Benefits of Overall Equipment Effectiveness - OEE as a Performance KPI

Benefits of Overall Equipment Effectiveness - OEE as a Performance KPI

In the competitive landscape of modern industries, optimizing operational efficiency and productivity is paramount to achieving success. One crucial key performance indicator (KPI) that has gained significant traction in manufacturing and maintenance circles is Overall Equipment Effectiveness (OEE). OEE is a powerful metric that evaluates the performance of equipment and production processes, providing valuable insights into how effectively a company's assets are being utilized. By delving into the benefits of OEE as a performance KPI, we can uncover how this measure empowers organizations to identify inefficiencies, reduce downtime, and enhance productivity, ultimately leading to increased profitability and a competitive edge in the market. In this blog, we will explore the numerous advantages of adopting OEE as a strategic KPI and delve into the actionable steps companies can take to harness its potential for long-term success.

Understanding OEE – Overall Equipment Effectiveness

OEE is the gold standard for measuring manufacturing productivity. Simply put, it shows the percentage of manufacturing time that is productive. A 100% OEE value means producing the best parts as quickly as possible without downtime. In the OEE language, this means 100% quality (good parts only), 100% performance (as fast as possible), and 100% availability (no downtime).

The OEE Formula

The most common way to calculate OEE is to multiply three factors: asset availability, asset performance, and production quality. Each measures different parts of the asset's work and performance.

  • Availability: How much time is the asset available to function?
  • Performance: How many items does the asset manufacture?
  • Quality: How many high-quality items do the asset produce?
Breaking Down the Formula
  • Availability = Total run time of an asset ÷ Total planned production time of an asset
  • Performance = Actual system output ÷ Maximum possible output
  • Quality = Number of utilizable items produced ÷ Number of total items started
  • OEE considers all losses, resulting in a measure of truly productive manufacturing time. It is calculated as:
  • OEE = Availability × Performance × Quality‍

What is a Good OEE?

A perfect score of 100% OEE would be the goal in a utopian world. But in real life, a range of intervals should be considered when assessing the efficiency of any equipment.

  • 40%–60%: Beginning of the OEE spectrum with much scope to improve, along with rapid and significant gains.
  • 60%–80%: Middle of the OEE spectrum, where the production processes are in good condition but have significant potential to improve.
  • 80%–100%: End of the OEE spectrum, where the organization optimizes the production processes. Any gain becomes marginal at this level, so costs must be considered when trying to achieve this score.

Benefits of OEE in Manufacturing

Overall Equipment Effectiveness (OEE) offers several significant benefits in the manufacturing industry, helping organizations improve efficiency, reduce waste, and enhance productivity. Here are some of the key advantages of using OEE in manufacturing

Identifying Equipment Inefficiencies
OEE provides a comprehensive view of equipment performance by measuring availability, performance, and quality. This enables manufacturers to identify bottlenecks, downtime causes, and recurring issues, allowing for targeted improvements.
Reducing Downtime
OEE helps in tracking downtime and understanding its root causes. By addressing the underlying issues, manufacturers can minimize unplanned downtime, increase equipment uptime, and maximize production output.
Optimizing Production Processes
With OEE data, manufacturers can analyze production processes and identify areas for improvement. Streamlining workflows and eliminating non-value-added activities make production cycles more efficient, resulting in higher throughput and reduced cycle times.
Minimizing Waste and Rework
OEE's focus on quality highlights potential defects and rework instances. By addressing quality issues promptly, manufacturers can minimize waste and rework, ensuring that products meet or exceed customer expectations.
Improving Asset Utilization
OEE provides insights into equipment utilization and performance, enabling better resource planning and allocation. Manufacturers can optimize asset utilization, minimize idle time, and prioritize maintenance to maximize equipment efficiency.
Enhancing Labor Productivity
OEE data allows manufacturers to assess the performance of operators and production teams. Manufacturers can enhance labor productivity and reduce human error by identifying training needs and best practices.
Setting Performance Benchmarks
OEE provides a standard performance benchmark that manufacturers can use to measure and compare the efficiency of different production lines, shifts, or facilities. This allows for continuous improvement and healthy competition within the organization.
Data-Driven Decision Making
Manufacturers can make data-driven decisions by leveraging real-time OEE data and historical trends. This leads to more informed choices regarding maintenance, production planning, and resource allocation, optimizing overall operations.
Boosting Overall Equipment Reliability
Regular OEE monitoring promotes a proactive approach to maintenance. Manufacturers can implement preventive maintenance strategies by identifying potential equipment issues early, improving equipment reliability and longevity.
Increased Profitability
Ultimately, the benefits of OEE in manufacturing translate into increased profitability. Manufacturers can achieve higher profitability and a competitive edge in the market by maximizing production output, minimizing waste, and reducing operational costs.

