A step-by-step guide to What is TEEP (Total Effective Equipment Performance)
In the competitive world of manufacturing, every second counts. While many companies focus on improving their Overall Equipment Effectiveness (OEE), they often overlook a crucial metric that reveals untapped potential—Total Effective Equipment Performance (TEEP).
TEEP is calculated by multiplying four factors: Availability, Performance, Quality, and Utilization to provide a comprehensive view of how effectively your operation uses all available time, not just the planned production time. Since OEE already includes Availability, Performance, and Quality, Utilisation is the missing factor needed to understand total equipment effectiveness over full calendar time. By measuring both equipment efficiency and utilisation, it helps you uncover the true capacity of your plant.
Imagine being able to unlock the hidden factory within your existing resources—maximising output without the need for additional investments in equipment or facilities. With TEEP, this is no longer a pipe dream but a measurable and achievable goal.
In this guide, we’ll explore:
What TEEP is and why it matters.
How it supports and also differs from OEE.
Strategies to improve TEEP using real-time data and advanced tools.
At GlobalReader, we believe in empowering manufacturers to achieve their full potential. Through smart, data-driven solutions, we make it easier to identify and eliminate inefficiencies, so you can focus on what truly matters: delivering quality products efficiently and profitably.
Let’s dive into the metrics that could transform the way you view your factory’s performance.
What Is TEEP? - Beyond OEE
TEEP, or Total Effective Equipment Performance, is a powerful metric that evaluates the full potential of your manufacturing operation. Unlike OEE, which focuses only on Planned Production Time, TEEP expands the scope to include All Time—every hour of every day, whether your plant is running or not. This makes it an essential tool for understanding how much of your total capacity is truly productive and how much remains untapped.
By incorporating Schedule Losses (time your equipment isn’t scheduled to operate) alongside the Six Big Losses measured by OEE, TEEP offers a holistic view of your manufacturing efficiency.
TEEP Formula:
Where:
OEE = Availability × Performance × Quality
Utilisation = Planned Production Time ÷ All Time
Note: All Time does not mean Fully Productive Time.
Here’s the distinction:
All Time refers to the total time available in a given period. For example:
A week has 168 hours (24 hours/day x 7 days).
This includes both scheduled and unscheduled time, whether the equipment is running or idle.
Planned Production Time is the time you have scheduled for production during that same period. For instance:
If your factory operates two 8-hour shifts for 5 days, Planned Production Time would be 80 hours 80 hours. (8 hours/shift × 2 shifts/day × 5).
Fully Productive Time is the portion of Planned Production Time during which the operation is running efficiently (i.e., producing only good parts, at maximum speed, with no downtime). Fully Productive Time is already factored into the OEE metric.
TEEP vs OEE: Key Differences
OEE focuses on efficiency during the time your equipment is scheduled to run.
TEEP evaluates your operation across 24/7 availability, exposing unused capacity.
For example, a factory operating at 65% OEE with 1 shift per day, 5 days a week might have a TEEP of just 15.5%when accounting for total available time (24/7). If the factory increases to two shifts per day, TEEP could rise to 31%, showing how additional scheduling can unlock production potential without new equipment.
Example Comparisons
A factory running at 85% OEE but only using 50% of available time would have a TEEP of 42.5%—meaning over half of its full potential is untapped.
A world-class operation might have an OEE of 90% and utilise 90% of available time, resulting in TEEP of 81%—near maximum efficiency.
Many factories operate at OEE 60-70% with only 50-60% utilisation, giving them a TEEP of 30-40%—showing major room for improvement.
Key Takeaway: Even small increases in OEE and utilisation can significantly boost TEEP, helping manufacturers get more from their existing resources without adding machines or staff.
The Importance of TEEP
Understanding TEEP allows manufacturers to:
Identify Hidden Potential: Find unused capacity that could increase throughput.
Make Data-Driven Decisions: Know when it’s better to optimise current equipment versus investing in new assets.
Align Production with Market Demand: Ensure your operations can scale efficiently as demand fluctuates.
In short, TEEP reveals what your operation could achieve if every resource and every moment were maximised to its fullest potential. In the next section, we’ll delve into the concept of the hidden factory and why it’s the key to unlocking higher TEEP.
What Is The Hidden Factory? – Unlocking Untapped Potential
The hidden factory refers to the unrealised capacity within your manufacturing operation—untapped potential that could be utilised to increase throughput without adding new resources. It represents the production you could achieve if you optimised both Schedule Losses and the inefficiencies captured by OEE.
Imagine a factory running two 8-hour shifts, five days a week. This schedule uses only 47.6% of the week’s total time, leaving over 50% of the time unused. Add inefficiencies during the scheduled hours, and the true productive capacity of the factory drops even further. That gap is your hidden factory.
