How to Calculate TEEP: A Step-by-Step Guide

Total Effective Equipment Performance (TEEP) is a crucial metric for manufacturers to assess the overall efficiency and productivity of their production processes. By measuring TEEP, manufacturers can identify opportunities for improvement and make informed decisions to optimize their operations. In this article, we will provide a comprehensive step-by-step guide on how to calculate TEEP effectively.

Understanding the Basics of TEEP

Before diving into the calculation process, let's first establish a clear understanding of what TEEP is and its significance in manufacturing.

Manufacturing processes involve the use of various machinery and equipment to produce goods. However, it is essential to ensure that these resources are utilized effectively and efficiently to maximize productivity and minimize downtime. This is where Total Effective Equipment Performance (TEEP) comes into play.

What is TEEP?

TEEP stands for Total Effective Equipment Performance. It is a metric that measures the utilization and efficiency of machinery and equipment within a manufacturing facility. Critically, it is a measure of plant utilization where the optimal state of a plant is if it were running 24 hours a day, 365 days a year (always producing non-defective products). This is in stark difference to OEE (Overall Equipment Effectiveness) which only considers the time in which production has been planned (i.e. excluding planned maintenance and hours where the factory is not operational).

TEEP takes into account three crucial factors:

1. Availability: The percentage of time that the equipment was operational relative to the total time that the plant could be running (24/7, 365 days a year).

2. Performance: The speed at which equipment operates compared to its designed capacity.

3. Quality: The percentage of products produced by the equipment that meets the required quality standards.

By considering these factors, TEEP provides a comprehensive evaluation of equipment effectiveness, enabling manufacturers to identify areas for improvement.

Importance of TEEP in Manufacturing

Manufacturers rely on TEEP to evaluate the effectiveness of their equipment and identify areas for improvement. By assessing TEEP, manufacturers can gain insights into the percentage of time their equipment is operating effectively and producing quality products.

TEEP also enables manufacturers to identify and address factors that may be causing downtime, such as equipment failures, maintenance requirements, and changeovers, leading to increased productivity and reduced costs.

Moreover, TEEP serves as a benchmarking tool, allowing manufacturers to compare their equipment performance against industry standards or best practices. This comparison helps identify areas where improvements can be made to achieve higher levels of efficiency and productivity.

Furthermore, TEEP plays a crucial role in capacity planning. By understanding the performance of their equipment, manufacturers can determine the maximum output their facility can achieve and make informed decisions regarding production schedules and resource allocation.

Unlike other effectiveness measures, TEEP is the only measure that takes into account time when the plant is not open. In this sense, it takes into account schedule losses as well as operational losses (which is what OEE primarily measures).

In addition to its operational benefits, TEEP also contributes to overall business performance. Higher TEEP values indicate better equipment utilization, which translates to increased production output and higher customer satisfaction. This, in turn, can lead to improved profitability and competitiveness in the market.

In summary, TEEP is a vital metric for manufacturers as it provides a comprehensive evaluation of equipment performance, identifies areas for improvement, and contributes to overall business success.

The Mathematical Formula for TEEP

The Total Effective Equipment Performance (TEEP) formula allows manufacturers to calculate the overall effectiveness of their equipment. This formula is widely used in the manufacturing industry to assess the efficiency and productivity of production processes.

The TEEP formula is as follows:

TEEP = (Actual Production Time / All Time) x (Ideal Cycle Time / Actual Cycle Time) x (# of Good Units / # All Units Produced)

where All Time equates to running a plant 24 hours a day, 365 days a year.

You may notice that this is very similar to an OEE calculation. The difference is in what constitutes the Availability term. We can rewrite the TEEP calculation as follows:

TEEP = (Planned Production Time / All Time) x (Actual Production Time / Planned Production Time) x (Ideal Cycle Time / Actual Cycle Time) x (# of Good Units / # All Units Produced)

Therefore TEEP = Utilization x OEE Availability x Performance x Quality

or more simply: TEEP = Utilization x OEE

By using this formula, manufacturers can gain valuable insights into how well their equipment is performing and identify areas for improvement.

Common Mistakes in TEEP Calculation

When calculating TEEP, manufacturers often make some common mistakes that can impact the accuracy of their results. It is important to be aware of these potential pitfalls to ensure accurate TEEP calculations. Some of the common mistakes include:

• Forgetting to include unscheduled time (i.e. planned equipment maintenance during operating time) as well as not scheduled time (i.e. when the plant is closed) when calculating the correct Availability measure.

• Failing to account for all forms of downtime: It is crucial to consider all types of downtime, such as equipment breakdowns, changeovers, maintenance, and operator breaks. Neglecting to include these factors can lead to an underestimation of the actual production time.

• Incorrectly measuring cycle times: Accurate measurement of cycle times is essential for TEEP calculation. Errors in measuring the time taken for each production cycle can distort the overall TEEP value.

• Disregarding production interruptions: Production interruptions, such as material shortages, quality issues, or unexpected events, can significantly impact equipment performance. Ignoring these interruptions can result in an inaccurate assessment of TEEP.

Improving TEEP Scores

Manufacturers should strive to continuously improve their TEEP scores to maximize operational efficiency and productivity. Here are some strategies to increase TEEP:

Strategies for Increasing Operational Time

By reducing unnecessary downtime and optimizing equipment schedules, manufacturers can increase operational time. Regular maintenance, proactive equipment inspections, and timely repairs can help minimize unplanned downtime and improve TEEP scores.

Since TEEP also includes measures of schedule losses, increasing shifts and opening the plant during weekend hours may lead to an increase in TEEP (assuming OEE stays the same) from an increase in utilization.

Reducing Downtime to Boost TEEP

Manufacturers should analyze data and identify the root causes of downtime. By addressing these factors, such as equipment malfunctions, material shortages, or inefficient changeovers, manufacturers can significantly reduce downtime and enhance TEEP.

By following this step-by-step guide, manufacturers can accurately calculate TEEP and make data-driven decisions to optimize their operations. Remember, TEEP is a valuable metric for assessing overall equipment performance and driving improvements in manufacturing efficiency.