Just how do you calculate your OEE?

OEE stands for Overall Equipment Effectiveness.

This key performance indicator IS WIDELY used in manufacturing to measure the efficiency and productivity of equipment or machinery on the production floor.

OEE provides insight into how well equipment is used, and how effectively it performs in producing quality products. It’s also useful for pinpointing areas for improvement, increase productivity, and reduce waste

OEE is calculated based on three primary factors:

Availability

This component measures the actual production time of equipment compared to the planned production time. It accounts for factors such as downtime for maintenance, breakdowns, changeovers, and other unplanned stoppages.

Availability is a ratio calculated as:

Availability = Actual Operating Time / Planned Operating Time

Performance

Performance evaluates the speed or rate at which equipment operates compared to its maximum potential speed under ideal conditions. It takes into consideration factors such as slow cycles, idling, and minor stops — anything that causes the manufacturing process to run at less than the maximum possible speed while it’s happening.

Performance is calculated as:

Performance = Ideal Cycle Time × Total Production Count / Actual Operating Time

Quality

Quality assesses the proportion of good-quality products produced by the equipment compared to the total number of products manufactured. It accounts for defects, rework, and scrap. It defines Good Count as parts that pass the manufacturing process the first time without needing any rework.

Quality is calculated as:

Quality = Good Count / Total Count

Overall Equipment Effectiveness

The Overall Equipment Effectiveness is then calculated by multiplying the three above factors.

OEE= Availability × Performance × Quality

The result is typically expressed as a percentage; higher values indicate better equipment effectiveness.

This figure delivers valuable insights into the efficiency of manufacturing processes. It can be used to identify areas for improvement and drive organizational continuous improvement initiatives.

By focusing on improving OEE, manufacturers can optimize equipment utilization, reduce downtime, increase production throughput, and enhance overall operational performance.

Are you meeting your OEE goals?  Are you using spreadsheets and manual calculation methods?  Ready to make informed decisions faster? 

AutomateIT’s smart manufacturing consultants can help you no matter how you are currently measuring your performance.