A Review of Overall Equipment Effectiveness (OEE) as a Theoretical Approach to Production Line Improvement

Abstract

This study presented a comprehensive review of Overall Equipment Effectiveness as a theoretical and practical framework for production line improvement, with particular emphasis on the bakery, patisserie, and confectionery industry in Saudi Arabia. Rooted in the principles of Total Productive Maintenance, OEE was examined as an integrative performance measure that combined availability, performance, and quality to identify hidden losses and guide improvement priorities. The review showed that, in multi–stock-keeping unit production environments characterized by frequent changeovers, setup and adjustment losses represented a major constraint on equipment availability and effective capacity utilization. Drawing on empirical and conceptual studies, the research demonstrated that OEE was most effective when it was applied as a diagnostic and improvement-oriented tool rather than as a standalone numerical indicator. The analysis further highlighted the interdependence of the three OEE dimensions, indicating that availability losses often propagate into performance inefficiencies and quality defects, particularly in time-sensitive food manufacturing operations. In addition, the study identified limitations related to inconsistent OEE calculation and interpretation, which reduced its comparability and weakened its role as a driver of continuous improvement. Overall, the findings confirmed that OEE provided a robust and holistic framework for uncovering concealed capacity, reducing reliance on overtime.