More than just a number, Overall Equipment Effectiveness (OEE) is a lens through which world-class EMS providers measure productivity, identify bottlenecks, and implement sustainable improvements that deliver value to customers. Itโs also a key part of how SVI builds and maintains a culture of Continuous Improvement (CI).
OEE quantifies how effectively a piece of equipment is used in production by combining three key factors โ Availability, Performance, and Quality โ into a single percentage:
OEE = Availability ร Performance ร Quality
A perfect OEE score of 100% means equipment is producing only good parts, as fast as possible, with no downtime โ an ideal rarely reached, but always pursued.
In Electronics Manufacturing Services (EMS) โ particularly in high-mix, low-volume environments like ours at SVI โ line efficiency isnโt just about uptime. Itโs about responding quickly to changeovers, ensuring defect-free output, and maximizing yield per setup.
Monitoring OEE helps us:
Whether itโs an SMT line in Thailand or a box-build line in Slovakia, OEE gives our cross-functional teams a common language for efficiency and improvement.
๐ At SVI, we continuously pursue an OEE benchmark of 85% โ in our core manufacturing processes, especially within SMT operations.
At SVI, OEE is not tracked in isolation. Itโs part of a broader Continuous Improvement ecosystem, where daily shopfloor data drives regular CI meetings, root cause analysis, and Kaizen projects.
From implementing Work Cell Kaizen in 2012 to launching our Digital Factory Andromeda in 2023, weโve evolved how we apply OEE in both manual and automated environments.
OEE also plays a critical role in our Lean Six Sigma strategy. It provides the performance data that feeds directly into DMAIC problem-solving, helping our Green and Black Belts uncover patterns, prioritize actions, and validate improvements.
OEE is not just for engineers. At SVI, we train operators, maintenance teams, and production leaders to understand what affects OEE โ and how their actions improve it. Itโs part of building shared ownership in performance, quality, and customer satisfaction.
It also connects to OEL (Overall Line Effectiveness), which we use to assess entire production lines โ especially in complex system build and assembly areas. (Weโll explore OEL in a follow-up post.)
For SVI, OEE is more than a metric โ itโs a reflection of how well we align people, processes, and technology to deliver results. It helps us remain agile, responsive, and competitive in an industry that never stands still.
By integrating OEE with our broader CI and Lean Six Sigma efforts, we turn data into action โ and action into long-term value for our partners.
๐ Interested in how SVI can help improve your product performance through smarter manufacturing?
Contact us today to connect with our team.