OEE - OVERALL EQUIPMENT EFFECTIVENESS
Since its original development in the 1970's, OEE has become a widely used metric for measuring efficiency
Discover how Overall Equipment Effectiveness (OEE) tracking with PlantRun can transform your manufacturing operations with real-time insights, automated data capture, and actionable intelligence.
Request a DemoWhat is OEE?
Overall Equipment Effectiveness (OEE) is the gold standard for measuring manufacturing productivity. It identifies the percentage of manufacturing time that is truly productive, combining three critical factors: equipment availability, production performance, and product quality.
The OEE Formula:
A perfect OEE score of 100% means you're manufacturing only good parts, as fast as possible, with no downtime.
Availability
Accounts for planned and unplanned stops, measuring the percentage of scheduled time that the operation is running. Calculated as operating time as a percentage of the planned production time.
Performance
Measures speed loss by comparing actual cycle time to ideal cycle time when the equipment is running. Shows how close the asset is running to its target production rate.
Quality
Accounts for quality loss by measuring good parts produced versus total parts started. Calculated as the number of good products as a proportion of the total number started.
Critical Success Factors for OEE Implementation
⚠️ When NOT to Implement OEE
Implementing an OEE system will not inherently make you more efficient or save you money. The only way to make it work is if you actively use the data it generates.
- Lack of champions: Ideally more than one member of staff should champion the process. If that person is busy or leaves, you're left without appropriate knowledge and the system is unlikely to be successful.
- No buy-in from management: You need buy-in from top management all the way down to the shop floor. Without commitment, you'll be wasting your time and money.
- Data won't be used: If you're not prepared to actively analyze and act on OEE data, implementation will fail.
💡 Real-World Implementation Insight
At one timber mill, it was presumed that the operator on one of their stackers was waiting for about 1½ hours in an 8-hour shift. After an automatic OEE system was installed, it became clear that it was actually 4½ hours. As a result, their process was adjusted to build up a buffer and the operator was redeployed on other tasks during their 'newly available' time.
See PlantRun OEE Software in Action
PlantRun provides real-time visibility into your manufacturing operations with intuitive dashboards, automated data collection, and actionable insights.
Manual Tracking vs. Automated OEE Software
See how PlantRun's automated OEE tracking compares to traditional manual methods.
Why Paper-Based Systems Fall Short
Manual, paper-based systems have two key issues:
- Time-consuming data entry: It requires significant time to interpret handwriting and transcribe it into analytical tools.
- Inherently inaccurate: Operators focus on manufacturing products, not filling in forms. By the end of an 8-hour shift, they're unlikely to remember how long each stoppage was and every reason the asset stopped.
An automatic system accurately timestamps each stoppage event and can force reasons to be entered at the time they occur. This leads to better data that can be automatically analyzed.
Key Implementation Considerations
Available or Not?
From a production plan point of view, operators are expected to run assets according to a defined shift pattern. However, complications arise when operators are off sick, production plans change, or impromptu meetings are held. This can lead to increased administration requirements.
Best Practice: Handle planned not-to-run periods by identifying when an operator is not logged on to an asset. This eliminates additional administration and logging on can be enforced through machine interlocks.
What is Target Speed?
Takt or cycle times can be well defined, but production planning systems must account for changeover times, clean down times, and material handling. However, many sites have ERP/MES data based on historic hearsay that isn't particularly accurate.
Real Example: A production manager looked at a machine running at 200 m/hr. When questioned about the target speed, he said the manufacturer claimed 800 m/hr when new, and recently suggested 400 m/hr was possible. But why was it running at 200? "That's a good question..." The target speed for each product should be reviewed and fixed.
Quality Products
OEE accounts for the quality metric with exactly the same weight as availability and performance. However, in most instances the early wins at a site do not initially come from targeting quality issues.
Important Note: If you speed up production to improve performance, you may inadvertently reduce quality. If quality isn't being targeted initially, use a nominal value—for example, defining a percentage of all products manufactured to be scrap.
World-Class Performance?
World-class performance is often quoted at 85%, but the reality is that it's wholly dependent on the manufacturing process for a particular type of product. In some cases, a 50% OEE may be exceptional.
Key Insight: OEE is a benchmark that should be used to determine whether a site is making improvements or not. It doesn't matter if the actual value is 85% or 25%—what matters is continuous improvement.
Response Times Matter
One of the key areas to address is response times. This may be simply highlighting to management when an asset has been stopped for an extended period, or improving notification/call-out mechanisms for maintenance staff.
