What Kind of Intelligence Can I Gain from OEE?

In manufacturing, companies consistently strive to create a product that is perfect. This process must occur as quickly as possible in a production facility. When it occurs efficiently, a process is declared to be stable.

In order to accomplish this task, companies use a method called overall equipment effectiveness (OEE). Here are the three main components of overall equipment effectiveness, and what it can provide when it is implemented into your organization:


Availability monitors how many hours throughout the course of a typical manufacturing day a machine is up and running. This means that downtime is calculated, as well as changeover time. Both downtime and changeovers impede production processes due to the fact that it cuts into the time that machines could be producing new parts.


Just because a machine is up and running in a manufacturing facility, it does not necessarily imply that it is running optimally. This metric gauges a machine’s efficiency and monitors how well a production line is moving. It can be found within the workflow of a machine.

Quality  It does not matter how fast a machine is moving if the products that it is creating are of inferior quality. In food, product quality can refer to the ratio of ingredients or the width of a container that holds it. In the automotive industry, this could refer to something such as the thickness of a car’s tires.

It is important to remember that quality, performance and availability must be multiplied together to receive a true indicator of overall equipment effectiveness. All three must be studied and considered to avoid upsetting the delicate manufacturing balance. For instance, if your machine is moving too fast, the quality will suffer. If you improve production quality, however, you do not want to make the machine move too slow.

For more information on how you can use statistical process control to aide in the calculation of overall equipment effectiveness, please click here.

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