Establishing the right Key Performance Indicators (KPIs) is essential for driving process improvements and helping your maintenance team reach its full potential. By identifying and tracking the right metrics, your organization can gain valuable insight into your maintenance program’s performance, identify areas for improvement, and make data-driven decisions to make these improvements possible.
The importance of using the right metrics
The right metrics can help pinpoint process inefficiencies, measure the effectiveness of your existing maintenance strategies, extend the life of your physical assets, and optimize the production capacity of your maintenance operations. Holistic metrics such as Overall Equipment Effectiveness (OEE), Overall Operations Effectiveness (OOE), and Total Effective Equipment Performance (TEEP) provide a detailed look at the equipment, systems, and processes involved in production.
These metrics can provide organizations with the insights needed to better allocate maintenance resources, plan preventive maintenance activities, improve workplace safety conditions, and more. In the discussion below, we’ll take a deeper look at Total Effective Equipment Performance (TEEP) and the role this KPI can provide in advancing your maintenance program and the productivity of your operations.
What is Total Effective Equipment Performance (TEEP)?
Total Effective Equipment Performance (TEEP) is a comprehensive metric used to measure the performance of manufacturing equipment. TEEP measures the output of your equipment not just across the equipment’s planned production time, but across all available time (i.e. 24/7).
Why is TEEP valuable?
TEEP is similar to metrics like Overall Equipment Effectiveness (OEE) in that it is designed to provide an encompassing way of measuring equipment performance. The 24/7 time frame used to measure TEEP affects the calculation used to arrive at this metric and its implications for assessing the effectiveness of your manufacturing process.
The resulting calculation can provide actionable insight into:
- Equipment utilization during all of the time it is available
- Process bottlenecks that might be limiting equipment performance
- Strategic opportunities for improved production planning, scalability, and investment in new equipment
- Continuous improvement through ongoing tracking, assessment, and adjustment
- Performance benchmarking of equipment operating in different facilities, environmental conditions, or durations
The factors used to calculate TEEP
TEEP expands on the concept of OEE by accounting for how effectively a piece of equipment is being used during both actual production time and potential production time. TEEP calculations are based on the following four factors:
- Loading Time, which refers to the percentage of total available time (24/7) that the equipment in question is scheduled for production usage
Calculation: Loading Time = (Scheduled Production Time / Total Available Time) x 100
- Availability, which measures the percentage of scheduled production time that the equipment is running, taking into account downtime due to breakdowns, setup, and changeover
Calculation: Availability = (Operating Time / Scheduled Production Time) x 100
- Performance, which assesses the speed at which equipment operates as a percentage of its ideal speed, taking into account losses due to slow cycles and minor stoppages
Calculation: Performance = (Ideal Cycle Time × Total Count) / Operating Time
- Quality, which measures the percentage of good parts produced out of the total parts produced, accounting for defects and products which must be reworked
Calculation: Quality = (Good Count / Total Count) x 100
How to calculate TEEP
The formula for TEEP combines the four factors outlined. Therefore, it is only possible to calculate TEEP after you’ve calculated Loading Time, Availability, Performance, and Quality.
The TEEP Formula
TEEP is expressed as a number out of 100% and the formula for calculating TEEP is as follows:
TEEP = Loading Time × Availability x Performance x Quality
Step-by-step guide to calculating TEEP
- Step 1: Gather the following data points:
- Total available time (24/7), measuring the amount of time equipment could potentially be used during the measured duration
- Scheduled production time, indicating the intended utilization of equipment over the duration in question
- Actual operating time, indicating the actual utilization of equipment for the duration in question
- Ideal cycle time, denoting the fastest possible time to produce one unit
- Total count, indicating the total number of units produced during the measured duration
- Good count, indicating the number of units produced over this duration that meet acceptable quality standards
- Step 2: Calculate Loading Time: (Scheduled Production Time / Total Available Time) x 100
- Step 3: Calculate Availability: (Operating Time / Scheduled Production Time) x 100
- Step 4: Calculate Performance: (Ideal Cycle Time × Total Count) / Operating Time
- Step 5: Calculate Quality: (Good Count / Total Count) x 100
- Step 6: Calculate TEEP: Multiply the four components listed above together to complete the following formula: Loading Time × Availability × Performance × Quality
TEEP in action
Total Effective Equipment Performance is a valuable metric for reliability engineers, quality control managers, and maintenance technicians across various industries. Below are a few examples of TEEP in action:
- An automotive manufacturing plant may use the TEEP calculation to determine whether or not equipment is being underutilized based on loading time. This information could lead to decisions such as increasing scheduled production hours or adding work shifts to offset the time lost to dormancy, setup, and changeover.