How to Improve OEE?

Many factors influence the overall OEE score. To improve overall equipment effectiveness (OEE), it is necessary to address the factors that affect the three components: availability, performance, and quality. Here are some strategies to enhance OEE:

Reduce Downtime
Minimize unplanned equipment downtime through regular preventive maintenance and swift response to breakdowns. Implement predictive maintenance to anticipate potential issues and address them proactively.
Optimize Changeovers
Streamline changeover processes to reduce the time required for equipment setup between different products or processes.
Increase Production Speed
Identify bottlenecks and inefficiencies that limit production speed. Implement process improvements and optimize equipment settings to increase throughput.
Address Minor Stops and Idling
Eliminate frequent and short pauses in production by addressing minor issues promptly. Reduce idling and downtime during shifts by optimizing production schedules.
Enhance Quality Control
Implement robust quality control measures to minimize defects and rework. Continuously monitor quality metrics and address deviations promptly.
Optimize Equipment Utilization
Ensure efficient use of equipment by monitoring and adjusting production schedules. Avoid overloading or underutilizing assets.
Improve Operator Performance
Train and upskill operators to handle equipment effectively and efficiently. Provide clear instructions and regular feedback to enhance their performance.
Efficient Supply Chain Management
Ensure a steady supply of materials and components to prevent delays and downtime due to material shortages.
Enhance Management Practices
Foster a culture of continuous improvement, promote effective communication, and empower teams to make data-driven decisions to optimize OEE.
Invest in Automation and Technology
Embrace automation and advanced technologies to reduce human errors, increase equipment reliability, and streamline processes.
Data-Driven Analysis
Use data analytics to identify trends, patterns, and areas for improvement. Analyze OEE data to make informed decisions and prioritize improvement initiatives.

Benchmark and Best Practices

  • Compare OEE performance against industry benchmarks and best practices. Learn from top performers and adapt their successful strategies.
  • By implementing these strategies, manufacturers can enhance their OEE, optimize asset performance, and achieve higher productivity and profitability. Continuous monitoring, feedback, and improvement initiatives will lead to sustained and measurable gains in OEE over time.

How Does Cryotos Help in Achieving the OEE?

Cryotos CMMS is crucial in achieving Overall Equipment Effectiveness (OEE) by providing a comprehensive platform that streamlines maintenance operations and enables data-driven decision-making. Here's how Cryotos helps in achieving OEE:

Preventive Maintenance Scheduling
Cryotos allows users to schedule preventive maintenance based on time, usage, or condition. By conducting regular maintenance activities, equipment downtime is minimized, leading to improved availability and higher OEE.
Real-Time Monitoring and Analytics
Cryotos provides real-time data and analytics on equipment performance, downtime, and maintenance activities. This data-driven approach enables proactive decision-making to address inefficiencies and improve overall equipment performance.
Root Cause Analysis
Cryotos helps identify and address the root causes of equipment issues and downtime. Organizations can take targeted actions to eliminate recurring problems by analyzing historical data and maintenance records, boosting OEE.
Equipment Health Monitoring
Cryotos integrates with Internet of Things (IoT) devices and sensors to monitor equipment health and performance in real-time. This allows for predictive maintenance and timely interventions to prevent equipment failures and optimize OEE.
Work Order Management
Cryotos streamlines work order management, ensuring maintenance tasks are assigned, tracked, and completed efficiently. This reduces response times and contributes to faster equipment recovery and increased availability.
Mobile Accessibility
Cryotos offers a user-friendly mobile app that allows technicians to access and update maintenance data on the go. This mobility improves response times and enables timely actions to address equipment issues, positively impacting OEE.
Inventory Management
Cryotos enables better inventory management by tracking spare parts and materials required for maintenance tasks. Having the right parts readily available reduces equipment downtime, improving OEE.
Performance Benchmarking
Cryotos facilitates performance benchmarking by comparing OEE data across equipment, and facilities. This comparison helps identify best practices and areas for improvement, encouraging a culture of continuous improvement.
Compliance and Safety
Cryotos assists in ensuring compliance with safety regulations and maintenance standards. By adhering to safety protocols and conducting regular inspections, organizations can prevent accidents and minimize downtime due to safety-related issues.
Reporting and Dashboards
Cryotos provides customizable reports and interactive dashboards, presenting OEE data in an easy-to-understand format. These insights enable better decision-making, helping organizations drive performance improvements and achieve higher OEE.


