What is Total Effective Equipment Performance?

Total effective equipment performance (TEEP) refers to a maintenance performance metric that measures machine performance based on an asset’s availability and the quality of its output. Tracking TEEP is an effective way to gain insights into each asset’s wear and tear. This metric can provide a sense of your manufacturing operations overall capacity.

The information you can gather from your TEEP performance metrics can help you implement a condition-based maintenance schedule and prevent unplanned downtime. It’s also a way for production teams to gauge how much time is left in an asset’s useful life. 

Total Effective Equipment Performance (TEEP) vs. Overall Equipment Effectiveness (OEE)

Total effective equipment performance (TEEP) is closely related to overall equipment effectiveness (OEE). However, OEE and TEEP are still distinctly different key performance indicators (KPIs), and it’s important to understand their differences. OEE measures equipment performance during scheduled production time, while TEEP measures equipment performance during all available time.

In short, OEE is a metric that measures plant performance during scheduled production time, expressed as a percentage. TEEP is another overarching metric that measures performance during all available time, including non-operating time intervals — also expressed as a percentage. OEE is factored into TEEP, as we’ll show you below. 

Key Metrics of TEEP

TEEP measures a handful of performance metrics to gauge current equipment performance. Here are those metrics.

Availability

The availability factor measures the percentage of time that equipment or a process is available during its scheduled production time. Most managers define availability as the amount of time the asset performs its intended purpose at its intended speed and up to quality standards.

The calculation for this metric is:

• A = (Actual operating time / Scheduled operating time) X 100%

Performance

Performance measures the actual production rate compared to the ideal or intended production rate. You calculate this as:

• P = (Ideal production time / Actual production time) X 100%

Or

• P = (Actual production time / Ideal production time) X 100%

Quality

Quality measures the percentage of good quality products or output the equipment produces. This metric does not account for the equipment’s optimum speed. Instead, it focuses entirely on the quality of the output.

Here is a calculation example:

• Q = [(Total # of units produced – # of defective units) / Total # of units produced] X 100%

Utilization

Utilization measures the total calendar time spent on production as a percentage. You calculate utilization as a percentage of the total available time by subtracting the idle time from the total available time. You measure it as:

• U = (Total available time – Idle time) X 100% / Total available time

How to Measure TEEP

1. Identify Key Metrics

The four metrics you will need to calculate TEEP are availability, performance, quality, and utilization, as highlighted above. However, how you define each of these metrics will vary based on your facility and the equipment’s purpose. Manufacturing plant operations alone may measure production capacity, while a commercial building might measure how much energy their light bulbs use for light instead of heat. Define what your metrics are for all four factors and calculate accordingly.

2. Calculate TEEP

Once you’ve designated all four metrics for your facility, you must measure OEE first. To do that, follow this formula:

• OEE = Availability X Performance X Quality

This is a measurement of your overall equipment performance. Your result should be a percentage. 

To get your TEEP, you multiply your OEE by your utilization percentage. Like this:

• TEEP = OEE% X Ultization%

3. Evaluate the TEEP Value

Your TEEP result will help you identify areas for continuous improvement. If TEEP is below 100%, analyze the specific areas that need attention. Here is a closer look at what your TEEP percentage might mean:

• TEEP = 100%: Indicates that the equipment is operating at its maximum potential efficiency, with no downtime, optimal performance, and perfect quality.
• TEEP < 100%: Suggests room for improvement in one or more of the four components (availability, performance, quality, or utilization).
• TEEP = 0%: Indicates that the equipment is not operational, with either constant downtime or zero quality output.

How to Improve TEEP

If your TEEP is below 100%, improvement is needed. The metric itself may not make it abundantly clear where to enhance your asset’s performance. You can only figure that out through inspections and scheduled preventive maintenance. Still, there are ways you can improve production. 

Increase Equipment Utilization

Implement efficient production schedules to ensure equipment is in use for as long as possible and minimize idle time between production runs. Leaving your machinery running idle wastes energy and can inflate your quality metric. That’s because running equipment with no production output may falsely indicate that the equipment is misfiring during intended production times. 

Reduce Changeover Times

Simplify and standardize changeover procedures to minimize downtime. Not only will this improve your availability metrics, but it will also help you significantly reduce equipment maintenance costs. 

Try following SMED (Single-Minute Exchange of Die) principles to optimize changeovers. SMED is a method that minimizes the time needed to switch equipment from one task to another by doing as many changeover tasks as possible while the equipment is still performing its initial task. As a result, the rest of your needed tasks are as straightforward and quick as possible. The goal is to get the total switch time to under 10 minutes (single-minute digits).

Implement Predictive Maintenance

Continuously monitor equipment conditions to detect early signs of wear, overheating, or other issues. Catching issues before they escalate is one of the benefits of preventive maintenance. However, you can take this one step further by implementing predictive maintenance.

Predictive maintenance involves using Internet of Things (IoT) sensors on equipment to track indicators that it may be near equipment failure. These indicators are sent to a centralized cloud storage platform where human workers can read the analysis and assess when equipment requires service. 

Use Technology and Automation

Automate repetitive and labor-intensive tasks to improve accuracy, consistency, and speed as much as possible. Doing so will increase production output and reduce quality losses via human error. It also enhances equipment performance by reducing the likelihood of human misuse. 

Optimize Production Processes

Create detailed process maps to help you identify bottlenecks, unnecessary steps, or inefficiencies. Once identified, you may use this information to update your current production schedule, or adapt your existing practices. These updates will both improve your TEEP and support strategic decision-making.

Using TEEP in Different Industries

Facilities in various industries can benefit from TEEP in multiple ways. Here is how your industry can use TEEP alongside other performance metrics.

Manufacturing

TEEP is crucial to optimize the performance of machinery and production lines during the manufacturing process. High TEEP indicates efficient use of equipment, minimal downtime, and high-quality output. Altogether, these factors will enhance manufacturing performance and increase revenue gains. 

Healthcare

TEEP helps healthcare facilities optimize patient flow, reducing waiting times and improving the overall quality of care. Medical manufacturers can also use it to improve product quality and enhance operational efficiency to bring more products to patients.

Transportation & Logistics

TEEP optimizes the performance and availability of vehicles and transportation equipment. It aids in monitoring the efficiency of logistics operations, reducing delivery times, and minimizing delays. As a result, overall operational effectiveness improves, as does customer satisfaction. 

Energy & Utilities

TEEP ensures that power generation equipment operates efficiently and reliably in the energy sector. This optimization helps maintain water treatment facilities, ensuring a clean and safe water supply. It’s also a way to reveal workforce inefficiencies to improve overall operations effectiveness.

Maintaining High Equipment Performance With ServiceChannel

Tracking your TEEP is much simpler when it’s one of your computerized maintenance management system (CMMS) KPIs. The right KPI software can help you compare it to any other manufacturing productivity metric, equipment losses, or any other KPI you need to track. You can further enhance your production performance with ServiceChannel. Our tools help you schedule planned downtime, track work performance, and streamline the production line. If you aren’t already familiar, read our article “What is CMMS?” 

Contact us for a free demo to see how ServiceChannel is a standout CMMS for your old and new equipment.