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OEE in manufacturing

The Overall Equipment Effectiveness (OEE) provides information about the degree of added value of a plant. Three factors are taken into account: the availability, the power factor and the quality factor. The goal is to increase value creation and avoid wastage. In order to give these values some content, extensive data analysis is needed. Special software is often used to collect and analyse the data.

Chart showing 3 components of original equipment effectiveness: Availability, performance, and quality. Includes calculations of each component.
Availability Power factor Quality factor
  • Unplanned failures (machine faults)
  • Scheduled stops (maintenance and tool changing)
  • 100% availability means the process is running during the entire planned production time
  • Idle stops
  • Slow production cycles
  • 100% performance means the process is running at maximum speed
  • Production rejects
  • Start-up failures (reduced yield)
  • 100% quality means every part produced is usable

How is the OEE calculated?

  • Typical manufacturers achieve an OEE of 60 to 65%.
  • World class manufacturers achieve an OEE of 85%.
  • An OEE value of 100 % means that the process is always running at maximum speed during the planned production time and that all parts produced are usable.