What is total effective equipment performance?
Learn about total effective equipment performance, how this metric is used today and how to improve it with digital technology
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What is  total effective equipment performance?

Total effective equipment performance (TEEP) is a metric used to measure the overall performance and efficiency of equipment or a production line. It takes into account all the potential operating time, including planned and unplanned downtime and provides an assessment of the equipment's maximum potential performance.

TEEP considers factors such as availability, performance and quality to provide a comprehensive evaluation of current equipment effectiveness. For example, TEEP is widely used in manufacturing operations to measure and optimize machine performance and that of production lines. It provides insights into the overall effectiveness of the equipment and identifies areas for improvement.

TEEP is related to Overall equipment effectiveness (OEE), a metric that’s typically used to measure the effectiveness and performance of manufacturing processes or any individual piece of equipment. It provides insights into how well equipment is utilized and how efficiently it operates in producing goods or delivering services.

The OEE score is calculated with availability x performance x quality.¹

TEEP is calculated by multiplying four factors: availability, performance, quality and utilization.²

The main difference between these metrics is that while OEE measures the percentage of planned production time that is productive, TEEP measures the percentage of all time that is productive. It provides a holistic view of the effectiveness of the entire system. If you are interested in understanding the maximum potential performance of your production line, including planned downtime for maintenance, changeovers or other scheduled events, TEEP is the performance metric to use. TEEP can be helpful in production capacity planning and determining the capabilities of your equipment or production line.

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Benefits to improving TEEP

Improving TEEP offers several benefits to manufacturing and production operations. Some of the key advantages include:

  1. Increased OEE: By improving TEEP, you enhance the overall effectiveness and efficiency of your equipment or production line.

  2. Higher production output: By minimizing downtime, reducing setup and changeover times, optimizing maintenance schedules and improving performance, you can achieve higher production rates.

  3. Improved rquipment utilization: By effectively utilizing your equipment, you can optimize resource allocation and reduce idle capacity.

  4. Enhanced production planning and scheduling: With a clear understanding of available production time, including planned downtime for maintenance or changeovers, you can optimize your production schedules.

  5. Cost reduction: By minimizing downtime, eliminating inefficiencies and optimizing equipment performance, you can reduce operational costs associated with idle time, energy consumption, maintenance and rework.

  6. Better quality and productivity: By optimizing equipment performance, streamlining processes and reducing variability, you can improve product quality, minimize defects and enhance overall productivity.

  7. Continuous improvement culture: Focusing on TEEP improvement promotes a culture of continuous improvement within your organization.

How to improve TEEP


Improving TEEP requires a systematic approach. Here are some key strategies and practices to help attain world-class OEE:

  1. Reduce downtime: Identify and address factors contributing to downtime, both planned and unplanned. Implement preventive maintenance programs, schedule downtime strategically and minimize equipment breakdowns through proactive maintenance practices.
  2. Streamline changeovers: Optimize changeover processes by identifying areas for improvement and reducing setup times. Streamlining changeovers allows for faster transitions between product runs, reducing idle time and maximizing actual production time.

  3. Enhance equipment performance: Conduct thorough equipment assessments to identify potential bottlenecks, performance gaps or inefficiencies. Implement improvement initiatives such as upgrading equipment, optimizing operating parameters, implementing automation or incorporating predictive maintenance technologies.

  4. Optimize production scheduling: Develop efficient production schedules that consider equipment availability, maintenance requirements, changeovers and resource allocation. Employ advanced planning and scheduling tools to optimize production sequences, minimize downtime and maximize utilization of available production time.

  5. Implement continuous improvement practices: Foster a culture of continuous improvement by involving employees in identifying opportunities and implementing improvement initiatives. Encourage cross-functional collaboration, provide training and resources and establish feedback mechanisms to gather insights and suggestions from frontline operators.

  6. Focus on quality control: Implement robust quality control measures to reduce defects, rework and waste. Improve process stability, implement statistical process control (SPC) techniques, conduct root cause analysis for quality issues and train employees on quality standards.

