OEE Theory — Concepts & Calculations

OEE INDEX

5 main OEE indicator levels established worldwide:

OEE INDEX IS EQUAL TO 100 %
The company exploits its existing equipment perfectly, produces the highest possible amount of products per minimal time,
and has high-quality standards. That means that the equipment, production line, or whole factory was working at its highest
possible speed without any failures or defects.
OEE INDEX IS EQUAL TO 85 %
For many factories, it is a long-term objective to achieve this percentage.
OEE INDEX IS EQUAL TO 60 %
This index percentage falls into an average operating company indicators. The company has a lot of processes which can be
upgraded to improve efﬁciency and increase production time.
OEE INDEX IS EQUAL TO 40 %
The company doesn‘t use its equipment efﬁciently, has issues with defective production or there are many equipment failures.
Typically, this can be improved by simply monitoring equipment breakdown reasons and making necessary decisions to remove
them. This could increase OEE indicator approximately from 5 % to 25 %.
OEE INDEX IS LOWER THAN 40 %
The company uses its equipment very ineffectively and it needs to closely monitor every production process. Drastic decisions
need to be made to improve the current situation.

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