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OEE calculation: formula, worked example and calculator

OEE (Overall Equipment Effectiveness) is the share of planned production time in which a machine makes good parts at ideal speed. It is calculated as the product of three factors, availability × performance × quality, and it tells you how much capacity is lost and at which of the three points.

By Muvia · Updated October 21, 2026

What OEE is

OEE was born in the 1970s with Seiichi Nakajima's TPM (Total Productive Maintenance) and is today the most widely used indicator of how well a machine, a cell or a line uses the time in which it should be producing. An OEE of 100% means making only good parts, as fast as possible, without ever stopping during planned time.

The value of OEE lies not in the number itself but in its breakdown. Two presses with the same 65% OEE can have opposite problems: one stops often for breakdowns, the other never stops but runs slowly and scraps parts. The three factors tell you right away where to look, and the six big losses tell you why.

The formula: availability, performance, quality

Everything starts from planned production time: shift time minus the planned stops that are not losses, such as breaks and meetings. From there the three families of losses are subtracted, one after the other.

Availability = run time ÷ planned production time

Performance = (ideal cycle time × total parts) ÷ run time

Quality = good parts ÷ total parts

OEE = availability × performance × quality

= (good parts × ideal cycle time) ÷ planned production time

  • Run time: planned time minus downtime, breakdowns and changeovers included.
  • Ideal cycle time: the fastest cycle the machine can sustain for that part, from the nameplate or the best demonstrated. Not the average cycle: with the average cycle, performance always looks close to 100%.
  • Good parts: those that pass the first time. Reworked parts count as scrap, because they consumed time without coming out good.

The last line is the most useful for checking the math: OEE is the time it would have taken to make only the good parts at ideal speed, divided by planned time. If the product of the three factors does not match this ratio, one of the inputs is wrong.

Worked example on one shift

A press runs a 480-minute shift with 30 minutes of breaks: planned time is 450 minutes. During the shift it stops for 25 minutes because of a breakdown and for 20 minutes for a die change. The ideal cycle time is 30 seconds per part; at the end of the shift it has produced 729 parts, 700 of them good.

QuantityCalculationResult
Planned time480 − 30 min of breaks450 min
Run time450 − 25 − 20405 min
Availability405 ÷ 45090.0%
Performance(0.5 min × 729) ÷ 40590.0%
Quality700 ÷ 72996.0%
OEE0.900 × 0.900 × 0.96077.8%
Check(700 × 0.5 min) ÷ 45077.8%
The ideal cycle time of 30 seconds equals 0.5 minutes. Performance says that in 405 minutes of run time the press could have made 810 parts: it made 729.

The shift lost 22% of planned time: 45 minutes of downtime (availability), about 40 minutes of slowdowns and micro-stops (performance) and 14.5 minutes spent making 29 scrapped parts (quality). Expressed in minutes, the three factors become comparable and it becomes clear where to act first.

What is a good OEE

The most cited benchmarks come from TPM experience and should be read as orders of magnitude, not as the same target for everyone: a manual assembly line and a continuous process plant are not comparable.

OEEHow to read it
85% and aboveWorld class for discrete manufacturing: about 90% availability × 95% performance × 99.9% quality.
about 60%Typical for many discrete manufacturers: there is room to improve.
about 40%Common when you first start measuring for real: the first losses are often found right away.
The benchmark values go back to Nakajima's work on TPM and are repeated in the industry literature. The most useful comparison is still the same machine against itself over time.

An OEE that jumps suddenly deserves suspicion: often the ideal cycle time has changed in the ERP, or a stop has been moved into the planned ones. Putting in writing what counts as a planned stop is the first step toward an OEE you can trust.

OEE, TEEP and OOE: the differences

The three indicators use the same good parts and the same ideal cycle time, but divide by a different time. OEE measures effectiveness over planned time; OOE (Overall Operations Effectiveness) over the time the plant is open, breaks included; TEEP (Total Effective Equipment Performance) over all calendar time, 24 hours a day.

IndicatorReference timeIn the example
OEEPlanned production time (450 min)350 ÷ 450 = 77.8%
OOEOperating time, breaks included (480 min)350 ÷ 480 = 72.9%
TEEPCalendar time (1,440 min per day)350 ÷ 1,440 = 24.3%
350 minutes is the ideal time for the 700 good parts (700 × 0.5 min). TEEP equals OEE multiplied by utilization: 77.8% × 450 ÷ 1,440 = 24.3%.

OEE is for improving the machine, TEEP for deciding whether you need one more shift or one more machine: a low TEEP with a high OEE means the capacity is there, but it is not planned.

Why OEE in Excel is not enough

A spreadsheet is perfectly fine for understanding the formula. It stops being enough when OEE has to be calculated every day, for every machine and every shift: the data comes from different sources (part counts and states from the PLC, orders and cycle times from the MES or the ERP, stop reasons from the operator), and whoever copies it by hand at the end of the month discovers the losses when they have already turned into delays.

The typical problems are three: different definitions across departments (what counts as a planned stop, which cycle time to use), data that arrives late, and micro-stops that stay invisible because nobody records them. Micro-stops in particular only show up when you read the machine states from the PLC, cycle by cycle.

Muvia has no packaged OEE module: your team writes the calculation once, in a Python function that Muvia runs every morning close to the data, for every machine and shift. With Muvia Industrial the edge node reads part counts and states from the PLCs with the drivers for Siemens S7, OPC UA and Modbus TCP, and the dashboard shows OEE per shift and losses the next day. The use case OEE and losses on stamping and welding lines walks through the path step by step.

OEE calculator

Enter the shift's planned time, the minutes of downtime, the ideal cycle time and the parts: the calculator returns the three factors and OEE. The starting values are those of the worked example.

OEE calculator

It starts from the shift example above: change the values for your machine.

Availability
90.0%
Performance
90.0%
Quality
96.0%
OEE
77.8%

Performance above 100% means the ideal cycle time is too slow: use the rated one or the best demonstrated one.

Frequently asked questions

OEE = availability × performance × quality. Availability = run time ÷ planned time; performance = ideal cycle time × total parts ÷ run time; quality = good parts ÷ total parts. In compact form: good parts × ideal cycle time ÷ planned time.

Tell us which machines you run. We'll tell you how to read them.

PLC brand, protocol, how the floor is connected: with those three answers, in a demo with one of our engineers, we show you how Muvia Industrial puts line data next to the rest of the business.