Back to Glossary Home

Total Effective Equipment Performance (TEEP)

Quick Definition

A key production performance metric, TEEP (Total Effective Equipment Performance) is used to determine how much potential a production environment has based on the performance level of its current equipment.

What is Total Effective Equipment Performance (TEEP)?

Total Effective Equipment Performance (TEEP) is a vital performance metric used in manufacturing operations to assess the overall efficiency and effectiveness of equipment and machinery in a production environment. It is closely related to Overall Equipment Effectiveness (OEE) but takes a broader perspective by considering not only the operational aspects but also the availability, performance, and quality factors in the manufacturing process.

TEEP, which stands for Total Effective Equipment Performance, provides a comprehensive view of how well equipment is utilized in a manufacturing operation and production line. It takes into account three critical components: Availability, Performance, and Quality. These components are multiplied together to calculate TEEP, making it an important key performance indicator (KPI) for evaluating manufacturing operations.

  1. Availability: Availability measures the percentage of time that equipment is available and ready for production during the scheduled production time. It considers the actual production time, scheduled time, and any planned downtime for activities such as preventive maintenance, changeovers, and other scheduled events.
  1. Performance: Performance assesses how well current equipment is performing compared to its ideal cycle time. Machine performance accounts for factors like speed loss, minor stoppages, and other factors that affect the actual production rate in relation to the ideal or maximum achievable rate.
  2. Quality: Quality evaluates the rate of production that meets the required quality standards and does not result in defects or rework. It considers the quality of the products or output generated by the equipment.

The TEEP calculation, often expressed as a percentage, is represented as:

TEEP = Availability x Performance x Quality

The result is a single score that represents the overall effectiveness of the equipment in a manufacturing process. A higher TEEP score indicates better equipment performance and utilization.

TEEP goes beyond OEE by including calendar time, which accounts for the total available time, including unplanned downtime and calendar losses. This distinction is crucial because it provides a more accurate reflection of real-time equipment utilization and performance.

TEEP is a powerful methodology for assessing manufacturing operations and identifying areas for improvement. It helps organizations benchmark their performance against world-class standards and sets a clear target for continuous improvement initiatives. By analyzing TEEP, manufacturers can make data-driven decisions to reduce unplanned downtime, enhance equipment performance, increase production capacity, and improve product quality.

Maintenance management systems like Computerized Maintenance Management Systems (CMMS) and automation technologies play a pivotal role in monitoring and improving TEEP. They provide real-time data on equipment status and performance, helping organizations proactively address equipment failures, breakdowns, and changeovers.

Modern software solutions play a pivotal role in enhancing Total Effective Equipment Performance (TEEP) across manufacturing operations. TEEP is a critical metric used to evaluate the overall efficiency of equipment and production processes. Here's how modern software impacts TEEP:

  1. Real-time Monitoring: Modern software provides real-time data collection and monitoring capabilities, allowing manufacturers to track equipment performance, operating time, and downtime accurately. This data is essential for calculating TEEP.
  2. Data Analytics: Advanced analytics tools within software platforms enable manufacturers to analyze equipment performance data comprehensively. By identifying patterns and trends, they can proactively address issues that lead to downtime and inefficiencies.
  3. OEE Calculation: Software solutions automate the calculation of Overall Equipment Effectiveness (OEE) by combining the common OEE measures of uptime, availability, performance, and quality. This automated process creates the OEE score, which ensures accuracy and consistency in measuring equipment performance. Similar calculations are sometimes made for overall operations effectiveness (OOE) as well.
  4. Predictive Maintenance: Predictive maintenance algorithms integrated into modern software predict when equipment is likely to fail, reducing unplanned downtime and improving TEEP. Maintenance can be scheduled during planned production times to minimize disruptions.
  5. Schedule Optimization: Software helps optimize production schedules by factoring in planned and unplanned downtime, schedule losses, and other variables that affect TEEP. This optimization ensures that equipment is utilized to its maximum capacity.
  6. Performance Dashboards: User-friendly dashboards and visualization tools provide a clear overview of TEEP metrics and performance trends. Manufacturing teams can easily access these dashboards to make data-driven decisions and take corrective actions.
  7. Customizable Alerts: Software allows users to set up alerts for specific performance thresholds, enabling immediate responses to deviations from optimal TEEP levels. These alerts help prevent extended periods of equipment idleness.
  8. Integration with New Equipment: When manufacturers invest in new equipment, modern software solutions facilitate seamless integration, ensuring that the new machinery contributes positively to TEEP from the outset.
  9. Historical Data Analysis: Software retains historical equipment performance data, allowing for trend analysis and benchmarking against past performance. This historical context is valuable for continuous improvement initiatives.
  10. Throughput Optimization: Software assists in optimizing throughput by identifying bottlenecks, cycle time improvements, and process adjustments. Maximizing throughput contributes directly to improved TEEP.
  11. Quality Assurance: By incorporating quality metrics into TEEP calculations, software helps manufacturers focus on producing high-quality products efficiently. Reducing defects and rework positively impacts TEEP.

In summary, modern software solutions enhance TEEP by providing real-time monitoring, advanced data analytics, predictive maintenance, schedule optimization, performance dashboards, customizable alerts, integration with new equipment, historical data analysis, throughput optimization, and quality assurance. These capabilities empower manufacturers to maximize the efficiency and effectiveness of their equipment, ultimately leading to higher TEEP scores and improved operational performance.

In conclusion, Total Effective Equipment Performance (TEEP) is a comprehensive and robust performance metric that evaluates the overall efficiency and effectiveness of equipment in manufacturing operations. It accounts for availability, performance, and quality factors, providing a holistic view of equipment utilization. TEEP supports continuous improvement efforts, helps organizations benchmark their performance, and ultimately contributes to improving the bottom line by optimizing production output and product quality.