In summary, adopting Overall Equipment Effectiveness (OEE) as a Performance Key Performance Indicator (KPI) offers many benefits for manufacturing industries. OEE empowers organizations to identify inefficiencies, reduce downtime, and enhance productivity by providing a holistic view of equipment performance, availability, and quality. Cryotos CMMS empowers organizations to optimize maintenance processes, monitor equipment health, and make data-driven decisions. Cryotos helps companies achieve higher OEE, reduce downtime, and improve overall operational efficiency by focusing on preventive maintenance, real-time monitoring, and streamlined work order management.

If you want to gather benchmark data for evaluating OEE, Cryotos has free templates designed for manufacturing industries to help you get started. You can easily track the details of your products through various checklists, schedule preventive maintenance, or conduct quality audits.

For even more advanced manufacturing insights, try Cryotos CMMS for free or Book a Demo to see how we can help with your specific use case.

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What Do Our Clients Says ?

Amrapali Exports - Esteemed Clients of cryotos
Anuraj Sharma - Maintenance Manager

The best thing about Cryotos CMMS software is that it always tells me when something needs to be fixed - before it breaks and cost me a fortune!

The software is very user-friendly, and even if I don't know how to do something, the support team is always there to help me out.

Most importantly, unlike other such software, Cryotos is editable and hence the user can modify how the software works as per their need, we made several changes in the workflow & flowchart with the help of development team.

I don't know what I would do without Cryotos! I've been using it for years, and it has saved me so much time and money. I highly recommend it to anyone who wants to manage their assets efficiently.

Resil Chemicals - Esteemed Clients of Cryotos
Jeevan Belliappa - Head, Information Technology

Since we've been using Cryotos CMMS Software, our asset maintenance management has been running more smoothly than ever. We're able to track and optimize our preventive maintenance with ease, thanks to the customized process workflow. This has been a lifesaver for our team!

The Cryotos CMMS software has allowed us to manage our assets more effectively and efficiently. It has helped us to improve our asset utilization. The software is user-friendly and easy to navigate, and the support team is always quick to help with any questions we have. We're very happy with the results we've seen so far and we're confident that we'll continue to see improvements in our asset management as we use the Cryotos CMMS software.

Planys - Cryotos Esteemed Client
Antony Jacob Ashish - Lead, R&D

Cryotos goes above and beyond when it comes to customer satisfaction. Planys Technologies use Cryotos for preventive/ corrective maintenance of our critical systems and not once did we face a problem that was not dealt with immediately. The team is extremely professional and helpful. We can rely on Cryotos when it comes to the operations and processes.

Thanks to the whole team for the amazing performance and thought leadership. It's rare to see teams that can put themselves in the customer's shoes and think from their perspectives - Cryotos team doesthat and more.

We recommend Cryotos if you are looking to put an end to your preventive maintenance problems and sign up with them!

Thanks to the team for an awesome job.

Xpert IFM - Esteemed Clients of Cryotos
Siva Shankar - AGM, (Operations & BD)

On behalf of Xpert FMS we would like to express our sincere appreciation for the excellent support Cryotos team have provided us for our building and facility management. Cryotos has always provided support that is timely and meets our expectations. Professionalism and quick response are the hallmarks of this team.

Sincere appreciation for the team's brilliant performance and wish them continued success. We highly recommend Cryotos as they have executed well on all assigned tasks and continue to outperform.

Thanks to all the hard work, our lives have become easier.

