TEEP

Total Effective Equipment Performance (TEEP) is a metric used to measure the true capacity of manufacturing operations. It provides manufacturers with an overview of the potential of their factory based on current equipment.

How to calculate TEEP

TEEP = PERFORMANCE × AVAILABILITY × QUALITY × MACHINE UTILIZATION

• Performance (%) = ideal cycle time × total units / run time. Considers anything slowing production below maximum speed.

• Machine availability (%) = run time / planned production time. Accounts for all events that stopped production for extended periods.

• Quality (%) = good units / total units. Accounts for all parts that do not meet quality standards.

• Machine utilization (%) = planned production time / total calendar time. Percentage of calendar time used for production.

TEEP goes beyond OEE by including planned downtime, revealing the true unused production potential of a factory.