When aiming to enhance facility performance, it’s common to focus on Overall Equipment Effectiveness (OEE). However, there is another important metric that deserves attention: Total Effective Equipment Performance, or TEEP. TEEP provides valuable insights into facility performance. This metric considers factors beyond equipment effectiveness and is used to calculate and leverage overall operational efficiency. Understanding TEEP allows for a comprehensive assessment of the facility. In this article, we delve into TEEP, discussing its definition, calculation, and how it can be utilized alongside other measures such as OEE and OOE (Overall Operations Effectiveness).
What is TEEP?
Total Effective Equipment Performance, or TEEP, is a maintenance metric closely related to Overall Equipment Effectiveness (OEE) and Overall Operations Effectiveness (OOE). TEEP provides a comprehensive assessment of equipment performance by considering factors such as machine performance, quality, and availability. The distinction between these metrics lies in how they define availability.
TEEP evaluates the total potential capacity of equipment by defining availability as the entirety of available time, encompassing 365 days a year, 7 days a week, and 24 hours a day. When measuring TEEP, the question at hand is “What production output could we achieve if scheduling constraints were completely removed?”
TEEP is calculated by multiplying performance, quality, and availability, with availability being the ratio of actual production time to the total available time.
For instance, if a machine operates continuously for a week without any interruptions and produces flawless products, TEEP would be 100%. Alternatively, if the machine operates for 16 hours a day while being shut down for the remaining 8 hours, the availability would be 67% (16 hours divided by 24 hours). Assuming the machine operates at 90% of its potential throughput (performance) and maintains a quality rate of 88%, the TEEP for this asset would be 53% (0.9 x 0.88 x 0.67).
It is important to note that real-world plant operations rarely adhere to a 24/7 schedule throughout the year. This is where the value of TEEP lies in comparison to other metrics within its category. By analyzing TEEP alongside OEE and OOE, organizations can gain insights into their equipment’s performance, identify areas for improvement, and make informed decisions to optimize their overall operational effectiveness.
How Does TEEP Compare to Other Performance Metrics?
TEEP vs OEE
TEEP and OEE are closely related metrics, but it is important to understand the distinctions between them.
TEEP focuses on measuring the potential capacity of an asset, while OEE provides an indication of the asset’s current productivity level. Both metrics involve multiplying availability, performance, and quality factors. In the case of OEE, availability is calculated by dividing the total run time of the asset by its planned production time.
The key difference between TEEP and OEE lies in their underlying assumptions about production schedules. TEEP considers the asset’s full potential capacity without limitations, assuming it could run continuously. On the other hand, OEE is rooted in the reality of the current production schedule, acknowledging that the asset cannot exceed its existing run time.
As a current-state metric, OEE provides production teams and operators with an accurate assessment of equipment performance. It helps identify areas for improvement by evaluating availability, performance, and quality and suggests adjustments that could enhance capacity. OEE also enables preventive maintenance teams to pinpoint areas for root cause analysis, leading to improved asset performance or adjustments in preventive maintenance schedules for underperforming machines. Due to its close association with production, many facilities monitor OEE in real-time to identify opportunities for enhancements.
By understanding the differences between TEEP and OEE, organizations can effectively evaluate both the potential capacity and the current performance of their assets, enabling them to make informed decisions and take appropriate actions to optimize productivity.
TEEP vs OOE
Overall Operations Effectiveness, or OOE, is computed in a manner akin to TEEP and OEE: through the multiplication of performance, quality, and availability. In this context, availability refers to the ratio of actual production time to operating time.
Operating time encompasses both the scheduled production time of an asset (similar to OEE) and any unforeseen periods when the asset may be offline.
How to Use TEEP?
TEEP, OOE, and OEE used together form a cascading system that provides a comprehensive understanding of equipment performance and operational effectiveness. TEEP measures the total potential capacity of equipment without any scheduling limitations, while OOE accounts for unscheduled time and interruptions, and OEE reflects the current state of production.
TEEP, being a higher-level metric, is valuable for decision-making at the business level, such as determining optimal scheduling decisions. It helps answer questions like whether to introduce additional shifts, operate during holidays, or extend production into weekends. TEEP provides insights into the maximum potential production capacity without considering any limitations imposed by scheduling or downtime.
However, it’s important to note that some organizations may inaccurately calculate OEE, leading them to overestimate their actual equipment performance. This can happen when maintenance activities conducted during downtime are not counted against OEE. For instance, if maintenance is performed exclusively during weekends when production is halted, the time spent on maintenance is not considered as downtime in the OEE calculation. As a result, OEE appears higher than it actually is, leading to a skewed understanding of equipment performance and potential capacity.
To address this issue, it is recommended to calculate OEE, OOE, and TEEP accurately and examine the differences between these metrics. By analyzing the deltas between them, organizations can identify where scheduling changes could be made to improve production. Comparing OEE and TEEP can reveal the impact of maintenance downtime on actual production capacity. It provides insights into the need for additional staff or adjustments to maintenance schedules in order to enhance overall equipment performance and maximize operational efficiency.
How to Calculate TEEP
To calculate total effective equipment performance, you start with the overall equipment effectiveness score, which is determined by three factors: availability, performance, and quality.
- Availability: This factor represents the percentage of scheduled time when production is actually taking place. It is also known as uptime.
- Performance: Performance refers to the speed at which production occurs, expressed as a percentage of the intended speed or ideal cycle time.
- Quality: Quality represents the number of products produced that meet acceptable quality standards, expressed as a percentage of the total products started.
To calculate the OEE score, you multiply the availability, performance, and quality percentages together:
OEE = Availability x Performance x Quality
The resulting OEE score represents the overall effectiveness of the equipment, combining these three factors.
To provide context to the OEE score, you can use the following metrics as benchmarks:
- 60% – 65%: Typical performance
- 85%: World-class performance
- 100%: Perfection, indicating no downtime, operating at the optimum speed, and producing no poor-quality products.
Once you have the OEE score, you can calculate TEEP by incorporating the utilization factor:
TEEP (scheduled production as a percentage of calendar time) = OEE x Utilization
How Does TEEP Improve Operational Efficiency?
TEEP reflects the total potential capacity of the equipment, considering both the OEE score and the utilization factor. It represents the maximum output that could be achieved if the equipment were continuously utilized throughout the scheduled production time.
How to Use a CMMS to Improve OEE and TEEP
Using a CMMS helps you optimize TEEP and OEE by making it easier to manage and collect important information about the equipment in your plant. It contributes directly to increasing the availability and performance of your plant and can also indirectly improve utilization and quality factors.
Managing a manufacturing facility is a multifaceted task that requires constant attention to daily operations. The nature of manufacturing involves significant investments in assets and resources, making it crucial to periodically assess the efficiency of their utilization. By taking a step back and conducting a thorough review, managers can identify areas where improvements can be made to enhance productivity and accommodate increased production capacity. A TEEP analysis serves as a valuable tool in this pursuit, helping managers identify cost-effective avenues for expanding capacity, whether it involves existing products or new clients.
For further insight into optimizing plant operations through continuous improvement and effectively managing maintenance tasks, schedule a demo with NEXGEN today.