OEE loss calculation: optimizing overall equipment efficiency

Written by Ravinder Singh

Nov 28, 2025

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In the industrial world, a plant’s competitiveness is increasingly linked to its ability to improve its Overall Equipment Effectiveness, or OEE. However, calculating OEE losses remains a major challenge for many companies, as hidden inefficiencies on production lines lead to high costs and lower productivity. Understanding and measuring these losses is crucial for anyone wishing to optimize production performance and boost competitiveness.

The origins of OEE losses generally fall into three main categories: availability, performance and quality losses. Each of these categories has a direct impact on production metrics such as TRS/OEE, increasing downtime and compromising the quality of finished products. Underlying causes include unplanned downtime, reduced operating speed, and production defects. These elements undermine the overall efficiency of a line, and can quickly affect profit margins.

To counter these challenges, several solutions are emerging. Digitizing the shop floor via tools such as those offered by TeepTrak enables real-time monitoring of OEE losses. By precisely analyzing stoppages and inefficiencies, it is possible to implement continuous improvement methods such as lean manufacturing and total productive maintenance. Key indicators such as OEE need to be closely monitored to align operations with strategic objectives. TeepTrak’s advanced technologies provide multi-line visibility and drive continuous improvement monitoring within plants.

A concrete example can be seen in a factory manufacturing electronic components. This plant initially used manual methods to record performance data, leading to information that was often inaccurate. By adopting a real-time OEE and performance monitoring solution from TeepTrak, the plant identified bottlenecks linked to specific machines. By optimizing maintenance planning and adjusting production cycles, the plant reduced its OEE losses by 15% in just six months.

To start improving your OEE, it’s crucial to regularly measure and monitor your losses. Investing in the right technologies, such as those offered by TeepTrak, can generate continuous improvement and a rapid return on investment. With accurate tracking and robust analysis, plants can not only solve existing problems, but also proactively prevent future losses.

FAQ

Question 1: How do OEE losses impact industrial productivity?

OEE losses have a negative impact on productivity by increasing downtime and reducing the quality of finished products. Identifying and reducing these losses can improve overall yield.

Question 2: What tools can I use to track OEE losses?

Solutions like those offered by TeepTrak provide real-time monitoring of production performance, making it easier to identify and reduce OEE losses.

Question 3: Where do I start to improve the OEE of my production line?

Start by measuring your current performance with monitoring tools and identify the main bottlenecks. Then evaluate the tailored technological solutions provided by TeepTrak to optimize your operations.

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