The abbreviation “OEE” stands for “Overall Equipment Effectiveness” and describes a key performance indicator that evaluates the actual productivity of equipment in relation to its theoretical maximum capacity.
In German, OEE is also known as Gesamtanlageneffektivität (total equipment effectiveness).
However, the indicator goes beyond simple monitoring—it provides an analytical foundation for identifying efficiency losses.
OEE is composed of three essential factors: Availability, Performance, and Quality.
How is OEE calculated?
OEE is the product of Availability × Performance × Quality. Standard definitions: Availability = Run Time / Planned Production Time, Performance = (Ideal Cycle Time × Total Count) / Run Time, Quality = Good Count / Total Count. All three factors are expressed as percentages (0–100%).
By conducting a detailed analysis, companies can quickly identify inefficiencies and optimize their OEE score.
Which factors are included in the OEE calculation?
- Availability: Share of run time within planned production time (Run Time/Planned Time).
- Performance: Speed relative to the ideal rate during run time: (Ideal Cycle Time × Total Count) / Run Time.
- Quality: Share of good units in total units (Good/Total).
Why is OEE important?
Especially in the pharmaceutical sector, even minor deviations in a single factor can significantly impact the overall OEE score.
OEE serves as an efficiency indicator that also integrates quality aspects into performance assessment.
In a highly competitive industry, a high OEE value is considered state-of-the-art—because only when systems operate under stable process conditions and high product quality can a pharmaceutical manufacturer remain competitive.
Understanding the interrelationships between downtime, slow cycles, and quality issues enables companies to take corrective action—leading to cost reduction, waste minimization, and optimized resource utilization.
Furthermore, the OEE value shows whether a company’s production runs smoothly and whether it is agile in responding to demand fluctuations or external disruptions.
Note on capacity and agility: OEE reflects effectiveness during planned production time. To assess responsiveness to demand (use of unscheduled time), pair OEE with TEEP = OEE × Utilization (Utilization = Planned Production Time / All Time).
What is a good OEE value?
100% OEE represents perfect production and is virtually unattainable over sustained periods.
The frequently cited “85% = world-class” threshold has its roots in TPM and applies mainly to discrete manufacturing—not as a universal cross-industry standard. Focus on establishing your baseline and driving incremental improvement.
In pharmaceutical and aseptic production, Industry sources report typical OEE well below 85%, e.g., packaging lines around ~30% on average (with cases down to 17%) and industry averages near ~48%; realistic targets often fall in the 40–60% range depending on product mix, validations, and cleaning/sterilization cycles.
How can the OEE value be improved?
OEE evaluation is about more than numbers—it aims to enhance efficiency, quality, and process stability.
A proven approach is the four-step improvement plan:
- Data collection:
Automate the acquisition of relevant machine and process data to avoid errors. - Analysis:
Identify patterns and root causes of downtime, setup activities, or slow cycles. - Improvement plans:
Focus on actions with the most significant impact—such as preventive maintenance, operator training, or equipment upgrades. - Monitoring:
Continuously evaluate the implemented measures to assess progress and drive ongoing improvement.