OEE

What is OEE?

OEE (Overall Equipment Effectiveness) is a synthetic indicator of the total effectiveness of manufacturing equipment, widely used in Industry 4.0, TPM (Total Productive Maintenance), and Lean Manufacturing. It is expressed as a percentage and is the product of three component metrics:

OEE = Availability × Performance × Quality

• Availability = actual operating time / planned operating time — measures downtime (breakdowns, changeovers, waiting for material)
• Performance = actual number of pieces / theoretical number at nominal speed — measures slowdowns
• Quality = good pieces / total pieces produced — measures rejects

Practical example: a machine produced 7,500 good pieces in an 8-hour shift at a nominal speed of 1,500 pcs/h. Actual running time 6 hours, 400 reject pieces. Availability = 6/8 = 75%. Performance = (7,900 pieces / (6 h × 1,500)) = 87.8%. Quality = 7,500 / 7,900 = 94.9%. OEE = 75 × 87.8 × 94.9% = 62.5%.

Benchmarks according to TPM methodology:

• 40–60% — typical manufacturing without a TPM programme
• 60–80% — well-managed production
• 85%+ — world-class level

When it is used

OEE is the daily tool of the production manager for identifying bottlenecks — whether the problem lies in maintenance (availability), process settings (performance), or material quality (quality).

See the Production module, the Maintenance module, and the manufacturing industry page.

Related terms

• MES — collects data for real-time OEE calculation. See /en/glossary/mes.
• CMMS — affects the availability component through maintenance. See /en/glossary/cmms.
• MRP — planning that takes into account actual equipment performance via OEE. See /en/glossary/mrp.

In Modulario

The Production module in Modulario automatically calculates OEE from data collected via the MES operator interface. The dashboard displays the OEE trend and its breakdown into three components for each machine, line, and the entire shop floor.

In addition to overall OEE, Modulario breaks performance down into the Six Big Losses: breakdowns, changeovers, minor stoppages, speed losses, start-up rejects, and production rejects. The dashboard shows a Pareto chart of these losses — the manager immediately sees where the greatest improvement potential lies.