Use Total Effective Equipment Performance To Improve Efficiency

Maintenance managers consider total effective equipment performance
Maintenance managers consider total effective equipment performance

Maintenance and engineering managers continually look for ways to improve performance. One way to achieve this is by measuring total effective equipment performance (TEEP) in your facility. TEEP is one of several important performance metrics used in manufacturing to assess productivity.

Today, we will define TEEP, explain why it is important, and show how plant managers calculate it. We’ll also review two other important performance metrics, including: 

  1. Overall equipment effectiveness (OEE) 
  2. Overall operations effectiveness (OOE) 

We’ll demonstrate how to calculate these metrics and explain how they differ from TEEP before introducing LLumin’s computerized maintenance management systems (CMMS+) software, which can help facilities maximize their performance levels.

What Is Total Effective Equipment Performance?

Total effective equipment performance exists in the family of other performance metrics, which includes OEE and OOE. All three metrics track performance, quality, and availability when monitoring an asset. TEEP is a metric that can provide insight into your manufacturing operations’ true capacity.

TEEP helps engineering and maintenance managers understand their maximum potential equipment performance levels compared to their current level of productivity. And it can reveal how much potential their factory has based on its current equipment, factoring into account both equipment losses and downtime.

How to Calculate TEEP

TEEP considers all available time to be the theoretical maximum time that equipment can operate. Most manufacturers do not intend for their equipment to run continuously 24 hours a day, 365 days a year. Therefore, when calculating the TEEP availability variable, your operating time will account for periods when assets will be idle or require maintenance.

TEEP is calculated by multiplying four variables: availability, performance, quality, and utilization.

TEEP= Availability x Performance x Quality x Utilization
Availability (%)= Run Time / Planned Production Time
Performance (%)= (Ideal Cycle x Time Total Count) / Run Time
Quality (%)= Good Count / Total Count
Utilization (%)= Planned Production Time / All Time

Your run time can be calculated by taking your planned production time minus stop time, where stop time is defined as all time that the manufacturing process was supposed to run but was not due to unplanned or planned downtime (typically anything over several minutes). 

To expand on the above-listed variables, we’ve included some essential information below:

  • Availability: Considers all events that halt production for an extended period of time.
  • Performance: Considers anything that could cause production to run slower than maximum speed. 
  • Quality: Considers all manufacturing components that do not meet quality standards.
  • Utilization: Considers the percentage of total calendar time spent on production.

Why Is TEEP Important?

TEEP is a measurement of potential operational performance levels, which can help manufacturers and decision-makers determine the unused potential within their operations and make strategic decisions to maximize manufacturing efficiency and productivity.

This performance metric highlights the impact of both planned and unplanned equipment downtime. By evaluating TEEP, a manufacturer can support more strategic decision-making to increase productivity as a more cost-effective alternative to purchasing new equipment.

Other Performance Metrics to Consider

In addition to TEEP, we will introduce two other relevant metrics to help improve your maintenance strategy, which are OEE and OOE. These valuable metrics can also help plant managers gain insight into their current operations and identify production factors that need to be optimized. 

OEE is the most commonly used manufacturing metric for understanding and improving current performance levels. OEE will reveal how much of your planned production time is truly productive, helping you identify potential losses and understand where your operations fall short.

In addition to OEE, manufacturers should also measure OOE. OOE can help manufacturers make more informed decisions about expanding their operations and increasing productivity. And we’ll show you how to calculate both of these metrics below.

Calculating Overall Equipment Effectiveness

The OEE calculation can help manufacturers measure and manage operational efficiency and productivity in their daily operations, aiming to achieve optimal productivity levels to maintain contribution margins and a competitive advantage.

OEE is calculated by taking availability, performance, and quality into account. When calculating the OEE availability variable, divide your asset’s operating time by its total planned production time, accounting for all unplanned and planned stops.

OEE= Availability x Performance x Quality
Availability (%)= Run Time / Planned Production Time 
Performance (%)= (Ideal Cycle x Time Total Count) / Run Time
Quality (%)= Good Count / Total Count

The primary distinction between TEEP and OEE is how (time) availability is used in each calculation. While TEEP measures the percentage of all available time that is truly productive, OEE measures the percentage of planned production time that is truly productive.

Calculating Overall Operations Effectiveness

Manufacturers assess OOE by measuring the availability of factory operations from the beginning to the end of production. Given that most well-managed factories will score around 85%, this performance metric can be used to determine productivity levels and make better decisions when scaling operations.

In contrast to OEE, OOE measures the total availability of production lines from beginning to end, including planned asset maintenance. When calculating your OOE availability variable, divide your asset’s actual production time by its total available operating time, factoring in your unscheduled or unplanned downtime.

OOE= Availability x Performance x Quality
Availability (%)= Actual Operating Time / Uptime 
Performance (%)= (Ideal Cycle Time x Total Count) / Run Time
Quality (%)= Good Count / Total Count

In contrast to the previous efficiency metrics, the biggest difference remains in how your availability factor is defined. OOE considers that not all hours of the day are available for operations, whereas OEE restricts availability by excluding downtime when assets are idle or require maintenance.

Partner With LLumin to Maximize Productivity

Understanding TEEP, OEE, and OOE is critical in helping manufacturers accurately assess and improve production and operations. If you’re thinking about using these performance metrics to optimize operations, we can help. LLumin’s cutting-edge CMMS+ can track every machine and asset infrastructure across multiple locations. Our software will enable you to automate your entire KPI strategy and track large KPI data sets with advanced analytics and artificial intelligence (AI) technology to predict failure before it occurs, maximizing uptime.

LLumin’s next-generation maintenance technology leverages data from control systems, smart sensors, and operations input, and then applies condition-based workflows to execute immediate responses to help manufacturers maximize their productivity levels. Our CMMS+ cloud-based software can collect and analyze data across your entire organization without having to re-engineer new systems in order to do so.

And, when LLumin’s CMMS+ software identifies signs of a potential failure, such as heat increases or efficiency decreases, before a scheduled maintenance inspection, it will automatically execute actions to address the issue in real-time. With LLumin, you can achieve complete control over your maintenance, repair, and production schedules to keep your operations moving optimally. So if you are looking for a cutting-edge CMMS+ accompanied by a seamless implementation process and an expert customer support staff, then LLumin is a perfect fit.

Getting Started With LLumin

LLumin develops innovative CMMS software to manage and track assets for industrial plants, municipalities, utilities, fleets, and facilities. If you’d like to learn more about the total effective equipment performance KPI, we encourage you to schedule a free demo or contact the experts at LLumin to see how our CMMS+ software can help you reach maximum productivity and efficiency goals.