Measuring OEE – important to get it right

The importance of measuring OEE based on your operational situation by either fixed or variable Available Time, Inputs, and Good Output

Measuring OEE – important to get it right

by Ross Kennedy, 22 October 2018

There are three operational situations where OEE can be measured with each requiring a different approach. As such it is important to determine your operational situation before establishing your definitions for the timeframes and various losses involved.

The operational situations involve fixed or variable Available Time, Inputs, and Good Output.

The most common situation is fixed available time where you run and measure OEE for the entire shift with variable inputs and variable good output depending on the performance or OEE of the line or equipment.

The other two operational situations are where available time varies due to either the need to process a fixed input or batch, or where there is a requirement for a fixed good output and you run until that is achieved as in making fresh daily bread or a daily newspaper.

Once you determine your operational situation you can create your Loss Model and document your definitions so that there is agreement by all, recognising ‘measures dictate behaviour’.

The key to measuring OEE is to include all the losses that you wish to improve. This is why we recommend the 7 Losses Model which includes Planned Downtime and Speed Loss (that is based on Ideal Speed rather than average or standard speed), be used for production planning.

If you would like to learn more about CTPM – The Centre for Australasian TPM & Lean, and our approach to OEE, contact myself Ross Kennedy at or purchase my OEE book using this link.

This was a review of the “Understanding, Measuring, and Improving Overall Equipment Effectiveness” book, published by CRC Press Taylor & Francis Group – Productivity Press.
OEE Book Cover