OEE tells you how well the shifts you planned actually went. TEEP asks a bigger question: of every hour in the day, how many turned into good parts? That makes it the number to look at when the real question is capacity, not performance.
The TEEP formula
TEEP = OEE × Utilization, where utilization here means planned production time ÷ all calendar time — how much of the day was scheduled at all. Put together, TEEP is fully productive time divided by calendar time.
Note that this “utilization” is about the schedule, not about how long the machine ran. The everyday shop-floor measure is covered on the machine utilization formula page.
A worked example
One machine over one day (illustrative numbers):
Calendar time
- Value
- 24 h
Planned production time (two shifts)
- Value
- 16 h
OEE for those two shifts
- Value
- 65%
| Input | Value |
|---|---|
| Calendar time | 24 h |
| Planned production time (two shifts) | 16 h |
| OEE for those two shifts | 65% |
Utilization = 16 ÷ 24 = 66.7%. TEEP = 65% × 66.7% = 43.3%. A respectable OEE, but less than half of the machine’s day produced good parts. The gap is mostly the unscheduled third shift, not anything the operators did.
When to use TEEP vs OEE
- Use OEE to improve the shifts you run — breakdowns, slow cycles, rejects. See the OEE guide.
- Use TEEP before buying a machine or adding a shift: a low TEEP on existing machines often means the capacity is already there, just unscheduled.
Both need trustworthy running time per machine, which is what machine utilization tracking from controller data provides.