the world. IOT and IIOT are the same thing, however IIOT refers to how IOT is used in industry.
IT equipment required for implementing the Industry 4.0 system on your shopfloor: IT maintenance staff, recurring IT maintenance cost, LAN (wired/Wi-Fi) in the shop floor, Server (with A/C, physical security, backups, UPS), etc.
The use of digital technology to modify a company model and generate new revenue and value-producing opportunities is known as digitalization. It is the transition to a digital business.
- These are things that only software developers worry about, but not you
Cyber physical system:
Cyber-Physical Systems (CPS) are systems that integrate computer, networking, and physical processes.
The large volume of data – both structured and unstructured – that inundates an organization on a daily basis is referred to as big data.
The scientific process of discovering and communicating important patterns in data is known as analytics.
Artificial Intelligence (AI):
Artificial intelligence (AI) is a broad field of computer science that aims to build smart machines that can perform activities that would typically require human intelligence.
Machine learning (ML):
The science of teaching computers to learn and accomplish things by themselves without being explicitly programmed to do so.
- Unless they are a part of your operation, you don’t need to know this
For some inexplicable reason, these technologies are (misguidedly) seen as integral to Industry 4.0, and are frequently discussed alongside Industry 4.0 by Experts in speeches and writings. Additive manufacturing, virtual reality, and robotics are a few of their favorites. They make it sound like Industry 4.0 is only possible if you include them in your manufacturing processes.
Additive Manufacturing (AM) is an appropriate name for the technologies that create 3D items by adding layer upon layer of material, whether it’s plastic, metal, or concrete. Additive manufacturing is NOT required for Industry 4.0, and 3D printing machines are not required for Industry 4.0 deployment in your firm.
Industry 4.0 does not necessitate the use of robots. Incorporating Industry 4.0 into your business does not need the use of robots.
High degrees of automation:
It’s possible to have a large number of manually operated machines. All of your material handling might be manual, and manual intervention might be required in every aspect of your business. Industry 4.0 does not necessitate high automation. This is not required for Industry 4.0 deployment in your company.
Virtual truth (VR):
Virtual Reality is a three-dimensional, computer-generating environment with which a human can explore and interact.
Augmented reality (AR):
Augmented reality overlaps the physical world with digital information. For example, you point your mobile phone camera to a machine part, the software will detect the item and provide precise information about the component to be used or serviced.
Industry 4.0 is just a term that refers to the automation of data capture, transfer and analysis by means of machine-connected sensors, the Internet and the cloud. Please use the rules above and make your discussions with professionals associated to Industry 4.0 meaningful, crisp, and swift.
Role of a CEO in Industry 4.0 implementation
Advancement and Transformation are the truth of today’s fast paced world. The world is moving ahead, and at a lightning speed. Today whatsoever fails at keeping up gets left behind. Change, has ceased to exist as a choice and is now but a necessity.
This lightening sharp nature of present has come up as a challenge for businesses and CEO’s. The essentials have increased. Today, for the CEO of a manufacturing company essentials apart from finance, marketing, and planning have outgrown. Today, more than ever, for the CEO of any manufacturing company, developing a high-performance team, leading it, and overlooking operations ensuring consistent delivery of high-quality products to maximize profits has become vital. Now is the time of Industry 4.0, and it is here.
An Industry 4.0 framework gathers data directly from machines – development, downtime, uptime, efficiency, maintenance, and human resources – and displays it to decision makers or sends it to other applications for processing. It gathers a large amount of data, analyses it, and presents it to decision makers at different levels of the company. Different numbers at different levels. These figures must be used to boost productivity.
Industry 4.0, which is the fourth industrial revolution, is the ongoing automation of traditional manufacturing and industrial practices, using modern smart technology. Now, your whole process will be seamless thanks to it. If properly implemented and used, it will reveal the truth about what is going on in your business.
In one of the companies utilizing AUTOBITS 4.0, for instance, the CEO completely designated the work of Industry 4.0 execution to the shop head. The CEO had nothing to do with it. AUTOBITS has configurable formulae for calculating OEE, and the shop head insisted on using ALL downtime in the OEE estimates, resulting in perfect “world-class” OEE numbers reaching 85%. For example, if a normal component unload/load time is 1 minute, a 10-minute downtime is considered part of the cycle rather than 9 minutes. The same can be said for setup times. The company is deceiving itself by relying on misleading productivity figures, and it is squandering a golden opportunity to increase profits.
Every organization, at every level, has two types of people. First is the Transparency enthusiast and second is the Transparency Despiser. Here the Transparency Enthusiast is a self-motivated individual who thrives for the best, is secure in his abilities, and sees transparency as an opportunity to change things even further whereas the Transparency Despiser is an individual with low skill and motivation whose longevity in the company depends on feeding fake efficiency statistics before the hierarchy as feeding reality would result to addressing issues which they lack the ability to confront.
