SAP OEE = Overall Equipment Effectiveness

With SAP OEE (Overall Equipment Effectiveness), operators of production and manufacturing systems have an instrument available to them that can help to measure and evaluate the availability and performance of technical facilities, as well as the quality rates achieved.

SAP OEE is, therefore, a central cornerstone of Industry 4.0, which analyses the effectiveness losses of production systems and, resultantly, shows where resources are being lost and the impact this has. The instrument puts operators in a position where they are able to make informed decisions on the basis of OEE figures, so as to be able to ensure the company's added value even in the face of increasing complexity.

The automated capture offers the advantage of making additional key performance indicators such as process throughput, set up level or level of document use (capacity) consistently available in real time. Continual opportunities for optimisation, which not only offset time, performance and quality losses but also considerably increase the effectiveness of the entire system, follow from the analysis of production units, individual products, time periods, defect times and sources.


A system's OEE (Overall Equipment Effectiveness) is defined as a product of availability, performance and quality:

OEE = availability x performance x quality

The result is a percentage value that indicates for what proportion of the scheduled machine running time production is actually taking place at the required level of quality. 

This specifically applies to:

  • Availability = effective operating time / working hours
    The availability factor is a measurement of losses due to unscheduled system downtimes. The effective operating time is here the sum of the time frames within which the main unit operates without errors. Working hours is the time during which the employees are deployed to work on the system, or alternatively are only available to work on this system.
  • Performance = actual throughput/ theoretical throughput
    The performance factor is a measure of loss based on deviations from the planned piece production time, short stops (short downtimes that do not affect availability) and idle periods.
    The "theoretical throughput" is the throughput the machine could have achieved if it were running at maximum speed during the actual operating times. 
  • Quality = high-quality products / actually manufactured products
    The relationship between the number of manufactured units and the number of high-quality units determines the "quality level" and is a measure for waste and re-working during production.

  • Recording of all production losses and collection of data that goes beyond usual KPI standards.
  • SAP OEE dashboards consistently capture relevant product data such as downtimes, quantities, reason codes, etc.
  • Pre-defined integration between SAP ERP, production/manufacture (SAP ME / SAP MII) and analytical system (SAP HANA).
  • Analyses and diagrams, including "drill down" function, which provides information about the reasons for losses.
  • Possibility to adapt the analysis reports to individual requirements.
  • Possibility to extend the dashboards and analyses under consideration of specific requirements.

SAP OEE is a central instrument for ensuring optimum overall equipment effectiveness across the entire life cycle of machines and systems. This allows for quick, automated data capture and evaluation. The information is prepared transparently and comprehensively, so that those responsible for production are able to adequately control and gradually further improve the company's processes. 

  • Availability
    Reduction of system-related stoppages and downtimes due to cleaning and set up. 

  • Performance
    Minimising of short stoppages and idle phases, as well as the realisation of maximum clock speeds.

  • Quality
    Avoidance of quality losses through the elimination of unstable production phases and the reduction of reject rates.

IGZ supports you in

  • the set-up and configuration of SAP OEE
  • automated data capture through direct machine connection

OEE as an integral component of IGZ's best practice solutions:

  • Project acceleration through prefabrication and configurable content
  • Prefabricated machine connection by means of OPC, telegram or IO signals
  • Individual system configurations and master data
  • Support of various OEE standards (including Weihenstephaner Standard, OMAC, …)
  • Data aggregation in real time ? Live OEE
  • Customer-specific key performance indicators
  • Comprehensive standard reporting
  • Simple extension of the analyses around individual KPIs

SAP Module Manufacturing

SAP OEE <br />References


To the references