Augos Factory / Learn / OEE
Learn · overall equipment effectiveness
What is OEE, and what does it hide?
In short
Overall Equipment Effectiveness (OEE) is the share of planned production time in which a line made good product at its ideal speed. It multiplies three factors, Availability, Performance and Quality, so the losses compound: a line scoring 90% on each lands at 72.9% overall. It is the standard scorecard of manufacturing. The Augos platform measures Availability against paid time, so planned stops count as well.
The formula
What it is
OEE answers one question: of the time you planned to run, how much produced good product at full speed? It does so by multiplying three ratios, each a percentage of the one before it.
| Factor | Question it answers | Lost to |
|---|---|---|
| Availability | Was the line running when it should have been? | Breakdowns, changeovers, waiting for material or people. |
| Performance | While running, did it run at its ideal speed? | Interruptions, slow cycles. |
| Quality | Were the units good first time? | Scrap, rework, start-up rejects. |
OEE = Availability × Performance × Quality. Because the factors multiply, OEE is a product, not an average, and one weak factor drags the whole score down: 90% × 90% × 90% = 72.9%. Measured against all calendar time rather than planned time, the same arithmetic becomes TEEP (Total Effective Equipment Performance), which adds a Utilisation factor for the shifts you chose not to run. The full worked calculation, with every formula, is on How to calculate OEE.
Source: Augos Executive Summary report; TEEP: industry definition (Vorne, oee.com)
Availability
In standard OEE, Availability is the share of planned production time that the line was actually running. On the Augos platform it is measured against paid time: (paid time − planned stop time − unplanned stop time) ÷ paid time. So planned stops (changeovers, cleaning, breaks) reduce it, as well as unplanned stops (breakdowns, faults, waiting). On many lines it is the largest of the three losses, because every unplanned stop drags a chain of human response behind it before production resumes: someone has to notice, decide, call, arrive and fix.
Availability and downtime, in full: planned versus unplanned, and the five Stoppage Response Stages inside every stop. Availability & downtime →
Performance
Performance is whether the line ran at its ideal speed during the time it was running. Two different things drag it down, and most systems blur them together. Speed loss is the line running slower than its ideal cycle. Interruptions (what standard OEE calls minor stops or micro-stops) are brief stoppages and idling, often only seconds long, too short for anyone to log by hand. Interruptions depress the speed figure, so a machine that runs fast but stutters looks identical to one that is simply slow, and the two need opposite fixes.
Augos separates them. It measures true speed, how fast the line runs when it is actually running, in real time, and reports interruptions as their own measured stop loss. Speed loss and interruptions then each show their own impact.
Stops
Stops are halting events on the line. Augos classifies them as planned stops, unplanned stops and interruptions; the duration thresholds are configured for each site. Interruptions are the short stoppages, often under about two minutes, that hide root causes when they are lumped into a single Performance number. Counted separately, they become a loss you can see, own and recover, rather than a blur inside speed.
Source: Augos Glossary; Downtime Report
Quality
Quality is the share of units that came out good first time, without rework. It is lost to scrap and rework during steady running, and to the start-up rejects made while a process stabilises after a stop, which ties Quality back to how cleanly stops are handled.
What the score leaves out
Four ways OEE flatters a line
A good OEE score can still hide lost hours. Four gaps account for most of it.
It starts from planned time
Breaks, planned cleaning and idle shifts sit outside planned production time. A line can score well while paid hours go unused.
Interruptions vanish into performance
Stops shorter than the logging threshold are never recorded as downtime. They show only as a lower performance figure, with no reason attached, blended with slow running.
A low rated speed inflates performance
If the ideal rate is set below what the line actually runs, performance passes 100% and the losses disappear.
It doesn't say who can fix it
A single score can't tell maintenance, planning and the line team which hours are theirs to recover.
The paid-hour view
Start from paid time instead, and the losses around the line appear. On one beverage line, a month of 720 paid hours lost 97.8 hours to waiting for raw material. It lost 99.2 hours to breakdowns and 54.6 hours to interruptions.
Source: Augos platform, Production Timesheet. One anonymised beverage line, one month in 2026. Site, products and people removed.