Industry 4.0 system aids leaders to base their decisions on real-time information. You, as the CEO, are inspiring the transparency lover and making life tough for the transparency hater, pushing the latter to develop his motivation and skills by becoming active in the implementation of Industry 4.0 and then closely monitoring it. As a result, by being actively involved in the development and operation of Industry 4.0, you can improve both the quality of your operations and the performance of your team.
You must be heavily involved at first, then gradually decrease your involvement. You must examine efficiency figures, ask people to take action, and track the actions’ progress. Efficiency metrics can be anything you want, depending on your target area – OEE, spindle use, rejections, downtime, and so on.
Here’s a blueprint for a CEO’s job in implementing Industry 4.0:
- Review the previous day’s productivity numbers every morning – 30 minutes, every day
- Review the previous week’s productivity numbers every Monday morning – 1 hour, per week
- Look at long-term patterns in efficiency numbers on the first of the month – 2 hours, every month
Effective AUTOBITS installations have seen one or more of the following advantages: Despite increased sales, no new machine acquisitions have been made for at least a year. OEE has doubled, consumable costs have decreased significantly (energy, combustion gases), workers have switched to working two shifts instead of three (16 hours instead of 24), and manpower costs have decreased. Both of these things, of course, lead to profits.
Industry 4.0 is a great friend of the CEO, and the CEO’s position is indeed crucial in its implementation for success.
Introduction to IoT
While IoT is gradually advancing and becoming an important part of tech world, there is also other class of people who have little to no knowledge of this streaming technology. Today, we will bridge that gap just as IoT does. Confused? Well, don’t be.
To make it simple, lets first split each word and dive into it:
Internet is all about WWW, a network that is globally used which is both build and used by human beings.
Thing, on other hand, is any object or substance which is dormant in nature.
Hence, Internet of Things (IoT) is a bridge between living (i.e internet) and non-living (i.e things)
Say, if we want to communicate with each other, we may use a network like facebook or twitter, where one of us sends friend request to the other and there on conversation begins, or make a phone call or even better- just meet in person to hit the conversation.
But, if a machine wants to communicate with other machine, it of course cannot talk as easily as we humans can do. And that is where medium like IoT comes into picture.
What is IoT?
“Machines built to run machines.”
Today, when the world has advanced drastically, revolving around data and cloud computing, IoT is an emerging technology which is the world of sensors or chips. IoT is a platform where a machine commands other machine to perform certain tasks ranging from simple to hybrid functions.
It is finding a route to connect numerous applications, devices and technologies in a single, coherent network. It is a vision where each thing that we see (or cannot see) with our naked eyes will be embedded with smart sensors to make our life easy, safe and even luxurious.
For example, a car would send an automatic text message to both hospital and family member with location when the driver meets with an accident. Reaching hospital, the patient wouldn’t have to wait to fill up a form, his personal details would be fetched from the chip attached to his car. This little improvisation would save a lot of hassle and a life.
Lets look at another example where a customer orders a product from an online portal, and say, a chip is attached to the packed product which would automatically track its location and regularly update the customer regarding its arrival. This would help both customer and vendor to maintain security constraints and cordial relations. All these wouldn’t have been possible without the powerful use of Internet of Things.
Hence, IoT helps to bring each machine to a basic, general platform where a common language is build for machines to communicate.
Every little thing has a story. IoT helps machine to describe its own story. It is a platform that brings components of various devices to common bridge of communication.
Why IoT will be powerful?
Twenty-five years back, you wouldn’t have imagined a machine that would give money- today we have ATM machines; no watchman would have thought that a door can open all by itself- today we have automatic doors; no traffic police officer would have seen in his wildest dreams that a car can be run without a driver- today Google have successfully built driver-less cars. All these has been possible with the powerful use of Internet of Things.
Earlier, manpower was affordable while technology was expensive. Gradually came a stage where both human and technical resources were at par. Both were almost equally expensive. But lately, tables have turned altogether. Technology is becoming cheaper day-by-day. And in the upcoming years, to reduce the cost of human resources, technology will have to cumbersome for the same.
Also, seeing from a network perspective, the information that we search on internet travels numerous servers and networks in the background to serve us the correct data in the minimal amount of time. And the cost of transferring this data cannot be neglected.
It is next to impossible for the single human brain to acquire, process and analyze such a huge amount data without any device or system. IoT can be a great platform to reduce cost and enhance the efficiency of such resources.
As cellular devices are becoming smart and easily accessible, according to a survey, nearly 75 Billion devices will be connected to each other by 2020 and its market value will grow to around nineteen dollar trillion. Yes, you read that right! Internet will soon have benchmarking solutions in the field of medical, security, household, transportation, education and others.
In the fast pacing world, life without devices seems impossible and in the world of devices, life without connectivity is irresistible. IoT is surely going to be an integral part of these vicious circle.
How Iot Works
IoT – How?
Time isn’t far when your coffee maker will know your mood swings better than your loved one.
Iot is an amalgamation of devices that are connected with each other. Devices acquire, process and transfer the data from their surroundings with the help of sensors, controllers and other hardware components.
