Scale Effectively
Maintain operational excellence as you grow with unified OEE standards and tracking.
Learning Center
What the heck is OEE, and how can it benefit my manufacturing business?
Overall Equipment Effectiveness (OEE) is more than just another manufacturing acronym. It's the fundamental metric for measuring and improving manufacturing efficiency, giving teams real time visibility into the biggest sources of efficiency loss and their root causes.
How is OEE measured?
The OEE score is calculated as a percentage, with 100% representing perfect production: manufacturing only good parts, as fast as possible, with no downtime. The overall OEE score is determined by measuring three individual component scores: availability, performance, and quality. Each component is scored as a percentage, and together they provide a simple, powerful gauge of your manufacturing efficiency.
Availability Score
Planned Production Time − Downtime
Planned Production Time
Accounts for losses from
- Equipment Breakdowns
- Changeovers
- Cleanings
Performance Score
Ideal Cycle Time × Total Count
Planned Production Time − Downtime
Accounts for losses from
- Reduced Operating Speed
- Minor Stops / Small Adjustments
- Operator Inefficiencies
Quality Score
Good Count
Total Count
Accounts for losses from
- Production Rejects
- Scrap / Yield Loss
- Startup Rejects
OEE Score
Availability × Performance × Quality
How does an OEE platform enable manufacturing efficiency improvement?
By providing a unified productivity metric, teams can objectively compare performance across different facilities, production lines, shifts, and products within their manufacturing operations. As teams track their OEE scores over time, they can measure the impact of continuous improvement initiatives on their manufacturing process efficiency. And let's be honest: once people start seeing those OEE numbers, a healthy competitive spirit tends to emerge. There's nothing quite like watching your production line edge past another facility's score, even if you pretend you're not keeping track!
What benefits can OEE deliver to my manufacturing company?
Implementing OEE in your manufacturing operation can deliver substantial benefits across multiple dimensions of your business. Here are some key advantages you can expect:
Year 1 Business Impact
61%
average OEE without an OEE platform
21%
average year 1 OEE score increase
34%
capacity increase1
13%
labor cost per unit reduction
1 Compound effect of more available production time and faster run rates.
Ongoing Business Impact
A successful OEE implementation continues to provide long term business benefits:
Better Capital Planning
Make informed decisions about capital investments to maximize top and bottom line profitability.
Improvement Culture
Build a workplace culture focused on ongoing optimization of manufacturing efficiency.
What is the ROI for a manufacturing business?
Check out our ROI calculator to understand the labor savings and capacity gains you can expect when you implement an OEE platform like Essembi.
