What is Overall Equipment Effectiveness (OEE)?

Overall equipment effectiveness (OEE) is one of the most important metrics to help organisations analyse and optimise equipment usage. OEE evaluates how available equipment is, how it performs and what kind of quality it produces. The metric offers an important, high level overview of equipment efficiency.

Why measure OEE?

OEE measurement is a common key performance indicator (KPI) for organisations across all industries. With lean manufacturing initiatives, benchmarking OEE can provide insight into maintenance successes, or help identify areas in need of improvement.

When you understand how effective your equipment is under the availability, performance and quality realms, it is easier to identify where to make specific improvements. For example, if your focus is on performance, you can closely monitor and analyse what is having the greatest impact on production output.

To further discover what is contributing to production losses, availability, performance and quality are subdivided into what is called the ‘Six Big Losses’ in OEE. They are categorised as:

Achieve world class maintenance with 90% planned maintenance percentage

How do you calculate OEE?

  • Availability = Run Time / Planned Production Time
  • Availability accounts for all events that stop planned production long enough to qualify and track as downtime.

  • Performance = (Ideal Cycle Time × Total Count) / Run Time
  • Performance takes into account anything that causes the manufacturing process to run at less than the maximum possible speed.

  • Quality = Good Count / Total Count
  • Quality accounts for manufactured parts that do not meet quality internal or external standards, including parts that need rework.

    To discover the total OEE for a particular piece of equipment, you multiply availability, performance and quality together:

    Achieve world class maintenance with 90% planned maintenance percentage

    How do you improve OEE?

    OEE.com offers a simple “I.D.A” methodology to help drive improvements for OEE. I.D.A focuses on:

  • Information (I) – A key to begin making better-informed decision making is using accurate, relevant and easy-to-understand information.
  • Decision (D) – When information is tracked and reviewed, organisations are in a position to make decisions that will lead to productive action.
  • Action (A) – Action is a tangible process sparked from theoretical decisions, and Results (R) follow.
  • Achieve world class maintenance with 90% planned maintenance percentage

    In order to experience optimised OEE results, your information, decisions and resulting actions must all be present and equally balanced. I.D.A. is only as strong as its weakest link.

    What can CMMS do to help?

    The tracking tools within equipment maintenance software allow organisations to easily plan, schedule and prioritise work to keep production equipment operating at peak performance. Within a CMMS, you can report on metrics that impact OEE, such as downtime. eMaint’s CMMS reporting and dashboard features enable you to turn data into meaningful insights. From there, you are empowered to make decisions by analysing historical costs and trends, and take corrective action. CMMS solutions help to support and reinforce a philosophy of continuous improvement for your organisation.

    Achieve world class maintenance with 90% planned maintenance percentage

    To achieve truly impactful results, it is vital to track metrics beyond OEE in manufacturing and other industries. KPIs can be categorised as leading and lagging indicators, and the most comprehensive CMMS KPI tracking includes a mix of both.

    For example, though OEE provides an overarching view of equipment, it is a lagging metric, meaning it summarised past events. Leading indicators signal future events, and enable organisations to proactively plan and improve. For more information, check out The Importance of Tracking CMMS Key Performance Indicators (KPIs).

    Interested in finding out more? Download our white paper on "Performance Metrics that Matter" to learn about the importance of metrics, and tips on how to get started.

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