Dog sleeping, to illustrate TEEP definition, TEEP calculation, OEE vs. TEEP

TEEP definition, TEEP calculation, OEE vs. TEEP

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.

Dog sleeping, to illustrate TEEP definition, TEEP calculation, OEE vs. TEEP

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.


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.


Sugarcane juice machines across India

As I travel across the country, I come across a fascinating variety of machines that are used to make sugar cane juice. They all have one thing in common, which is that there are two rotating rollers between which the cane is pushed. How you rotate the rollers differs – could be driven by hand, by a bullock, a small petrol engine, or if you want to be really boring, by an electric motor. My favourite machine is the wooden bullock driven one, and the next is the wooden human driven one.

Pic. Source:
Pic. source:

The recipe for the juice is very simple: Crush the cane with ginger and lime, filter through a sieve, and serve. Tastes like heaven, but probably has the bacteria of hell, considering the way it’s made. I, like the average Indian, have a cast iron stomach (or maybe something more corrosion-resistant, like stainless steel or titanium). The joys of drinking roadside juice far outweigh the very faint possibility of coming down with some dire stomach problem. Here’s a video of the process.

For those who are very particular about the hygiene, there are of course the boring sanitized sugarcane juice places with boring sanitized machines, that have sprouted up in cities.


A sanitized machine. Pic. source:


A sanitized sugar cane juice shop.
Pic. source:

Free Webinar : Industry 4.0 - Unlocking machine shop profits: Are operators still holding the keys ? 15 June 2024, 2pm to 3pm, Saturday. 

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