Calculating OEE

Calculating OEE using OEE Software

Overall Equipment Effectiveness (OEE) provides a way to measure manufacturing operations from a single piece of equipment to an entire manufacturing plant, or several manufacturing plants in a group. OEE provides a complete picture of where productive manufacturing time and money is being lost and uncovers the true, hidden capability of the factory. It is a key manufacturing decision support tool for continuous improvement programmes.

The OEE measurement is made up of three underlying elements, each one expressed as a percentage and accounting for a different kind of waste in the manufacturing process.

Availability: a measure of the time the plant was actually available for production compared to the manufacturing schedule. Losses in this area would be due to major breakdowns or extended set up time.

Performance: the rate that actual units are produced compared to the designed output. Losses in this area would be due to slow speed running, minor stoppages or adjustments.

Quality: a measure of good quality, saleable product, minus any waste. Loses for this element would be damaged rejects or products needing re-work.




The Idhammar OEE System helps to perform a gap analysis between the current plant efficiency and the desired target or benchmark. The necessary investment and optimisations can then be undertaken and progress monitored through the Overall Equipment Effectiveness calculation.


A 1% improvement in OEE is often a step-function improvement and can result in savings of thousands towards the bottom line.


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