Understanding Your Data: OEE, OOE & TEEP

MachineMetrics provides three key performance metrics to measure manufacturing efficiency at different levels. This guide explains each metric, how they're calculated, and when to use them.

Quick Comparison

Metric	Measures Against	Best For
OEE	Scheduled production time	Measuring efficiency during planned production
OOE	Total shift time (scheduled + unscheduled)	Measuring efficiency across entire operations
TEEP	All time (24/7/365)	Measuring theoretical maximum capacity

                    ┌─────────────────────────────────────────────────────────┐
                    │                    ALL TIME (24/7/365)                  │
                    │  ┌───────────────────────────────────────────────────┐  │
                    │  │              SHIFT TIME (Operations)              │  │
                    │  │  ┌─────────────────────────────────────────────┐  │  │
                    │  │  │          SCHEDULED PRODUCTION TIME          │  │  │
                    │  │  │  ┌───────────────────────────────────────┐  │  │  │
                    │  │  │  │         ACTUAL PRODUCTION TIME        │  │  │  │
                    │  │  │  └───────────────────────────────────────┘  │  │  │
                    │  │  └─────────────────────────────────────────────┘  │  │
                    │  └───────────────────────────────────────────────────┘  │
                    └─────────────────────────────────────────────────────────┘
                    
                    TEEP ─────────────────────────────────────────────────────►
                         OOE ─────────────────────────────────────────────►
                              OEE ─────────────────────────────────────►

OEE: Overall Equipment Effectiveness

OEE is the industry-standard metric for measuring manufacturing productivity. It answers: "How efficiently did we use our scheduled production time?"

The Three Components of OEE

1. Availability

What it measures: How much time the machine was running vs. how much time it was scheduled to run.

Availability = Time In Cycle / Scheduled Time

Example: Machine scheduled for 8 hours, active for 6 hours = 75% Availability

2. Performance

What it measures: How fast the machine ran compared to its ideal cycle time.

Performance = Ideal Cycle Time / Actual Cycle Time

Example: Ideal cycle time is 2 min/part, actual is 2.5 min/part = 80% Performance

Note: Performance can exceed 100% if the machine runs faster than the ideal cycle time.

3. Quality

What it measures: How many parts were good vs. total parts produced.

Quality = Good Parts / Total Parts

Example: 200 parts produced, 180 good parts = 90% Quality

OEE Formula

OEE = Availability × Performance × Quality

Example Calculation:

Availability: 75%
Performance: 80%
Quality: 90%
OEE = 0.75 × 0.80 × 0.90 = 54%

Aggregated OEE (Multiple Machines)

When calculating OEE across multiple machines, simple averaging doesn't work. MachineMetrics uses weighted aggregation to account for:

Different run times
Different cycle times
Different part values

Weighted Availability:

Aggregated Availability = SUM(availability × scheduledTime) / SUM(scheduledTime)

Weighted Performance:

Aggregated Performance = SUM(performance × scheduledTimeInCycle) / SUM(scheduledTimeInCycle)

Weighted Quality:

Aggregated Quality = SUM(quality × totalParts) / SUM(totalParts)

Aggregated OEE:

Aggregated OEE = Aggregated Availability × Aggregated Performance × Aggregated Quality

Impact of Setup and Downtime on OEE

Activity	Impact on OEE
Categorized Downtime	Impacts Availability (planned or unplanned)
Planned Setup	Excluded from Availability and Performance calculations
Unplanned Setup	Included in Availability calculation
Quality Rejects	Always impacts Quality (including during setup)

OOE: Overall Operations Effectiveness

OOE expands on OEE by measuring against the entire shift, not just scheduled production time. It answers: "How efficiently did we use our total operations time?"

When to Use OOE vs OEE

Use OEE When...	Use OOE When...
Measuring machine performance during planned production	Measuring total shift utilization
Comparing performance across similar jobs	Identifying scheduling gaps
Jobs are clearly scheduled	Understanding total capacity utilization

OOE Formula

OOE = OEE × (Scheduled Time / Shift Time)

Or equivalently:

OOE = (Time In Cycle / Shift Time) × Performance × Quality

OOE Availability

The key difference from OEE is how Availability is calculated:

OEE Availability: Time In Cycle / Scheduled Time OOE Availability: Time In Cycle / Shift Time

Example:

8-hour shift
6 hours scheduled for production
4.5 hours actually running

Metric	Calculation	Result
OEE Availability	4.5 / 6	75%
OOE Availability	4.5 / 8	56.25%

If Performance = 80% and Quality = 90%:

OEE = 0.75 × 0.80 × 0.90 = 54%
OOE = 0.5625 × 0.80 × 0.90 = 40.5%

The difference (54% - 40.5% = 13.5%) represents lost opportunity from unscheduled time.

TEEP: Total Effective Equipment Performance

TEEP measures performance against all time — 24 hours a day, 7 days a week, 365 days a year. It answers: "What percentage of theoretical maximum capacity are we using?"

