OEE in production is an important concept that businesses need to “know” and “understand” if they want to operate the plant as planned and achieve outstanding performance in the future. Manufacturing OEE was developed as part of the comprehensive Productive Maintenance System. Specifically, the OEE index has a full name, Overall Equipment Effectiveness, which means “overall equipment efficiency”. This concept was researched and developed by the famous Japanese expert Seiichi Nakajima – the “father” of the Total Productive Maintenance System. Pay attention to the 3 letters O, E, and E to understand the specific meaning of this indicator. OEE is the result of measuring the performance (Effectiveness) of specified equipment (Equipment) as a whole (Overall) based on 3 criteria: time, quality, and speed of operation. The index results expressed as % indicate the efficiency level of each machine. Different % result levels will indicate different conditions the machine is experiencing. Thus, with 100% index results, machines achieve “golden” performance: no downtime, quick production, speed, and quality standard products. This index helps managers see the problems, risks, and challenges that the factory is facing in production and also “appears” the potential to create opportunities for improvement and development.


What is the OEE index for or easier to understand, what benefits does the OEE index bring to your factory and business? The biggest benefit that OEE brings is the fact that this index helps administrators discover the causes of machine performance loss, thereby applying appropriate solutions to reduce or eliminate them. remove the influencing factors. Answering the question of what OEE is for there are 5 main benefits that you need to pay attention to.

lợi ích chỉ số OEE mang lại. nois.vn
lợi ích chỉ số OEE mang lại. nois.vn

Benefits of investing in production machinery and equipment

Determining the machine’s performance makes it easy for businesses to decide whether to continue using the machines in operation, carry out maintenance or replace them. This saves time as well as money invested in machinery and production equipment. Investing in the right place, and repairing at the right place is always a high priority in factory management. OEE index will help this work take place most effectively and accurately.

Limiting machine costs

The damaged machinery and downtime as soon as the production process is taking place is something no business wants. However, this situation still occurs quite a lot because the previous measurement, inspection, and maintenance of machines did not bring efficiency. Consequences lead to loss of time, effort, and money to repair or replace while the business has no specific plan. Accurate measurement of OEE helps to make forecasts to limit the cost of incurred machinery.

Optimizing employee productivity

In the era of the strong development of information technology, the human factor in production is much more machined and automated. However, important positions and roles are still owned by people. Controlling a large production system, which can range from a few dozen to several thousand, requires employees to have an overview, and the ability to quickly diagnose and solve problems promptly. By studying and understanding the OEE index, factory employees as well as administrators will always take the initiative and easily control the situation. It can be seen that employee productivity will be optimized most effectively.

Ease of performance reporting

Performance reports should always be up-to-date, fast, and timely. The requirement of “real parameters” is put on top because it directly affects the leader’s judgment and decision-making ability. The index results help the implementation of Performance Reports go smoothly.

Enhance the competitiveness of enterprises

The factory is the heart of the business, businesses must understand what their heart “wants” and what problems they are facing to create a healthy and energetic heart. The index is the key to helping businesses discover their heart, lead the trend, lead the trend, improve the competitiveness the business.


Calculate OEE in AQP

With the AQP OEE calculation method, you will need to determine 3 pieces of information in advance:

A (Availability): Component that measures the loss of operating time based on the comparison of actual operating time (the real-time the machine works to produce a product) and the potential operating time. capacity (scheduled running time)

Q (Quality): Component that measures product quality loss based on the comparison of the total qualified product (meeting general standards and specific customer requirements) and total product quality. products are produced during the process.

