What is TEEP?
TEEP (Total Effective Equipment Performance) is a performance metric that is used to measure the real capacity of manufacturing operations – indicating how big of a scope is waiting to be unlocked. This metric provides manufacturers insight into how much potential their factory has based on their current equipment. TEEP takes into consideration Equipment Losses (OEE measurement) and Schedule Losses (Utilization measurement).
TEEP vs OEE
TEEP measures the percentage of factory’s all-time productivity, whereas, OEE measures only the percentage of Planned Production Time that is truly high-yielding. In order to understand your factory’s maximum production capacity, you would measure OEE; but to gain a greater perspective of your business’ scalability, you would take into account TEEP. While both are used in parallel, each metric defines a different part of a manufacturing business.
How to measure TEEP
TEEP takes into consideration every variable that influences OEE (machine availability, performance, and quality), in addition to calculating time in which production is not running (utilization). This is also often considered a schedule loss.
Let’s review these variables in-depth:
Machine Availability (%) = Run Time / Planned Production Time
Performance (%) = Ideal Cycle Time × Total Count / Run Time
Quality (%) = Good Count / Total Count
Machine Utilization (%) = Planned Production Time / All Time
The availability factor takes into account all events that stopped production for a significant period of time; the performance factor takes into account anything that might cause production to function at less than the maximum possible speed; the quality factor considers any and all manufacturing parts that do not meet quality standards; and the utilization factor provides the percentage of calendar time that is used for production.
This is how you calculate TEEP
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Why Measure TEEP Manufacturing?
As stated above, TEEP – similarly to OEE – is used by manufacturers to understand how to improve their factory’s processes and enhance decision making in the business. And in order to understand your businesses’ scalability, all these factors must be taken into view. The main difference between the two metrics is the maximum time available for production. Since TEEP takes into account all-time, the maximum time available for production is 24/7, 365 days a year.
TEEP also goes one step beyond OEE, by emphasizing the impact of scheduled downtime, and in doing so, unveiling the true untapped potential of a factory’s production. Measuring TEEP is essential so you can correctly forecast and schedule production. By understanding your factory’s losses, you can begin to work on those issues in order to improve reliability.