The term OEE stands Overall equipment effectiveness!!!

Have you ever heard about OEE? Many times right. It sounds like a buzz word for a quality team. Overall equipment effectiveness is a standard mechanism for measuring productivity for products or services. Whether your running a small or large business, implementing overall equipment effectiveness is highly important.

Generally, it identifies and manages the overall percentage of time undergone while manufacturing. OEE generates an individual score for every manufactured product. An OEE score of 100% indicates the product is best.

Measuring OEE can be one of the best practices while manufacturing. Every time you may not score 100%, sometimes you may receive 60% or sometimes 40%. Never bother, it’s the best way to gain insights to improve your product even better.

OEE is the best metric that denotes how efficiently all the manufacturing assets are being utilized. If your looking for manufacturing OEE tool, Freedom IOT tool is the right choice for you.

The major elements components of this framework are:

  1. OEE
  2. Availability
  3. Performance
  4. Quality

Overall equipment effectiveness = Availability x Performance x Quality

OEE assists you manage the 6 major losses

The ultimate goal of overall equipment effectiveness is to analyse, identify and overcome from 6 major losses. The most frequent causes of equipment-based productivity failure in manufacturing:

  • Availability: breakdowns, loss, setup and adjustments
  • Performance: frequent stop and reduced speed
  • Quality: start-up rejects and production rejects

Following are the advantages of overall equipment effectiveness

Return on investment

It’s no secret machinery often require large investment for any company. Every equipment included in the production chain is considered as an investment. Large machineries are often used to generate maximum ROI in a short period. The core objective of overall equipment effectiveness is to gain maximum productivity on large machineries. Additionally, the payback is quick.

OEE yields proper insights into what, how and where manufacturers can perform changes to obtain outstanding performance from existing and new equipment. Also, reports you whether extra equipment is required or not.


Business entrepreneurs always want to reduce the cost of production to achieve more competitiveness. Consider, if your production chain is capable of chopping 100 cakes per hour, but due to some reasons machine is producing 60. If the production line is not processing effectively, there are few procedures required to implement. Here where OEE comes into the picture. OEE examines and notifies you the reason behind. This way OEE can improve the competitiveness of your business.

Cloud-based OEE works perfectly, it can identify the ongoing weaknesses and provides opportunities within product production.

OEE works for everyone

Someone said, “OEE can speak for everyone”!!! It’s absolutely true.

The information gathered while manufacturing is targeted to all level of production scenario – from the shop selling the team to higher-level management.

OEE provides a complete analysis of product production. The information can trigger production team to improve the overall process.

Visualizing performance

OEE allows you to visualize overall performance in a simplified manner. Yes, you heard it right. The visualization is conducted by analyzing, observing and calculating the production damages. The process can be assigned to 3 categories such as “Availability, Quality and Performance”. Then, they’re refined into individual metric. The visualization displays the product’s current status and key areas of necessary improvement.

Technicians, supervisors and managers can inspect and analyse the overall performance anywhere and anytime. The real-time reports are generated through dashboards and in a customized way.


Every company is unique. There are certain set points and standardized benchmarks. Your targets and thresholds will be stored for constant line management. For manufacturing businesses that have multiple sites, a comparative analysis is conducted between different facilities through standardized benchmarks.

Best performance and Direct analysis

The major advantage of using OEE tool – best performance. Implement OEE and watchout the performance of machinery increasing rapidly. OEE can work perfectly on new equipment and already working equipment.

OEE analysis provides contextual and conclusion to business entrepreneurs. Stop avoiding usage of spreadsheet, excel and data manipulation.

Final Thoughts

Manufacturing product or service is a daunting process. Without the proper metrics and project guidelines, it is impossible to create a quality product. To make your manufacturing easy and flexible, Overall Equipment Effectiveness tool have been introduced. OEE is an outstanding tool that can integrate various manufacturing issues, errors and data points to gather information related to the process. If you want to improve ROI, increase competitiveness and benchmarking, then implement overall equipment effectiveness software for your business.