Overall Equipment Effectiveness (OEE)

Overall Equipment Effectiveness (OEE)

Picture this: a factory floor buzzing with activity, machines whirring and workers dashing from place to another. Amidst all the hustle and bustle, there is a quiet little metric silently watching over everything. The guardian angel of manufacturing, keeping a watchful eye on the efficiency of the entire production process. It is OEE, the Overall Equipment Effectiveness!

OEE is the superhero when it comes to boosting productivity and reducing downtime. By measuring the availability of performance, and quality of equipment, OEE can help to identify areas of improvement and make a company’s operations more efficient. 

OEE is like a personal coach for your manufacturing process - always pushing your company to be its best and achieve peak performance.

What is OEE?

OEE (Overall Equipment Effectiveness) is a powerful metric that measures the percentage of planned production time in which a line is truly productive. 

Originally it was designed to support Total Productive Maintenance (TPM) initiatives (learn more about TPM here) to track the progress in achieving the elusive goal of a ‘perfect production’. A perfect score of 100% would mean that every minute of production time was utilised efficiently, no stoppages, no quality issues. 

But we all know that this is impossible to achieve, so an OEE score of 85% is already considered to be world-class while typical companies achieve 60%. Manufacturing companies that are just starting with TPM or lean programs see scores as low as 40%.

OEE is made up of three components, while each of these components corresponds to one of the TPM goals that were already discussed here. They account for different types of productivity losses, such as equipment downtime, reduced speed and defects. By identifying these losses and their causes, OEE allows manufacturers to improve their processes and achieve greater efficiency. 

The mentioned components, the TPM goal and the respective type of productivity loss is displayed in the following list: 

  1. Availability with the goal of no stops:

Availability losses include all events that stop planned production for a certain length of time. Examples include planned stops (changeovers etc.) and unplanned stops (breakdowns, malfunctions etc.)

  1. Quality with the goal of no defects: 

Quality takes quality losses into account. Manufactured pieces that do not meet quality standards are losses that are being considered here. Examples are production rejects and reduced yield during startup. 

  1. Performance with the goal of no slow runs: 

Performance losses are taken into account. All factors that cause production to operate at less than the maximum speed are included. Examples include slow cycles and small stops. 

How to track OEE?

Calculating OEE is not hard. Matter of fact, the formula to calculate OEE is rather easy. 

OEE can be calculated the following way: 

OEE = Availability x Performance x Quality

With all these three components being calculated fairly easily:

Availability = Runtime/Planned Time, Performance =  (Ideal time x cycle count)/Runtime, Quality = Good count/Total count

But tracking all these times and counts while being stressed in production is not easy. With automating the tracking of these, one is assured to have all the correct information. We at Stryza can help achieve this. Just book an appointment and we can advise you on your specific use-case. 

The Six Losses of OEE:

The previously mentioned losses (Quality, Performance & Availability) can be further broken down into the six big losses which can be seen as the most common causes of lost productivity in manufacturing organisations.

They are displayed in the list below:


  1. Unplanned stops: Equipment breakdowns, material shortage, power outage, quality issues, weather-related events
  2. Planned stops: Changeovers, maintenance, quality checks, training & meetings, shift changes


  1. Small stops: Minor equipment malfunctions, tool changes, cleaning and sanitation, adjustments and calibrations, operator interventions
  2. Slow running: Equipment wear and tear, poor maintenance, production variability, inefficient work practices, bottlenecks in production process


  1. Production defects: Material defects, equipment malfunctions, human error, inadequate quality control, design flaws
  2. Reduced yield: Scrap and rework, inefficient use of materials, inconsistent production, equipment malfunctions, human error

OEE and Stryza: 

Stryza is a connected worker platform that is able to boost your OEE significantly. Stryza is able to do this in a number of ways: 

  1. Real time monitoring: With Stryza factories are able to have real time data on equipment status, production rates and quality metrics
  2. Predictive maintenance: By using data from equipment sensors and other sources, Stryza is able to predict when maintenance is needed, reducing downtime and improving Availability.
  3. Improved worker productivity: By providing workers with digital tools and data, Stryza is able to help workers perform their jobs more efficiently, improving Performance.
  4. Enhanced quality control: Stryza can provide workers with real-time data on quality metrics and help them identify and address any issues that may be impacting Quality.
  5. Data analytics: By collecting and analysing data from various sources, Stryza can help manufacturers identify trends and patterns that may be impacting OEE, enabling them to make data-driven decisions and improve their overall efficiency.

Overall, by combining the concept of OEE with Stryza, manufacturers can gain greater visibility into their production process, identify areas for improvement, and take steps to optimise their operations, ultimately improving their OEE and bottom line.

Learn how you can easily improve your production

Book a free demo of our application and see how it can take your manufacturing operations to the next level.

stryza in action at customer 7stryza in action at customer 8