Overall Equipment Effectiveness

The Purpose of Overall Equipment Effectiveness (OEE) – to Improve the equipment performance.

OEE seeks to identify (bottlenecks), to improve flow in the value stream, capacity in operations and reduce cost.

OEE is a metric used to demonstrate the true effectiveness of an asset in terms of availability, performance and quality.  It is an enabler for teams to problem solve, drive cross functional teamwork and structure maintenance for best performance.



Benefits of Overall Equipment Effectiveness

  • Focussed activities to improve the process bottlenecks
  • Teamwork between operators and artisans
  • Improved unit cost through revenue opportunities
  • Re-allocation of resource
  • Central maintenance focused on resolution of complex issues
  • Focussed on Planned Maintenance

OEE focusses on the elimination of the 6 Big Losses:

  1. Breakdowns
  2. Setup and Adjustments
  3. Minor Stops
  4. Reduced Speed
  5. Start-up Yield
  6. Production Rejects.

From the Value Stream activities and the capacity analysis, OEE is deployed on the identified bottlenecks to improve performance.

Any shift in capacity leading to more volume must be managed through pull systems and buffer management.


These Operational Excellence pages talk about fundamental lean principles and associated tools. Understanding how to apply these principles and tools to the individual circumstance of discrete organisations is where expertise and experience is paramount. The GENEO team has many decades of experience in doing exactly this.

Please click here for more information.