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22.01.2022 - Blog

What is OEE? (Overall Equipment Effectiveness)

OEE is a standard mindset and method which can be used to calculate the percentage performance of the production. A score of 100% means that there is no downtime and that the production is always running as optimal as possible. The highest possible score is in many cases almost impossible to reach, as many different factors can cause the breakdown of a machine. Thus, the score gives an overview of the overall performance, quality and productivity in the company.

What are the overall factors evaluated in OEE?

The Overall Equipment Effectiveness evaluation is based on different factors. These are factors like machine errors, various changes, tool changes, machine stops, reduced speed, errors in production, errors in produced products and much more.

These are placed in 3 overall categories:

  • Stop loss
  • Speed loss
  • Quality loss

Stop loss is an indication of how accessible a piece of equipment is or production lines are. An example could be if a machine breaks down and it is inaccessible, as it is not working.

Speed loss also refers to how effective the equipment is and if the production is running on the most optimal level. Quality loss is visible when a product does not meet the expectations, which can be caused by errors in the production.

How are the OEE calculations used?

The OEE calculations can be used to create motivation among the employees in the production and maintenance department. As a manager, it can be a good strategy to set overall targets for the departments, which the employees will work towards.

A target could be that the department should obtain a OEE of 82% within the next year. Such targets can create motivation and solidarity in the department when the employees are working towards it.

Read more about how you create reports for analyzing maintenance data →