OEE vs TEEP vs NEE
OEE, TEEP and NEE measure effectiveness against different time bases. Learn what each includes, when to use it, and how the numbers relate.
OEE, TEEP and NEE all measure equipment effectiveness with the same Availability × Performance × Quality logic - they differ in how much time they hold the equipment accountable for. Pick the wrong time base and you'll either flatter your line or compare two plants that aren't comparable.
It all comes down to the time base
Think of a ladder of time. You start with every hour on the calendar and subtract losses at each rung:
- All time - every hour the equipment exists (24 × 7).
- Planned production time - what's left after time you chose not to run (no orders, no shift, planned maintenance).
- Run time - what's left after stops during planned time.
Which rung you measure against is what separates the three metrics.
OEE - against planned production time
OEE measures effectiveness during the time you planned to produce. It excludes unscheduled time, so it's the right tool for the operators and engineers improving a running line. (Full method: how to calculate OEE.)
OEE = Availability × Performance × Quality
TEEP - against all time
TEEP (Total Effective Equipment Performance) measures against every hour on the calendar. It's OEE multiplied by Utilization - the share of all time you actually scheduled production.
TEEP = Utilization × OEE · Utilization = Planned Time ÷ All Time
TEEP answers a different question: how much of our total capacity are we using? A line at 85% OEE that only runs one shift a day might have a TEEP near 28% - there's a whole second and third shift of unused capacity. That's the number you want when deciding whether to add a shift or buy another machine.
Seen as a waterfall, it's one stream of output measured against four different time bases - TCU (TEEP), OEE3 (OOE), OEE2 (standard OEE) and OEE1 (pure availability):
One output, four lenses
of full calendar time · TEEP
of scheduled time · OOE
standard OEE · ISO 22400-2
changeover excluded · pure availability
Illustrative example. The same fully-productive output is 70% as standard OEE - but only 48% of the calendar. The gap is capacity you already own.
NEE - the middle ground
NEE (Net Equipment Effectiveness) sits between the two: it applies the OEE factors but counts planned downtime against availability as well, giving a “net” view over the time the equipment was loaded. Definitions vary between sources, so if you adopt NEE, write down exactly which time base you mean and use it consistently - that consistency matters more than the label.
Which should you use?
- Improving a line day to day? Use OEE - it focuses on the losses operators can act on.
- Making capacity or capital decisions? Use TEEP - it exposes unscheduled time OEE hides.
- Want one honest internal trend? Pick one, define it precisely, and never quietly change the definition - see what is a good OEE score on why that's the real trap.
New to all of this? Start with what is OEE, then come back for the time-base nuance.
Key takeaways
- All three use Availability × Performance × Quality - they differ in the time base.
- OEE measures planned production time; TEEP measures all calendar time.
- TEEP = Utilization × OEE, and is always ≤ OEE.
- Use OEE to improve a line, TEEP to make capacity and capital decisions.