Examples of the Hidden Factory
Unscheduled Downtime: Machines sit idle during weekends or overnight, even when there’s potential demand.
Suboptimal Scheduling: Inadequate planning leads to gaps in production, leaving available resources unutilised.
Inefficiencies During Operation: Quality losses, downtime, or slow cycles during production reduce the overall output.
Why Unlocking the Hidden Factory Matters?
Reclaiming time from the hidden factory is often:
Faster and More Affordable: Unlike buying new equipment or expanding facilities, optimising existing resources requires minimal investment.
More Sustainable: By improving utilisation, you reduce waste and energy consumption, aligning with green manufacturing practices.
Scalable: Once optimised, operations can ramp up to meet demand spikes without additional capital expenditure.
How to Identify Hidden Factory Potential
Measure TEEP: Calculate your current TEEP score to reveal gaps in capacity and utilisation. See the table above to see where you land with your companies TEEP score.
Analyse Schedule Losses: Determine the time lost due to unscheduled production periods.
Break Down OEE Losses: Identify inefficiencies in availability, performance, and quality.
Real-World Example
Consider a factory with a TEEP score of 15%. By optimising shift schedules—such as reducing long changeovers, minimising idle time between shifts, and strategically adding overtime where feasible—and improving OEE from 65% to 70%, the factory could increase output by 10-15% without investing in new equipment.
GlobalReader’s helps to reveal your Hidden Factory
With tools like Analytics and Maintenance, GlobalReader helps manufacturers:
Monitor and reduce downtime.
Identify periods of underutilisation.
Implement predictive maintenance to minimise unexpected disruptions.
Unlocking your hidden factory isn’t just a possibility; it’s a proven strategy to boost productivity and profitability. In the next section, we’ll dive deeper into how to calculate TEEP and use it to uncover these opportunities.
Strategies to Improve TEEP – Unlocking Hidden Capacity
1. Reduce Schedule Losses Schedule losses are periods when your equipment isn’t in use but could be. Addressing these gaps can significantly improve Utilisation.
Strategies:
Add shifts during weekends or evenings if demand justifies it.
Use flexible scheduling to accommodate fluctuating production needs.
Collaborate with sales teams to align production schedules with peak demand periods.
Example: A factory running two 8-hour shifts, five days a week (47.6% Utilisation), added a weekend shifts. This increased Utilisation to 71.4%, significantly boosting TEEP.
2. Optimise OEE Metrics Improving Availability, Performance, and Quality within your existing Planned Production Time enhances OEE, which directly impacts TEEP.
Availability:
Minimise unplanned downtime with predictive maintenance tools like GlobalReader’s Maintenance App.
Streamline changeovers using SMED (Single-Minute Exchange of Die) techniques.
Performance:
Identify bottlenecks using real-time tracking.
Standardise workflows to reduce inefficiencies.
Quality:
Implement root cause analysis (RCA) for defects.
Train operators to spot quality issues early.
3. Leverage Real-Time Tracking Real-time data is critical for identifying and addressing inefficiencies quickly.
How GlobalReader Helps:
Real-Time Monitoring: Track machine status, operator performance, and production output in real time.
Custom Alerts: Receive notifications for anomalies like extended downtimes or quality drops.
Analytics Dashboard: Gain insights into trends that impact OEE and Utilisation.
4. Implement Predictive Maintenance Unexpected equipment failures are a leading cause of low Availability and overall inefficiency.
Strategies:
Use predictive maintenance tools to monitor equipment health and schedule repairs proactively.
Analyse historical data to predict failure patterns and plan accordingly.
5. Enhance Workforce Efficiency Operators play a critical role in achieving high TEEP. Ensuring they are well-trained and engaged can significantly improve performance.
Strategies:
Provide training on using analytics tools and optimising machine settings.
Incentivise teams for meeting TEEP improvement goals.
Use feedback mechanisms to track and address operator-reported inefficiencies.
6. Conduct Regular Audits Weekly or at least monthly reviews of your TEEP performance can help uncover hidden inefficiencies and drive continuous improvement.
Audit Components:
Evaluate OEE metrics to identify patterns in downtime, speed loss, and defects.
Review production schedules for opportunities to increase Utilisation.
Benchmark your performance against competitors or industry standards.
GlobalReader’s Role in Improving TEEP With its comprehensive suite of real-time tracking, analytics, and predictive maintenance tools, GlobalReader simplifies the path to TEEP optimisation by:
Reducing downtime.
Improving production schedules.
Delivering actionable insights for continuous improvement.
Improving TEEP is a journey that starts with understanding your current capacity and inefficiencies. By combining practical strategies and smart tools, you can unlock the full potential of your manufacturing operation.
In the next section, we’ll compare TEEP with other metrics, such as OEE, to help you determine the best approach for your specific goals.
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