Organizations who are striving to achieve increased productivity in manufacturing have been using Operational Equipment Effectiveness or OEE as a Key Performance Indicator.  By calculating, displaying, and reporting OEE in real time, Ei3’s on-line applications and productivity tools provide decision makers with the information they need to manage their operations. Through evaluating OEE and each of its three components, important insights are gained about how well production environment is operating and what actions can be taken to improve it.

OEE provides a benchmark value that describes the overall performance of a single piece of equipment, or an entire factory.  It is governed by the cumulative impact of 3 factors: the equipment’s availability (percent of scheduled production time available compared to all time in the measured period), performance (percent of material produced compared to maximum capability of equipment to produce) and quality (percent of sellable material produced compared to all material produced).



Also known as uptime or uptime ratio, Availability is the time the machine spends above minimum production speed divided by the total time that the machine is available to be run.  For a given time period, the Availability is computed as:


[dropcap_blue character=”A”]Availability = Time Spent above Min Production Speed / Total Time 




Also known as speed ratio, Performance is the average machine speed for the selected time period divided by the maximum machine speed. The maximum machine speed is neither the fastest speed a particular product can be ran on a machine nor the fastest speed a facility runs a machine. It is the maximum speed that the machine can run any product at any location.  For a given time period, Performance is computed as:

[dropcap_blue character=”P”]Performance = Average Production Speed / Max Machine Speed



Also called material yield, Quality is the good material (material produced at or above the minimum production speed of the machine) produced during a selected time period divided by the total material (all material produced including startup and scrap) produced during the same time period.

[dropcap_blue character=”Q”]Quality = Good Material / Total Material

UEE: Takes into account the material production speed

Another popular calculation is UEE, or Utilization Equipment Effectiveness. It is obtained through the multiplication of the same three ratios as the OEE, except the Speed Ratio is based on the targeted production speed of the material being made, rather than the maximum machine speed. This technique takes into account the manufacturing organization’s need to make certain materials where the targeted speed is not the maximum machine speed. Accordingly, The UEE speed ratio is the average machine speed for the selected time period divided by the maximum line speed for the products being run on the particular machine.

Spencer Cramer

Spencer Cramer founded ei3 in 1999 to follow his vision that advanced Internet applications could help machine owners increase production, improve service, enhance product quality and save energy. As Chief Executive Officer he is responsible for strategy and growth. In addition to ei3, Spencer serves on the boards of PaceWorx, an energy assessment company and OMAC, the Organization for Machine Automation and Control.