Improve your manufacturing productivity with OEE.

- Boost your own Awesome,Beautiful,Great Business.

OEE (Overall Equipment Effectiveness) is the gold standard for measuring manufacturing productivity. Simply put – it identifies the percentage of manufacturing time that is truly productive.


Benefits of Implementing OEE

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Real-time data, at any moment, anywhere

A complete solution with web and mobile application

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Visual Dashboard

Visual-integrated dashboard to assist the decision making progression

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Vast Assessment Angle

Analyzing the performance of multiple production line from one system

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Instant Notification

Notifying the user for any breakdown cases

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Engaging Experience

To improve users productivity, application use and satisfaction

Six Sigma Materials

Six Major Losses

The Atmosphere

Breakdown Losses

Sudden or unexpected equipment failures that make the machine less available.
Wavelength Structure

Set-up & Adjustment Losses

Downtime and defective product that occurs when production of one part stops and the equipment is set-up/adjusted to meet the requirements of another part.
Greenhouse Garden

Idling & Minor Stoppages

Production is interrupted by a temporary malfunction or when the machine is idling
Industrial Hub

Start Up Losses

Yield loss that occurs during the early stages of production
Corporate Headquarters

Reduced Speed Losses

Refers to the difference between equipment design speed and the actual operating speed
Space Station

Quality Defects (Scrap & Rework)

Losses in quality caused by malfunctioning equipment or tooling

Calculating OEE - Preferred

The preferred way to calculate OEE is mathematically equivalent to the simple formula described above, but provides a much richer understanding of waste in the manufacturing process by breaking it down into three loss factors:

Availability Loss

Performance Loss

Quality Loss


Availability takes into account Availability Loss, which includes all events that stop planned production for an appreciable length of time (typically several minutes or longer). Availability Loss includes Unplanned Stops (such as equipment failures and material shortages), and Planned Stops (such as changeover time)

It is calculated as the ratio of Run Time to Planned Production Time, where Run Time is simply Planned Production Time less Stop Time:

Availability = Run Time / Planned Production Time

Where Run Time = Planned Production Time − Stop Time


Performance takes into account Performance Loss, which includes all factors that cause the production asset to operate at less than the maximum possible speed when running (including Slow Cycles and Small Stops).

It is calculated as the ratio of Net Run Time to Run Time. In practice, it is calculated as:

Performance = (Ideal Cycle Time × Total Count) / Run Time


Quality takes into account Quality Loss, which factors out manufactured pieces that do not meet quality standards, including pieces that are later reworked.

It is calculated as the ratio of Fully Productive Time (only Good Count manufactured as fast as possible with no Stop Time) to Net Run Time (fastest possible time for Total Count). In practice it is calculated as:

Quality = Good Count / Total Count


OEE takes into account all losses (Stop Time Loss, Speed Loss, and Quality Loss), resulting in a measure of truly productive manufacturing time.

It is calculated as the ratio of Fully Productive Time to Planned Production Time. In practice, it is calculated as:

OEE = Availability × Performance × Quality

About OEE

More about OEE

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OEE Benchmarks

An OEE score of 100% is perfect production: manufacturing only good parts, as fast as possible, with no stop time.

An OEE score of 85% is considered world class for discrete manufacturers. For many companies, it is a suitable long-term goal.

An OEE score of 60% is fairly typical for discrete manufacturers, but indicates there is substantial room for improvement.

An OEE score of 40% is not at all uncommon for manufacturing companies that are just starting to track and improve their manufacturing performance. It is a low score and in most cases can be easily improved through straightforward measures (e.g. by tracking stop time reasons and addressing the largest sources of downtime – one at a time).

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World-Class OEE

The nature of this calculation makes achieving a high OEE score quite challenging. For example, if all three factors are 90%, the resultant OEE will only be 73%.

In practice, the generally accepted world-class goals for each factor are quite different from each other, as is shown in the image below. Note that these figures apply to discrete manufacturing (as opposed to process industries).

The reality is that most manufacturing companies, even today, have OEE scores closer to 60%. We work with thousands of manufacturing companies, and we see more companies with OEE scores lower than 45% than companies with OEE scores higher than 85%.

The important point is – don’t fixate on the absolute value of the number. Fixate on your ability to improve that number.