Overall equipment effectiveness

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Introduction

In manufacturing, every minute counts. Overall Equipment Effectiveness (OEE) in Odoo’s Manufacturing app is a simple but powerful way to measure how productive your equipment really is.

OEE tells you the percentage of time your work centres are operating at peak efficiency. It highlights where time is lostwhether that’s due to reduced speed, material shortages, or equipment breakdowns—so you can improve productivity and reduce costs.

This guide explains how to set up, track, and use OEE in Odoo, step-by-step, with tips tailored for UK businesses.

Step-by-Step Instructions

 

  1. Enable Work Centres

OEE relies on tracking productivity in work centres.

  1. Open the Manufacturing app.
  2. Go to Configuration → Settings.
  3. Under Operations, tick Work Orders.
  4. Click Save.
  1. Set Efficiency Standards for Work Centres

To get accurate OEE data, configure each work centre with:

  • Time Efficiency – How quickly it operates compared to expected times.
  • Capacity – How many units it can handle at once.
  • OEE Target – Your performance goal, up to 100%.

Time Efficiency

  • Measured as a percentage.
  • 100% means work is completed exactly as expected in the Bill of Materials (BoM).
  • Less than 100% means slower; more than 100% means faster.
  • To set: Manufacturing → Configuration → Work Centres → Select a work centre → General Information tab → Time Efficiency field.

Example:
If cutting wood should take 30 minutes, but your cutting station takes 60 minutes, its time efficiency is 50%.

Capacity

  • Number of units produced at the same time.
  • To set: Same menu as above, enter a number in the Capacity field.

Example:
If a drill station can only work on 1 chair at a time, but an MO calls for 10 chairs, the operation time will be 10 times longer.

OEE Target

  • Your ideal productivity goal (max 100%).
  • To set: Manufacturing → Configuration → Work Centres → OEE Target field.
  1. Understand How OEE Is Calculated

OEE = (Fully Productive Time ÷ Total Operating Time) × 100

Fully Productive Time means:

  • The work centre is running.
  • Materials are available.
  • Tasks are completed within expected durations.

Common causes of lost time:

  • Reduced speed – Tasks take longer than planned.
  • Material shortages – Stock not available when needed.
  • Equipment failure – Machines break down or are in maintenance.
  1. Track OEE in Odoo

All Work Centres:

  • Go to Manufacturing → Reporting → Overall Equipment Effectiveness.

Single Work Centre:

  • Go to Manufacturing → Configuration → Work Centres → Select a work centre → Click the OEE button.

View your data as:

  • Bar charts
  • Line charts
  • Pie charts
  • Pivot tables or detailed lists

Tips

  • Regularly update efficiency settings when processes change.
  • Use downtime tracking to pinpoint recurring problems.
  • Schedule preventive maintenance to avoid breakdowns.
  • Train staff on best practices to reduce slowdowns.
  • Link OEE tracking with inventory forecasting for smoother material flow.

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