Calculate Total Effective Equipment Performance (TEEP) by multiplying OEE by utilization rate. Measure total asset productivity against calendar time.
Total Effective Equipment Performance (TEEP) extends OEE by adding a utilization factor that accounts for all calendar time — not just planned production time. While OEE measures how well you use planned production time, TEEP measures how well you use all available time.
TEEP = OEE × Utilization, where Utilization = Planned Production Time / Total Calendar Time. A factory that runs one 8-hour shift per day has 33% utilization of its 24-hour calendar day, even if OEE during that shift is 85%.
TEEP is valuable for capacity planning and capital justification. It answers: "How much of your total potential output are you actually achieving?" Use this calculator to see the difference between OEE and TEEP and understand how much hidden capacity exists in your schedule.
This measurement forms a critical foundation for capacity planning, helping teams align production capabilities with demand forecasts and strategic business objectives throughout the planning cycle.
TEEP reveals the full picture of equipment productivity by including scheduled downtime and unscheduled shifts. It helps justify adding shifts, quantify the true cost of unused capacity, and plan capital investments based on total asset utilization. Having accurate figures readily available streamlines reporting, audit preparation, and strategic planning discussions with management and key stakeholders across the business.
TEEP = OEE × Utilization Utilization = Planned Production Time / Total Calendar Time × 100% TEEP = (Availability × Performance × Quality) × Utilization
Result: 56.7% TEEP
Utilization = 16 / 24 = 66.7%. TEEP = 85% × 66.7% = 56.7%. Even with world-class OEE, running only 2 of 3 shifts means TEEP is just 56.7%. Adding a third shift could increase total output by nearly 50%.
TEEP is a strategic metric, while OEE is operational. When evaluating capacity expansion options, TEEP shows whether you can get more output from existing equipment by adding shifts before investing in new machinery.
Capital-intensive industries like semiconductors and chemicals often run 24/7 with high TEEP. Discrete manufacturing with single shifts may have TEEP below 30%. Neither number is inherently good or bad — it depends on demand, labor availability, and asset cost.
Calculate revenue per TEEP point to understand the financial value of increasing utilization. If each TEEP point is worth $10,000/month and adding a shift gains 20 points, the shift generates $200,000/month in potential output value.
OEE measures effectiveness during planned production time only. TEEP includes all calendar time. A machine running perfectly for one shift (33% utilization) has 100% OEE but only 33% TEEP.
Use TEEP for capacity planning, capital justification, and comparing underutilized assets. Use OEE for daily operational improvement. Both metrics serve different purposes.
TEEP benchmarks depend heavily on your shift pattern. For 3-shift operations, 60-75% is typical. For single-shift operations, 25-30% is expected. TEEP is most useful for comparing against your own potential.
Yes, TEEP uses total calendar time as the denominator. Any time not producing — including planned maintenance, weekends, and holidays — reduces TEEP.
Absolutely. If TEEP shows significant unused capacity, adding shifts may be cheaper than buying equipment. If TEEP is already high, new equipment may be necessary to meet demand.
Utilization = Planned Production Time / Total Calendar Time. For a factory running two 8-hour shifts, 5 days a week: Utilization = 80 / 168 = 47.6%.