{"id":9723,"date":"2023-03-16T12:47:13","date_gmt":"2023-03-16T18:47:13","guid":{"rendered":"https:\/\/limblecmms.com\/?p=9723"},"modified":"2025-05-30T13:04:07","modified_gmt":"2025-05-30T19:04:07","slug":"oee-calculation","status":"publish","type":"post","link":"https:\/\/limblecmms.com\/blog\/oee-calculation\/","title":{"rendered":"OEE calculation: formulas, examples, and tools to measure OEE"},"content":{"rendered":"<div class=\"wpb-content-wrapper\"><p>[vc_row kd_background_image_position=&#8221;vc_row-bg-position-top&#8221;][vc_column][vc_column_text]<span style=\"font-weight: 400;\"><a href=\"https:\/\/limblecmms.com\/metrics\/overall-equipment-effectiveness\/\">OEE (Overall Equipment Effectiveness)<\/a> is one of the best tools to optimize a production system. But it takes a little middle school math to<span id=\"oee-in-manufacturing\"><\/span> get you there.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Don\u2019t be afraid.\u00a0 We will walk you through the process of performing OEE calculations at your organization, and you will be well on your way to improving productivity. With simple formulas and examples to help, we\u2019re sure you\u2019ll get a passing grade.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">OEE in manufacturing\u00a0<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Overall Equipment Effectiveness is a quantifiable (i.e., uses numbers) way to find out how well your equipment, people, and processes do their job by measuring:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Available time\/uptime (<\/span><b>availability<\/b><span style=\"font-weight: 400;\">)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Production speed and consistency (<\/span><b>performance<\/b><span style=\"font-weight: 400;\">)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The number of<span id=\"the-data-you-need-for-an-OEE-calculation\"><\/span> defects (<\/span><b>quality<\/b><span style=\"font-weight: 400;\">)<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Before calculating and using it at your organization, make sure you take the time to understand the <\/span><a href=\"https:\/\/limblecmms.com\/metrics\/overall-equipment-effectiveness\/\"><span style=\"font-weight: 400;\">OEE meaning<\/span><\/a><span style=\"font-weight: 400;\">, benefits, and best practices for implementation.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">The data you need for an OEE calculation<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Below is a list of performance and <\/span><a href=\"https:\/\/limblecmms.com\/blog\/maintenance-data\/\"><span style=\"font-weight: 400;\">maintenance data<\/span><\/a><span style=\"font-weight: 400;\"> needed for OEE measures. Whether it is in spreadsheets or a full functionality <\/span><a href=\"https:\/\/limblecmms.com\/cmms\/\"><span style=\"font-weight: 400;\">CMMS<\/span><\/a><span style=\"font-weight: 400;\">, ensuring you have consistent measurement of the following data is essential.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The numbers you need will fall into three main categories: parts, time, and ideals.\u00a0<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Measuring the number of parts you have produced<\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Good count<\/b><span style=\"font-weight: 400;\"> \u2013 the number of good parts (that meet quality standards the first time without rework) made during a set period.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Total count<\/b><span style=\"font-weight: 400;\"> \u2013 the number of all parts (including defects) made during a set period.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Defective count<\/b><span style=\"font-weight: 400;\"> \u2013 The number of defective products (rejected because they do not meet quality standards) made during a set period.<\/span><\/li>\n<\/ul>\n<h3><span style=\"font-weight: 400;\">Measuring production time<\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Planned production time<\/b><span style=\"font-weight: 400;\"> \u2013 total time a piece of equipment is expected and scheduled to run.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Run time<\/b><span style=\"font-weight: 400;\"> \u2013 the amount of operating time a process is running. Run time does not include unplanned downtime but does include small stops, slowed production, or time spent addressing rejected parts.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Stop time<\/b><span style=\"font-weight: 400;\"> \u2013 the total time production was stopped due to both unplanned (equipment failures, material shortages) and planned stops (changeovers, make-ready events).<\/span><\/li>\n<\/ul>\n<h3><span style=\"font-weight: 400;\">Measuring your ideal productivity<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">In addition to those real-life numbers, you will need to have an ideal for comparison. Consider what 100% productivity or a perfect manufacturing process would look like.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">How many parts would you produce in an hour?\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">How long would it take you to make one good part?\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Even though you will never achieve them, knowing what 100% productivity might look like is necessary if you want to know how close you are to it. Here are the ideal productivity measures you will need to set.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Ideal cycle time<\/b><span style=\"font-weight: 400;\"> \u2013 the ideal time it takes to produce one part.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Ideal run rate<\/b><span style=\"font-weight: 400;\"> \u2013 the maximum number of parts made in a minute under ideal conditions\/at maximum productivity.