
2 OEE & OLE 
Overall Equipment Effectiveness (OEE) can be 
implemented to benchmark, analyze and improve a 
production process by measuring inefficiencies and 
groups them in different categories (B. Dal et al., 
2000). The most common inefficiency causes in 
industry are those called “six big losses.” These 
losses can be categorized in downtime losses, speed 
losses, and quality losses. To find a way to monitor 
and improve a manufacturing process, six big losses 
are addressed as follows. 
   (1) Downtime losses: Downtime is the most 
important loss for equipment effectiveness 
improvement since other metrics cannot be 
addressed if the manufacturing process is down. 
Tooling failures, unplanned maintenance, equipment 
breakdowns are some examples of downtime losses. 
   (2) Setup and Adjustment: This loss is the time 
between the last acceptable part produced before 
setup to the first consistent acceptable parts 
produced after setup and adjustment. This is often a 
set of adjustments to machines and/or equipment in 
order to produce a product that meets the standard 
requirements.Warm up time and changeovers can be 
represented as setup and adjustment losses in a 
manufacturing process. These losses are considered 
in calculation of the availability factor. 
   (3) Small Stops: These stoppages occur when the 
machine stops due to a temporary problem such as 
an activated sensor that shuts the machine down 
automatically. These minor stoppages are usually 
less than 10 minutes and can be dealt with by the 
operator and generally there is no need to call a 
maintenance team. 
   (4) Reduced Speed: Knowing the ideal cycle time 
of a machine and comparing it with the actual cycle 
time, it will be possible to monitor low running or 
reduced speed losses. Machines may run at the speed 
less than the ideal run rate for various reasons. 
Training level of operators, and worn equipment can 
be categorized as the aforementioned reasons. Small 
stops and reduced speed are known as speed losses 
and are taken into account in performance factor 
calculation. 
   (5) Start up Rejects: Startup losses occur in the 
initial start of a machine up to the stabilization of its 
products quality. A root cause analysis can be done 
to pinpoint the potential causes of rejects and to 
prevent similar losses from occurring in the future. It 
is necessary to note that reworks, scraps and 
incorrect assembly, all are considered as rejects in 
the production processes. 
   (6) Production Rejects: This loss occurs in a 
steady-state production and is not attributed to start 
up. Damage, scraps, and reworks, are some 
examples of production reject losses. 
The last two losses are considered quality losses 
and affect the quality factor of OEE. 
The traditional method of OEE calculation 
considers  availably,  performance, and quality 
factors as follows: 
Availability: Availability is the ratio of actual 
production time that a machine is working divided 
by the time the machine is planned to work. 
A= 
Operation time 
Planned production time 
 
Performance: Performance of a machine is the 
percentage of total number of parts on that machine 
to its production rate. In simple words, performance 
measures the ratio of actual operating speed of the 
equipment and the ideal speed (M. Lesshammar, 
1999). 
P    = 
Ideal cycle time 
Operation time 
Total pieces 
Quality: To gain insight into the quality aspect of 
a production process the quality portion of OEE is 
defined. The Quality metric represents good 
(acceptable) units produced by machine divided by 
the total units produced by that machine in the 
production time. 
Q= 
Acceptable Pieces 
Total Pieces 
Given the above, the OEE is normally calculated as 
follows: 
OEE = A × P × Q 
Therefore OEE takes into account the six major 
losses. Significant improvement can be achieved 
within a short period by eliminating these losses in 
industry as a result of enhanced maintenance 
activities and equipment management (M. Maran et 
al., 2012). 
In a situation where a manufacturing line 
consists of unbalanced/decoupled machines OEE 
alone is not sufficient (Braglia et al., 2009). Also 
OEE is measured for an isolated individual 
equipment and controlling a single tool does not 
seem to be effective (Richard Oechsner et al., 2002). 
OLE evaluates the line Efficiency in the production 
phase and takes into account of effectiveness (OEE) 
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