How to improve OEE

Improving OEE is vital for better production efficiency and cost savings. In this lesson, we'll explore strategies to enhance OEE.

Let’s dig in!

The benefits of improved OEE

Once you have successfully implemented OEE monitoring systems and processes, you'll start to reap the benefits of OEE measurement.

Benefit #1 - Improvements on other key KPIs

OEE monitoring software can help to identify and eliminate bottlenecks in production, resulting in increases in production throughput, reductions in waste, and a more efficient operation overall.

Benefit #2 - Unveiling a “Hidden Factory”

OEE can reveal the true potential of your machinery, and you may find hidden potential to significantly increase production volume within a matter of weeks or months. This can save you the cost of upgrading or replacing equipment that may not be entirely obsolete.

Benefit #3 - Transparency for operators and managers

Instead of guessing the potential areas for growth, OEE shows operators and production managers where production can be best improved. With accurate, real-time data, operators can quickly address the causes of production losses and prevent them. For managers, it enables data-driven decision making. 

Benefit #4 - Reducing machine-related costs

Since OEE provides insights into the causes of machinery malfunctions, maintenance managers can better evaluate required maintenance tasks or repairs to improve efficiency on production lines.

Tips for improving OEE

Automate data collection

First and foremost, you should automate as much data capture as possible. You can tap into existing data sources on PLCs, integrate with OPC UA systems, or retro-fit edge devices like the Factbird DUO. 

Whatever you do, you want to take as much of the human element out of collection as possible so that data is more accurate and your colleagues can work on tasks that they are better suited to, and probably find more fulfilling.

You’ll also want to avoid the delays that manual data collection brings as you will have little room for change as we are usually running against time.

Information on the shopfloor

Getting information on to the shop floor in the form of dashboards is a big help for teams with the added visibility helping them to adjust and make improvements.

Using production monitoring dashboards on the shop floor will help operators to understand where work orders are at and OEE dashboards will help teams investigate the biggest losses of the shift, day, week, and month.

Healthy competition between shifts is also common when production data is available on shopfloors, driving motivation and improving OEE.

Work on the six big losses

One approach you can take to improving OEE is to focus on the six big losses that make up OEE according to Nakajima.

1. Breakdowns: Linked with the Availability factor in OEE, this refers to equipment failure, unplanned maintenance, and energy outages, for example. In case you consider whether this could also be a Performance failure, breakdowns comprehend every loss that requires more than 5 minutes to be corrected, in contrast with minor stops.

2. Setup and Adjustments: Linked with the Availability factor in OEE. This loss targets material shortages, changeovers, warm-up time, tooling adjustments, for example. Cleaning, quality inspections and planned maintenance can also be considered among these causes.

3. Slower Cycles: This is linked with the Performance factor in OEE. It involves wrong settings, equipment wear, or operator inefficiency. Therefore, to address this loss cause, we should compare the cycle time with the ideal cycle time to find the cause.

4. Idling and Minor Stops: Another loss linked with the Performance factor in OEE. These losses are usually triggered by repetitive stop codes, material jams, misaligned/blocked sensors, obstructions in the product flow, for example. Operators can make a direct impact in reducing this factor.

5. Startup Rejects: Linked to the Quality factor in OEE. These are the scraps and reworks produced during the startup phase, especially in machinery with long warm-up stages.

6. Production Rejects: The last item on this list is also linked to the Quality factor in OEE. It involves similar elements to the Startup Rejects, but they are generated during the steady state. This comprehends packaging defects, incorrect assembly, scraps, pieces to be reworked, etc.

The OEE Uplift Approach

Let me introduce you to the OEE Uplift Approach, developed by continuous improvement expert Mikkel Rauff Simonsen. 

This six-step process has been successfully implemented across many production sites and is designed to drive real OEE improvements.

1. Cockpit

Start by setting up a data hub or manufacturing intelligence system that consolidates data sources and displays OEE metrics in a clear dashboard. This allows you visualize your production and to identify weak points by breaking down OEE into its key components.

2. Planning

‍Once you’ve identified areas for improvement, bring the relevant stakeholders together.

Talk with shop-floor teams to confirm that the data aligns with their day-to-day experiences.

Then, agree on a single focus for improvement—whether it’s reducing micro-stops, streamlining changeovers, or addressing unexpected breakdowns. Trying to tackle everything at once won’t work.

3. Analyzing

Now it’s time to dive deeper into what’s causing the issue. 

Use tools like frequency studies or Gemba walks to uncover the root causes.

Establish a baseline—for example, tracking micro-stops over the last few months—and set a realistic but challenging target for improvement.

Engage the team through workshops, encouraging them to take ownership of the solutions. If you just go in and tell people what to do, you will struggle to make changes.

Once you have identified the actions you can take that will make the biggest impact while also being doable, you should add them to an action log.

4. Implementation

With your action log in hand, start implementing the changes gradually. Integrate them into everyday operations while monitoring progress with production data and regular check-ins.

Focus on replicating good performance days and scaling up improvements at a manageable pace.

5. Standardize

‍Once the improvements are successful, document them as standard operating procedures (SOPs). These SOPs should be easy for operators to understand and include proper training to ensure consistency across similar lines.

6. Review

Finally, review the entire process. Reflect not only on the performance gains but also on what worked well and what could be improved in the uplift approach itself. Share your findings—including goals, results, and key learnings—with relevant teams to ensure the knowledge is widely distributed.

Conclusion

And that’s it. Thank you for watching this lesson in improving OEE.

Remember, it might get tricky after the early wins. But keep improving, and remember that every improvement is a valuable improvement.

Next up, we will close this OEE course with a brief summary and some recommended next steps.

See you next time!