Need help? Contact us:
support@horasmpm.eu +37063636362
Back

How to Calculate OEE Step-by-Step (With example)

What is OEE?

OEE (Overall Equipment Effectiveness) is a key performance metric in manufacturing that measures how effectively equipment is being used. It is one of the most powerful tools for identifying production losses, improving manufacturing efficiency, and boosting productivity.

The OEE formula combines three essential components - Availability, Performance, and Quality - into a single percentage:

OEE = Availability × Performance × Quality

But what do these components really mean, and how do you calculate OEE in real life? Let’s break it down step by step.


Step 1: Gather the Right Data


To calculate OEE accurately, you’ll need to collect the following data from your production process:

Term Meaning
Planned Production Time Total time you intended the machine to run
Unplanned Downtime Machine stops due to breakdowns, setups, or changeovers
Ideal Cycle Time Fastest possible time to produce one part
Total Pieces Produced Total units made, including defective parts
Good Pieces Number of units produced without defects

Step 2: Calculate the OEE Components


OEE is made up of three core components: Availability, Performance, and Quality. Each can be calculated using simple formulas based on the data collected in Step 1.

Component Formula Description
Availability Availability = Run Time ÷ Planned Production Time
Run Time = Planned Production Time – Downtime
Measures the percentage of scheduled time that equipment is actually running. Accounts for breakdowns, setups, and minor stops.
Performance Performance = (Ideal Cycle Time × Total Pieces Produced) ÷ Run Time Measures whether the equipment is running at the ideal speed. Highlights slow cycles or minor stoppages that reduce output.
Quality Quality = Good Pieces ÷ Total Pieces Produced Measures the proportion of good parts produced versus total parts. Accounts for defects and rework.

Step 3: Calculate the Overall OEE


Once you have calculated Availability, Performance, and Quality, you can determine your OEE score:

OEE = Availability × Performance × Quality

Each component is expressed as a decimal or percentage. Multiplying the three gives your overall OEE score, which reflects the true efficiency of your production process.


OEE Calculation Example


Consider a production shift with the following details:

Planned Production Time:
8 hours = 480 minutes
Downtime:
40 minutes (due to setup and minor stops)
Ideal Cycle Time:
1 minute per piece
Total Pieces Produced:
400
Good Pieces:
380

Calculation Steps:

Step Formula / Calculation Result
Run Time Planned Production Time – Downtime = 480 – 40 440 minutes
Availability 440 ÷ 480 0.9167 (91.67%)
Performance (1 × 400) ÷ 440 0.9091 (90.91%)
Quality 380 ÷ 400 0.95 (95%)
OEE 0.9167 × 0.9091 × 0.95 0.7919 (79.19%)

What’s a Good OEE Score?


OEE Score Meaning
85%+ World-class performance
60–85% Room for improvement
< 60% Significant losses present

Note: Benchmarks vary by industry. For example, plastics, electronics, food, and metalworking all have different OEE standards.


Automate OEE Tracking with HorasOEE


Manually calculating OEE is a great start, but it doesn’t scale as operations grow. That’s where HorasOEE software comes in:

  • ✓ Track OEE in real time across machines, lines, and shifts
  • ✓ Visualize downtime and root causes instantly
  • ✓ Eliminate manual data entry and Excel spreadsheets
  • ✓ Boost manufacturing efficiency with actionable insights

👉 Request a demo or see how it works

Final Thoughts

Calculating OEE is a powerful step toward lean manufacturing and improved production performance. By understanding where your time, resources, and quality are being lost, you can make smarter decisions on the shop floor and move closer to world-class manufacturing efficiency.