Recording call-out and response times allows these periods to be analyzed in detail to determine, for example, if there are sufficient maintenance staff on a night shift. Allowing operators to request raw materials or their team leader directly from their asset can also result in shorter stoppages.
Manual Assembly Tracking
Although tracking OEE for a manual assembly process is inherently dependent on an operator entering accurate information, there's no reason it cannot be monitored so that data is collated electronically and automatically processed with minimal administration required.
Minimize operator interactions using barcode scanners, RFID readers, and integration with production planning to get work orders/jobs automatically. This provides significant additional benefits.
Real Results from Manufacturers Like You
See the measurable impact PlantRun has delivered for manufacturing operations across industries. Unless you have a site that is already extremely efficient, it's possible to get payback in just a few weeks.
💰 Hidden Benefits Often Emerge
Generally there are benefits realized that were not apparent initially. After that initial payback period, you're saving money and improving your bottom line continuously. Many manufacturers discover unexpected efficiencies and opportunities for redeployment of resources.
Why Manufacturers Use OEE
OEE provides a universal metric for measuring manufacturing effectiveness, helping you identify losses, benchmark progress, and improve productivity across your entire operation. OEE is not a panacea but it is a great tool for identifying where issues are and providing a means of seeing that improvements have been made.
Reduce Downtime
Identify and eliminate the biggest sources of production losses. Track equipment availability in real-time and respond to issues before they impact your schedule.
Increase Productivity
Uncover hidden capacity in your existing equipment. Manufacturers typically gain 10-30% more productive capacity by addressing the Six Big Losses revealed through OEE tracking.
Improve Quality
Connect quality metrics directly to production performance. Identify the root causes of defects and reduce scrap rates systematically.
Make Data-Driven Decisions
Replace gut feelings with facts. OEE provides objective data for prioritizing improvement projects and measuring the impact of changes.
Benchmark Performance
Compare performance across shifts, lines, and facilities using a standardized metric. World-class OEE is 85% or higher, and the average OEE is around 65%.
Calculate True ROI
Quantify the financial impact of equipment effectiveness. Even small OEE improvements translate directly to significant cost savings and increased revenue.
Drive Continuous Improvement
Implementing an OEE system that can be easily expanded over time to cover more assets and include additional functional areas is a way of instilling continuous improvement throughout the workforce.
Stay Competitive
Your competitors are improving and unless you continue to become more efficient, you will get left behind. OEE gives you the tools to maintain and enhance your competitive edge.
How PlantRun Makes OEE Tracking Effortless
Manual OEE tracking with spreadsheets is time-consuming, error-prone, and provides delayed insights. PlantRun automates the entire process with real-time data capture directly from your production equipment.
- Automatic Data Collection: Connect directly to PLCs, machines, and sensors to capture production data automatically—no manual entry required.
- Real-Time Dashboards: Monitor OEE across all your equipment and production lines from a single, intuitive interface.
- Instant Alerts: Get notified immediately when availability, performance, or quality drops below target thresholds.
- Detailed Loss Analysis: Drill down into the Six Big Losses to identify exactly where and why you're losing productive time.
- Historical Trending: Compare performance across time periods to measure improvement and identify patterns.
- Customizable Reporting: Generate automated reports for management, maintenance, and operations teams.
- Mobile Access: Check production status and OEE metrics from anywhere, on any device.
- Accurate Timestamping: Every stoppage event is accurately timestamped and reasons can be forced to be entered at the time they occur, leading to better data that can be automatically analyzed.
What Our Customers Say
PlantRun has revolutionised how we monitor OEE. The system allows us to monitor production in individual presses, which means we can identify issues much quicker. Screens around the manufacturing site allow the team to monitor presses in real time.
We've found that the introduction of PlantRun has motivated our staff and provides a focus point for all staff involved with production. PlantRun have always been more than helpful when setting up the things we need and they completely understand our requirements.
Working with PlantRun to realise our vision for a bespoke OEE reporting system has been a pleasure. The finished product goes above our expectations with fantastic ideas flowing from their team's experience and passion.
Industries We Serve
PlantRun's OEE software is trusted by manufacturers across diverse industries to optimize their production operations. With almost 30 years of experience implementing OEE systems across virtually all manufacturing industry sectors, we understand your unique challenges.
Frequently Asked Questions About OEE
Overall Equipment Effectiveness (OEE) is a manufacturing metric that measures how effectively equipment performs by combining three factors: Availability, Performance, and Quality. An OEE score of 100% means you're manufacturing only good parts, as fast as possible, with zero downtime.
