Key takeaways
TEEP takes the OEE idea and widens the lens to the full calendar. Where OEE looks only at the time you planned to produce, TEEP looks at every hour the equipment physically existed: nights, weekends, unscheduled shifts, and idle periods included. It tells you what fraction of the theoretical maximum (24 hours a day, 7 days a week, at full speed, perfect quality) you are actually capturing.
That makes TEEP a blunt but honest capacity number. A machine running three shifts at 85% OEE looks excellent on OEE, but if it sits idle every weekend, its TEEP reveals a large pool of unused capacity.
The two are complementary, not competing. The difference is the time base:
The pillar on OEE for manufacturing covers the OEE side in full, and manufacturing KPIs covers where both sit among other metrics.
Take a line over one week (168 calendar hours). It is scheduled for two shifts, five days: 80 hours. During those 80 hours it runs at 80% OEE. Utilization is 80 / 168 = 48%. So TEEP = 80% x 48% = about 38%.
The OEE of 80% says the line runs well when scheduled. The TEEP of 38% says nearly two thirds of the calendar is unused. If demand rises, adding a third shift is likely cheaper than buying a second machine, and the TEEP number is what makes that visible.
Fabrico measures OEE from automatically captured production and downtime data, and because it tracks the full calendar of each asset, the utilization term needed for TEEP comes from the same source rather than a separate spreadsheet. That means OEE for the floor and TEEP for capacity decisions both rest on the same trustworthy data. Fabrico is built and hosted in the EU with data residency in mind and is ISO 27001 certified. To see your real capacity headroom, book a demo.
To turn this into a tool decision, see our overview of the best production monitoring systems.
OEE measures how effectively equipment runs during scheduled production time. TEEP measures effectiveness against all calendar time, including unscheduled hours, by multiplying OEE by utilization. OEE is operational; TEEP is about total capacity use.
There is no universal target, because TEEP depends on how many shifts you choose to run. A plant running one shift by design will have a low TEEP and that may be perfectly fine. Compare TEEP to your own trend and to demand, not to an external benchmark.
TEEP = OEE x Utilization. Utilization is scheduled production time divided by all calendar time in the period. So TEEP is effectively OEE measured over the full 24/7 calendar rather than just scheduled hours.
Use TEEP for strategic capacity and investment questions ("do we have headroom or do we need to buy?"). Use OEE for day-to-day operational management. They answer different questions and work best together.
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