Practical Wins from Digital Transformation

In the third part of a six-part series on digital transformation, using digital tools to turn OEE into an active driver of performance, not just a report, is explored.

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(Read Part 1 here, read Part 2 here)

Most food and beverage manufacturers track overall equipment effectiveness (OEE). The metric is widely known, commonly displayed, and frequently discussed in meetings. Yet in many plants, OEE has become something it was never meant to be: a scoreboard.

Numbers are posted. Targets are announced. Records are celebrated. But when production misses schedule, quality losses persist, or chronic downtime remains unresolved, an uncomfortable truth emerges: Knowing the number is not the same as improving the operation.

Used properly, OEE can be one of the most valuable tools on the plant floor. It can help identify hidden losses, focus maintenance priorities, improve changeovers, and align teams around real performance constraints. Used poorly, it can distort behavior, encourage gamesmanship, and create false confidence.

Digital tools now give manufacturers the opportunity to rethink OEE entirely. Instead of treating it as a monthly report card, plants can use it as a daily operating tool that drives faster decisions and smarter improvement.

The opportunity is not to get better at reporting OEE. It’s to get better at using it.

When the metric becomes the game

One of the most common problems with OEE is not the formula, it’s the temptation to manage the number rather than the losses behind it.

I’ve seen lines assigned nominal operating speeds well below their true standard rate. When the line runs above that lowered baseline, OEE rises accordingly. In some cases, plants have reported OEE above 100% while still dealing with downtime, waste, and recurring quality issues.

Similar distortions can occur in availability calculations. Planned stops may be excluded inconsistently. Minor stoppages may disappear into broad categories. Changeovers may be handled differently depending on which result management wants to see. These practices may improve the metric, but they don’t improve the plant.

Without honest baselines, OEE loses its real purpose: identifying where the operation is struggling so teams can improve it. Once the number becomes the goal, the process often gets ignored.

That’s unfortunate, because when used honestly, OEE can be extremely powerful.

Dr. Bryan Griffen is the President of Griffen Executive Solutions LLC. He was previously Senior Director of Industry Services for PMMI: The Association for Packaging and Processing Technologies, and he held a number of roles for Nestlé during his many years there.Dr. Bryan Griffen is the President of Griffen Executive Solutions LLC. He was previously Senior Director of Industry Services for PMMI: The Association for Packaging and Processing Technologies, and he held a number of roles for Nestlé during his many years there.Griffen Executive SolutionsBreak the number back into reality

At its core, OEE is valuable because it simplifies performance into three understandable dimensions: availability, performance, and quality.

Availability asks how much scheduled time was truly productive. Performance asks whether the line ran at its realistic capable rate. Quality asks how much of what was produced was saleable product.

The key word in all three categories is realistic.

Operators can’t improve an abstract 78% OEE score. They can improve a recurring filler jam every 40 minutes. They can improve a changeover that consistently runs 18 minutes long. They can improve startup scrap that happens every Monday after sanitation. When losses are broken into specific, observable events, OEE becomes practical again.

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