While TEEP (Total Effective Equipment Performance) and OEE (Overall Equipment Effectiveness) are closely related, each serves a distinct purpose. Understanding their differences—and when to prioritise one over the other—can help you optimise your manufacturing operations more effectively.

TEEP is calculated by multiplying four factors: Availability, Performance, Quality, and Utilization to provide a comprehensive view of how effectively your operation uses all available time, not just the planned production time. Since OEE already includes Availability, Performance, and Quality, Utilisation is the missing factor needed to understand total equipment effectiveness over full calendar time. By measuring both equipment efficiency and utilisation, it helps you uncover the true capacity of your plant.