OEE vs. TEEP: A Strategic Guide for Manufacturing Leaders

Paula, a COO, has two very different, very important questions this week.

On Monday morning, she asks her Plant Manager, Mike: "How efficiently did we run our scheduled shifts last week? Did we get the most out of our operating hours?"

On Tuesday afternoon, the head of sales asks her a bigger question: "Can we take on a massive new customer order that requires a 30% increase in production, or do we need to start the multi-million dollar process of buying and installing a new production line?"

To answer the first question, Mike needs OEE. To answer the second, Paula needs TEEP.

Core Question: "How well are we performing when we are supposed to be running?"

OEE is the gold standard for measuring manufacturing efficiency. Its formula (Availability x Performance x Quality) is calculated based on your Planned Production Time. It purposefully ignores all the time your plant was not scheduled to run, nights, weekends, holidays, etc.

This makes OEE the primary metric for a Plant Manager, Maintenance Manager, or Continuous Improvement lead like Mike.

It is a tactical tool used to identify and eliminate the Six Big Losses from the daily operation of the factory. It helps you perfect the process within your existing schedule.

Core Question: "How well are we utilizing our assets against their full, 24/7 potential?"

TEEP (Total Effective Equipment Performance) provides a much broader, more strategic view. Its formula also uses Availability, Performance, and Quality, but it measures them against All Available Time—that's 24 hours a day, 365 days a year.

This makes TEEP the primary metric for a strategic leader like Paula. It reveals the "hidden factory", the massive amount of untapped capacity that exists in your current assets during the time you aren't even scheduled to run.

It tells you how much room you have to grow without spending another dollar on new equipment.

The most effective leaders don't choose between OEE and TEEP; they use them together to get a complete picture of their operation.

Use OEE for Tactical Excellence

OEE is your tool for winning the shift, every single day. You use it to:

• Empower your frontline teams with a clear performance target.

• Identify and systematically eliminate the Six Big Losses.

• Optimize your maintenance and operational workflows for maximum efficiency during your scheduled hours.

Use TEEP for Strategic Decisions

TEEP is your tool for winning the market. You use it to:

• Decide if you can add a new shift or take on more orders without buying new machines.

• Justify capital expenditures by proving you have already maximized the potential of your current assets.

• Identify the true, long-term financial cost of not running your factory 24/7.

The problem with trying to track these metrics in a spreadsheet is that it's a theoretical, after-the-fact exercise. A truly world-class operation needs these insights live.

A modern platform like Fabrico doesn't force you to choose. It collects the foundational production data once and then allows you to instantly toggle between an operational view (OEE) for Mike and a strategic view (TEEP) for Paula.

The Integrated Cure: This is the most important part. If your TEEP is low because your OEE is poor (which is often the case), the strategic solution is better tactical execution.

The OEE data diagnoses the specific downtime and performance losses, and the integrated CMMS provides the tools to schedule the maintenance and implement the operational changes that improve both scores. A true solution connects the boardroom insight (TEEP) to the shop-floor action (CMMS).

What is a good TEEP score?

Because TEEP includes all non-scheduled time, its score will naturally be much lower than OEE. While benchmarks vary greatly by industry, a TEEP score above 30% is often considered decent, but the real goal is continuous improvement.

Is it possible to have a high OEE and a low TEEP?

Yes, absolutely. This is a common scenario. It means you are running an extremely efficient, world-class operation (high OEE) but only for one shift, five days a week (low TEEP). This tells a leader that there is a massive opportunity to grow the business by simply adding more shifts.

What is OOE (Overall Operations Effectiveness)?

OOE is a less common metric that is a hybrid of the two. Like TEEP, it uses all available time (24/7), but its Availability component only includes unplanned stops, not planned ones. It is not as widely used as OEE and TEEP.

Good operators master OEE to perfect their current process. Great business leaders master both OEE and TEEP to unlock their company's full potential and win the future.

Ready to see how a single platform can give you both the tactical and strategic insights you need to grow?

Book a personalized demo of Fabrico today.