Production and OEE
What is TEEP?
TEEP measures output against all calendar time: OEE multiplied by utilization. Learn the TEEP formula, how it differs from OEE and use the free calculator.
Quick answer
TEEP (total effective equipment performance) measures how much of all calendar time a machine spends making good parts at ideal speed. It equals OEE multiplied by utilization, where utilization is planned production time divided by all time. OEE shows how well you run; TEEP shows how much more capacity exists.
Updated 30 October 2026. Written by the Ajinkya Technologies engineering team, reviewed by Amey Kadle.
Formula
TEEP = OEE × utilization, where utilization = planned production time ÷ all time
Worked example: A machine has an OEE of 65% and is planned to run 120 hours in a 168 hour week. Utilization = 120 ÷ 168 = 71.4%. TEEP = 0.65 × 0.714 = 46.4%.
TEEP calculator
Free and instant. Nothing is stored or sent.
- Utilization
- 71.4%
- TEEP
- 46.4%
TEEP explained
OEE deliberately ignores time the machine was not scheduled to run, so that a well run single shift operation can score as highly as a three shift one. That is right for judging how well the plant runs, but it hides capacity. TEEP closes the gap by measuring against every hour on the calendar.
The difference between OEE and TEEP is the capacity question managers face before buying another machine. If OEE is high but TEEP is low, the cheapest extra output usually comes from scheduling more time, for example a partial third shift or running through breaks with relief operators. If both are low, improving how the machine runs during planned time comes first.
Utilization is a scheduling decision rather than an equipment problem, so teams usually track OEE daily for operations and review TEEP monthly for capacity planning. Both need a consistent definition of planned stops, otherwise moving a stop from planned to unplanned changes the numbers without any real change on the floor.
Key concepts
- Measured against all calendar time
- OEE times utilization
- A capacity planning figure
- Low TEEP with high OEE means unscheduled time
- Consistent planned stop definitions are essential
Questions
What is the difference between OEE and TEEP?
OEE compares output with planned production time. TEEP compares output with all time, so it also reflects how much of the week the machine is scheduled to run.
Can TEEP be higher than OEE?
No. Utilization can be at most 100%, so TEEP is always equal to or lower than OEE.
When should a plant use TEEP?
When deciding whether to add shifts, outsource or invest in new equipment. It shows how much capacity the existing machine could still offer.
References
How we help with TEEP
Our OEE dashboards keep planned and unplanned time separate per shift, so OEE and TEEP come from the same data and capacity reviews start from facts rather than estimates.
Free OEE calculator; add your email to see what your losses cost each month.
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Related terms
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