Oracle OEE: How to understand and improve the overall efficiency of your equipment

Written by Ravinder Singh

Dec 2, 2025

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Overall Equipment Effectiveness (OEE) is a major issue for plants wishing to optimize their production. A poor level of OEE can lead to significant losses in terms of production capacity, quality and profitability. In a highly competitive environment, knowing your OEE and understanding its subtleties is imperative for any plant manager or production manager.

There are many causes of low OEE. They can include frequent downtime, production speeds below rated machine capacity, or high reject rates. These incidents directly affect productivity and increase production costs. For example, an unplanned machine stoppage on a production line can quickly generate considerable losses if the problem is not identified and resolved quickly.

Fortunately, there are ways to boost your OEE. Adopting continuous improvement methods such as lean manufacturing or total productive maintenance (TPM) can prove beneficial. In parallel, digitizing the shop floor with real-time monitoring solutions such as those offered by TeepTrak enables you to track performance, analyze stoppages and adjust processes accordingly.

Take, for example, the workshop of a manufacturing company specializing in the assembly of automotive parts. By implementing intelligent sensors and OEE tracking software, the company was able to identify the main bottlenecks affecting its production. By optimizing the lines concerned and training staff to react quickly to incidents, OEE rose from 60% to 75%, leading to a significant increase in production and a reduction in operating costs.

Ultimately, to improve your OEE, it’s essential to start with a precise assessment of your equipment and processes. Using a measurement tool like TeepTrak gives you a clear, real-time view of your performance, making it easier to identify areas for improvement. It then becomes possible to launch a structured OEE/ROS optimization project, guaranteeing not only continuous improvement but also measurable, sustainable gains for your company.

FAQ

Question 1: How is OEE calculated?

OEE is calculated by multiplying three factors: availability, performance and quality. Each factor is expressed as a percentage, and measures respectively actual operating time versus planned operating time, actual production speed versus optimum speed, and the rate of compliant products versus total products manufactured.

Question 2: What is the impact of poor OEE on my plant?

Low OEE leads to lost production, increased operational costs and poor resource utilization. It can also affect the quality of your products, leading to returns and a loss of customer confidence.

Question 3: Where do I start to improve my OEE?

Start by assessing the current performance of your equipment using measurement tools like those offered by TeepTrak. Identify the main bottlenecks and take corrective action by implementing continuous improvement methods.

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