TEEP: Total Effective Equipment Performance Explained

Key takeaways

• TEEP (total effective equipment performance) shows how much of all calendar time a machine spends making good parts at full speed.
• The formula is TEEP = OEE × Utilization, where utilization is planned production time divided by all time.
• OEE tells you how well you use the time you schedule. TEEP tells you how much of the machine's total capacity you actually turn into good output.
• Your shift pattern sets a hard ceiling: a machine that runs one 7.5-hour shift, five days a week, can never exceed a TEEP of 22.3%.
• Use OEE to run the plant every day. Use TEEP before you add shifts or buy new equipment.

What is TEEP? Meaning and definition

TEEP stands for total effective equipment performance.

It measures the share of all time, 24 hours a day and 7 days a week, that a machine spends producing good parts at its ideal speed.

A TEEP of 100% would mean a machine ran perfectly, around the clock, every day of the year.

TEEP uses the same losses as overall equipment effectiveness (OEE). It adds one more: the time you did not schedule at all.

The TEEP formula

TEEP = OEE × Utilization

Utilization = Planned production time ÷ All time

Some sources call this ratio the loading rate, so you may also see TEEP = OEE × Loading.

Some tools use "machine utilization" for run time ÷ available time, which is a different number.

Because OEE is fully productive time divided by planned production time, the two formulas combine into one:

TEEP = Fully productive time ÷ All time

TEEP vs OEE vs utilization

All three are percentages, and all three use time. They answer very different questions.

For a side-by-side comparison, see OEE vs TEEP. For the utilization side, read machine utilization vs OEE.

The TEEP time model

TEEP starts with the whole calendar and removes one layer of loss at a time.

The first layer is set by the schedule and demand. The other three are equipment and process losses, the ones OEE measures.

The six big losses sit inside those three layers.

TEEP calculation example: one machine, one week

A machine runs two shifts, five days a week. Each shift has 7.5 hours of planned production time after breaks.

Step 1: utilization

Utilization = 75 ÷ 168 = 44.64%, or 44.6% rounded

Step 2: TEEP

TEEP = 68% × 44.64% = 30.4%

Step 3: check it with time

Fully productive time = 75 hours × 68% = 51 hours.

51 ÷ 168 = 30.4%. The two methods agree.

What the number means

Out of 168 hours in the week, the machine's good output equals 51 hours of perfect running.

Another 93 hours were never scheduled. The other 24 were scheduled but lost to stops, slow running and defects.

Using TEEP for a capacity decision

Suppose demand is rising and the plant needs more output from this machine. There are three main options.

Options B and C assume the new shifts run at the same 68% OEE, which night and weekend shifts often do not.

Option A adds 7.5 productive hours a week without adding a shift. Our guide on how to improve OEE shows how.

Options B and C add more hours, but every one of them needs people, energy and supervision.

Most plants should do A first, because improving OEE also makes every added shift more productive.

Buying a second machine usually makes sense only once both levers are close to their limits.

How to improve TEEP

TEEP has two levers: raise OEE inside the hours you already run, or plan more hours.

Start with OEE, as in option A above, because every hour you add later inherits it.

The ceiling your schedule sets

Even with a perfect 100% OEE, TEEP cannot be higher than utilization.

• One 7.5-hour shift, five days: maximum TEEP 22.3%
• Two shifts, five days: maximum TEEP 44.6%
• Continuous 24/7 operation with no scheduled downtime: maximum TEEP 100%

That is why a low TEEP is not automatically bad. It often reflects a deliberate schedule, not a failing line.

What is a good TEEP?

There is no universal benchmark for TEEP, because it depends mostly on how many hours you choose to run.

A continuous-process plant running around the clock can reach a much higher TEEP than a one-shift job shop with the same OEE.

Use these comparisons instead:

• Against your own history, with the same schedule.
• Against your schedule ceiling, to see how much of the scheduled capacity you actually use.
• Across machines that make the same product, to find where capacity is hiding.

For OEE targets, see world-class OEE.

When to use TEEP and when to use OEE

How to measure TEEP

If you already measure OEE, you are most of the way there.

1. Measure OEE for the machine, with a clear definition of planned production time. Our OEE calculation guide shows how.
2. Record the schedule: which hours were planned for production, and why the rest were not.
3. Use calendar time as all time, every hour of the period, including nights, weekends and holidays.
4. Calculate utilization and TEEP for the same period as your OEE, usually a week or a month.

It helps to split the unscheduled time into reasons: no orders, no staff, planned maintenance shutdowns, holidays.

That split turns TEEP from a single number into a list of capacity decisions.

Common TEEP mistakes

• Using TEEP to judge the line team. They do not control the schedule, so use OEE for that.
• Leaving time out of "all time". All time is the full calendar, so removing holidays from it measures something else.
• Moving maintenance in and out of planned time. Decide once whether a maintenance window sits inside or outside planned production time, then stick to it.
• Ranking plants by TEEP when their demand differs. A plant with fewer orders will usually schedule fewer hours, whatever its equipment is like. Use TEEP to find spare capacity, not to grade plants.
• Confusing utilization with availability. Utilization is about the schedule, while availability is about stops during the schedule.

TEEP, OEE and OOE together

OOE (overall operations effectiveness) sits between the two. It measures against operating time, which also includes time that was scheduled and then dropped, for example for lack of orders.

Many plants track OEE daily and review TEEP monthly. Our OOE guide explains when the third metric is worth adding.

If TEEP shows large unused capacity, read our guide to the hidden factory to put a value on it. Choosing a tool? Read our guide to OEE software.

How Fabrico helps

Fabrico is a cloud-based MES and OEE platform for manufacturers, with maintenance management (CMMS) built in.

It records run time, stops and counts from PLCs, IoT sensors and AI cameras, and calculates OEE in real time for every connected machine.

It also detects micro stops and reports downtime, MTTR and MTBF, so the equipment side of TEEP is measured rather than estimated.

Add the hours you planned, from your own schedule, and you have every input TEEP needs.

See your real-time OEE and downtime on a live dashboard: book a demo. More guides are in our OEE explained hub.