P (Performance): Component that measures the loss of operating speed based on a comparison between the actual quantity of product produced and the amount of product that can be produced according to the design in the same specified period. determined.

cách tính chỉ số OEE. nois.vn
cách tính chỉ số OEE. nois.vn

At this time, the OEE index is calculated as follows:

OEE = A x Q x P. Where:

A (Availability) = (Actual operating time / Potential operating time) * 100% = (Theoretical operating time – Machine downtime)/ Theoretical operating time = Machine running time/ Theoretical operating time

Q (Quality) = (Total qualified products/Total manufactured products) 100% = Total qualified products/ (Number of qualified finished products + Quantity of NG products)

P (Performance) = (Gross production/ (Actual running time * Design capacity)) * 100% = (Number of products * Cycle time)/ (Theoretical running time – Down time machine)

Calculate OEE according to Effectiveness

Compared to the AQP OEE calculation, the Effectiveness OEE calculation is simpler. You need to identify the right ingredients to put in the recipe.

OEE = ((Total qualified product * Ideal cycle time 1 unit)/ (Potential operating time * Design capacity)) * 100% = (Good quantity * Ideal cycle time) idea)/ Planned production time

Although the method of calculating OEE by effectiveness is simpler than calculating OEE by AQP, it does not show the usefulness and quality of the product. Therefore, depending on the research purpose as well as the size of the factory, users should choose the appropriate calculation method to achieve the best efficiency.

Meaning of data

To use the calculation formula for optimal efficiency, users need to understand the meaning and reading of the 3 indexes A, Q, and P. For example:

A = 90%: 90% availability means that the business has utilized 90% of its resources in terms of time, and the remaining 10% is downtime compared to the anticipated operating potential.

Q = 95%: Users can understand the Quality metric in two ways. For every 100 hours of production, 5 hours are wasted due to quality problems. Or for every 100 products produced, there will be 95 standard products and 5 unqualified products.

P = 90%: This value shows that the actual production capacity is only 90% of the designed capacity. Performing the equivalent math, P = 90% also means that in terms of uptime, the machine is performing less than the set target of 10%.

When the OEE result is 100% (Perfect), the machine achieves “perfect” performance: no downtime, quick production, speed, and quality products. Similarly, users can predict the condition of machines when the OEE index reaches the following typical values:

OEE = 85% (World Class): Compared to the 100% mark, 85% is also an “ideal” result that many businesses and factories aim for in their long-term goals.

OEE = 60% (Typical): There are some problems in the factory’s performance that require businesses to quickly find out and fix them to achieve better performance in the future.

OEE = 40% (Low): This is the result of a warning that the production status of the enterprise is having serious problems, it is necessary to find out the cause and how to fix it immediately if you do not want the business situation of the enterprise. business got worse.


Causes affecting the OEE

Many reasons affect the OEE index, thereby reducing the operating efficiency of the factory, and affecting the business situation of the enterprise. Some common causes include:

Start-up and shutdown: The process of starting up until the machine is stable and the process from shutting down to stopping easily causes a loss of speed and output.

Setup and Adjustment: Installation and adjustment tasks result in associated losses in terms of installation, tuning, and production operations.

Replacement of spare parts and equipment: According to production operation time; the spare parts and equipment of the machine will be worn out. At this point, it is necessary to carry out a replacement to ensure the production process continues, but this is also the time when the loss occurs.

Stopping the machine due to damage: Loss of machine function to operate or machine function degraded.

Loss of speed: This loss occurs when the machine is not running at its designed capacity.

Scrap and remanufactured: Defective, damaged, unusable products will cause loss of time as well as cost for the process of editing and remaking that product.

Interruption and no load: Loss will occur when in the production process but the machine encounters a problem, stops suddenly for an indefinite time or the machine has to idle.

Planned shutdown: Objective factors such as power outages, and shutdown to PM… are inevitable. These losses mainly reduce the production time which in turn reduces the production output of the machines.

How to improve OEE

There are many ways to improve OEE, but for the factory to achieve the best performance improvement, enterprises should consider the appropriate physical factors, infrastructure, and human factors. Here are the 7 most popular ways to improve OEE, considered based on business conditions as well as the objective development of modern engineering technology.


