Overall Equipment Effectiveness (OEE) is a metric which integrates availability, performance and quality metrics. It is also an important part of  a successful TPM implementation.

In this interview Mr. Hansen shares his thoughts on the following topics:

  • OEE definition;
  • OEE applicability;
  • automatic data collection versus manual data collection;
  • how does OEE compare to other performance metrics;
  • expected ROI on an automatic data collection system for OEE;
  • common OEE implementation pitfalls;
  • how to align OEE implementation with overall business strategy;
  • how to calculate improvement potential;
  • common efficiency losses;
  • common mistakes in OEE calculations and data collection;
  • difference between OEE and TEEP; and
  • how to deal with resistance to OEE implementation.

You can read more about Mr. Hansen’s book here, check its table of content here, and get it here.

Want to know more?

Dive into OEE by reading a series of informative articles by Dr. Rosner of AllAboutLean.com:

  1. What is OEE? – Definition of OEE (link)
  2. How to Measure OEE (link)
  3. What the OEE is Good for … and What it’s Not (link)
  4. OEE Usage and Flexibility (link)

Muchiri and Pintelon (2008) discuss historical background of OEE, other metrics based on OEE (e.g. TEEP, OPE), and present several industrial examples.


Muchiri, P. and Pintelon, L., 2008. Performance measurement using overall equipment effectiveness (OEE): literature review and practical application discussion. International Journal of Production Research, 46(13), pp.3517-3535.

This post was originally written for The Lean Presentation.