What is OEE (Overall Equipment Effectiveness) and why is it important in manufacturing?

OEE is the ratio of what you produced to what you could have produced – the actual output to the theoretical possible output. It tells you how efficiently you are using your equipment and your investment.

How is OEE calculated?

Availability = 100 x (Running time / Available time) Performance = 100 x (Real production / Theoretical production) Quality = 100 x (No. of good parts produced / Total parts produced) OEE: A x P x Q

How can I improve my OEE score?

Start by identifying your biggest losses—whether it’s downtime, slow cycles or rejects. Then: Reduce unplanned stoppages, improve changeover efficiency, train operators, maintain equipment proactively, use a real-time monitoring machine software like Leanworx.

What are the common causes of low OEE?

Frequent equipment breakdowns, long changeovers, slow speeds, material shortages, operator errors and product defects are typical problems.

Ideally, OEE should be tracked in using a real time machine monitoring software or at least daily to enable continuous improvement and immediate response to issues.

What is considered ‘world class’ OEE?

A world class OEE score is usually 85% or higher. It’s based on benchmarks of about 90% Availability, 95% Performance, and 99% Quality, but actual targets may vary by industry and production type.