How to Calculate OEE, with a Worked Example

OEE (overall equipment effectiveness) = availability × performance × quality. Availability is run time ÷ planned production time. Performance is (ideal cycle time × total count) ÷ run time. Quality is good count ÷ total count. Multiply the three and you get the share of planned time spent making good parts at full speed. A quick check: OEE also equals (good count × ideal cycle time) ÷ planned production time. The steps below work through a shift, and the Example gives 77.3%.

By Coplain Team

Last updated

Step by step

  1. Find planned production time — start with the shift length and subtract planned stops only: breaks, meetings and planned maintenance. An 8-hour shift with 30 minutes of breaks has 480 − 30 = 450 minutes of planned production time. Do not subtract changeovers or breakdowns here; they are losses OEE should show.
  2. Calculate availability — subtract unplanned stops and changeovers from planned production time to get run time. Availability = run time ÷ planned production time. Log the reason for every stop: that list is what you will improve.
  3. Calculate performance — take the ideal cycle time, the fastest the process can make one part as designed or demonstrated. Performance = (ideal cycle time × total count) ÷ run time. Total count includes good and bad parts. If you get more than 100%, the ideal cycle time is too slow.
  4. Calculate quality — quality = good count ÷ total count. Count a part as good only if it passed first time; reworked parts count as bad for OEE even if they ship.
  5. Multiply and check — OEE = availability × performance × quality. Check it with the shortcut (good count × ideal cycle time) ÷ planned production time; the two should match. The OEE calculator does both.
  6. Turn the losses into actions — convert each loss into minutes or parts and rank them. A Pareto chart of downtime reasons usually shows two or three causes making up most of the availability loss. Track OEE by shift in the OEE tracking sheet so you can see the trend.

What each factor captures

The three factors map to the six big losses described by Seiichi Nakajima in his work on total productive maintenance. Availability captures breakdowns and setups or changeovers. Performance captures minor stops and reduced speed. Quality captures startup rejects and production rejects. Splitting OEE this way tells you where to look: a line with high quality and low availability needs maintenance and changeover work, not more inspection.

OEE describes one machine or line against its own potential. It is not a capacity plan and not a comparison between different machines. For demand and staffing, use takt time; for cycle analysis, the cycle time calculator. The lean manufacturing documentation guide, the pillar for this cluster, shows where OEE fits in a lean system.

Choosing the ideal cycle time

The ideal cycle time is the single choice that most changes the result. Use the design rate of the machine or the best rate the process has sustained, not the standard used for costing, which usually includes allowances. If different parts run on the same machine, use each part’s own ideal cycle time and sum the ideal minutes across parts.

Write the chosen value down and keep it fixed. Changing the ideal cycle time to make OEE look better hides the speed loss you are trying to find.

OEE, TEEP and benchmarks

OEE uses planned production time as its base. TEEP (total effective equipment performance) uses all calendar time, so it also shows time the equipment was not scheduled. Published benchmarks exist, but they depend heavily on industry and on how each plant defines planned time and ideal cycle time. Compare a line with its own history first. The glossary entry for OEE gives a short definition to share with your team.

Collecting the data without slowing the line

OEE is only as good as the stop and count data behind it. At minimum you need, per shift: planned production time, every stop longer than a threshold you set (for example two minutes) with a reason code, the total count and the reject count. A paper sheet at the machine works; so does a counter on the machine with a tablet for stop reasons. Keep the reason codes short, around ten, so operators pick them consistently, and include an “other” code that someone reviews weekly.

Short stops under the threshold are not logged one by one. They show up as a performance loss instead, which is correct: the line ran, just slower than ideal. Review the data at the start of each shift with the team, look at the largest loss from the previous shift, and pick one action. The equipment maintenance log is a natural home for breakdown follow-ups, so availability losses turn into maintenance work orders rather than just numbers on a chart.

Worked examples

Example: OEE for one shift on a fictional CNC cell

  1. Shift 480 min, breaks 30 min: planned production time = 480 − 30 = 450 min.
  2. Unplanned stops: changeover 25 min, tool breakage 15 min, waiting for material 8 min = 48 min. Run time = 450 − 48 = 402 min.
  3. Availability = 402 ÷ 450 = 89.3%.
  4. Ideal cycle time 40 s, total count 540 parts: ideal run time = 540 × 40 = 21,600 s = 360 min. Performance = 360 ÷ 402 = 89.6%.
  5. 18 parts rejected, so good count = 540 − 18 = 522. Quality = 522 ÷ 540 = 96.7%.
  6. OEE = 0.893 × 0.896 × 0.967 = 77.3%.
  7. Shortcut check: (522 × 40 s) ÷ (450 × 60 s) = 20,880 ÷ 27,000 = 77.3%.
  8. Lost output: at the ideal rate, 450 min could make 27,000 ÷ 40 = 675 parts; 675 − 522 = 153 good parts lost to all losses.

Result: Example result: OEE is 77.3%. Of the 153 parts lost, 48 min of stops account for 48 × 60 ÷ 40 = 72 parts, slow running for (402 − 360) × 60 ÷ 40 = 63 parts and rejects for 18 parts. The changeover is the biggest single loss. All values are example values.

Common mistakes

Frequently asked questions

What is the OEE formula?

OEE = availability × performance × quality, which simplifies to (good count × ideal cycle time) ÷ planned production time.

Do breaks count against OEE?

No. Planned breaks are removed before OEE is calculated. Only unplanned stops and changeovers reduce availability.

Can OEE be over 100%?

Not if the data is right. A result over 100% usually means the ideal cycle time is set too slow or the counts are wrong.

What is a good OEE?

It depends on the process and how you define the inputs. Improve against your own baseline and compare lines only when they use the same definitions.

What is the difference between OEE and TEEP?

OEE measures against planned production time. TEEP measures against all calendar time, so it also captures unscheduled time.

Sources

  1. Introduction to TPM: Total Productive Maintenance, Seiichi Nakajima, Productivity Press
  2. ISO 22400-2:2014 Automation systems and integration — Key performance indicators (KPIs) for manufacturing operations management — Part 2, ISO

See also

COPLAIN AI PLATFORM

Generate yours automatically from your existing docs

Coplain turns your changeover and setup procedures into clear visual work instructions, which is often the fastest way to win back availability.

Generate yours automatically with Coplain →

Related Tools & Templates