How OEE calculation improves industrial production

Written by Ravinder Singh

Nov 27, 2025

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In the industrial sector, efficiency is crucial to staying ahead in the face of growing competition. OEE, also known as Overall Equipment Effectiveness, is a key indicator for assessing and improving equipment performance. Knowing how OEE is calculated is crucial to identifying areas for improvement on production lines. Without a precise understanding of this indicator, plants risk losing competitiveness and seeing their production costs rise.

Problems in calculating OEE are often due to the misidentification of production loss factors, such as unplanned stoppages, substandard production speed, or quality defects. These factors have a direct impact on productivity. If OEE is not measured correctly, it becomes complicated to target inefficiencies, resulting in stagnant performance, increased downtime and higher costs.

Several solutions can be implemented to improve OEE calculations. The integration of real-time monitoring tools, such as those offered by TeepTrak, enables fine analysis of downtime and better multi-line visibility. The adoption of continuous improvement methods, such as Lean Manufacturing and TPM(Total Productive Maintenance), makes it easier to reduce waste and optimize production quality and speed.

A case in point is factory X, which produced mechanical parts. Initially with an OEE of 55%, the introduction of a real-time performance monitoring solution enabled bottlenecks to be accurately identified. By targeting the main machine stoppages with the help of TeepTrak, the plant succeeded in improving its OEE to 75%. This increased visibility helped reduce downtime and boost overall productivity.

In conclusion, to get the most out of your production, it’s crucial to understand and properly calculate OEE. Start by deploying a real-time tracking system to capture reliable data. This will enable you to better analyze, measure and improve every aspect of your operations. To achieve tangible results and boost your competitiveness, consider working with digital solutions experts like TeepTrak.

FAQ

Question 1: How is OEE calculated in production?

The OEE is calculated by multiplying three factors: availability, performance and quality. Each evaluates a critical dimension of production.

Question 2: What is the impact of an incorrect OEE calculation?

Incorrect OEE calculations can lead to ill-informed decisions, resulting in increased inefficiencies, additional costs and reduced competitiveness.

Question 3:

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