What is Food & Beverage Manufacturing OEE?

Introduction

Overall Equipment Effectiveness (OEE) is a performance metric important for food and beverage manufacturing, identifying the percentage of manufacturing time that is truly productive. Past metrics only measured one or two attributes, like weight in pounds or cases per hour and overall downtime, without focusing on quality.

OEE consists of three metrics: availability, performance, and quality. 

• Availability: equipment’s active time (compared to downtime)
• Performance: the running speed of the equipment (compared to its maximum)
• Quality: the number of good products (compared to the total number of products)

However, OEE isn’t just simple performance tracking, it’s a comprehensive health check of production operations. Why? Because behind the total percentages (and individual ones) you get actionable insights where you can improve. For example, if “availability” reveals there is a lot of downtime, it means you need to adjust your maintenance strategy and fix issues faster.

Or, the “quality” metric can reveal why you get so many returns and customer support issues.

The food and beverage industry has unique challenges that make OEE particularly complex, such as raw ingredients, perishability, environmental conditions, etc.

Food manufacturers typically focus more narrowly on availability and quality when calculating OEE, compared to other industries. This is due to the high automation of food processing and the critical nature of maintaining consistent product standards. 

Micro-stoppages (seemingly insignificant brief interruptions like clearing a jammed bag or refilling a labeler) can accumulate into substantial productivity losses when tracked meticulously.

Reduce equipment downtime with LLumin’s Preventive Maintenance Software

The average OEE score for the food and beverage industry is 53% (out of 100%) which is alarming considering other industries (medical, plastics, cosmetics) have a better score.

The low score indicates that there is a lot of room for improvement when it comes to OEE, and food and beverage manufacturers should look into the individual metrics to find patterns and insights. Here are some tips for improving the OEE:

• Use sensors to monitor equipment health in real-time
• Schedule maintenance before critical failures occur
• Create a comprehensive spare parts inventory
• Track and minimize changeover times

The Importance of OEE in the Food and Beverage Manufacturing Industry

1. Tracking metrics that make a difference

With OEE software, you can see exactly where performance is maximum, minimum, or average. What really matters is the production speed vs. optimal production speed, also called performance.

The production speed is very important for this industry since it directly correlates to product quality and desired output. If the speed isn’t optimal, it affects the total amounts of units produced (quantity), and some products may reach the expiration date or get contaminated  (quality).

Another important metric is the actual run time versus the total operational time. If the piece of equipment has a lot of downtime (not working) it will eventually impact the production line. 

To measure the quality/yield of products, you need to compare the number of good units vs. the faulty ones.  Many faulty products will cause customer dissatisfaction and returns.

With the OEE software, you can collect and analyze data from all of your sensors, and track these KPIs as well as any others. OEE consolidates all these KPIs into one metric so it is straightforward and effective for the whole team. 

Without calculating this metric, manufacturing facilities won’t be aware of their machine’s performance, and the problems that could be easily solved.

2. Adjusting in real-time

With OEE software, you get real-time alerts and warnings if something is off. For example, if there is a temperature spike that could potentially affect the quality of the product, if you get an alarm you can prevent this from happening.

Timely resolution is very important for food and beverage manufacturers since some materials can’t be reworded, and all products have strict expiration dates.

With real-time monitoring, you can get insights into the batches currently in production and prompt corrective actions.

The final results are reduced rework, on-time shipments, and maximum customer satisfaction.

3. Better equipment performance

An OEE software helps pinpoint any pitfalls in your process, including equipment failures. With a clear overview of sensor data, you can spot inefficiencies caused by issues such as frequent breakdowns of a single machine or component, which cause downstream issues.

With accurate tracking and data, you can schedule routine maintenance checks to prevent unplanned downtime and unexpected machine failure.

Streamline food production processes with LLumin’s specialized software

Calculating OEE in the Food & Beverage Manufacturing Industry

To calculate OEE and individual components, you need to collect data first. Data collection methods typically involve:

• Automated sensor systems on production equipment
• Digital tracking of production line performance
• Comprehensive logging of equipment stops and quality issues
• Manual input from production staff for nuanced observations
• Integration of multiple data sources for comprehensive tracking

The three OEE components require specific calculation methods:

Availability calculation

Availability measures actual runtime against planned production time. This involves meticulously tracking both planned and unplanned stops. 

Planned stops include scheduled maintenance and changeovers, while unplanned stops capture equipment failures, material shortages, and unexpected interruptions. 

The formula is: Availability = Run Time / Planned Production Time.

Performance calculation

Performance evaluates the speed of production against the ideal cycle time. This component captures both minor stoppages and speed losses. Manufacturers must differentiate between small stops (under 5 minutes) and significant interruptions. 

The calculation is: Performance = (Ideal Cycle Time × Total Count) / Run Time.

Quality calculation

Quality measures the proportion of good products against total production. This requires detailed tracking of product defects, rejects, and rework. 

The formula is straightforward: Quality = Good Products / Total Products Produced.