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Net runtime<\/b><span style=\"font-weight: 400;\"> \u2013 the fastest\/ideal amount of time it would take to produce a specific number of parts.\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Ideals are hypothetical (i.e., they are made up). They must be high enough that you always have something to work toward. But not so high that it is not a relevant comparison.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">So, the obvious question here is this: If all these ideal measurements are made up and impossible to achieve, how on earth do you know what they should be?<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">How do you set an ideal?<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Base your ideals on the least amount of time it <\/span><i><span style=\"font-weight: 400;\">could <\/span><\/i><span style=\"font-weight: 400;\">take to make one part. To find that, you will have to work with your colleagues to consider the following:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Machine capacity<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Production goals<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Machine operators\u2019 skill <span id=\"how-to-calculate-oee\"><\/span>level<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Scheduling issues or conflicts with other equipment<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Quality and availability of materials<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Work with other leaders to develop the ideal metrics that are right for you, the process at hand, and your company.<\/span>[\/vc_column_text][\/vc_column][\/vc_row][vc_row kd_background_image_position=&#8221;vc_row-bg-position-top&#8221;][vc_column][vc_column_text css=&#8221;&#8221;]<\/p>\n<h2><span style=\"font-weight: 400;\">How to calculate OEE<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Let\u2019s set one ground rule for the numbers you\u2019re using: always use the smallest unit of measurement you can. Otherwise, you will not be able to get to the correct OEE score. That means time will appear as seconds rather than minutes or hours, for instance.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Let\u2019s put that into practice and do a little math warm-up now to establish that there are 3,600 seconds in an hour. You\u2019ll see that reflected in our examples below:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">60 seconds in a minute x 60 minutes in an hour = 3600 seconds in an hour\u00a0<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Simple OEE formula<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">If you are new to OEE or have an atypical production model or process, you may want to start with this. It uses fewer calculations to get to a score but doesn\u2019t provide as much depth or detail.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It goes like this:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Simply insert the numbers you collected for each item and plug them into this formula. You will then have a simple OEE score. Let\u2019s walk through an example with real numbers.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The fastest your production system can make one part is 3 seconds per part. So, your <\/span><b>ideal cycle time<\/b><span style=\"font-weight: 400;\"> is 3.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Let\u2019s also pretend that you need to make 4,000 of those parts. That makes your <\/span><b>good count<\/b><span style=\"font-weight: 400;\"> 4,000.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">If you multiply one by the other, you\u2019ll find that ideally, it should take you about 12,000 seconds to make those 4,000 parts. If we do a little more math, 12,000 seconds comes to 3 hours and 20 minutes for those 4,000 parts, provided there are no interruptions, defects, etc.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Your shift is 18,000 seconds long (or 5 hours). This is your <\/span><b>planned production time<\/b><span style=\"font-weight: 400;\">.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">If you divide 12,000 by 18,000, you get .667.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Convert that to a percentage (i.e., move the decimal two places to the left and add a %), and you find that you are running at about 66.7% OEE.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Let\u2019s review in formula format:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">(ideal cycle time x good count) \/ planned production time = simple OEE<\/span><\/p>\n<p><span style=\"font-weight: 400;\">( 3 seconds x 4,000 goods) \/ 18,000 seconds = 66.7%<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Now, let\u2019s say that 500 of the 4,000 products we made were defective. That brings our good count to 3,500. How does that impact our OEE score with this calculation?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">(3 seconds x 3,500 goods) \/ 18,000 seconds = 58.3%\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">That\u2019s quite a difference!<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Although this is an acceptable calculation of OEE, it doesn\u2019t give us enough insight to know what we need to change if we want to improve it. For that, we need to use the advanced version of this calculation.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Advanced OEE formula<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">The full-on OEE score involves three numbers, and each one takes a little math to get to on their own. It is not hard, but there are a few steps involved, so if you are reading this on a Monday morning, let\u2019s grab one more cup of coffee and get to it.