Understanding the composition of OEE: keys to improving your industrial performance

Written by Ravinder Singh

Nov 27, 2025

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Overall Equipment Effectiveness (OEE) is a critical indicator for plants seeking to maximize productivity and reduce inefficiencies. Understanding the composition of OEE helps identify weak points in the production process and lay the foundations for concrete improvements. For plant and production managers, it is a strategic priority that directly affects yield and competitiveness.

The main factors impacting OEE are linked to three fundamental components: availability, performance and quality. Unplanned interruptions and variations in throughput can lead to losses in availability, while quality defects reduce production’s ability to deliver a compliant finished product. Taken together, these factors often result in increased costs, late deliveries and reduced OEE (Overall Equipment Effectiveness), impacting on overall plant profitability.

To improve OEE, it is essential to implement continuous improvement methods such as Lean Manufacturing and Total Productive Maintenance (TPM). Digitizing the shop floor through tools such as TeepTrak enables real-time monitoring of equipment, providing greater visibility of production line performance and making it easier to identify bottlenecks. Tracking key indicators such as OEE and performing systematic calculations can enable in-depth analysis of internal processes.

A case in point is an automotive plant that has integrated an advanced OEE tracking system and a digitization solution like TeepTrak. It has overhauled its entire approach to availability and quality losses. By involving all its operators in the improvement process and using accurate data to drive decisions, the plant was able to reduce its unplanned downtime by 20% and improve the quality consistency of its products.

In a context where every productivity gain counts, it is imperative for industrial decision-makers to embark on a robust OEE optimization project. By focusing on concrete measures and rigorous monitoring, industrial performance can be significantly improved. Adopting solutions like TeepTrak for real-time monitoring is an essential first step towards successfully digitizing your production. Initiating such a project not only boosts OEE, but also puts your plant on the road to operational excellence.

FAQ

Question 1: How do you calculate and improve OEE in a plant?

OEE is calculated by multiplying availability, performance and quality. To improve it, identify losses in each component and implement targeted actions.

Question 2: What is the impact of poor OEE on a production line?

Poor OEE has a direct impact on productivity, resulting in extra costs, late deliveries and reduced competitiveness.

Question 3: Where to start digitizing OEE monitoring?

Start by integrating a real-time tracking system like TeepTrak, which provides accurate data to identify and resolve inefficiencies.

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