  7. Monitor and analyze performance metrics: Continuously monitor and analyze performance metrics, including OEE, downtime reasons, scrap rates and cycle times. Use real-time data to identify areas of improvement, set targets and track progress over time.

Related terms

There are several terms related to OEE that are commonly used in discussions and analyses of equipment and manufacturing performance.

Overall operations effectiveness (OOE)

This assesses the overall performance and efficiency of an organization's operations. The OEE calculation varies depending on context, but typically involves KPIs like workforce productivity, process efficiency, supply chain performance, quality, customer satisfaction and financial performance.

Planned production time

This refers to the total time allocated for production, excluding any scheduled downtime for planned maintenance or changeovers.

Production losses

The Six Big Losses impacting OEE include equipment breakdowns, setup and adjustment time, idling and minor stoppages, reduced speed or rate, process defects and startup and yield losses.


The period when equipment is not available for production due to factors such as breakdowns, planned (or unplanned) maintenance or other unexpected events. The opposite of “uptime.”

Small stop

A brief pause in production that’s not long enough to be tracked as downtime.

Run time

This is is calculated by subtracting downtime from the planned production time.

Changeover time

The duration required to switch from producing one item to another. It includes tasks like cleaning, reconfiguration, adjustments, setup and warm-up.

Ideal cycle time

The theoretically fastest possible time to manufacture one piece.

Takt time

The available production time divided by the customer demand. It represents the maximum time allowed per unit to meet customer demand.

Challenges for improving TEEP

Improving TEEP can come with several challenges, and not effectively improving TEEP can also result in a cascade of losses: quality loss, schedule loss, equipment loss and OEE loss. Some common challenges to consider when aiming to enhance TEEP include:

  1. Data availability and accuracy: Obtaining accurate and reliable data for TEEP calculations can be challenging. It requires capturing and monitoring various metrics, including production time, downtime and performance indicators. Ensuring data integrity and implementing proper data collection systems can be complex, especially in environments with multiple machines, manual data recording or limited automation.

  2. Downtime identification and analysis: Identifying the causes of downtime accurately can be a challenge. Downtime may result from equipment failure, maintenance, changeovers or other factors. Understanding the root causes and accurately categorizing downtime events can be time-consuming, especially in complex production processes.

  3. Balancing maintenance and production demands: Striking the right balance between maintenance activities and production demands can be challenging. Planned maintenance is essential for preventing breakdowns and optimizing equipment performance, but it can result in production downtime.

  4. Changeover optimization: Changeover time reduction can be challenging, particularly for processes involving complex setups or equipment configurations. Balancing the need for efficient changeovers with maintaining product quality and safety can be a delicate task.

  5. Equipment upgrade and modernization: Upgrading or modernizing with new equipment to improve TEEP can present challenges such as financial constraints, compatibility issues with existing systems and production interruptions during installation and commissioning. Conducting thorough feasibility studies, considering long-term benefits and planning for efficient equipment upgrades can help mitigate these challenges.

  6. Organizational resistance to change: Implementing changes to improve TEEP requires organizational buy-in and overcoming resistance to change. Employees might be hesitant to adopt new processes, technologies or maintenance practices. Building a culture of continuous improvement, providing proper training and communication and involving employees in decision-making processes can help overcome resistance.

  7. Complexity of production processes: Some production processes involve intricate setups, multiple variables or complex machinery, making it challenging to optimize TEEP. Understanding the interactions between different equipment, operators and processes requires in-depth analysis and expertise. Employing data-driven analysis, simulation tools and involving cross-functional teams can help address complexity and optimize TEEP.

Navigating these challenges requires a systematic and holistic approach, involving collaboration among stakeholders, leveraging technology and fostering a culture of continuous improvement.

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  1. OEE.com, "Calculate OEE" (link resides outside ibm.com)
  2. OEE.com, "Calculate TEEP" (link resides outside ibm.com)