What Two Metrics Are Used to Calculate TEEP?
Accurately calculate Total Effective Equipment Performance by understanding the two core metrics: Utilization and OEE.
TEEP Calculator
TEEP Efficiency Breakdown
| Metric Category | Value (Hours) | Value (%) | Description |
|---|
*Percentages are relative to Total Calendar Time.
What is TEEP?
TEEP (Total Effective Equipment Performance) is a manufacturing performance metric that measures the percentage of all calendar time that an operation is truly productive. Unlike OEE, which only looks at scheduled time, TEEP considers 24 hours a day, 365 days a year.
Understanding what two metrics are used as to calculate teep is fundamental for capacity planning. While OEE tells you how well you run when you are scheduled, TEEP tells you how much potential capacity you have remaining in your “hidden factory.” It provides a bottom-line figure for asset utilization.
Common misconceptions include confusing TEEP with OEE or assuming TEEP should always be 100%. In reality, TEEP is often lower than OEE because it includes nights, weekends, and holidays where no production is planned.
The TEEP Formula and Mathematical Explanation
To accurately determine the performance of your facility, you must know what two metrics are used as to calculate teep. These two critical components are:
- Utilization (often called Loading or Schedule Utilization)
- OEE (Overall Equipment Effectiveness)
The mathematical formula is simple:
TEEP = Utilization × OEE
Variable Breakdown
| Variable | Meaning | Unit | Typical Range |
|---|---|---|---|
| Total Calendar Time | All available time (24/7/365) | Hours | 720 hrs/month |
| Scheduled Time | Time machinery is planned to run | Hours | 0 – Calendar Time |
| Utilization | Scheduled Time ÷ Calendar Time | Percentage | 20% – 100% |
| OEE | Efficiency during run time | Percentage | 40% – 85% |
Practical Examples: Calculating TEEP
Let’s look at real-world scenarios to see what two metrics are used as to calculate teep in practice.
Example 1: The 24/5 Operation
A factory operates 24 hours a day but only from Monday to Friday.
- Total Calendar Time: 168 hours (1 week)
- Scheduled Time: 120 hours (5 days × 24 hours)
- Metric 1 (Utilization): 120 / 168 = 71.4%
- Metric 2 (OEE): The machines run at 85% OEE during the week.
- TEEP Result: 71.4% × 85% = 60.69%
This means the factory is only producing at 60.69% of its theoretical maximum capacity.
Example 2: The Single Shift Shop
A small machine shop runs one 8-hour shift, 5 days a week.
- Total Calendar Time: 168 hours
- Scheduled Time: 40 hours
- Metric 1 (Utilization): 40 / 168 = 23.8%
- Metric 2 (OEE): They are very efficient, with 95% OEE.
- TEEP Result: 23.8% × 95% = 22.61%
Even with high OEE, the TEEP is low because the Utilization metric is low.
How to Use This TEEP Calculator
Our tool simplifies the process of identifying what two metrics are used as to calculate teep for your facility.
- Enter Calendar Time: Input the total hours in your period (e.g., 720 for a 30-day month).
- Enter Scheduled Time: Input the hours your facility actually plans to operate. This calculates the first metric, Utilization.
- Enter OEE: Input your current Overall Equipment Effectiveness percentage. This is the second metric.
- Analyze Results: The calculator multiplies these to give you the TEEP percentage and a visual breakdown of lost capacity.
Use the chart to visualize the “cliff” between total time and productive time. The gray area represents unscheduled time, while the colored bars show where efficiency is lost.
Key Factors That Affect TEEP Results
When analyzing what two metrics are used as to calculate teep, several financial and operational factors influence the final score:
- Market Demand: Low demand leads to reduced scheduled shifts, lowering Utilization and thus TEEP.
- Preventive Maintenance: Excessive downtime for maintenance reduces OEE (Availability), hurting the score.
- Capital Expenditure (CapEx): A low TEEP indicates you have hidden capacity. You may not need to buy new machines (CapEx); you might just need to increase Utilization (shifts).
- Staffing Availability: Inability to hire night shifts limits Scheduled Time, capping your Utilization metric.
- Raw Material Supply: Supply chain shortages can force schedule reductions or stops, impacting both metrics.
- Quality Rates: High scrap rates reduce the Quality portion of OEE, directly lowering the second metric used to calculate TEEP.
Frequently Asked Questions (FAQ)
The two metrics are Utilization (Scheduled Time / Calendar Time) and OEE (Overall Equipment Effectiveness).
There is no universal “good” score. A 24/7 plant might aim for 85%+, while a single-shift shop might have a TEEP of 25% and be perfectly profitable. It depends on your business model.
No. Since Utilization cannot exceed 100%, and TEEP is OEE multiplied by Utilization, TEEP will always be equal to or lower than OEE.
OEE focuses on efficiency during scheduled hours. TEEP focuses on the total capacity of the asset. TEEP answers the question: “Can we produce more without buying more machines?”
Yes. If maintenance occurs during scheduled hours, it lowers OEE. If it is scheduled during off-hours, it is part of unscheduled time, affecting Utilization. Both eventually impact TEEP.
Higher TEEP means you are spreading fixed asset costs over more units of production, generally lowering the cost per unit.
Usually, no. OEE is better for operators as they control efficiency. TEEP is a management metric because operators cannot control the schedule (Utilization).
No. OLE (Overall Labor Effectiveness) measures workforce performance, whereas TEEP measures equipment capacity against calendar time.
Related Tools and Internal Resources
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OEE Calculator
Calculate Availability, Performance, and Quality to get your baseline OEE score. -
Takt Time Formula Guide
Understand the pace of customer demand to align with your production scheduling. -
Cycle Time Analysis
Deep dive into machine speed and theoretical maximum outputs. -
Manufacturing KPI Dashboard
A comprehensive look at the top metrics for modern factories. -
Manufacturing ROI Calculator
Evaluate the financial return of increasing your TEEP or buying new equipment. -
Six Sigma Metrics Overview
Learn how variability impacts your Quality score and overall TEEP.