Total Effective Equipment Performance, or TEEP, is a critical calculation manufacturers need to understand. It’s more than just a number; it’s an indicator of overall efficiency and effectiveness in the production process. In this article, you’ll gain valuable insights on how to calculate TEEP, empowering you to make data-driven decisions for improved operational performance.

What is TEEP?

TEEP evaluates three primary elements: availability, performance, and quality.

Availability refers to the duration during which the operation is prepared and capable of producing goods relative to the total scheduled time. Performance scrutinizes the production rate – whether the operation meets the maximum speed during manufacturing. Lastly, quality assesses if the produced goods comply with the predetermined standards devoid of any defects.

Expressed as a percentage, a TEEP score of 100% signifies that your operation is functioning at maximum capacity, manufacturing superior quality goods at the highest speed without interruptions. Yet, achieving this ideal score may be challenging due to inevitable disruptions like machine downtime, setup modifications, and sporadic defects.

Understanding your score and how to calculate TEEP is important as it allows manufacturers to identify areas requiring enhancement, fine-tune their production methodologies, and ultimately, augment their profitability.

How to Calculate TEEP?

Total Effective Equipment Performance (TEEP) is a critical measurement used in the manufacturing industry. This metric, often used alongside Overall Equipment Effectiveness (OEE), provides a more comprehensive understanding of the overall performance of a production line and its equipment. TEEP considers all factors influencing equipment performance, such as scheduled downtime, unscheduled downtime, and quality losses.

The formula on how to calculate TEEP is:

TEEP = (Total Run Time – Planned Downtime) / Total Available Time

Here’s how you would put this formula into practice:

Let’s say a manufacturing operation runs for 24 hours a day, seven days a week, which gives us a total available time of 168 hours per week.

Suppose there are planned downtimes for maintenance and setup changes totaling 8 hours in a week. So, the Total Run Time (Total Available Time – Planned Downtime) is 160 hours (168-8).

If the operation runs efficiently without any interruptions or quality issues, the TEEP would be (160/168)*100 = 95.24%.

This means that the operation is running at 95.24% of its full capacity considering both the actual running time and the planned downtime.

Knowing how to calculate TEEP, manufacturers can identify how effectively they are using their production equipment and time. It provides a realistic picture of the operation’s performance, taking into account all potential production time, not just operating time. This can help pinpoint areas for improvement and strategies to increase efficiency and profitability.

What is the Difference Between TEEP, OEE, and OOE?

TEEP, OEE, and OOE are key performance indicators (KPIs) used to measure and enhance productivity and efficiency. Although they may seem similar, there are distinct differences between them.

Overall Equipment Effectiveness (OEE) combines three essential components: availability, performance, and quality. It focuses on the ratio of actual good products produced against the theoretical maximum output during all scheduled shift time minus unscheduled shifts. This metric helps manufacturers identify potential inefficiencies and areas for improvement during operating hours.

On the other hand, Overall Operational Efficiency (OOE) takes into account only the operating time, not the total scheduled time. It is calculated by multiplying performance, quality, and availability during operating time. This means that OOE excludes any periods of planned downtime, such as maintenance or setup changes, making it a useful metric for operations running multiple shifts or 24/7.

Total Effective Equipment Performance (TEEP) provides a broader perspective by considering all potential production time, not just operating time. The primary difference between TEEP and OEE lies in the time taken into account when calculating availability. TEEP includes both scheduled and unscheduled time, offering insight into how effectively a manufacturer is using its equipment and time.

In simple terms:

OEE tells you how well you’re doing when you’re supposed to be producing (scheduled time).

OOE informs you about your performance during the actual operation (operating time).

TEEP reveals how well you’re utilizing your total available time, including both production and downtime.

Each of these metrics has its place in helping manufacturers maximize their efficiency and profitability, depending on their specific operational needs and goals.

How Manufacturers can use TEEP?

• TEEP as a Benchmark: TEEP serves as a valuable benchmark for comparing current plant production schedules, revealing how much equipment remains idle.
• Answering Operational Questions: TEEP provides answers to important questions such as the need for new shifts, the feasibility of operating during holidays, and the consequences of running production over weekends.
• Informing Decisions: Insights derived from TEEP assist in making informed decisions about scheduling and maximizing equipment usage.
• Pitfall in OEE Calculation: Some manufacturers neglect to account for maintenance time during downtime when calculating OEE. A factory that shuts down over weekends for maintenance is an example; this period is not considered against production, leading to a distorted perception of OEE.
• Achieving Accurate OEE: A more accurate depiction of OEE, reflecting the operation’s true capabilities, can be achieved by including maintenance as planned downtime.
• Inflated OEE Perception: Consider a manufacturer who calculates their OEE as 90% based on machinery running five days a week. If weekend downtime is reserved for routine maintenance, that time cannot be repurposed for extra production, potentially inflating the perceived OEE since it’s not factored into the calculation.
• Identifying Scheduling Adjustments: When the differences between TEEP, OEE, and OOE are calculated and examined, manufacturers can pinpoint where scheduling adjustments could boost production.
• Improving OEE with TEEP: In the quest to improve OEE within the current production schedule, TEEP proves particularly useful.

What You Should do Next

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