TEEP components explained in simple terms
In manufacturing, maximizing your equipment’s utilization and efficiency is vital for staying competitive. One of the most comprehensive ways to measure your productivity is through TEEP (Total Effective Equipment Performance)—a metric that reveals the true potential of your manufacturing operations by considering both equipment effectiveness and utilization. It’s essential to understand its key components of utilisation and OEE and how they interact. Let’s explore each component in detail, supported by real-world examples.
The Components of TEEP
Teep consists of multiplying Utilisation with OEE. Simple right? And if you already didn’t know then OEE (Overall Equipment Effectiveness) score is gotten by multiplying Availability x Performance x Quality. So these are all components you need to calculate TEEP. In order to not confuse you more we will now explain everything in detail as well as give you real life examples about each of them.
TEEP = Utilisation × OEE
Where:
OEE (Overall Equipment Effectiveness) = Availability × Performance × Quality
Utilisation = Planned Production Time ÷ All Time
This equation shows that TEEP combines how effectively your production runs during scheduled time (OEE) with how much of the total available time your equipment is actively used (Utilisation).
Availability
By definition Availability measures the proportion of scheduled production time that your equipment is actually running. It accounts for downtime due to breakdowns, maintenance, or setup activities while being an important OEE component.
A Real-World Example from the Balti Spoon case, detailed monitoring revealed that unplanned interruptions initially accounted for over 158,000 minutes. After deploying GlobalReader, interruptions were drastically reduced—some to nearly zero—leading to a significant boost in machine Availability (from as low as 11.9% to over 91%). This example highlights how increased availability directly translates into more productive machine hours and higher potential output.
Performance
Performance in definition measures how fast machines run when operational compared to their maximum speed. It reflects whether machines are operating at optimal cycle times without unnecessary delays.
Again, in Balti Spoon, by identifying activity types and reasons behind disruptions, the factory improved machine speeds and eliminated bottlenecks. This led to higher Performance levels, enabling the factory to produce more within the same operating hours, bringing their overall throughput closer to theoretical maximums.
Quality
The definition for Quality indicates the proportion of products made that meet quality standards, accounting for defects, rework, or scrap.
While not explicitly addressed in all of our case studies, yet, Avoti’s integrated data flow enabled more precise monitoring of production quality and costs. Maintaining high-quality output means fewer defective parts and less rework, contributing positively to the Quality component of OEE. What is even more important is to take the cost of quality into account.
Utilisation: Expanding OEE
Utilisation assesses how much of the total calendar time your equipment is scheduled to run relative to the total available time (e.g., 24/7 production).
Our metal manufacturing case demonstrates impressive TEEP improvements through better Utilisation. Initially, many machines operated only part of the time due to unoptimized schedules. After deploying GlobalReader and optimizing the shift patterns, the factory increased Utilisation from about 50% to over 70%, unlocking significant hidden capacity without additional equipment.
TEEP Takes You Further Than OEE.
Understanding and optimizing TEEP components—Availability, Performance, Quality, and Utilisation—empowers manufacturers to realize their full production potential. By measuring each element, identifying bottlenecks, and implementing data-driven improvements, operations become more efficient, cost-effective, and scalable. Read here about TEEP vs. other metrics and when to focus on what exactly. We’ve made it super simple.
If you wish to explore how your factory can benefit from TEEP optimization, reviewing detailed case studies like those above provides real-world insights into achievable results. Or the best way to start measuring OEE and TEEP is to try our FREE demo.
Take a tour around our DEMO. It’s FREE. No financial commitment needed.
