TEEP (Total Effective Equipment Performance) extends OEE by measuring against all calendar time, not just planned production time. It exposes the hidden, sellable capacity you already own.
The TEEP formula
TEEP = OEE × Utilisation (Utilisation = Planned Production Time / All Calendar Time)
Step by step
- Calculate OEE. Work out OEE as Availability × Performance × Quality for the period.
- Find Utilisation. Utilisation = Planned Production Time / All Calendar Time (24 hours a day, 7 days a week for the period).
- Multiply. TEEP = OEE × Utilisation. It shows productive time as a share of all possible time.
A worked example
A line runs an OEE of 74.7 percent but is only scheduled 60 percent of all calendar hours:
| Step | Calculation | Result |
|---|---|---|
| OEE | - | 74.7% |
| Utilisation | scheduled / all time | 60% |
| TEEP | .747 × .60 | 44.8% |
Our free TEEP Calculator does this live, with the benchmark overlay.
Common mistakes
- Confusing TEEP with OEE: OEE uses planned time, TEEP uses all calendar time.
- Treating low utilisation as a machine fault rather than a scheduling/demand choice.
- Ignoring TEEP when chasing capacity, when idle time may be the cheapest capacity you have.
TEEP FAQ
What is the difference between OEE and TEEP?
OEE measures productive time within planned production. TEEP measures it against all calendar time, so it includes unscheduled time as a loss.
When should I use TEEP?
When you are deciding whether you have hidden capacity to grow without buying machines, or whether to add shifts.
Can TEEP ever equal OEE?
Only if the equipment is scheduled 100 percent of all calendar time, which is rare.
Related: OEE · OEE vs TEEP · availability