// ROBOTICS AND SMART FACTORIES TERM

Overall Equipment Effectiveness

Overall Equipment Effectiveness (OEE) is a key performance indicator that measures how well a manufacturing asset is utilized compared to its full potential. It combines availability, performance, and quality.

TECHNICAL DEFINITION

Overall Equipment Effectiveness (OEE) is a foundational metric in Lean and TPM, calculated as the product of Availability (actual operating time vs. planned), Performance (actual speed vs. ideal speed), and Quality (good units vs. total units), offering a comprehensive view of manufacturing productivity losses.

BACKGROUND

Overall equipment effectiveness (OEE) is a measure of how well a manufacturing equipment is utilized compared to its full potential, during the periods when it is scheduled to run. It identifies the percentage of manufacturing time that is truly productive as well as the time it is losing effectiveness. An OEE of 100% means that only good parts are produced, at the maximum speed, and without interruption.

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SYNONYMS & ALIASES

  • OEE
  • Equipment utilization
  • Manufacturing productivity metric
  • Asset effectiveness

USAGE NOTE

Tracking Overall Equipment Effectiveness helps identify the biggest losses in manufacturing productivity.

DEVELOPERS

Organizations developing technology related to Overall Equipment Effectiveness.

  • PTC

    PTC provides technology solutions, including its ThingWorx Industrial IoT platform and Kepware, that enable manufacturers to connect operations, collect data, and calculate OEE to drive efficiency and performance improvements.

  • Rockwell Automation

    Rockwell Automation offers a broad portfolio of industrial automation and information solutions, including software like FactoryTalk ProductionCentre MES, that help manufacturers monitor OEE, identify bottlenecks, and optimize production.

  • Siemens

    Siemens provides comprehensive solutions for the manufacturing industry, including its Siemens Digital Industries Software portfolio (e.g., Mindsphere, Opcenter MES), which offers tools for data acquisition, analysis, and visualization of OEE to enhance operational excellence.

  • SAP

    SAP offers enterprise software solutions, including SAP Digital Manufacturing and SAP Manufacturing Execution, which provide capabilities for real-time monitoring of OEE, production performance analysis, and optimization across various manufacturing processes.

  • AVEVA

    AVEVA specializes in industrial software, including Manufacturing Execution Systems (MES) and Asset Performance Management solutions, that help businesses track OEE metrics, reduce downtime, and improve operational efficiency across their plants.

  • GE Digital

    GE Digital provides industrial software, including its Predix platform and Manufacturing Execution Systems (MES), to help manufacturers connect assets, collect operational data, and gain insights into OEE for better decision-making and performance.

  • Honeywell

    Honeywell offers a range of industrial automation and software solutions, including its Experion Process Knowledge System and Manufacturing Execution Systems, that enable real-time OEE monitoring, process optimization, and improved productivity in manufacturing environments.

  • L2L

    L2L provides a cloud-based lean manufacturing platform that focuses on empowering factory workers with real-time data, including comprehensive OEE tracking, downtime management, and production performance insights to drive continuous improvement.

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