World-class OEE is 85% or higher. Good OEE is between 60-85%, while scores below 60% indicate significant improvement opportunities. However, benchmarks vary by industry - continuous processes typically achieve higher scores than discrete manufacturing. The reality is that it's wholly dependent on the manufacturing process for a particular type of product. In some cases, a 50% OEE may be exceptional.
Ultimately, OEE is a benchmark that should be used to determine whether a site is making improvements or not. It doesn't matter if the actual value is 85% or 25%—what matters is continuous improvement.
OEE is calculated by multiplying three factors: Availability × Performance × Quality. Each factor is expressed as a percentage:
- Availability: Operating time as a percentage of the planned production time
- Performance: Number of products produced as a proportion of the possible number that could have been made in the running time
- Quality: Number of good products as a proportion of the total number started
For example, 90% availability × 95% performance × 99% quality = 84.6% OEE.
OEE helps manufacturers identify hidden losses, reduce downtime, improve productivity, and make data-driven decisions. Most manufacturers gain 10-30% more productive capacity by addressing issues revealed through OEE tracking. It's a great tool for identifying where issues are and providing a means of seeing that improvements have been made.
Implementing an OEE system that can be easily expanded over time is a way of instilling continuous improvement throughout the workforce. Your competitors are improving and unless you continue to become more efficient, you will get left behind.
Basic OEE tracking can be set up in (on average) 8 - 12 weeks for a single production line. Comprehensive multi-line implementations typically take 2-3 months, including equipment integration, training, and optimization. However, unless you have a site that is already extremely efficient, it's possible to get payback for a system in just a few weeks.
You need three types of data: time data (planned production time, operating time, downtime), production data (parts produced, cycle times), and quality data (good parts vs. rejected parts). PlantRun automatically collects all of this from your equipment with accurate timestamping of each stoppage event.
In order to make improvements, you'll need to drill down into the details: what stoppages have occurred and why, what's happening with performance metrics, and the reasons for scrap.
Yes. Small manufacturers often see the biggest impact from OEE tracking because they have fewer resources to waste. Even with limited equipment, OEE helps maximize capacity, identify bottlenecks, and justify investments with data.
Costs vary based on the number of production lines, equipment complexity, and features required. PlantRun offers flexible pricing tailored to your facility size. Most manufacturers see ROI within 6-12 months through productivity gains.
The Six Big Losses are: Equipment Failures, Setup/Adjustments (Availability Losses), Idling/Minor Stops, Reduced Speed (Performance Losses), Process Defects, and Reduced Yield (Quality Losses). These represent the most common causes of production inefficiency.
PlantRun works with your existing equipment. Most modern machines have PLCs that provide the necessary data. For older equipment, we can add sensors and data collection devices. The system scales to your needs and can even track manual assembly processes with minimal operator interaction using barcode scanners and RFID readers.
OEE measures effectiveness during scheduled production time, while OPE (Overall Process Effectiveness) includes all time. OEE focuses on controllable losses during production, making it more actionable for manufacturers.
No. An OEE score over 100% indicates an error in your ideal cycle time setting. If equipment produces faster than your defined "ideal," the cycle time needs adjustment to reflect true optimal performance. The target speed for each product should be reviewed and if there is uncertainty about them, then data needs to be collected initially to allow an accurate figure to be determined and then fixed.
Manual, paper-based systems have two key issues: (1) It requires significant time to interpret handwriting and transcribe it into analytical tools, and (2) Human nature means the data is not accurate. Operators focus on manufacturing products, not filling in forms. By the end of an 8-hour shift, they're unlikely to remember how long each stoppage was and every reason the asset stopped.
An automatic system accurately timestamps each stoppage event and can force reasons to be entered at the time they occur. This leads to better data that can be automatically analyzed.
Ready to Implement OEE in Your Facility?
Discover how PlantRun can help you maximize equipment effectiveness, reduce downtime, and boost productivity with automated OEE tracking. With commitment from your team and the right system, payback can be achieved in just a few weeks.
Request a DemoLearn More About OEE
What is OEE?
Complete guide to understanding Overall Equipment Effectiveness, including calculation methods, formulas, and real-world examples.
Read the GuideWhy Use OEE?
Discover the benefits of OEE tracking and how it helps manufacturers identify losses, improve productivity, and increase profitability.
Learn the BenefitsHow to Implement OEE
Step-by-step guide to implementing OEE tracking in your facility, from data collection to continuous improvement.
Get StartedCustomer Success Stories
See how manufacturers across industries use PlantRun's OEE software to transform their operations.
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