Dasarathi G V
Director in Leanworx
Dasarathi has extensive experience in CNC programming, tooling, and managing shop floors. His expertise extends to the architecture, testing, and support of CAD/CAM, DNC, and Industry 4.0 systems.
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TEEP definition, TEEP calculation, and difference between OEE and TEEP
TEEP definition
My guard dog is willing to guard my house 24 hours a day, but I tell it “It’s OK, you can sleep 12 hours a day. Just work between 6 AM and 6 PM”. OEE measures how effectively it is guarding my house between 6 AM and 6 PM. TEEP measures this, and in addition, ALSO measures the extent of my stupidity in allowing it to sleep 12 hours a day when it was willing to work.
Losses on the shop floor can be categorized as Equipment losses and Schedule losses.
Equipment losses are the losses in the time that a machine is scheduled to run. This is measured by OEE.
Schedule losses are the time that the machine was not scheduled to run, but was sitting there and available to run. E.g., lunch and tea breaks, non-working shifts, holidays, no orders. This is measured as Utilization.
OEE vs TEEP
TEEP takes into account both equipment losses AND schedule losses, ie. OEE AND Utilization.
OEE is how effectively you have used the scheduled production time.
TEEP is how effectively you have used the whole calendar time.
TEEP calculation
Utilization = Planned production time / Total available calendar time
TEEP = OEE x Utilization.
Example 1
A machine’s OEE is 60 %. It runs 24 hours a day without a break, 6 days a week.
The Utilization is 6/7, or 85.7 %.
TEEP = 100 x ((OEE/100) x (Utilization/100)) = 51.4 %
Example 2
A machine’s OEE is 60 %.
It works 12 hours a day, with lunch and tea breaks totaling 1 hour, 6 days a week, the Utilization is (11 x 6)/(24 x 7), 39.3 %
TEEP = 100 x ((OEE/100) x (Utilization/100)) = 23.6 %
Action point
If I take a loan from the bank to buy a machine, the bankers expect to be paid the principal + interest on the loan every month. They do not care how many hours I run the machine. If I run the machine only 12 hours a day, my revenue is half what it could have been if I ran it 24 hours a day. If orders are not a constraint, it makes sense for me to run my machine longer hours – run it 24 hours, run it across breaks, etc. TEEP makes more sense than OEE as a measure of my ability to repay the bank loan.
It is therefore important to understand the TEEP definition, TEEP calculation, and OEE vs. TEEP difference.
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