What is Overall Equipment Effectiveness (OEE)?

Reduce costs and increase return on assets by improving your operational efficiency and asset utilization

To improve plant performance you need to have real-time visibility into your operational efficiency KPIs

Meeting business targets by improving operational efficiency and sustainability requires measuring and monitoring Key Performance Indicators (KPI’s) to ensure plants operate at peak level and analyzing asset utilization for continuous improvement. Overall Equipment Effectiveness (OEE) is a KPI which has become the de facto industry standard to measure and monitor the effectiveness of operating production and packaging machines and lines. Using OEE leading manufacturers have:

  • Reduced equipment unscheduled downtime
  • Increased production throughput and quality
  • Minimized the impact of planned downtime
  • Improved schedule adherence and customer satisfaction

Proven Operational Results  Wonderware software users have reduced operating costs by more than 50  percent, increased productivity by more than 15 percent, yield by more than 20  percent and have shortened time-to-decision by more than 80 percent. download the infographic

Overall Equipment Effectiveness

OEE is a very powerful metric. This KPI is calculated from actual equipment availability, performance and quality losses relative to maximum expected performance – essentially capturing when an asset is available, the speed at which it operates and the number of products out of quality specification.

  • Availability (%) = Operating Time / Available Time
  • Performance (%) = Total Production / (Target Production Rate x Operating Time)
  • Quality (%) = Good Production / Total Production

With real-time OEE visibility, you will be able to make ad hoc corrective actions quickly. Detailed historical data of equipment utilization enables root cause analysis of capacity losses to determine areas for improvement.

Equipment Utilization Tracking

Reducing equipment downtime and increasing production capacity by measuring and monitoring equipment availability is often a key business driver for OEE KPI implementations. Manual data collection is a possible starting point but especially in fast moving consumer goods manufacturing automatic data collection from control systems or smart devices is essential for a detailed electronic record of equipment utilization, performance and production results. Manufacturing equipment utilization and OEE can be improved by combining modern software solutions with IoT enabled sensors and devices or integration to existing automation. This provides benefits to OEE including:

  • Visibility into runtime vs. idle and downtime KPI visualization
  • Capturing short stoppages for calculating the downtime or performance impact
  • Capturing reason codes for downtimes
  • Identifying root causes for equipment stoppages
  • Scheduling preventive maintenance based on equipment utilization

  • What is Manufacturing Performance Management?

    Manufacturing Performance management measures, visualizes, and analyzes operational performance and standardizes best practices to improve operational efficiency, sustainability and return on assets.

    Learn More about Performance Management

Reduce cost and remain competitive by improving your Overall Equipment Effectiveness

Unleash the full capacity of your manufacturing equipment. Measure and visualize your OEE for increasing operational efficiency and plant performance using our cloud solution or as part of our feature-rich MES software offerings for on premise deployments.