What Is Total Effective Equipment Performance (TEEP)?

Believe it or not, most manufacturing plants only operate at a 60 percent efficiency level, leaving substantial room for growth. That’s exactly where measuring Total Effective Equipment Performance (TEEP) can help. 

TEEP is a key performance indicator (KPI) used in manufacturing operations to measure a piece of equipment’s full potential if it were to operate without any time restrictions. It provides valuable insights into equipment usage by assessing three main factors: availability, performance and quality. Together, these factors provide a holistic view of equipment effectiveness and can help businesses and managers maximize their manufacturing process and optimize maintenance schedules. 

For example, a major automotive manufacturer, like Ford, might face challenges with equipment underutilization, which affects its production output and overall efficiency. To address this, the company could implement TEEP as a key performance metric. By comparing the total time that an asset could be operational to the actual performance data, Ford could quickly see inefficiencies like bottlenecks, unplanned downtime and equipment underperformance. 

In this guide, we’ll highlight how you can calculate TEEP and improve this metric for your operations as well as key examples that show how world-class companies benefit from using it. 

How Is TEEP Calculated?  

To calculate TEEP, you analyze the potential production capacity of equipment by considering three key factors:

1. Availability: Measures the proportion of time the equipment is actually running out of all available time, assuming full scheduling (24/7, 365 days). For example, if a machine runs 60 hours in a 168-hour week.
2. Performance: Assesses equipment efficiency during its operational time. This is calculated by comparing actual production time to ideal production time, showing how close production is to optimal speed.
3. Quality: Calculates the ratio of quality output to total output by dividing defect-free units by the total number of units produced, indicating reliability in production.

The TEEP formula (TEEP = Availability x Performance x Quality) illustrates a comprehensive look at equipment utilization, identifying productivity gains by maximizing uptime, efficiency and quality output.

TEEP vs. OOE vs. OEE 

Total Effective Equipment Performance (TEEP), Overall Operations Effectiveness (OOE) and Overall Equipment Effectiveness (OEE) are similar metrics with key differences in how they measure equipment availability:

• OEE: Measures planned production time only, showing how effectively equipment performs during scheduled periods. An OEE score is also calculated using the same Performance x Quality x Availability calculation, with Availability being the ratio of actual production time to scheduled run time.
• OOE: A broader metric that includes all operations time (scheduled time and unscheduled time) for a fuller view of operational effectiveness. This is calculated as Performance × Quality × Availability, with Availability accounting for actual production time over total operations time.
• TEEP: The most comprehensive metric, representing potential performance 24/7/365 by evaluating all available time. By incorporating total possible uptime, TEEP offers insights into full equipment potential for planning capacity increases.

Each metric above provides a different lens for optimizing equipment use based on operational goals. TEEP measures best for maximizing potential, OOE measures for operational performance and OEE for managing scheduled effectiveness.

How TEEP Works for Maintenance 

TEEP provides maintenance teams with a valuable benchmark for maximizing current equipment uptime. By calculating TEEP, teams can assess the highest potential productivity of their equipment if it were available around the clock, offering a clear benchmark to measure against their current production schedule. TEEP also reveals how much potential is being left on the table and can help answer essential scheduling questions for managers — such as if production or maintenance is more beneficial on weekends or holidays — by highlighting the equipment’s unused capacity.

• Availability: Through this component, TEEP shows how much time equipment is running compared to the maximum available time. 
• Performance: This reveals overall equipment performance, highlighting if equipment is working at ideal efficiency levels during operation. 
• Quality: This assesses quality standards and how well equipment produces defect-free outputs. 

These three insights help maintenance teams balance between maximizing production hours and scheduling necessary planned downtime. With TEEP as a reference, managers can strategize how to minimize downtime without compromising on essential repairs, ultimately improving equipment longevity and operational efficiency.

How to Improve TEEP  

Improving TEEP can maximize production output by optimizing availability, performance and quality. You can do this in several ways:

• Foster communication and collaboration: Ensure all maintenance needs and schedules are well-coordinated. 
• Incorporate preventive maintenance: A preventive maintenance program can lead to reduced unplanned downtime and prolonged equipment life. 
• Train staff: Creating standard operating procedures and training programs for maintenance staff ensures consistent equipment use and fewer breakdowns.
• Monitor assets in real time: Using monitoring tools can help spot issues early, enabling faster response times.
• Enhance quality control: Having a better quality control process in your production line helps address and reduce the causes of defects, which boosts product output and TEEP. 
• Implement CMMS software: Using a computerized maintenance management system (CMMS) software helps streamline preventive maintenance by creating automations for work to be done on both old and new equipment.
• Work on continuous improvement: Learn from your wins and mistakes to continuously improve your operations.
• Consider adding production shifts: By adding more shifts during weekends or holidays, you immediately increase your equipment’s available time, provided there is enough demand to justify the extra capacity. 

Together, all of these steps drive a more efficient, proactive production process aligned with TEEP goals.

Example of Using TEEP

Let’s go back to the example of Ford, which uses TEEP to maximize production efficiency across the board. For instance, Ford collects data on equipment performance, labor productivity and process flows over a quarterly cycle each year. Assuming a 24/7 operation, the total potential hours are 2,190. However, with two shifts Monday through Friday, planned production time is approximately 1,051.2 hours, resulting in an availability rate of 48 percent. Factoring in a 75 percent performance rating and 88 percent quality rating results in a TEEP score of roughly 31.7 percent.

Using this data, Ford can identify bottlenecks, such as underutilized shifts and optimize maintenance schedules. Predictive analytics further helps the company anticipate maintenance needs, preventing extensive equipment failures and improving operational consistency. This approach allows Ford to reduce unplanned downtime, enhance their productivity and extend assets over longer periods of time. By strategically aligning production schedules and maintenance, Ford ensures maximum utilization of resources, ultimately increasing profitability while maintaining product quality and operational efficiency.

How Coast Can Help With TEEP

A CMMS software like Coast significantly enhances TEEP by centralizing data collection and asset inventory management to provide actionable insights. Coast allows teams to track critical metrics like equipment availability, performance and quality in real-time. By analyzing this data, businesses can identify inefficiencies and then take corrective actions to improve productivity.

At the same time, preventive maintenance becomes more manageable with Coast’s intuitive scheduling features, enabling recurring tasks and automated reminders. This proactive approach minimizes equipment failures and ensures assets are available to meet production demands. Work order tracking is another robust feature, allowing teams to prioritize high-impact tasks and focus resources where they are needed most.

Coast also facilitates real-time communication among maintenance teams. Updates on repairs or inspections can be shared instantly, ensuring transparency and alignment. The ability to attach documents, images and manuals directly to work orders enhances accuracy and promotes informed decision-making.

Let’s not forget that the platform is highly customizable, letting businesses tailor workflows and analytics to align with their specific TEEP goals. For instance, Coast’s data visualization tools help highlight scheduling inefficiencies or underutilized resources, supporting better resource allocation and strategic planning. And its mobile-first interface ensures that maintenance workers can access critical data on the go, further streamlining operations.

By leveraging Coast, businesses gain the ability to optimize asset performance, improve scheduling decisions and maximize production potential. This comprehensive solution not only improves TEEP scores but also drives sustainable operational efficiency and cost savings.

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