Key takeaways
- All three use the same core: Availability × Performance × Quality.
- They differ only in the time basis for Availability.
- OEE = planned production time · OOE = scheduled/staffed time · TEEP = all calendar time.
- So TEEP ≤ OOE ≤ OEE. Use OEE to run better; use TEEP to decide on capacity.
OEE, OOE and TEEP look confusingly similar - and they should, because they share the same engine. Each multiplies the same three factors. What changes is the clock you measure against. Get that one idea and all three fall into place.
Same formula, different clock
Every one of them is Availability × Performance × Quality. The only difference is what counts as the total time in the Availability calculation:
| Metric | Time basis (the denominator) | Answers the question |
|---|---|---|
| OEE Overall Equipment Effectiveness | Planned production time - excludes no-demand and planned shutdowns | How well do we run when we plan to run? |
| OOE Overall Operations Effectiveness | Scheduled / staffed time - includes planned stops within the operating schedule | How well do we use the time we're open? |
| TEEP Total Effective Equipment Performance | All time - the full calendar, 168 h/week | How much of our total capacity do we convert? |
Because the denominator grows from OEE → OOE → TEEP, the score falls: TEEP ≤ OOE ≤ OEE. A line might run 85% OEE, 70% OOE and 55% TEEP - all true, all useful for different decisions.
The shortcut: TEEP = OEE × Utilization
You don't need to recompute from scratch. TEEP = OEE × Utilization, where Utilization = scheduled time ÷ all time. That's why TEEP is the capacity metric: it folds in whether you even schedule the asset. A high OEE with a low TEEP means lots of idle, often sellable, capacity.
Get your OEE, then turn it into TEEP to reveal hidden capacity.
Which one should you use?
- OEE - your day-to-day improvement metric. Use it to attack the six big losses during production.
- OOE - when you want to include scheduled-but-not-producing time (e.g. you're judging how well a staffed shift is used).
- TEEP - for capacity and investment decisions. Before buying a machine, TEEP tells you how much capacity you already own but don't use.
One trap to avoid: don't compare your TEEP to someone else's OEE. Always compare like with like - same metric, same time basis, ideally your own trend over time.
Is a low TEEP bad?
Not necessarily. Running 24/7 isn't always desirable or profitable. A low TEEP simply flags idle capacity - useful when demand is unmet, irrelevant when it isn't.
Does OEE or TEEP include planned maintenance?
OEE excludes planned maintenance (it's outside planned production time). TEEP includes it, because TEEP counts all calendar time. That's part of why TEEP is lower.
Where does the hidden factory fit?
The hidden factory lives inside the Performance factor shared by all three metrics - so it drags down OEE, OOE and TEEP alike.