MBTF vs. Oee

OEEOverall Equipment Effectiveness
vs.
MTBF Mean Time Between Failure
Which is Right for You?

Measuring the Performance of
Your Assets
If you have had some exposure to the common

thinking on this topic, then you are likely familiar
with the terms OEE (Overall Equipment
Effectiveness) and MTBF (Mean Time Between
Failure).
Both metrics can be very informative and drive

specific behaviors when applied correctly. When
applied incorrectly, they can lead to confusion and
frustration. In this post, I hope to shed some light on
which of these measures may be more meaningful
for your organization.
Overall Equipment Effectiveness (OEE)
OEE measures the percentage of manufacturing time

that is truly productive.
Perfection at OEE is 100%. Perfection means that you

are running as fast as possible during planned
(allocated) production time with no defects. Anything
more than that, and you are breaking a few of the
basic laws of physics, but we will save that discussion
for another time.
Common OEE Formula
• OEE = Overall Equipment Effectiveness

• A = Availability = The ratio of the run time to planned production time.
• R = Production Rate = The actual production speed compared to the ideal
cycle time.
• Q = Quality Rate = For all the units that you produced, what percentage of
them were acceptable for sale to the customer, meeting the stated quality
requirements.
OEE is a fantastic measure for a few important
reasons:
• Nowhere in the definition do the words “maintenance” or

“operations” appear. It facilitates two teams who can easily
work at cross-purposes together.
• It forces us to focus on the loss of potential rather than what
we have accomplished with no idea of what might be
possible.
• It brings together three aspects that are critical to meeting our
customers' needs.
• It provides insights into how to improve your manufacturing
process.
OEE is a bit of a universal metric; measuring it is a

manufacturing best practice. It includes many of the
critical aspects of your performance into a single
metric. If you include some safety and cost measures,
you are approaching a well-formed maintenance
scorecard.
Mean Time Between Failures (MTBF)
MTBF tells us the average time we should expect to

see an asset fulfill its designed function before
experiencing a failure. Higher MTBF performance is
better, as it indicates that your asset performs its
intended function longer without any interruption
attributed to failures.
Those who experience low MTBF should expect to see

higher levels of unplanned downtime, higher repair
costs, and possibly an associated increase in labor
costs. All attributed to the repairs that are required on
a more frequent basis.
MTBF can be used in conjunction with mean time to

repair (MTTR) to calculate system availability.
Calculating MTBF is relatively simple:
MTBF = (# of Assets X Time Frame) / # of Failures in
that time frame
• Number of Assets = Total Count of Assets, generally grouped by
some approximation of asset type (pumps, rotating equipment,
motors, etc.) in a specific area of focus (plant-wide, department,
operating area, etc.).
• Time Frame = Frequency of measurement – usually monthly or
annually.
• Number of Failures = The number of occurrences where the asset
failed to fulfill its function.
MTBF is a relative measure. Measuring MTBF on a

highly critical asset or group of assets can be very
meaningful. Measuring MTBF across an entire
department or facility provides a little less value but is
still informative with regard to our ability to maintain
our assets. Increasing MTBF means we are doing
something right.
It is also important to note that MTBF does not

consider situations where assets are running at a
reduced rate, nor does it consider the size and
duration of the event (not all equipment failures are
equal – some are longer and have a greater impact
than others).
Why Calculate MTBF?
MTBF is a valuable metric that helps organizations
ensure that their maintenance strategy is delivering
reliability, availability, and performance of their systems
and products, ultimately leading to improved customer
satisfaction and operational efficiency.
How to Improve MTBF

1. Component Selection
2. Redundancy
3. Preventive Maintenance
4. Monitoring and Diagnostics
5. Design Improvements
6. Training and Personnel Development
7. Environmental Control
8. Supplier Quality Control
9. Continuous Improvement
By implementing these strategies, organizations can

enhance the reliability and performance of their
systems or components, leading to increased MTBF
and improved operational efficiency.
Which is right for you?
OEE or MTBF?
Metrics are a funny thing. When used correctly and
with the right application, they can provide a lot of
value and focus to an organization. Used incorrectly,
they tend to cause more harm than good.
When selecting the best metrics for your team,

consider the following advice:
• Keep it simple. Too many measures cloud the focus.

• Make sure we know what actions to take to improve
the performance of each metric. What must we do
differently to improve? It sounds obvious, but
surprisingly it is often overlooked.
• Talk about it often. A metric is only as good as the
leader who draws the team together to own it and
acts on it.
Did You Find This Helpful?
Allied Reliability provides asset management consulting and
predictive maintenance solutions across the lifecycle of your
production assets to deliver required throughput at lowest
operating cost while managing asset risk and achieving
environment, social, and governance objectives.
For resources and more, follow us on our social media

channels and visit our website.
alliedreliability.com

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OEEOverall Equipment Eﬀectiveness

Which is Right for You?

If you have had some exposure to the common

Both metrics can be very informative and drive

OEE measures the percentage of manufacturing time

Perfection at OEE is 100%. Perfection means that you

Common OEE Formula

• OEE = Overall Equipment Eﬀectiveness

• Nowhere in the deﬁnition do the words “maintenance” or

OEE is a bit of a universal metric; measuring it is a

MTBF tells us the average time we should expect to

Those who experience low MTBF should expect to see

MTBF can be used in conjunction with mean time to

MTBF is a relative measure. Measuring MTBF on a

It is also important to note that MTBF does not

How to Improve MTBF

By implementing these strategies, organizations can

When selecting the best metrics for your team,

• Keep it simple. Too many measures cloud the focus.

For resources and more, follow us on our social media

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