Do you know the OEE definition? In a highly competitive market, it is vital that industries of all types and sizes use their resources, such as time and inputs and machinery, in an intelligent way. For this task to be fulfilled, a parameter is needed so that the efficiency in question is measured.

It is in this context that the Overall Equipment Efficiency appears as a relevant indicator. It happens because a company is able to measure the efficiency in a more precise way through the indicator with which it is using its machines and equipment, which allows it to draw strategies to optimize its results.

What is the OEE concept?

The overall equipment efficiency is considered one of the most important indicators of Total Productive Maintenance. Developed in Japan, with the purpose of measuring the efficiency of production lines, the indicator is based on factors such as availability, performance and quality. The great advantage of OEE is that it is able to represent the average performance of an industry.

Using the Global Equipment Efficiency method, the management team is able to verify the performance of the company and compare the result with global averages. This feature has made it the main global benchmark when we talk about industrial production. This comparison makes room for managers to understand the position of their business in the market, which allows them to develop smarter plans to increase their levels of efficiency and competitiveness.

Factors relevant to the calculation of the indicator

Considering the importance of Overall Equipment Efficiency software, it is easy to see that the indicator must be implemented. In order for this task to be carried out, it is necessary that some factors be properly investigated first.


Availability can be described as an indicator designed with the purpose of measuring unexpected stops and their impacts on the production of an industry. For this reason, the indicator is calculated using the following formula – Availability = Production Time / Production Time + Unexpected Outages. By measuring the availability indicator, the controllers of an industry can see how much the business has lost with stops that happen without prior planning.


Performance is an easy oee indicator with the function of measuring the nominal production speed in the industry. In practice, it means that the role of this indicator is to verify the disparity between the production speed that the company could present, according to its specifications, and the speed that has been delivered.

If the result is very out of line with the company’s potential, measures must be urgently implemented to resolve this situation. Furthermore, in a competitive market, even industries that present high performance rates need to continue monitoring the indicator and implementing strategies.

Calculation of the OEE indicator

As soon as the availability, performance and quality indicators are determined, the OEE can finally be calculated. When we think about the importance of the Global Equipment Efficiency indicator, it is easy to conclude that it must be calculated with due care. Now that you know what OEE calculation is, and understand how this indicator can optimize your industry, how about having access to a highly efficient asset monitoring service?

By Robson