📊 Manufacturing
OEE Calculator – Overall Equipment Effectiveness
Calculate Availability, Performance and Quality. See your OEE score — and exactly how much production capacity you're losing in ₹ per month.
⚠️ The average Indian factory runs at 55–65% OEE. That means 35–45% of your machine's potential is being lost every shift — to downtime, speed losses and defects. On a machine that could produce ₹10 lakh/month, that's ₹3.5–4.5 lakh lost every month.
Shift time minus planned breaks
All unplanned stops + changeovers
Fastest possible / design speed
💰 Production Loss in ₹ (optional)
📊 OEE Breakdown
Availability
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Performance
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Quality
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OEE Score
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Run Time
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Good Units / Shift
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Biggest loss component: —
Focus your improvement effort here first — it will have the most impact on OEE.
Focus your improvement effort here first — it will have the most impact on OEE.
📈 Gap to World Class (85%): —
💸 Production Loss (₹)
Lost Units / Month
—
Lost Revenue / Month
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🔴 Annual Production Loss
—
This is the revenue you could recover by improving OEE to 85% (world class). Even reaching 75% from your current score would recover —/month.
OEE Formula
OEE = Availability × Performance × Quality
Availability = Run Time ÷ Planned Time
Run Time = Planned Time − Downtime
Performance = (Ideal CT × Total Units)
÷ (Run Time × 60)
Quality = Good Units ÷ Total Units
Good Units = Total Units − Rejects
OEE Benchmarks
| OEE % | Rating | Status |
|---|---|---|
| < 65% | Poor | ❌ Significant losses |
| 65–75% | Average | ⚠️ Room to improve |
| 75–85% | Good | ✅ Above average |
| > 85% | World Class | 🏆 Excellent |
Understanding Your OEE Score
A single OEE number hides where you're losing capacity. Two factories can both score 60% OEE with completely different problems. One has poor Availability (constant breakdowns), the other has poor Performance (machine running slowly). The fix for each is entirely different — and without looking at all three components, you'll chase the wrong solution.
📉 Low Availability
Machine is often stopped. Fix with preventive maintenance, faster changeovers, spare parts planning, MTBF/MTTR tracking.
⚡ Low Performance
Machine runs slowly or has minor stops. Fix by eliminating micro-stoppages, optimising speed, checking material feed and tooling wear.
🗑️ Low Quality
Too many defects or rework. Fix with SPC (Statistical Process Control), poka-yoke (mistake proofing), and first-off inspection improvements.
The Six Big Losses in OEE
OEE is designed to identify and quantify the Six Big Losses — the six ways production time is wasted. Every loss maps to one of the three OEE components:
| # | Loss Type | OEE Component | Example | Typical Impact |
|---|---|---|---|---|
| 1 | Equipment Failure / Breakdown | Availability ↓ | Motor trips, belt breaks, hydraulic failure | 5–15% Availability loss |
| 2 | Setup & Adjustments (Changeover) | Availability ↓ | Mould change, size change, product changeover | 3–10% Availability loss |
| 3 | Idling & Minor Stops | Performance ↓ | Material jam, sensor trip, operator absent, brief pauses <5 min | 5–20% Performance loss |
| 4 | Reduced Speed | Performance ↓ | Running below design speed due to wear, fear of breakdowns, poor material | 5–15% Performance loss |
| 5 | Process Defects (Scrap/Rework) | Quality ↓ | Defects during stable production run | 1–5% Quality loss |
| 6 | Reduced Yield (Startup Losses) | Quality ↓ | Defective output during warmup or after changeover | 0.5–3% Quality loss |
OEE Calculation — Worked Example
A packaging machine, single shift:
| Parameter | Value |
|---|---|
| Planned production time | 480 min (8-hr shift) |
| Planned breaks/meetings | 30 min |
| Net planned production time | 450 min |
| Unplanned downtime | 45 min (breakdown + changeover) |
| Run time | 405 min |
| Ideal cycle time | 40 sec/unit |
| Total units produced | 500 units |
| Rejected / defective units | 15 units |
Availability = 405 ÷ 450 = 90.0%
Performance = (40 sec × 500 units) ÷ (405 min × 60 sec)
= 20,000 ÷ 24,300 = 82.3%
Quality = (500 − 15) ÷ 500 = 485 ÷ 500 = 97.0%
OEE = 0.900 × 0.823 × 0.970 = 71.8%
This machine is average — Performance at 82.3% is the biggest loss. The machine is running slower than its ideal speed or experiencing minor stops. That's where to focus first.
