OEE in a nutshell

What is OEE?

OEE stands for “Overall Equipment Effectiveness”. It is a KPI that measures the effectiveness of industrial machinery and identifies the percentage of planned production time that is truly productive. An OEE score of 100% represents perfect production: manufacturing only good parts, as fast as possible, with no downtime.  

OEE benefits

The correct analysis of OEE as a KPI detects potentials to improve the performance of the manufacturing process and delivers several starting points for continuous actions:

  • Downtimes and inactive times of the machines are reduced significantly
  • Reasons behind a loss of performance (bottlenecks and slow speeds) are identified
  • Minimizing losses created by manufacturing defective products, reducing scrapping costs and increasing product quality
  • Reliable real-time information of processes significantly increases employee efficiency, and facilitates their work




What is a „good“ OEE score?

  • An OEE score of 100% is perfect production: manufacturing only good parts, as fast as possible, with no stop time. In reality this score is impossible to achieve.
  • An OEE score of 85% is considered world class for discrete manufacturers. For many companies, it is a suitable long-term goal
  • An OEE score of 60% is fairly typical for discrete manufacturers, but indicates there is substantial room for improvement
  • An OEE score of 40% is not at all uncommon for manufacturing companies that are just starting to track and improve their manufacturing performance. It is a low score and in most cases can be easily improved through straightforward measures (e.g. by tracking stop time reasons and addressing the largest sources of downtime – one at a time)

Clouver – Production Monitoring Platform to get OEE ready

  • Get essential information about potentials to improve your production line and to bring your machinery to highest performance
  • Find out sources for defective products, minimize rework and scrapping and generate huge cost savings
  • Make the production process transparent for everybody: reliable real-time information makes your factory staff aware about their work performance and enables the activation of immediate improvement actions across all production value chain steps
  • Take the first step towards a digital IoT factory
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