Building Your KPI Dashboard: Why OEE is Your #1 Manufacturing KPI

Paula has a dashboard with 20 different KPIs on it.

They're all displayed with equal importance, from "energy cost per unit" to "Mean Time to Repair."

She sees that her OEE score is down this week, but she has no clear, systematic way to see how that relates to her team's maintenance performance.

Her dashboard is just a list of metrics, not a coherent system for understanding performance.

Let's start by directly answering the core question: Why do world-class manufacturers consider OEE to be their most important KPI?

It's Comprehensive

OEE captures all your major production losses—from machine breakdowns to slow cycles to scrap—in a single, easy-to-understand number. It provides a holistic view of your operational health.

It's Actionable

A good KPI doesn't just inform you; it tells you where to look next. By breaking OEE down into its three components of Availability, Performance, and Quality, you can instantly see which area needs the most attention.

It's Universal

OEE is a globally recognized standard for measuring manufacturing effectiveness. This allows you to benchmark your performance against your competitors, your other facilities, and your own historical trends.

The most effective way to manage performance is to stop looking at a flat list and start thinking in terms of a KPI Tree.

Tier 1: The Scorecard (OEE)

At the very top of the tree is your single, overall OEE score. This is Paula's view—the ultimate measure of a plant's health and profitability.

Tier 2: The Diagnostic Levers (A, P, Q)

The next level down consists of Availability, Performance, and Quality. These are the primary diagnostic levers.

If the OEE score is down, one of these three components is the direct cause. This is Mike's primary view for managing the factory floor.

Tier 3: The Root Causes (The Six Big Losses)

Beneath each of the three levers are the specific root causes of the loss. For example, under Availability, you have Unplanned Stops and Planned Stops.

This is the granular view your team needs to perform effective root cause analysis.

Here is the critical insight that most companies miss. Everything in the OEE KPI tree is a diagnostic metric.

It is brilliant at telling you what is wrong with your operations.

The Diagnosis is Not Enough

But a diagnosis doesn't fix anything. For that, you need a different set of KPIs that measure how well you are curing the problems that OEE finds.

The Cure: Measuring Your Response

We call these Response KPIs. These are the core maintenance metrics that measure the speed and effectiveness of your cure.

The most important ones are:

• Mean Time to Repair (MTTR): How fast are you fixing breakdowns?

• Mean Time Between Failures (MTBF): Are you making your machines more reliable over time?

• PM Compliance: Are you consistently executing your proactive maintenance plan?

The CMMS: The Home of Your Response KPIs

These crucial Response KPIs are born directly from your maintenance activities. Their natural home is a modern Computerized Maintenance Management System (CMMS).

The ultimate KPI dashboard doesn't just show you your OEE tree. It shows you the OEE diagnosis right next to the CMMS response.

This is the power of an integrated system like Fabrico. You can see your Availability score drop (the diagnosis) on the same screen where you can see your Mean Time to Repair for the same period (the response).

This allows you to instantly see the direct connection between your operational problems and the effectiveness of your maintenance solutions.

How many KPIs should we have on our main dashboard?

Less is more. Your main dashboard should focus on the Tier 1 (OEE) and Tier 2 (A, P, Q) diagnostic KPIs, alongside your 2-3 most important Response KPIs like MTTR and PM Compliance.

Should OEE be a KPI for our operators?

Absolutely. A simplified, real-time OEE score displayed on the shop floor is a powerful tool. It gives operators a clear target and a sense of ownership over their performance.

Is OEE a leading or a lagging indicator?

It's both. The historical OEE score is a lagging indicator of past performance. However, a real-time OEE dashboard acts as a leading indicator, showing you problems as they develop and allowing you to intervene before they impact the entire shift.

A long list of KPIs is just data. A true performance management system connects your diagnostic KPIs directly to your response KPIs.

It creates a closed loop between your problems and your solutions.

Ready to see what a truly integrated KPI dashboard looks like in action?

Book a personalized demo of Fabrico today.