Overall Equipment Effectiveness (OEE): KPIs and practical tips to improve your performance

Written by Ravinder Singh

Dec 1, 2025

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In the industrial sector, Overall Equipment Effectiveness ( OEE) is a fundamental key performance indicator for measuring production efficiency. In a context where every minute counts, failure to optimize OEE can lead to significant losses in productivity, affect competitiveness and increase operating costs. Understanding and improving OEE is therefore essential for plant and production managers wishing to maximize the efficiency of their equipment.

Low OEE levels are often caused by frequent stoppages, speed reductions and quality defects. These factors contribute to wasted resources and lower yields. When a production line is not operating at optimum capacity, time is lost, OEE is reduced, and maintenance costs rise. These problems not only have a direct financial impact, but can also lead to customer dissatisfaction due to longer delivery times.

To remedy these problems, several levers can be activated. Firstly, adoptingcontinuous improvement methods such as Lean Manufacturing or TPM (Total Productive Maintenance) helps to identify and reduce waste. In parallel, the digitization of the shop floor via solutions such as TeepTrak offers real-time visibility of performance and facilitates analysis of stoppages. Accurate monitoring of indicators such as availability, performance and quality is crucial to making informed decisions and directing improvement efforts.

Consider the example of an automotive parts manufacturing plant where OEE was initially measured at just 60%. By identifying the main bottlenecks, the team was able to implement corrective measures such as adjusting machine parameters and improving operator training. The introduction of digital solutions such as those offered by TeepTrak reduced downtime by 15% and improved quality by 10%, bringing the overall OEE to 75% in less than a year.

It’s crucial for any industrial organization to regularly monitor its OEE and engage in a process of continuous improvement. Start by accurately measuring your current OEE, identify major losses and apply the appropriate solutions to eliminate them. Steering tools such as those offered by TeepTrak can transform your data into actionable information, optimizing your efforts for a sustainable gain in competitiveness. By embarking on a structured OEE improvement project, you’ll position your company for enhanced performance and improved customer satisfaction.

FAQ

Question 1: How can OEE influence a plant’s competitiveness?

An optimized OEE reduces operating costs, improves product quality and minimizes downtime, thus increasing a plant’s overall competitiveness.

Question 2: Where do I start to improve my plant’s OEE?

The first step is to accurately measure the current OEE, identify the main sources of losses and then apply continuous improvement techniques and digital monitoring tools such as TeepTrak.

Question 3: What impact do digital solutions have on improving OEE?

Digital solutions make it easier to monitor performance in real time, quickly identify inefficiencies and optimize production processes to maximize OEE.

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