The formula that combines all three into OEE is:

OEE = Availability × Performance × Quality 

Here is a practical example:

Common Challenges of Measuring OEE in the Food and Beverage Industry

Here are the common challenges you may face when you measure OEE in the food and beverage industry:

1. Product variations

The challenge with product variations is that Ingredients have inherent physical variations in weight, shape, density, moisture content, stickiness, etc.

Machinery designed for specific product properties can struggle when ingredient characteristics change between batches.  Therefore, the downtime and quality may be affected due to this issue. What you can do:

• Implement flexible manufacturing equipment
• Develop adaptive process controls
• Create comprehensive ingredient specification databases
• Use advanced sensors to detect real-time ingredient variations

2. Manual reporting and data inaccuracy

Paper-based systems and inconsistent reporting lead to unreliable data across shifts. Also, if the manufacturing facility has dozens of machines, it can be hard to track and find easily the reports you need. Here is how to address this:

• Implement automated tracking systems
• Use digital tracking technologies
• Develop standardized reporting protocols
• Provide training on the importance of accurate data collection

3. Short production runs and frequent changeovers

 Increasing consumer demand for customized, varied products requires constant line reconfiguration. However, frequent changeovers increase downtime and potential quality inconsistencies. Here are some tips for this challenge:

• Develop quick-change tooling systems
• Create standardized changeover procedures
• Invest in training for rapid equipment reconfiguration
• Use predictive analytics to optimize changeover processes

4. Perishability and waste management

As we mentioned, food products are time-sensitive and environmentally vulnerable. Therefore, downtime or quality issues can lead to significant product waste and financial losses.

How to address:

• Implement real-time environmental monitoring
• Use advanced temperature and humidity control systems
• Develop rapid response protocols for potential contamination
• Create waste valorization strategies

5. Technology integration

A potential challenge when implementing OEE software is Integrating various data sources and tracking systems. Disconnected systems prevent holistic performance analysis, which is important for OEE. Here is what you can do:

• Select integrated OEE software solutions
• Implement IoT-enabled tracking systems
• Create standardized data collection protocols
• Invest in staff training for new technologies

LLumin’s CMMS+ is a great OEE monitoring solution because of our advanced real-time equipment performance tracking capabilities. Unlike standard maintenance management software, LLumin provides powerful, comprehensive insights that enable businesses to drastically reduce downtime and optimize equipment effectiveness. 

LLumin collects and analyzes critical machine parameters and performance metrics in real-time, the platform allows manufacturers to proactively identify and mitigate potential issues before they escalate.

LLumin reduces unplanned downtime by up to 40% within a year and decreases mean time to repair (MTTR) by 20% in the first 24 months of implementation. 

With features like real-time alerts, machine-level sensor integration, and best-in-class customer support, LLumin goes beyond traditional monitoring tools. The system helps prevent catastrophic failures, reduces product quality issues, and provides an all-in-one dashboard for equipment status, repair, and maintenance.

Explore LLumin’s OEE Monitoring Software to optimize food and beverage manufacturing.

Tips for effective OEE measurement:

• Start with basic tracking and progressively improve
• Focus on consistent data collection
• Create a culture of continuous improvement
• Regularly calibrate and validate measurement systems
• Benchmark against industry standards
• Invest in flexible, adaptable technologies that can handle the unique challenges of food and beverage manufacturing while providing accurate, real-time insights into production performance.

What Differentiates OEE in Food & Beverage Manufacturing from Other Industries?

OEE in food and beverage manufacturing stands apart from other industries due to the sector’s strict requirements for handling perishable goods, maintaining strict hygiene standards, and managing high variability in production. 

Unlike industries that deal with durable goods, food and beverage manufacturers face frequent cleaning and sanitation processes to comply with safety regulations, which directly impact equipment availability. 

These mandatory processes reduce production time, but are essential to avoid contamination and ensure compliance with standards like FDA or HACCP.

Performance metrics in this sector are also influenced by the need to manage diverse product lines, rapid changeovers, and seasonal production spikes. 

For instance, a beverage plant might switch between different flavors or packaging sizes multiple times in a single day, which can cause inefficiencies if changeovers are not optimized. 

Equipment must be highly adaptable to handle such variability while minimizing speed losses. Furthermore, ingredient variability (such as inconsistent quality or seasonal availability) can affect production efficiency.

Quality metrics are especially important in food and beverage manufacturing. Defects such as contamination, incorrect labeling, or packaging errors not only lead to significant waste but can also result in costly recalls or damage to brand reputation. 

Thus, OEE in this industry places a stronger emphasis on quality assurance and compliance. 

Overall, optimizing OEE in food and beverage manufacturing involves balancing efficiency with safety, hygiene, and flexibility to meet regulatory demands and consumer expectations.

Key Advantages to Utilizing OEE in Food & Beverage Manufacturing

With OEE, you can precisely identify any production inefficiencies that may be affecting your yield, product quality delivery times, etc. Instead of shooting in the dark, OEE precisely pinpoints what aspects of your production line need optimization. With real-time tracking of equipment performance, you not only get precise reports, but it acts as an alarm in situations where something is wrong with the equipment.

