Understanding and reducing the 7 major OEE losses

Written by Ravinder Singh

Dec 2, 2025

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In the industrial world, improving equipment efficiency is essential to remain competitive. Overall Equipment Effectiveness (OEE) is a key indicator for measuring this efficiency. However, many plants face the ‘7 major losses’ of OEE, which represent significant obstacles to performance. Ignoring these losses can lead to substantial financial losses and a decline in competitiveness.

The 7 major OEE losses include factors such as unplanned stoppages, set-up times, minor slowdowns, production faults and idle starts, as well as other unplanned interruptions. Each loss has a direct impact on OEE, increasing downtime and reducing quality and productivity. Without proactive management, these losses lead to increased costs and reduced efficiency.

To counter these losses, a combination of solutions based on organization, continuous improvement and shop-floor digitalization is essential. Deploying methods such as Lean manufacturing and Total Productive Maintenance (TPM) is crucial. Digitization, through solutions such as TeepTrak, enables real-time monitoring, enabling non-performance periods to be identified and targeted for rapid, effective intervention.

Let’s take the example of an automotive parts manufacturing plant. Using TeepTrak, the plant identified unplanned downtime as the main cause of losses. Thanks to real-time analysis and meticulous monitoring, the plant was able to reduce its changeover times and streamline its maintenance processes, improving its OEE by 15% in one year.

To take advantage of OEE and its associated principles, it is crucial for industrial managers to structure a well-defined continuous improvement project. Accurately measuring and monitoring performance, in particular via tools such as those offered by TeepTrak, will enable sustainable improvements in plant competitiveness and profitability. Investing in these solutions not only optimizes existing operations, but also prepares the plant for future challenges.

FAQ

Question 1: How do the 7 major losses affect the OEE?

The 7 major losses impact OEE by increasing downtime, reducing quality and affecting productivity. They require proactive management to minimize their impact on industrial performance.

Question 2: What are the levers for reducing major OEE losses?

Reducing major losses requires continuous improvement through Lean methods, digitalization of the shop floor with real-time solutions like TeepTrak, and team involvement.

Question 3: Where to start improving OEE?

Start by accurately measuring your current performance, identify critical losses and prioritize actions to be taken. Using a tracking tool like TeepTrak can greatly facilitate this process.

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