<\/span><\/p>\n<p><b>Availability\u00a0<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Availability is the amount of time that your equipment or process is running as it should. It is the percentage of your planned production time that was spent producing (run time). Here is the formula for that:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Using our example from above, even though our planned production time was a 5-hour shift (18,000 seconds), production stopped for 45 minutes (2,700 seconds) due to a breakdown. That gives us a run time of 15,300 seconds.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">15,300 Run time \/ 18,000 Planned production time = .85<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Divide 15,300 by 18,000 and do our decimal place magic, and we get an availability score of 85%. This is the first number in our advanced OEE score.<\/span><\/p>\n<p><b>Performance<\/b><\/p>\n<p><span style=\"font-weight: 400;\">This is the speed of your production process and your ability to stay at that pace over time. It is the percentage of how close your run time was to the ideal.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In our example above, we know that it would take 3 seconds to make one part under perfect conditions. Making 4,000 parts should take 12,000 seconds. Given that our actual run time to make that amount was 17,100 seconds, our math will look like this:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">(3 seconds Ideal cycle time x 4,000 Total Count) \/ 15,300 Run Time = .784<\/span><\/p>\n<p><span style=\"font-weight: 400;\">That is a performance score of 78.4%. Not bad!<\/span><\/p>\n<p><b>Quality<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Quality refers to, well, the quality of parts and how often you make defects. And this one is pretty easy. It is the percentage of all parts you made that met your quality standards (good).<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Using our example here, we know that of the total parts we made (4,000), 3,500 met our standards. So\u2026<\/span><\/p>\n<p><span style=\"font-weight: 400;\">3,500 Good parts \/ 4,000 Total parts = .875<\/span><\/p>\n<p><span style=\"font-weight: 400;\">That\u2019s a quality score of 87.5%.<\/span><\/p>\n<p><b>Your final OEE<\/b><\/p>\n<p><span style=\"font-weight: 400;\">We are entering the home stretch now! We have our availability, performance, and <span id=\"tools-and-software-for-oee\"><\/span>quality scores. Let\u2019s combine them to get our final OEE.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Availability x Performance x Quality = OEE<\/span><\/p>\n<p><span style=\"font-weight: 400;\">.85 x .784 x .875 = .583<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Congratulations. You made it! You have an OEE score of 58.3%.\u00a0<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Tools and software that enable OEE tracking<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Just because you know how to calculate OEE on your own now, that doesn\u2019t mean you want to walk through that process manually every time. Nor does it make sense to do so &#8211; the goal here is efficiency, after all.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">There are a lot of software solutions, tools, and calculators out there that can do this work for you. Not only that, they can easily track OEE and other metrics over time and pull trends into helpful dashboard-style visuals.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Software<span id=\"minimizing-losses\"><\/span> ratings agencies such as Capterra or Software Advice are good places to start if this is the type of solution you are looking for. In addition, many OEE software systems can integrate and work well with other tools used to collect and monitor relevant data and activities such as a <\/span><a href=\"https:\/\/limblecmms.com\/cmms\/cmms-software\/\"><span style=\"font-weight: 400;\">CM<\/span><span style=\"font-weight: 400;\">M<\/span><span style=\"font-weight: 400;\">S<\/span> software<\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Minimizing losses<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Your OEE is now an essential part of your continuous improvement process. It is an instrument that helps you identify which of the common <\/span><a href=\"https:\/\/limblecmms.com\/blog\/oee-six-big-losses\/\"><span style=\"font-weight: 400;\">six big losses in manufacturing<\/span><\/a><span style=\"font-weight: 400;\"> may be impacting your business the <span id=\"conclusion\"><\/span>most.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Once you have a method to regularly measure and track your OEE, you have the information you need to minimize the losses that may have been causing inefficiencies and holding you back from world-class performance.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Conclusion<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Limble is your partner in OEE and many other efficiency strategies. We offer an easy-to-use CMMS platform that enables each step in the OEE process. You can start a <\/span><a href=\"https:\/\/limblecmms.com\/get-started\/\"><span style=\"font-weight: 400;\">free trial<\/span><\/a><span style=\"font-weight: 400;\"> here or <\/span><a href=\"https:\/\/limblecmms.com\/demo-request\/\"><span style=\"font-weight: 400;\">request a demo<\/span><\/a><span style=\"font-weight: 400;\">.<\/span>[\/vc_column_text][\/vc_column][\/vc_row]<\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>[vc_row kd_background_image_position=&#8221;vc_row-bg-position-top&#8221;][vc_column][vc_column_text]OEE (Overall Equipment Effectiveness) is one of the best [&hellip;]<\/p>\n","protected":false},"author":24,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[740],"tags":[],"class_list":["post-9723","post","type-post","status-publish","format-standard","hentry","category-metrics"],"acf":[],"yoast_head":"<!-- This site is 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