In FMCG & F&B factories, every minute of downtime is a missed opportunity: lower output, late orders, higher costs. Many businesses only see the machine “still running” without knowing whether it is actually running efficiently or not. That is why the OEE (overall equipment effectiveness) index becomes important: it helps you see clearly “how well the machine is running”, identify hidden losses and make informed improvements.

I. What is OEE?

Overall Equipment Effectiveness is an index that measures the efficiency of equipment use in the factory, comparing reality with ideal potential. If OEE = 100%, it means the machine runs throughout the planned time, at ideal speed and the output is of good quality. In reality, OEE is often much lower and helps you evaluate three essential aspects of machine operation: uptime, running efficiency and product quality.

We will also hear about World Class OEE, which is the gold standard in the manufacturing industry for measuring overall equipment performance. By definition, world class OEE is a score above 85%, a target proposed by Seiichi Nakajima in his book TPM (Total Productive Maintenance) published in 1984. Achieving an overall OEE score of 85% is a huge challenge and very few companies actually achieve it. Therefore, it is more realistic for companies to focus on improving their current OEE score, rather than just striving for the world class OEE that many dream of.

II. How to measure OEE

Standard formula:

OEE = Availability × Performance × Quality

In which:

For Example: Assume F&B factory produces confectionery

• Planned production time: 480 minutes
• Machine stops due to failure: 120 minutes → actual running time = 360 minutes
• In 360 minutes, the machine produces 600 products
• Ideal cycle = 0.5 minutes/product → potential time = 600 × 0.5 = 300 minutes
• Defective products: 90 products

Calculation:

• Availability = 360 / 480 = 75%
• Performance = (600 × 0.5) / 360 = 83.3%
• Quality = (600 − 90) / 600 = 85%

OEE = 0.75 × 0.833 × 0.85 = 0.516 → ~51.6%

Analysis: Low OEE reflects suboptimal equipment performance. Long downtimes and high failure rates are the main causes of reduced line efficiency.

III. Why is OEE important in a factory?

IV. Common causes of low OEE

• Breakdowns – time consuming to process.
• Setup and Adjustment – ​​every time a part or product is changed, it takes time.
• Micro stops, slow running machines – Sudden stops due to jamming or sensor failure.
• Defective products/rework – create quality-related losses.
• Waiting time for raw materials/machine inspection/setup – machine not running even though scheduled to start the line.
• Inaccurate/non-real-time data – slows down analysis, delays decisions.

V. How to improve OEE

1. Automate data collection and reporting.

Instead of handwriting or using Excel – use IIoT to collect data in real time, ensure all production stops are recorded.

2. Display visual dashboards to monitor and analyze performance.
Track OEE in real time, by shift, by machine – so engineers/operators know immediately when there are signs of deterioration.

3. Eliminate the Big Six Losses
Start where the losses are high: downtime, micro-stops, quality defects… then expand to improve gradually.

4. Implement preventive maintenance
Based on OEE trends to plan preventive maintenance, condition-based maintenance.

5. Implement continuous improvement methods (PDCA, Kaizen)
Set monthly OEE targets, evaluate, test small improvements and adjustments, organize daily reviews and discussions, use root cause analysis.

6. Focus on training and skill development for employees
Create a culture that every engineer and operator cares about OEE — committed to improving every day.

VI. Do you know the current OEE of your machine?

Overall Equipment Effectiveness is not just a number, but a map of the loss of the plant. When you know exactly where the loss is, you can improve the right points — and increase productivity systematically. Let i-OEE help you collect data automatically, monitor in real-time and improve every day. Contact i-Soft Joint Stock Company now for consultation.

Watch the video introducing i-OEE.