The six big losses
The six big losses
The six big losses are the classic map of where OEE goes, each tied to a factor. Standard OEE stops at the loss category. OEE+ adds one more column: who the lost time sits with, set by its time account.
| Factor | Loss | Typical cause | Who it sits with (OEE+) |
|---|---|---|---|
| Availability | Breakdowns | Equipment fault | The technician who accepted the call, with Augos Assist; else the operator logged in |
| Availability | Setup and adjustment | Changeover, cleaning overrun | Planning (the allocated time); the operator logged in (the overrun) |
| Performance | Small stops and idling | Interruptions, material starve | Interruptions are an account of their own, traceable to the operator logged in and the product; a material starve is an unplanned stop with the operator logged in, whose root the reason tree shows |
| Performance | Reduced speed | Operator pace, or a mechanical limit | Reported as speed loss, by job and product |
| Quality | Process defects | Scrap and rework in steady running | Reported as quality loss, by job and product |
| Quality | Reduced yield | Start-up rejects after a stop | Reported as quality loss, by job and product |
Source: Augos Factory method; owner rule, Tim Stevens, 19 October 2026
Benchmarks
Benchmarks
The most widely quoted OEE benchmarks come from Vorne's OEE reference: 85% is often called world class for discrete manufacturing, 60% is described as typical, and 40% is common for plants measuring for the first time. Treat them as orientation, not targets. A plant's own best shift is a better target than a textbook number, because it was achieved on that line, with that product and that crew. Across the Augos fleet, the average gap between a line's current OEE and its own Best Operator Benchmark is about 18 OEE points.
Source: benchmark tiers, Vorne, oee.com (external); fleet gap, Augos Factory method
More on what a good score looks like for your line: What is a good OEE?
Measuring OEE without clipboards
Measuring OEE
Augos measures all three factors from events, not estimates. A pulse sensor counts every machine cycle without touching the PLC, and the Augos Operator Terminal captures each stop and its reason as it happens. Standard OEE is kept intact, so it reconciles to Availability × Performance × Quality, and the same data carries two things the number never did: an owner on every lost minute, and a benchmark set by your own line's best runs rather than a textbook target.
Source: Augos Factory method
Beyond the score
Who owns the loss
Standard OEE shows the loss. OEE+ shows who owns it. Who a lost minute goes to follows the time account it falls in, not the stop reason: planning for the time it allocated to a planned stop; the operator logged in for the overrun and for evaluation and resolution time; the technician who accepted the call for response, active wrench and inactive wrench time, with Augos Assist. Interruptions are an account of their own, traceable to the operator logged in and the product. No stop reason belongs to a department; the reason tree shows the root. That turns a percentage into a conversation about what to do on Monday morning, and it is the reason a plant that already measures OEE still has capacity to find. OEE+ and the Owner column →
One line, one month, losses by account (illustrative):
| Who it sits with | Time lost | Share of paid time |
|---|---|---|
| Planning: allocated time | 127h 37m | 17.46% |
| The operators logged in: overruns, evaluation and resolution, and the interruptions traced to them | 142h 17m | 19.47% |
| The technicians who accepted: response and repair | 82h 53m | 11.34% |
| Speed loss, reported by job and product | 24h 05m | 3.30% |
| Quality loss, reported by job and product | 0h 31m | 0.07% |
The full time account behind these totals is on OEE+ and the Owner column.
Source: Augos Glossary; losses by account, illustrative data from the Augos Factory method, not a customer
Questions
Common questions
What does OEE stand for?
Overall Equipment Effectiveness. It is a single percentage for how much of planned production time produced good product at the line's ideal speed, calculated as Availability × Performance × Quality.
What does 85% OEE mean?
That 85% of planned production time produced good product at ideal speed and 15% was lost to stops, slow running and defects. 85% is the figure most often quoted as world class for discrete manufacturing, from Vorne's OEE reference. Most plants measuring for the first time are far lower.
What does 100% OEE mean?
Perfect production: no stops, every cycle at ideal speed, every unit good. It is a theoretical maximum, useful as the denominator of the calculation, not a target.
Is a higher OEE always better?
Usually, but not blindly. Pushing performance by overproducing stock you cannot sell is not a real gain. Read OEE alongside what the plant actually needed to make.
Why separate true speed from interruptions?
Because they have opposite fixes. A slow line needs a process or tooling change; a stuttering line needs its interruptions chased. Blended into one Performance number, you cannot tell which problem you have.
Is OEE the same as efficiency?
No. Efficiency usually compares output with a target. OEE separates availability, performance and quality, so you can see which kind of loss is behind the gap.
Why is our performance above 100%?
The ideal rate in your system is lower than what the line actually runs. Raise the rate to what the line has shown it can do, and performance becomes a real measure again.
What is the difference between OEE and TEEP?
OEE is measured against planned production time. TEEP (Total Effective Equipment Performance) is measured against all calendar time, so it also counts the shifts you chose not to run as a Utilisation loss. TEEP is always equal to or lower than OEE.
Seen on a real line
Case study · Food producer · Food & beverage
Wrapper stops cut from 43 hours a month to under 7.
Read the case ›Related
Calculate it
Every formula, with a worked example you can follow on paper.
How to calculate OEE ›OEE+ calculator ›Work out your OEE in two minutes.
One shift's numbers in, availability, performance, quality and OEE out, plus the share of paid time that made good product.
- Free, no sign-up to calculate
- The paid-hour view beside OEE
- Ask for your result by email
A manufacturing specialist replies within two business hours to set a 30-minute call.