These connected devices have the potential to generate a vast amount of data and traffic which can be used to provide real-time information. You can monitor the workplace and home remotely. Industries can be blessed to improve productivity and reduce cost and waste. Sensor can make the city smart to avoid congestion and help during accidents or any natural calamity.
- Sensors are an integral part of any IoT application. They are the gripping point from where innovations begin.
- Without network like internet, this isn’t possible. Therefore, it plays a crucial role in the IoT framework.
- Controller is the middle man between sensor and internet. It acquires data and commands the machine or device to function accordingly.
Controller can be of numerous types. Earlier, 90% of controller were built in C language and C++. But with time, they got diversified and now, hybrid technology is available which is both real time and lightweight. Thus, gap between developer and controller to make the hardware is bridged.
Cellular technology is one of the most widely used tech which is both general purpose and easily available. According to a survey, in 2001, 58% cities were covered by 2G which has increased to 95% with the help of cellular community.Today devices like Pi are available which is a credit card sized device, efficient to perform many desktop-like functions.
Computing has improved rigorously and is easily accessible today. Processing power is getting better day-by-day. A decade back, the processing power that NASA didn’t have is now available in your smart phone.
Real time analytics, too, has advanced a ton. Fetching records from DOS based system took minutes to hours back then which has now reduced to milliseconds.
When will you use Iot?
Haven’t you dreamed of smart homes where your chores are performed automatically? Imagine how it would feel if the light switches on as soon as you enter the house, you can schedule the meetings just by talking about it to a device and the other party is notified.
I’m sure you would have watched stuff like that in science fiction movies. But all this isn’t fiction anymore. Its turning into reality. Internet of Things has been around for quite some time but its real need has emerged now when world peace, security and weather conditions are at the highest stack.
It has become mandatory that we come with a way to cope up with increasing population, pollution, health issues and security attacks. IoT is a blanket of billions of sensors. It is a field where each object, every little thing will be embedded with sensors and chips.
The right time is now,
- when data on internet is becoming tremendously huge while data segregation and analysis is not humanly possible.
- when the environment is at a critical stage and we need to prevent damage which soon will become irreversible and a hostile planet for the sake of human survival.
- when technology is widely growing and getting cheaper and more accessible than never before.
After figuring how IoT works, you can imagine numerous applications. IoT can also be used for smart farming where livestock and farming activities can be monitored. This can bring revolution in the field of farming and yielding crops. IoT can be found from home and building automation to smart cities to smart farming to wearable to smart health solutions.
Top IoT Trends for 2017
Here’s list of some top notch areas where IoT will have powerful impact:
- Startup Innovations
It’s the peek time where technocrats have realized the potential of IoT and are also pushing their ideas into reality. Though idea is only the first step, they will have to make the devices that are cost effective to garner success.
- Big Data
To fully utilize the impact of IoT, Big Data needs to be used efficiently. As information is an integral part of IoT, data continuously needs to be transferred between the devices. Smart cities, smart homes, smart cars or any other smart device produces enormous amount of data. Data quality matters more than data quantity. It requires some methodology to fetch, process and analyze this data. Thus, to maximize the advantage of IoT, Big Data must be considered a fundamental part.
- Personalized Tech
The hype around smart phones and wearable is predicted to be at par while other personalized devices are being innovated. The scope is expected to go beyond health and wellness where smart phones will have an incorporated health sensor. This revolution is taking place even at smart homes and not only at hospitals and health centers.
- Connected Retails
Daily chores such as shopping, parking, etc will soon be transformed by IoT driven retails. It will offer customers exactly what they need, thus increasing user experience. This will also unveil new scopes for advertisements. This will surely have a revolutionary impact on how consumer behaves.
With comfort, comes challenges. Over the time, IoT has been facing security issues globally. It seems that 2017 will be a year where security will get stronger. Security constraints are growing stronger with strategies to fight cybercrime and loopholes.
IoT and Industrial Automation
As Internet of Things (IoT) is expanding, automation industry is too, fortunate enough to be able to walk hand-in-hand with it. New range of solutions are available to both improve and increase the productivity. Industrial IoT uses Industrial grade sensors, PLC, Big data, Web services, Internet protocols and Cloud computing to achieve the necessary results.
These flood of new opportunities is overwhelming and inspires one to try them all. But it is important to sort the options to keep focus on automation goals. One of the important impact in this industry is the use of touch screens and cloud storage for huge amount of data. Commercial IoT devices now have powerful platform to drive long-term business models and revenue streams.
The glimpse of future industrial automation has began to be seen. Energy monitoring and management systems are wide spread across many industries. The clear benefits of the technology are now visible . Some of the benefits are:
- Being able to operate machines at their utmost efficiency.
- Efficient usage of power and energy
- Forecasting failure of the machine.
- Live calculation of costing in each process and being able to decide on the prices of the material.
- Power to monitor factory on a handheld mobile device.
By 2020, there will be nearly 7 connected devices per person on the internet. But the challenge consumers will face is deciding the optimal and stable application that can add value to the current devices.