How to Use an OEE Calculation to Improve Performance

release date: 02/08/2019

tags: OEE

 Did you know that out of the planned production time, most manufacturing lines are only roughly 60 percent productive? (Lean Production) OEE, or overall equipment effectiveness, measures the time that manufacturing lines are actually productive.


If an OEE score equals 100 percent, a facility has perfect production. And with many facilities showing scores of 60 percent or lower, there is plenty of room for improvement if a manager knows how to use an OEE calculation to improve performance.

Overall equipment effectiveness is calculated by multiplying availability percentage by performance percentage by quality percentage, or Availability x Performance x Quality.

You can learn more about how to calculate your OEE score in this eBook, The Foolproof Guide to Improving OEE in Your Manufacturing Plant.

A world-class OEE is 85 percent or above, a typical/average OEE is 60 percent,  and a low score is 40 percent or below.

Now keep in mind, facilities shouldn’t be targeting a perfect OEE. Certain processes and equipment will never be capable of providing a perfect or even world-class OEE because they were designed to achieve that. But, OEE isn’t about changing the number; it’s about defining the facility’s normal operating rate and the things that can be done to cause that number to change - both for the better or for the worse.

So, how can an OEE calculation be used to improve performance? Well, by understanding these three things that are a big part in measuring and assessing OEE.

1. Understand the “6 Big Losses”

Industry Week itemizes six big losses across the three items that are inspected to calculate OEE.

Each of these items must be singled out properly in order to accurately calculate OEE.  Many times, facilities view OEE as a KPI rather than an improvement measure. When it’s viewed as a KPI, you’re much more likely to have numbers reported inaccurately as team members are trying to reach goals. OEE should truly be used as a calculation to show improvement and the six big losses must be reported accurately.

2. OEE Must be Calculated Per Piece of Equipment

One of the biggest mistakes when it comes to OEE is trying to multiply OEE rates across multiple machines, lines, or processes. Overall equipment effectiveness cannot be calculated for an entire plant, only an average.

OEE is best used to measure performance and then analyze losses on that particular piece of equipment. When there is an issue, this then allows you to quickly notice and address the problem.

the-foolproof-guide-to-improving-oee-protech-international (1).png3. OEE is Not Total Productive Maintenance, or TPM

Keep in mind, OEE is not total productive maintenance; it is a calculation that goes into discovering TPM.

It is important to note that TPM is about developing the capabilities of people, not complex metrics. This means everyone is involved in pursuing the goals of performance and quality - from the management level to the operators.

TPM is essential to achieving a lean flow, and OEE gives insight into how the TPM is performing.

Learn More on What Impacts OEE & How to Improve Performance in Your Facility

Learn the secrets to reducing unscheduled downtime and improving overall equipment effectiveness in your plant. In order to get the most bang for your buck, you need to understand exactly what impacts OEE, what is negatively impacting your OEE, and best practices for resolving unscheduled downtime.

Download the free eBook, The Foolproof Guide to Improving OEE in Your Manufacturing Plant, to get started!