Same machines, same losses, different denominator.

TEEP turns a machine-effectiveness metric into an asset-utilisation one — and shows a plant with worse OEE extracting three times more from the same capital.

TEEP — Total Effective Equipment Performance — is OEE measured against all calendar time rather than against planned production time. That single change of denominator turns a machine-effectiveness metric into an asset-utilisation metric, and the difference between the two numbers is one of the more useful figures a plant can compute.

It is also the clearest demonstration of why an OEE figure without its time base means very little.

The relationship

CALENDARAll hours24 hours a day, 7 days a week. The TEEP denominator.
LOADINGUtilisation of scheduleWhat fraction of calendar time you chose to schedule production.
OEEEffectiveness when scheduledAvailability × Performance × Quality within scheduled time.
TEEPOEE × schedule loadingWhat fraction of all possible time produced good parts at rate.

TEEP = OEE × loading. A plant running one shift five days a week has a loading of roughly 24%, so an OEE of 70% gives a TEEP of about 17% — and both numbers are correct descriptions of different things.

A worked comparison

PlantShift patternOEELoadingTEEPWhat it tells you
AOne shift, 5 days78%24%19%Effective when running; enormous unused asset capacity
BThree shifts, 6 days58%86%50%Less effective per hour; far more of the asset is being used

Plant A has the better OEE and Plant B extracts nearly three times as much from the same capital. Which plant is performing better depends entirely on whether the constraint is demand or capacity — and that is the question TEEP is for.

When each is the right metric

USE OEE

For improvement

It isolates three causes with three owners and is actionable this week. TEEP is not, because loading is a commercial decision rather than a shop-floor one.

USE TEEP

For investment decisions

Before buying a machine, TEEP answers whether the asset base is genuinely exhausted or merely unscheduled.

USE TEEP

When demand is rising

It quantifies headroom available without capital — an additional shift is nearly always cheaper than an additional machine.

AVOID TEEP

As a shop-floor target

Nobody on the floor controls whether a third shift runs. Targeting a metric people cannot influence produces cynicism.

The honest caution

TEEP figures look alarming, and that is sometimes used to sell things. A single-shift plant will always post a low TEEP, and that is not a failing — it is a commercial choice about demand, labour and cost.

The number is useful when you are deciding whether to add capacity, and misleading when presented as a performance shortfall. Before anyone quotes a low TEEP at you as evidence of waste, establish whether the unscheduled time reflects an absence of orders, which is a sales question, or an absence of manning, which is a different one entirely.

Questions

Straight answers.

What is TEEP?
Total Effective Equipment Performance — OEE measured against all calendar time rather than planned production time. It equals OEE multiplied by schedule loading.
How is TEEP different from OEE?
Only in the denominator. OEE measures effectiveness within the time you scheduled; TEEP measures it against all 168 hours in a week, so unscheduled time counts as loss.
Why is our TEEP so low?
Almost certainly because you run fewer than three shifts. A single-shift five-day operation has a loading of roughly 24%, so even an excellent OEE produces a TEEP under 20%. That is a commercial choice, not a failing.
Which metric should be a shop-floor target?
OEE. Nobody on the floor controls whether a third shift runs, and targeting a metric people cannot influence produces cynicism rather than improvement.
When is TEEP genuinely useful?
Before buying a machine. It answers whether the asset base is exhausted or merely unscheduled — and an additional shift is nearly always cheaper than an additional machine.
Can a plant with worse OEE have better TEEP?
Yes, and it is common. A three-shift plant at 58% OEE extracts far more from the same capital than a single-shift plant at 78%.
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