OEE, or Overall Equipment Effectiveness, is a performance indicator used to evaluate the overall efficiency of an equipment or production line. It provides a comprehensive view of productivity, taking into account three key factors:

  • Availability: The time in which the equipment is available to produce in relation to the total time.
  • Performance: The actual efficiency of the equipment compared to ideal performance.
  • Quality: The percentage of quality products produced in relation to the total produced.

OEE is generally expressed as a value between 0% and 100%, where 100% represents perfect equipment performance.

OEE Calculation:OEE = (Availability %) x (Performance %) x (Quality %) 


Why is OEE important?

Now that we know what OEE is, it's crucial to understand why it is essential for manufacturing companies:

1. Identifying Inefficiencies:OEE allows companies to identify where their equipment is losing efficiency, whether due to unplanned downtime, reduced speed or quality issues.

2. Resource Optimization:Based on OEE data, companies can allocate resources more effectively, focusing on areas that need improvement.

3. Increased Productivity:Improving OEE means increasing overall productivity, producing more with the same resources.

4. Cost Reduction:OEE helps avoid production losses, unplanned stops and rework, reducing operational costs.

OEE is a valuable tool for manufacturing companies that want to optimize their production efficiency. It provides clear insights into equipment performance, helping you identify inefficiencies and take corrective action. By understanding what OEE is and implementing it effectively, your company will be better prepared to face the challenges of modern manufacturing.

If you are looking to improve the efficiency and competitiveness of your company, considering adopting OEE as part of your management strategy can be a fundamental step. Monitoring and improving the performance of your equipment can be the key to success in an increasingly competitive market.

Do you know OEE? Do you know if you are calculating correctly? Check out our ebook below:

Learn more at Sequor MES!


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