ST Jude India Childcare Centers - Cryotos Esteemed Client
Mukesh J - CIO

We are able to raised the workorder and tracking of these till the closure as helped us to provide better services our beneficiaries. Workflow-based work order management has helped us to define processes for each locations separatley. System provide notification once order is raised for assignment to engineer.

Maspro - Esteemed Clients of Cryotos

This CMMS software is top-notch! I can't believe how much it has helped me with my facilities maintenance management. Customized reports and business intelligence have been invaluable in making better decisions.

The software offers a great deal of customization for each organization's specific needs. They are always updating the software with new features and improvements, which is great. The support team is fantastic - they are always quick to help with any questions or problems we have. This software has definitely made my life a lot easier! It's so easy to use and it's really helped me keep track of all my maintenance tasks in one place. I would definitely recommend it to anyone looking for a CMMS platform.

Al Zain Farms LLC - Esteemed Clients of Cryotos
Mr. Vishnu S Nair

Since we've started using Cryotos, our team has been able to stay on top of all the various SOPs. Checklists and safety procedures are now easily accessible to everyone, and we can quickly reference them whenever we need to. The software has definitely helped to improve our team's communication and efficiency. Plus, the fact that it's cloud-based means we can access it from anywhere, which is a big plus. It has been a great help in keeping everyone on the same page and up to date with the latest procedures.

Dinex - Esteemed Clients of Cryotos
B S Vijaya K. - Maintenance Engineer

At starting it felt some what difficult for scheduling but now it made to easy access.

Review from Capterra

Korrun - Esteemed Clients of Cryotos
Nithin G. - Maintenance Incharge

Overall: Nice Software
Pros: Scheduling, work order creation, asset inventory, records.
Reasons for Choosing Cryotos: Compared to other products it's easy to use and easy to understand the feature.

Review from Capterra

Aptiv8 IT Solutions
Hashim - Business Project Manager

This CMMS software is top-notch! I can't believe how much it has helped me with my facilities maintenance management. Customized reports and business intelligence have been invaluable in making better decisions.

The software offers a great deal of customization for each organization's specific needs. They are always updating the software with new features and improvements, which is great. The support team is fantastic - they are always quick to help with any questions or problems we have. This software has definitely made my life a lot easier! It's so easy to use and it's really helped me keep track of all my maintenance tasks in one place. I would definitely recommend it to anyone looking for a CMMS platform.

Gurit - Esteemed Clients of Cryotos
Mr. Mohanmurali R

I recently purchased Cryotos CMMS Software for asset management needs at my organization and after a few months of testing and monitoring, I'm incredibly pleased with the results. The software is user friendly, accessible and the design is very intuitive. It covers all the aspects of managing maintenance and repair, starting from preventive maintenance and standardizing operation cycles, to scheduling and streamlining workflows. I am highly satisfied with the performance and the range of features offered by Cryotos. Highly recommendable!

Metro Tyres - Esteemed Clients of Cryotos
Mr. Sanjay Beri

Before using Cryotos, asset management and maintenance seemed like an uphill task for my team. Manual processes laden with human errors did not work for us at all. We decided to go with Cryotos after checking out similar products in the market.

The user interface of the software is intuitive and easy to use, making it simple to navigate through the different features and functionalities. I particularly appreciate the ability to track all assets in real-time, allowing me to keep a close eye on their performance and maintenance needs.

Customized work order and workflow creation has reduced the needs to always follow a particular template. Depending on our needs we can create tailor made workflows to suit our requirements.

I highly recommend Cryotos to anyone who would like to unburden themselves of maintaining and managing their critical assets.

Dinex - Esteemed Clients of Cryotos
Mr. Yuksel Aksin

As a customer of Cryotos CMMS software for asset management needs, I must say that I am thoroughly impressed with the features and functionality offered by the platform. Cryotos CMMS software has made managing my assets a breeze, and I no longer have to worry about missing maintenance or inspections.

One of the standout features of Cryotos CMMS software is the ability to generate work orders and schedule maintenance tasks. This has made it easy for me to stay on top of maintenance and repair tasks, ensuring that my assets are always in optimal condition.

The software also allows me to track inventory levels which has streamlined my inventory management process. The ability to generate reports and analyze asset performance data has also been invaluable in helping me make data-driven decisions about my assets. Overall, I would highly recommend Cryotos CMMS software to anyone looking for a reliable and efficient asset management solution.

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