Understanding and Improving Your OEE: Explanations and Practical Advice

Written by Ravinder Singh

Dec 2, 2025

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In the manufacturing industry, Overall Equipment Effectiveness (OEE) is a crucial indicator. Yet many plants continue to experience very low OEE, or even “OEE 0” situations. This is a critical issue, as low OEE can reveal hidden inefficiencies, increase operating costs and undermine a company’s competitiveness. A clear understanding and efficient management of OEE is therefore essential to improve industrial performance.

Low OEE can be attributed to a variety of causes, such as aging equipment, poorly organized production processes, or lack of staff commitment. These factors can lead to increased downtime, inferior production quality and, eventually, non-conformance costs. Improving these aspects is therefore imperative to boost plant competitiveness and profitability.

There are several ways of solving this problem. The first is the adoption of continuous improvement methods, such as total productive maintenance (TPM) and lean manufacturing. Digitizing the production line is also proving to be a valuable tool, enabling real-time performance monitoring thanks to solutions like those offered by TeepTrak. By monitoring critical indicators such as availability, performance and quality, companies can pinpoint bottlenecks and sources of waste.

A case in point is a manufacturing company that has integrated a real-time OEE tracking system such as TeepTrak. The company was facing frequent unplanned stoppages due to machine wear and poor management. By installing sensors and monitoring software like TeepTrak, it was able to analyze downtime in depth, improve its maintenance process and increase its OEE by 20% in just six months.

In conclusion, combating weak OEE requires a methodical approach and the use of high-performance tools. By investing in the right solution and implementing continuous improvement techniques, a company can expect substantial gains. To get started, commit to measuring your OEE accurately, identify weak points with solutions like those from TeepTrak, and launch a project to improve your overall efficiency.

FAQ

Question 1: How do you calculate OEE?

OEE is calculated by multiplying three elements: availability, performance and quality. Each of these elements is expressed as a percentage.

Question 2: What is the impact of a low OEE on a plant?

Low OEE can lead to higher production costs, increased downtime and reduced product quality, all of which have a direct impact on profitability.

Question 3: Where to start improving OEE?

Start by accurately measuring your current OEE, identify the main obstacles to efficiency, and implement monitoring tools such as those from TeepTrak.

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