- A food processing plant may have strong loading time but may struggle with issues relating to equipment availability. The TEEP calculation can provide a baseline for preventive maintenance activities aimed at reducing equipment downtime.
- A pharmaceutical manufacturing facility may use TEEP to trace the root causes of its low loading time to regulatory compliance requirements or batch testing times. This finding could help the facility develop strategies for optimizing regulatory compliance oversight and testing procedures.
TEEP vs. OEE vs. OOE
TEEP is one of several metrics that organizations use to measure operational performance. Similar metrics include Overall Equipment Effectiveness (OOE) and (Overall Operations Effectiveness). All three metrics offer a holistic view of systemic efficiency in manufacturing.
However, there are important differences in the way these metrics are applied to measure equipment and production efficiency.
- Total Effective Equipment Performance (TEEP) measures the total effective utilization of equipment, considering 24/7 availability, and evaluates how well equipment is utilized compared to its full potential. As noted above, TEEP incorporates measures of availability, performance, and quality as well as loading time.
- Overall Equipment Effectiveness (OEE) is used to measure the efficiency and effectiveness of a single piece of equipment or an entire production line. Unlike TEEP, OEE is only intended to measure equipment functionality during the time it is scheduled to run. The OEE calculation is made by multiplying your availability, performance, and quality scores.
- Overall Operations Effectiveness (OOE) is very similar to OEE in that it uses calculations of availability, performance, and quality to evaluate equipment efficiency over a duration of time. However, OOE expands on the duration of this time, calculating efficiency using all available time which includes run time and downtime where machinery is not scheduled to run.
Methods for improving TEEP
Improving Total Effective Equipment Performance (TEEP) and building a world-class maintenance program will depend on your organization’s ability to improve upon the individual components that contribute to your TEEP score. For instance, your organization may be able to:
- Increase Loading Time by extending operating hours, optimizing scheduling, and cross-training employees
- Enhance Availability by creating rapid response teams as well as implementing preventive maintenance (PM) strategies and predictive maintenance (PdM) technologies
- Improve Performance by optimizing your standard operating procedures (SOPs), implementing continuous training, and investing in leading-edge equipment
- Enhance Quality by implementing more robust quality control systems, conducting root cause analysis on issues impeding quality, and applying lean manufacturing principles to streamline processes
- Utilize advanced technology such as a CMMS software to schedule, track, and manage maintenance activities, engage in data-driven decision-making, and gain real-time insights into equipment performance and health.
TEEP improvement challenges
Organizations may face several challenges when working to improve TEEP, but the right strategic approach can teams mitigate and overcome these obstacles.
- Inaccurate data can lead to misguided decisions and ineffective maintenance strategies. Automated data collection tools such as IoT sensors and computerized maintenance management systems (CMMS) can offset this risk with accurate, real-time data.
- Employee resistance may slow the implementation of new processes, technologies, or maintenance scheduling changes. Comprehensive training and ongoing support can help employees adapt to new tools, technology, and processes.
- Balancing maintenance and production schedules can be complex, even leading to scheduling conflicts and unplanned downtime. Integrated planning tools can help align maintenance schedules with production needs and ultimately minimize disruptions.
- Inconsistent maintenance practices across different teams or shifts can lead to variations in equipment performance. Develop and enforce standardized maintenance procedures and best practices across the entire organization.
- The high initial investment required for advanced maintenance technologies and equipment upgrades can be cost prohibitive. Conducting a thorough cost-benefit analysis can demonstrate the long-term ROI and justify the cost of this investment.
More metrics for maintenance excellence
Key Performance Indicators (KPIs) play a valuable role in helping to evaluate and improve your organization’s maintenance program. TEEP is just one useful maintenance metric.
To truly understand how your maintenance personnel, equipment, and processes are performing, you’ll want to consider a variety of maintenance metrics, including:
- Mean Time Between Failures (MTBF) refers to the average time between equipment failures.
- Mean Time to Failure (MTTF) refers to the average time a non-repairable piece of equipment remains in operation until replacement becomes necessary.
- Mean Time to Repair (MTTR) refers to the average time required to repair equipment and return it to full working condition.
- Maintenance Cost as a Percentage of Replacement Asset Value (RAV) refers to the ratio of annual maintenance costs to the replacement value of the equipment.
These are just a few of the KPIs that organizations use to measure, monitor, and improve maintenance outcomes. If you’d like to learn more about maintenance metrics and how they can help your organization improve operational performance, check out Limble’s Ultimate Guide to Maintenance Metrics.
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