# OEE World Class Gap Simulator

> Source: https://netray.co/tools/oee-world-class-gap-simulator
> Publisher: Netray (netray.co), AI and integration engineering for ERP and manufacturing systems.
> Section: Free Tools

## Short answer

Enter your current availability, performance and quality, set a target, and see the OEE gap in points, units and margin per year.

## Category

mes-shop-floor

## Audience

- Continuous improvement manager
- Plant manager
- Operations manager

## Tool

**Kind:** calculator

**Currency:** $

**Inputs:**

#### Current availability

**Key:** avail_now

**Type:** slider

**Default:** 82

**Min:** 40

**Max:** 100

**Step:** 1

**Unit:** %

**Help:** Operating time over scheduled time.

#### Current performance

**Key:** perf_now

**Type:** slider

**Default:** 86

**Min:** 40

**Max:** 100

**Step:** 1

**Unit:** %

**Help:** Ideal cycle time versus actual speed while running.

#### Current quality

**Key:** qual_now

**Type:** slider

**Default:** 97

**Min:** 80

**Max:** 100

**Step:** 0.5

**Unit:** %

**Help:** First pass good units over total units.

#### Target availability

**Key:** avail_target

**Type:** number

**Default:** 90

**Min:** 1

**Max:** 100

**Step:** 1

**Unit:** %

**Help:** A commonly quoted benchmark is 90 percent.

#### Target performance

**Key:** perf_target

**Type:** number

**Default:** 95

**Min:** 1

**Max:** 100

**Step:** 1

**Unit:** %

**Help:** A commonly quoted benchmark is 95 percent.

#### Target quality

**Key:** qual_target

**Type:** number

**Default:** 99

**Min:** 1

**Max:** 100

**Step:** 0.1

**Unit:** %

**Help:** A commonly quoted benchmark is 99 percent or better.

#### Scheduled hours per year

**Key:** sched_hours

**Type:** number

**Default:** 4000

**Min:** 1

**Step:** 100

**Unit:** hours

#### Ideal rate

**Key:** ideal_rate

**Type:** number

**Default:** 120

**Min:** 1

**Step:** 5

**Unit:** units/hour

#### Contribution margin per good unit

**Key:** margin

**Type:** number

**Default:** 6.5

**Min:** 0

**Step:** 0.25

**Help:** Selling price less variable cost. Use this only if the extra units can be sold.

**Outputs:**

#### Current OEE

**Key:** oee_now

**Expr:** avail_now * perf_now * qual_now / 10000

**Format:** percent

**Primary:** true

#### Target OEE

**Key:** oee_target

**Expr:** avail_target * perf_target * qual_target / 10000

**Format:** percent

#### Gap to target

**Key:** gap_points

**Expr:** max(oee_target - oee_now, 0)

**Format:** decimal

**Description:** Percentage points of OEE between your current level and the target.

#### Good units per year now

**Key:** good_now

**Expr:** sched_hours * ideal_rate * oee_now / 100

**Format:** integer

#### Extra good units at target

**Key:** extra_units

**Expr:** sched_hours * ideal_rate * gap_points / 100

**Format:** integer

**Primary:** true

#### Margin value of extra units

**Key:** extra_margin

**Expr:** extra_units * margin

**Format:** currency

**Description:** Upper bound. It assumes demand exists and materials and labor are available.

#### Equivalent scheduled hours saved

**Key:** extra_hours

**Expr:** if(gt(oee_target, 0), sched_hours * gap_points / oee_target, 0)

**Format:** hours

**Description:** Hours you would not need to schedule to produce today's volume at target OEE, roughly.

**Chart:**

#### OEE as availability improves

**Type:** line

**X:** avail_now

**From:** 50

**To:** 100

**Steps:** 26

**Series:**

- oee_now
- oee_target

**Disclaimer:** Benchmarks such as 85 percent OEE are rules of thumb, not standards. Process type, product mix and how a plant defines planned downtime change what is realistic.

## Content

**Intro:** People ask what a good OEE is, then discover their lines run well below the quoted 85 percent. This simulator turns that gap into units and margin, so you can decide which of availability, performance or quality is worth attacking first.

**Sections:**

#### How to use the simulator

**Body:** Set current availability, performance and quality from your last month of data, not your best week. Then set targets. The defaults use 90, 95 and 99 percent, which multiply to roughly 85 percent OEE and are the figures most often quoted as world class. Enter scheduled hours per year, the ideal rate in units per hour and the contribution margin per good unit. The tool shows OEE now, OEE at target, the gap in points and the extra good units a year. Move the sliders one at a time to see which factor moves OEE most per point of effort.

#### Why 85 percent is a reference, not a rule

**Body:** The 85 percent figure comes from multiplying 90, 95 and 99 percent. It is a convenient yardstick for high volume discrete lines. A job shop with hundreds of changeovers a week, a process line with long cleaning cycles or a defense electronics cell with serialized builds may reach 60 to 70 percent and still be healthy. What matters is the trend on the same machine with the same definitions. Use the target fields to set a realistic stretch goal for your own process, then compare it to the benchmark as a sanity check rather than a verdict.

**Bullets:**

- Compare a machine with itself over time first.
- Use peers in the same process type second.
- Treat published benchmarks as a ceiling check, not a goal.

#### Reading the output

**Body:** With the defaults, current OEE is about 68 percent against an 85 percent target. That gap is roughly 16 points, worth well over 70,000 extra good units a year on 4,000 scheduled hours at 120 units an hour. The margin line is an upper bound because it assumes the market will buy those units. The equivalent hours line is often more useful: it tells you how much schedule you could free for other work. Use the chart to see how much OEE rises as availability improves while the other factors stay put.

#### Common mistakes

**Body:** Teams often set all three targets at once and spread effort thin. Pick the factor with the largest loss in minutes, which a loss breakdown will show, and attack that. Another mistake is raising performance targets above what the machine was designed to do. Finally, avoid multiplying benefits by a full year when changes will be phased in. If your ERP records downtime reason codes and scrap by work center, use those to set current availability and quality from actual confirmations.

**Cta:** If you would like current availability, performance and quality drawn from your ERP instead of typed in, Netray can set up a read-only view on your own systems. The simulator itself needs nothing from us.

**Faq:**

#### What is a world class OEE?

**Answer:** The usual reference is 85 percent, from 90 percent availability, 95 percent performance and 99 percent quality. It is a rule of thumb for repetitive discrete production. Many healthy plants run lower because of product mix, changeovers or regulation.

#### Which OEE factor should I improve first?

**Answer:** Start with the factor that loses the most minutes. Convert quality loss to minutes by multiplying defects by the ideal cycle time. Fixing the biggest block of lost time usually moves OEE faster than polishing a factor that is already near target.

#### Are the extra units real revenue?

**Answer:** Only if you can sell them. Extra capacity is worth the margin only when demand exceeds current output. Otherwise the benefit is fewer scheduled hours, less overtime and lower cost per unit, which the equivalent hours output estimates.

#### Can I use this for a whole plant?

**Answer:** You can, but averages hide bottlenecks. Run it for the constraint machine first. Improving a non-constraint rarely raises plant output, while a point of OEE on the bottleneck is a point of plant throughput.

## Search terms

world class oee, oee benchmark 85, oee gap analysis, oee improvement calculator, oee target simulator, what is a good oee, oee improvement value, oee what if calculator

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