When measuring OEE index, please arrange machinery and equipment in the factory in order of priority. Important, valuable, and highly productive machines need to be focused on calculating the OEE index first and offering solutions to improve quickly if problems arise. In particular, the priority machines will affect the whole production line if there is a problem, so determining at the beginning and giving priority orders will reduce repair costs, Improve production time and product quantity.

Know and understand OEE components

The OEE index is made up of 3 main components: Availability – Usability, Quality – Quality, and Performance – Performance. You need to know which parameters are increasing, which parameters show signs of decreasing, the reasons for the increase or decrease, and the positive or negative effects to provide appropriate adjustment solutions.

Choosing the right OEE calculation method and formula for your business

You can find out OEE based on AQP or Effectiveness. The problem of the implementation staff is to choose the calculation method and formula suitable for the production environment of the factory. At the same time, based on the value purpose that the business wants to bring to the customer, the development of parameters will have its value.

Connecting OEE with Modern Management System

The number of machines and human resources in an enterprise can be up to hundreds or thousands. The manual management is completely inadequate and does not bring high efficiency. Management needs to apply modern management systems connected with OEE to give the best production performance.

Application of IIOT (Industrial Internet of Things)

The Internet of Things (IoT) is a collection of the world’s most advanced, modern technologies, users can improve their business’ OEE by positively changing their performance with device adoption. measurement and analysis. IoT solutions help improve OEE values in many ways.

Analyze historical process and performance data to optimize maintenance planning, schedules, and resources

Get early warning of machine deterioration, with predictive maintenance to avoid downtime

Targets lead to more visible maintenance costs, reduced materials and supplies, and greater availability of equipment

The quality of the production line will be carefully monitored. It will help you to monitor process parameters, and find out the machine’s calibration, temperature, speed, and production time.

It will help in supply chain management. Industries can compare previous results with new ones. It will help them decide how they can work according to their future schedule.

Perform routine maintenance

Performing routine maintenance will help businesses quickly detect basic errors as well as potentially high-risk cases. From there, come up with an appropriate repair or replacement plan, limiting unnecessary costs when the production line is in operation.

Building a standard working environment

Building a standard working environment; From machinery, and infrastructure to qualified employees, will create the most effective working environment. The component indexes moved to the standard level, creating a premise for improving the OEE index.


Factory Smart Forms & Checklists is a solution package researched and developed by New Ocean Information specifically for each business. Always up to date with new trends, realizing the great potential of the OEE, FASF, and NOIS have made constant efforts to improve the OEE in their products. Specifically:

FASF replaces paper form that collects OEE calculation data right on the production line with “real” parameters

Integration, replacement of forms, maintenance checklist for machinery and equipment

Support, and replace forms, and checklists in compliance with EHS (Environmental, Health, Safety) and ISO standards

The report, manage, track and handle incidents in the factory

FASF supports timely reporting and timely decision-making, avoiding downtime issues or human errors.

Factory Smart Forms & Checklists đã cải thiện chỉ số OEE như thế nào. nois.vn
Factory Smart Forms & Checklists đã cải thiện chỉ số OEE như thế nào. nois.vn

Not only “unpacking” the technical problems that the factory is facing, but if you know how to exploit the OEE index multidimensionally, your business will receive more value than expected. The performance of machines in particular and the whole plant, in general, is reflected in three main aspects: uptime, product quality, and operating speed. How to shorten production time, and improve machine operation speed but still ensure product quality? Let’s solve the OEE problem with the New Ocean Information System to find the answer!

  • Benefits of investing in production machinery and equipment
  • Limiting machine costs
  • Optimizing employee productivity
  • Ease of performance reporting
  • Enhance the competitiveness of enterprises
  • Priority
  • Know and understand OEE components
  • Choosing the right OEE calculation method and formula for your business
  • Connecting OEE with Modern Management System
  • Application of IIOT (Industrial Internet of Things)
  • Perform routine maintenance
  • Building a standard working environment