Production plants are the heart of many companies – and often also the biggest source of untapped potential. Machines are running, shifts are staffed, orders are being fulfilled. Yet between visible utilization and actual value creation, there is often a gap.
This is where the metric OEE (Overall Equipment Effectiveness) comes in.
Albert Schiller, Managing Director of XPNX, explains in this interview why OEE is a decisive tool for working with facts instead of assumptions.
Mr. Schiller, why is OEE so important?
OEE is one of the few metrics that captures the entire production system in a single number. It measures how effectively an asset is actually being used – not just whether it is running. Many companies see machines moving and assume they are productive. OEE shows how much of the available time truly creates value. It combines availability, speed, and quality – and it is precisely this combination that makes it so meaningful. A line may be technically modern, but if it is stopped too often or runs too slowly, the potential is not realized. OEE exposes these gaps relentlessly – not to criticize, but to enable learning. In my experience, simply working with OEE changes the way people think about their processes. They recognize connections that were previously invisible – for example, that small disturbances in the morning shift cumulatively cause more loss than one major disruption per week.
Many plants average around 60 percent OEE. Is that problematic?
It depends on the perspective. 60 percent is not a “bad” value, but rather a realistic starting point. What matters is what you do with it. OEE is not a grade, it is a diagnosis. The first measured value does not describe success or failure, but transparency. Many companies are surprised when they see where their losses actually occur – often not in obvious machine downtimes, but in organizational handovers, material logistics, or startup processes. The metric allows you to differentiate the picture and set priorities. Those who use this transparency gain control over their time and resources.
What advice do you give companies just starting to measure OEE?
First: stay calm. The first value is not an assessment, but the starting point of a learning curve. Second: OEE must be understood – not only technically, but also culturally. If a plant uses OEE as a tool for blame, it will fail. It is about insight, not justification. Third: consistency. It is not enough to produce an OEE report once a year. What matters is regularity. Only over time do you recognize patterns, seasonality, or the effects of certain measures. In my experience, the greatest benefit arises when OEE becomes part of the daily conversation – not only for engineers, but also for supervisors and operators.
Why Many Companies React Too Late
A common mistake is that plants only begin using OEE once the pressure becomes too high – for example, due to competitive pressure, supply bottlenecks, or rising costs. Yet OEE is particularly valuable when there is still room for improvement. Companies that start measuring early can introduce improvements step by step, instead of reacting hastily to crises. In addition, OEE helps connect departments: production, maintenance, quality, and management all see the same data – and therefore the same reality.
Practical Example
In a mid-sized food production plant, the OEE value was at 58 percent. After a simple analysis, unnecessary changeover times, frequent microstops, and sources of scrap were identified. Within three months, OEE rose to 65 percent. At first glance, this may appear to be a small increase – but in numbers, it translated into more than €1.5 million in additional value creation per year.
Conclusion
OEE creates a shared understanding of performance. It is less a control instrument and more a reflection of reality. Those who look at this reality regularly are able to actively shape it
Outlook
With increasing digitalization, OEE data will become automatically available. Yet interpretation remains a human responsibility – it determines whether numbers truly generate insight.