A single spike in temperature can cause some products to become suspicious, so monitoring this in real-time will prevent things from escalating.

Without OEE as a measurement, it is hard to quantify manufacturing productivity. Vague metrics and reports can influence optimization strategies, costs, etc.

Performance metrics, such as speed losses and production bottlenecks, can reveal areas where equipment is underperforming. Quality metrics, which track defects and rework, may highlight machine calibration issues or process inconsistencies. By addressing these specific pain points, teams can optimize workflows, improve equipment reliability, and increase overall productivity, all while reducing waste.

OEE has an interactive nature, therefore, regularly analyzing OEE trends allows manufacturers to set benchmarks, measure the impact of interventions, and prioritize resources effectively. For instance, consistent tracking may reveal recurring failures that justify investment in predictive maintenance tools or operator training.

Conclusion

By measuring availability, performance, and quality, OEE provides manufacturers with actionable insights to optimize operations and minimize waste. This is especially critical in an industry where tight margins, high consumer demand, and strict regulatory requirements leave little room for inefficiencies.

The unique challenges of food and beverage manufacturing—such as frequent sanitation processes, complex changeovers, and managing perishable goods—make OEE optimization both challenging and essential. 

Availability is impacted by cleaning and maintenance schedules, while performance can suffer from variability in production lines or ingredient quality. Quality metrics are equally demanding, as defects can lead to costly recalls and regulatory penalties. Addressing these challenges requires not only careful monitoring but also proactive solutions tailored to the sector’s unique needs.

OEE software is a powerful tool that can help manufacturers overcome these obstacles. By providing real-time data and analytics, it enables businesses to identify bottlenecks, predict equipment failures, and streamline processes. 

Automated reporting reduces the manual effort of tracking metrics, allowing teams to focus on continuous improvement. 

Additionally, advanced OEE platforms often integrate with other systems, offering comprehensive visibility across production lines. For food and beverage manufacturers, adopting OEE software can be a game-changer, helping them achieve the delicate balance between operational efficiency, regulatory compliance, and delivering high-quality products to consumers.

Boost food production efficiency with LLumin’s asset management platform

FAQs

How does OEE impact food safety in manufacturing?

OEE directly influences food safety by providing comprehensive visibility into production processes. It tracks quality metrics so manufacturers can identify potential contamination risks, equipment malfunctions, and process deviations that could compromise product safety. The quality component of OEE helps detect non-conforming products, tracks reject rates, and ensures that equipment is operating within specified parameters. This continuous monitoring allows manufacturers to quickly address issues that might lead to food safety violations, such as improper temperature control, equipment cleanliness, or product handling inconsistencies.

What role does predictive maintenance play in improving OEE?

With advanced sensors and data analytics, manufacturers can anticipate equipment failures before they occur. This approach prevents unexpected breakdowns, reduces unplanned downtime, and extends equipment lifespan. Instead of reactive maintenance, predictive strategies allow manufacturers to schedule interventions during planned downtimes, minimizing production interruptions. The technology can detect subtle changes in equipment performance, such as vibration anomalies or temperature fluctuations, that indicate potential future failures, thereby improving the availability and performance of components of OEE.

How does downtime affect OEE in food manufacturing?

Downtime is particularly alarming in food manufacturing due to the perishable nature of ingredients and products. Even short stoppages can result in significant product waste, lost production time, and increased costs. In the food industry, downtime isn’t just about lost production, it can mean entire batches becoming unusable if exposed to incorrect temperatures or environmental conditions.

How can real-time OEE monitoring improve production line efficiency?

Real-time OEE monitoring provides manufacturers with immediate insights into production performance, so they can optimize processes and make decisions faster. By capturing data instantaneously, manufacturers can quickly identify and address bottlenecks, equipment issues, or quality deviations. This technology allows for immediate corrective actions, reducing potential waste and minimizing production interruptions. Real-time monitoring also helps track performance metrics like cycle times, production speeds, and quality rates across different shifts and production lines.

Caleb Castellaw

Customer Account Manager at LLumin CMMS+

Caleb Castellaw is an accomplished B2B SaaS professional with experience in Business Development, Direct Sales, Partner Sales, and Customer Success. His expertise spans across asset management, process automation, and ERP sectors. Currently, Caleb oversees partner and customer relations at LLumin, ensuring strategic alignment and satisfaction.

• Caleb Castellaw

  https://llumin.com/author/caleb-castellaw/

  Preventive Maintenance Program: The Complete Guide
• Caleb Castellaw

  https://llumin.com/author/caleb-castellaw/

  Preventive Maintenance of Construction Equipment: Best Practices
• Caleb Castellaw

  https://llumin.com/author/caleb-castellaw/

  Maintenance Inventory Management Best Practices
• Caleb Castellaw

  https://llumin.com/author/caleb-castellaw/

  Work Order Templates (Download for Free)