Total effective equipment performance (TEEP)
What is TEEP and how to use itDownload your guide to using maintenance metrics
What is TEEP?
Total effective equipment performance, (known also as total equipment effectiveness performance or TEEP), measures your total potential for equipment capacity. It informs you of availability as a function of all available time. That means 365 days a year, 7 days a week, 24 hours a day. Measuring TEEP answers how much you could potentially be producing if there were no limits to scheduling.
TEEP is a type of manufacturing maintenance metric that falls into the same category as overall equipment effectiveness (OEE) and overall operations effectiveness (OOE). These three metrics measure overall equipment performance by taking into account machine performance, quality, and availability. However, these metrics differ in how they define availability. We’ll go through each type of metric and how they compare against TEEP.
Table of contents
When should you use TEEP?
TEEP is generally considered a couple of steps removed from a true maintenance metric. Instead, it’s very useful at the business level for someone like a plant manager because it helps inform scheduling decisions. Calculating TEEP helps you answer questions like,
- Should we introduce new shifts?
- Is it worth it to run production and/or maintenance on holidays?
- What would happen if we ran production or maintenance through weekends?
TEEP is a KPI sometimes used to evaluate equipment performance if OEE is measured incorrectly. This could happen if maintenance is done during downtime and is not counted against OEE. For example, a factory shuts down during weekends and runs all its maintenance during that time. In this situation, maintenance time is not being counted against production time, which could then give you an inflated sense of what your OEE actually is. If maintenance is counted as planned downtime, you get a more accurate idea of what your OEE is, and what your operation and maintenance program is actually capable of achieving. The above assumes OEE software is not being used to track total time.
If OEE is calculated as 90% based on the machinery running five days a week, it might seem like production capacity can be increased without needing to buy any new equipment. But what if you use the downtime on weekends to run all your routine maintenance? That time is not available for more production and throws off your OEE because it’s not being included in the equation. It may turn out that you're actually experiencing an OEE loss.
How to calculate TEEP
TEEP is calculated by multiplying equipment performance, product quality, and asset availability. Availability is defined as the current production time divided by all available time.
For example, if you ran a machine 24/7 for a week and it produced good units without producing any scrap or requiring any stoppages, TEEP would be 100%. If that same machine ran 16 hours a day without stopping, availability would be 67% (i.e. 16 hours divided by 24 hours). Let’s say it also operated at 90% of potential throughput or performance reliability (i.e. It could process 100 units an hour, but you only process 90 units an hour) and produced perfect products 88% of the time (i.e. quality). In this case, the asset’s TEEP would be 53% (0.9 x 0.88 x 0.67).
The reality is that no plant can ever operate 24 hours a day, 365 days a year. Some measure of performance loss is also inevitable. That’s why calculating total effective equipment performance is particularly useful when compared to the other metrics like OEE and OOE.
How does TEEP compare to OEE?
From a metric standpoint, TEEP is most closely related to OEE. But before we go further, let’s start by first distinguishing these two metrics.
While the TEEP calculation measures an asset’s potential capacity, OEE is an indicator of an asset’s current level of productivity. Much like TEEP, the OEE calculation is done by multiplying an asset’s availability, performance, and quality, where availability is calculated as the total run time of the asset divided by the planned production time of that asset.
OEE differs from TEEP in that it’s rooted in the reality of the current production schedule. It assumes that the maximum amount of time a piece of equipment can run cannot be greater than what it already is.
Since OEE is a current-state metric, it gives production teams and operators an accurate read on how well their equipment is performing, and whether availability, performance, or quality can be altered to increase capacity. It also allows maintenance teams to understand where to conduct a root cause analysis to increase asset performance or how to adjust its preventive maintenance schedule to accomodate underperforming machines. Because OEE is closely tied to production, it’s a metric that many facilities monitor in real-time to determine whether any improvements can be made.
How does TEEP compare to OOE?
Similarly to TEEP and OEE, OOE (overall operations effectiveness) is calculated by multiplying performance, quality, and availability, where availability is defined as actual production time divided by operating time.
Operating time includes the planned production time of an asset (like OEE), plus any unscheduled time where an asset might be taken offline.
How TEEP can help you plan and improve scheduling
Now that you know the differences between TEEP, OEE, and OOE, let’s talk about how they can be used together to give you a better view of your maintenance program and increase efficiency across your business. You can think of these three metrics as a cascading system, where TEEP measures the total effective (or potential) equipment performance, OOE measures your current equipment performance (taking unscheduled time into account), and OEE measures everything as it is right now.
TEEP can be improved when performance, availability, or quality improve. It’s probably most useful when you’re out of ideas for how you could improve your OEE given your current production schedule.
TEEP can also be used as a benchmark to compare how you’re currently planning your plant production schedules, and if you're experiencing schedule loss. Unlike OEE and OOE, it shows you the utilization of your equipment.
Ideally, you’d want to track and present metrics to those who have the ability to change it and prevent unplanned equipment failure. For example, there’s nothing an operator can do to affect the total available time. On top of that, they can’t schedule themselves in for another shift.
But when operators, maintenance teams, and plant managers work together, they can use their own metrics (like MTTR for maintenance) to improve overall equipment production capacity. When these functional areas cross paths to improve capacity in the face of realities and limitations of the entire operation, a more holistic picture can be better seen of what the plant is truly capable of producing.