OEE (Overall Equipment Effectiveness) is a general effectiveness indicator for industrial machines. In a simple way, you can say that it shows how effective is a production machine. A good OEE value is considered above 85%. To get the result where OEE is 100%, the shift should pass by without any unplanned interruptions or scrap also the machine should work with maximum speed.

OEE formula: OEE = Availability X Performance X Quality

Read in more detail what is actually behind availability, performance, and quality terms and how they are individually calculated for the OEE formula:

Availability

Performance

Quality

The main value of OEE is understanding the losses: availability loss, performance loss, and quality loss. Decreasing the losses helps to raise OEE in a natural way. Even though OEE in production companies is a great unit of measurement, it is still necessary to find out what produces any kind of losses; and how to deal with them. For example, the same OEE 50% can be achieved:

• Availability is 100% and Performance is 50% → machine worked all day at 50% capacity. The bottleneck and area to improve is machine performance
• Availability is 50% and Performance is 100% → machine worked half-time with full capacity. The bottleneck and area to improve is machine availability.

It should also be noted that we don't recommend comparing different production machines and their OEE values. That kind of comparison is possible only if the compared production machines have the same running principles.

If you have any questions, suggestions, or ideas, our Support team is always waiting for your feedback and is ready to assist: [email protected]