OEE Benchmarks by Industry
What's considered a good OEE varies by industry. Use these benchmarks to assess your performance in context:
| Industry | Typical OEE Range | World Class Target | Main Challenge |
|---|---|---|---|
| Discrete Manufacturing (auto, engineering) | 55–75% | 85%+ | Changeover time, minor stops |
| Packaging | 50–70% | 80%+ | Frequent changeovers, film jams |
| Pharmaceutical | 40–65% | 75%+ | Regulatory changeovers, cleaning |
| Food & Beverage | 50–70% | 80%+ | Sanitation downtime, allergen changeovers |
| Textile | 55–75% | 82%+ | Thread breaks, speed losses |
| Process Industry (chemicals, refining) | 65–80% | 88%+ | Planned maintenance, yield losses |
| Semiconductor / Electronics | 60–75% | 90%+ | Quality yield, equipment precision |
| Plastics / Injection Moulding | 55–72% | 82%+ | Mould changeovers, startup scrap |
Frequently Asked Questions
OEE (Overall Equipment Effectiveness) measures how effectively a machine or production line uses its available time. It combines three factors: how much it runs (Availability), how fast it runs (Performance), and how much good output it produces (Quality). A 100% OEE would mean the machine runs all planned time, at full speed, with zero defects. In practice, world class is 85%+. Most Indian factories run at 55–65%.
Step 1 — Availability: (Planned Time − Downtime) ÷ Planned Time. Step 2 — Performance: (Ideal Cycle Time × Total Units Produced) ÷ (Run Time in seconds). Step 3 — Quality: (Total Units − Rejected Units) ÷ Total Units. Step 4 — OEE: Availability × Performance × Quality. Example: 90% × 82% × 97% = 71.6% OEE.
Below 65% is Poor. 65–75% is Average — this is where most Indian factories fall. 75–85% is Good. Above 85% is World Class. However, what's "good" depends on your industry — pharma and food factories with frequent regulatory changeovers may consider 70% excellent, while high-volume auto component plants should target 85%+.
The Six Big Losses are: (1) Equipment Failures — unplanned breakdowns (Availability), (2) Setup & Adjustments — changeover time (Availability), (3) Idling & Minor Stops — brief stoppages under 5 minutes (Performance), (4) Reduced Speed — running below design speed (Performance), (5) Process Defects — scrap and rework during steady production (Quality), (6) Startup/Yield Losses — defects during warmup or changeover (Quality).
Availability measures the percentage of planned production time that the machine was actually running. Availability = Run Time ÷ Planned Time. If a machine was planned to run for 450 minutes but had 45 minutes of downtime, Run Time = 405 min and Availability = 405 ÷ 450 = 90%. Low availability is caused by breakdowns, long changeovers, waiting for materials or operators, and unplanned maintenance.
OEE is the most comprehensive single measure of production efficiency. It reveals hidden losses that individual metrics miss — you could have 95% uptime but still have poor OEE due to slow speed or high scrap. Improving OEE means producing more from existing equipment without adding machines or workers, which directly reduces cost per unit and increases profitability.
Fixed costs (labour, energy, depreciation, rent) are spread over fewer good units when OEE is low. A machine at 60% OEE that could produce 500 units/shift instead produces 300 — so fixed cost per unit is 67% higher. Improving OEE from 60% to 75% on one machine adds 125 more good units per shift with the same fixed cost, directly reducing cost per unit by 20%.
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