Identify unused production capacity with TEEP
By susanne.gutermuth@cosmino.de InOverall Equipment Effectiveness (OEE) is one of the most important key performance indicators (KPIs) in modern manufacturing. It helps companies identify and reduce waste within planned production time. Downtime, performance losses, and quality issues become transparent, providing a solid foundation for continuous improvement.
However, OEE alone is not sufficient to answer every question. This is where TEEP (Total Effective Equipment Performance) provides a broader perspective.
While OEE considers only planned production time, TEEP takes the entire available calendar time into account. It therefore answers a different question: How effectively are we actually utilizing our available production capacity?
For example, a machine may achieve an OEE of 90% while still having a relatively low TEEP - for instance, if it is operated in only a single shift. Although production runs very efficiently during scheduled operating hours, a significant portion of the machine's capacity remains unused.
This is why many companies use both metrics for different purposes. OEE helps identify and reduce waste within the production process, while TEEP provides additional insights for strategic decision-making—for example, optimizing production asset utilization, evaluating shift models, identifying excess capacity, or supporting investment and consolidation decisions.
The key question is therefore not "OEE or TEEP?" Rather, the two metrics complement each other and together provide a more comprehensive view of manufacturing performance.
