{"id":95206,"date":"2026-05-21T10:06:59","date_gmt":"2026-05-21T10:06:59","guid":{"rendered":"https:\/\/teeptrak.com\/what-is-oee-how-calculated-complete-guide-2027-5\/"},"modified":"2026-05-21T10:07:00","modified_gmt":"2026-05-21T10:07:00","slug":"what-is-oee-how-calculated-complete-guide-2027-5","status":"publish","type":"post","link":"https:\/\/teeptrak.com\/en\/what-is-oee-how-calculated-complete-guide-2027-5\/","title":{"rendered":"What is OEE? Complete guide 2027: formula, calculation, world-class benchmarks, Six Big Losses \u2014 with examples"},"content":{"rendered":"
\nTL;DR \u2014 What is OEE in 60 words<\/strong>
\nOEE (Overall Equipment Effectiveness) = Availability \u00d7 Performance \u00d7 Quality. Measures how effectively manufacturing equipment is used. 100% = perfect production. 85% = world-class. 60% = typical. Each component identifies losses: downtime (Availability), speed loss (Performance), defects (Quality). ISO 22400-2 standard. The Six Big Losses framework pinpoints improvement opportunities. TeepTrak measures OEE across 450+ factories in 30 countries.\n<\/div>\n

OEE (Overall Equipment Effectiveness)<\/strong> is the gold-standard KPI for measuring manufacturing equipment productivity. It answers one question: of the total time your equipment could be producing good parts at maximum speed, what percentage is it actually achieving?<\/em> An OEE of 100% means every part is produced at maximum speed with zero defects and zero downtime. In practice, world-class OEE is 85%, and most manufacturers start at 40-65% when they first measure.<\/p>\n

The OEE formula<\/h2>\n

OEE = Availability \u00d7 Performance \u00d7 Quality<\/strong><\/p>\n\n\n\n\n\n\n\n
Component<\/th>\nFormula<\/th>\nWhat it measures<\/th>\nWorld-class<\/th>\n<\/tr>\n<\/thead>\n
Availability<\/strong><\/td>\nRun Time \/ Planned Production Time<\/td>\n% of planned time the machine is actually running (accounts for breakdowns + changeovers)<\/td>\n90%+<\/td>\n<\/tr>\n
Performance<\/strong><\/td>\n(Ideal Cycle Time \u00d7 Total Count) \/ Run Time<\/td>\n% of maximum speed achieved during run time (accounts for minor stops + reduced speed)<\/td>\n95%+<\/td>\n<\/tr>\n
Quality<\/strong><\/td>\nGood Count \/ Total Count<\/td>\n% of produced units that meet quality standards (accounts for startup rejects + production rejects)<\/td>\n99%+<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Example<\/strong>: Availability 87% \u00d7 Performance 93% \u00d7 Quality 98% = OEE 79.2%<\/strong> \u2014 above average but below world-class.<\/p>\n

The Six Big Losses<\/h2>\n

OEE’s power comes from the Six Big Losses<\/strong> framework (TPM methodology) that categorizes every production loss:<\/p>\n\n\n\n\n\n\n\n\n\n\n
OEE component<\/th>\nLoss<\/th>\nDescription<\/th>\nExample<\/th>\n<\/tr>\n<\/thead>\n
Availability<\/td>\n1. Equipment failure<\/td>\nUnplanned stops (breakdowns)<\/td>\nMotor failure, tool break<\/td>\n<\/tr>\n
2. Setup & adjustment<\/td>\nChangeover, cleaning, startup<\/td>\nProduct change, mold change<\/td>\n<\/tr>\n
Performance<\/td>\n3. Idling & minor stops<\/td>\nBrief stops (<5 min), jams<\/td>\nSensor trip, material jam<\/td>\n<\/tr>\n
4. Reduced speed<\/td>\nRunning below ideal cycle time<\/td>\nWorn tooling, operator caution<\/td>\n<\/tr>\n
Quality<\/td>\n5. Process defects<\/td>\nRejects during stable production<\/td>\nOut-of-spec parts, scrap<\/td>\n<\/tr>\n
6. Startup losses<\/td>\nRejects during startup\/changeover<\/td>\nFirst articles, trial runs<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
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