OEE & Factory Performance worked example

OEE Improvement Value at 92% realization rate of recovered capacity: a worked example

What does the result look like when realization rate of recovered capacity reaches 92%? The full calculation is worked below with real intermediate numbers. Use it when oee improvement value in oee and factory performance is being put through a oee and factory performance weighted-cost review.

The inputs for this scenario

  • Downtime hours recovered: 100 units (unchanged)
  • Contribution margin per hour: 45 $ / unit (unchanged)
  • Realization rate of recovered capacity: 92 % (raised for this scenario; the documented default is 80)
  • One-time implementation cost: 250 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Weighted cost = quantity × rate × capture factor + fixed adjustment) to the inputs above produces each figure below.
  • At this operating point the engine returns 4,390 $ for total oee improvement value cost, the number this scenario is built around.
  • At this operating point the engine returns 43.9 $ / piece for oee improvement value cost per unit.
  • At this operating point the engine returns 4,140 $ for variable oee improvement value cost.
  • At this operating point the engine returns 250 $ for fixed oee improvement value adder.

How this compares with the baseline

  • Against the tool's baseline example, where realization rate of recovered capacity sits at 80% and the headline result is 3,850 $, this scenario comes in 14.03% above the baseline at 4,390 $.
  • A figure at this level is achievable when realization rate of recovered capacity is genuinely sustained, not just peaked for a shift. Contribution margin only converts to profit if the freed capacity is actually sold; in a demand-constrained plant the value can be far lower than the calculator suggests.

Results at a glance

  • Total OEE improvement value cost: 4,390 $ (headline result)
  • OEE improvement value cost per unit: 43.9 $ / piece
  • Variable OEE improvement value cost: 4,140 $
  • Fixed OEE improvement value adder: 250 $

Run it with your numbers

  • Every input above is editable in the live OEE Improvement Value calculator, which recalculates instantly and can be shared with the inputs intact.

Last reviewed 2026-05-12.