When to Use TEEP

Evaluating capital investment decisions
Understanding true equipment capacity
Planning for capacity expansion
Justifying additional shifts or equipment

TEEP Formula

TEEP = (Scheduled Time / All Time) × Performance × Quality

Or equivalently:

TEEP = OEE × (Scheduled Time / All Time)

TEEP Example

Scenario: One machine running a single 8-hour shift, 5 days per week

Time Period	Hours
All Time (week)	168 hours (24 × 7)
Shift Time	40 hours (8 × 5)
Scheduled Production	35 hours
Actual Running	28 hours

Metric	Calculation	Result
OEE	(28/35) × Perf × Qual	~80% × P × Q
OOE	(28/40) × Perf × Qual	~70% × P × Q
TEEP	(28/168) × Perf × Qual	~17% × P × Q

The TEEP shows that even with good OEE, there's significant untapped capacity (83% of time the machine isn't producing).

Comparison Summary

Formula Comparison

Metric	Availability Denominator	Formula
OEE	Scheduled Time	(In Cycle / Scheduled) × Performance × Quality
OOE	Shift Time	(In Cycle / Shift) × Performance × Quality
TEEP	All Time (24/7)	(In Cycle / All Time) × Performance × Quality

Relationship Between Metrics

TEEP = OEE × (Scheduled Time / All Time)
OOE = OEE × (Scheduled Time / Shift Time)
TEEP = OOE × (Shift Time / All Time)

Visual Representation

100% ┬─────────────────────────────────────────────────────────
     │
     │  ████████████████████████████████████████████  OEE (e.g., 85%)
     │
     │  ██████████████████████████████████  OOE (e.g., 70%)
     │
     │  █████████████  TEEP (e.g., 25%)
     │
  0% ┴─────────────────────────────────────────────────────────

Key Definitions

Term	Definition
All Time	The total time period being analyzed (e.g., 24/7/365)
Shift Time	Time covered by shifts that are normally staffed
Scheduled Time	Time the machine is scheduled to run production
Time In Cycle	Time the machine is actively executing/running
Ideal Part Time	Theoretical shortest time to complete one part
Actual Cycle Time	Real time taken to complete one part
Total Parts	All parts produced (good + rejected)
Good Parts	Parts that passed quality inspection

Reporting in MachineMetrics

Viewing OEE, OOE, and TEEP

OEE: Pre-built report available under Reports
Create Report: Create custom reports with any metric
Dashboards: Add OEE/OOE/TEEP widgets
API: Access metrics programmatically via /reports/production

Best Practices

Start with OEE — It's the industry standard and easiest to benchmark
Use OOE for scheduling analysis — Identifies unscheduled time opportunities
Use TEEP for capacity planning — Shows true utilization vs. theoretical maximum
Track trends over time — Absolute values matter less than improvement trends
Drill down on losses — Use Pareto charts to identify biggest improvement opportunities

Frequently Asked Questions

Why is my OEE higher than my OOE?

OEE only measures against scheduled time. OOE includes unscheduled time in the shift, so it's always ≤ OEE.

Can OEE exceed 100%?

The overall OEE cannot exceed 100%, but the Performance component can exceed 100% if actual cycle times are faster than ideal.

Does planned downtime affect OEE?

Yes. All downtime (planned or unplanned) reduces Availability. The exception is planned setup time, which is excluded from Availability and Performance calculations.

What's a "good" OEE score?

OEE Range	Interpretation
< 40%	Significant improvement opportunity
40-60%	Typical for many manufacturers
60-85%	Good performance
> 85%	World-class

How does MachineMetrics calculate OEE automatically?

MachineMetrics captures machine state (active/inactive) in real-time from the control. Combined with job/operation data and part counts, OEE is calculated automatically without manual data entry.

Company Dashboard Guide — View OEE across your factory
Reports Guide — Build custom OEE reports
Production Analytics Guide — Deep dive into performance data

Quick Comparison​

OEE: Overall Equipment Effectiveness​

The Three Components of OEE​

1. Availability​

2. Performance​

3. Quality​

OEE Formula​

Aggregated OEE (Multiple Machines)​

Impact of Setup and Downtime on OEE​

OOE: Overall Operations Effectiveness​

When to Use OOE vs OEE​

OOE Formula​

OOE Availability​

TEEP: Total Effective Equipment Performance​

When to Use TEEP​

TEEP Formula​

TEEP Example​

Comparison Summary​

Formula Comparison​

Relationship Between Metrics​

Visual Representation​

Key Definitions​

Reporting in MachineMetrics​

Viewing OEE, OOE, and TEEP​

Best Practices​

Frequently Asked Questions​

Why is my OEE higher than my OOE?​

Can OEE exceed 100%?​

Does planned downtime affect OEE?​

What's a "good" OEE score?​

How does MachineMetrics calculate OEE automatically?​

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