Why OEE definition is so important to your company?

Understanding OEE definition is not easy until we share you with some basic information. Imagine if it were possible to assess the overall efficiency of your equipment, accurately identify the faults that interfere with the stability of production, and then take appropriate, corrective actions to the exact points where these errors are occurring.

Your goal is to answer three questions

Traditionally used in programs like Total Productive Maintenance, the OEE is a calculation used to measure the overall efficiency of a machine, to identify and correct faults. These questions are –

  • How often is my equipment available to operate?
  • How fast am I producing?
  • How many products were produced without having a trouble?

Answering these three questions gives us an overview of operating in any type of business and it is why Overall Equipment Efficiency is considered so important in the industry.

OEE Index – what should you know?

According to the calculation, the production lines with the best efficiency in the world have an OEE index of (on average) 85%, while the rest of the industries have an index of around 60%. In other words, for a line operating with OEE around 60%, it is possible to increase overall efficiency by up to 40% using the same equipment and the same resources. 

How to do this

First, you need to find out what your overall equipment efficiency index is. The calculation of OEE is the result of multiplying the Availability, Performance and Quality indicators. These indicators are always the result of the value that the machine actually delivered ÷ for the value that it was planned to deliver.

Availability indicator –

Total percentage of hours the machine actually remained working ÷ by the total percentage of hours the machine had been planned to remain running.

Performance indicator –

Total performance of hours the machine actually remained running according to planned settings÷ by the total percentage of hours it was planned that the machine should remain running according to the planned settings.

Quality indicator –

Total percentage of hours the machine actually remained producing good parts ÷ by the total percentage of hours it had been planned that the machine should remain producing good parts.

Registering the results of each indicator, just multiply and you will have the easy OEE of your industry.

How to improve overall equipment efficiency  

Usually the differences between planned and actual scenario in availability, performance and quality indicators are due to problems, such as failures, setup and adjustments, tool change, activation time, small stops or short periods of idleness, speed ​​differences, defects and reworks, and total shutdown.

Therefore, the first step in improving efficiency is measuring the current landscape to know exactly where your business is positioned. Thus, it is possible to set goals and seek a standard World Class benchmark.


In an ideal world, companies should have 100% of the resources available, with 100% quality and 100% use of time, but in practice, it is very difficult to happen. For this reason, it is necessary to calculate, monitor the company’s efficiency index and establish where and how these indicators can be improved.

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