The real cause of low OEE: why human knowledge makes the difference
When a production line comes to a standstill, we often immediately point to the technology: a defective sensor or a malfunctioning system. However, the reality is completely different: long downtimes, low performance, and inconsistent quality are primarily caused by lost experience and work methods that are not properly transferred. This is according to research by McKinsey. This requires us to look at the human element to realize genuine improvement.
Machines fail less often than we think
It is tempting to blame low OEE on the machine. That is also the most visible problem. Yet, in practice, the situation is different:
- 23% of unplanned downtime in the manufacturing industry is caused by human error, such as incorrect settings or missed signals.
- On average, factories remain stuck at 55–70% OEE, while world-class companies achieve >85%.
The difference between average and world-class performance lies mainly in knowledge, experience, and people. Not in technology alone. TEEPTRAK is clear in its 2025 benchmark report: 80% of the improvement potential in OEE comes from people and their routines, not from machines.
80% of improvement potential comes from people and their routines
TEEPTRAK Benchmark Report 2025
Why it goes wrong: broken processes
McKinsey observes that factories face similar problems: management and the shop floor are not in sufficient contact, feedback is consequently scarce, and digital tools are underutilized. Even when technology is present, it often does not lead to structural improvement because knowledge is insufficiently visible or transferable.
The result is the same everywhere: breakdowns last longer, production runs slower, and work standards are applied inconsistently. In some industries, according to McKinsey, this can lead to quality issues, rejects, and even product recalls.
The danger of knowledge loss
In the coming years, these problems will only grow. We are facing large-scale aging and turnover in the technical sector. Experienced operators and technicians are leaving the company, and with them, decades of practical knowledge disappear. Without active knowledge retention, new teams repeat mistakes that were solved before, causing you to take a step back in quality and keeping OEE structurally low.
Five building blocks for lasting improvement
McKinsey identifies five factors that help companies restore the knowledge chain and structurally improve their OEE:
- Clear strategy: everyone understands the goals and the importance of OEE.
- Desired behavior and a culture of continuous learning: mistakes are discussed and solutions are shared.
- Management and shop floor in contact: short, regular meetings to discuss causes and actions.
- Strong technical systems: reliable machines and processes that support operators.
- Technology that empowers people: digital tools make work standards and solutions directly available.
The research firm sees that organizations combining these building blocks achieve higher production results, retain their staff, realize higher customer satisfaction, and improve sustainability performance.
How you create change on the shop floor
While advice in reports is valuable, it only gains true worth when you can apply it concretely on the shop floor. Which steps can you take yourself to permanently improve OEE? The most important points:
- Record best practices and troubleshooting solutions and keep them up to date.
- Create a fixed point of contact between management and the shop floor: short, regular check-ins where causes and actions are discussed.
- Make performance and work standards visible via boards or digital screens at the line.
- Fix once, share always: register deviations and share solutions directly with the team.
- Invest in continuous training so that operators resolve breakdowns faster and prevent errors.
Conclusion: start with people, not machines
Machines are rarely the real cause of low OEE. The loss of knowledge and poor transfer hinder your organization’s productivity the most. Or as McKinsey puts it: technology only works when knowledge is secured and available to everyone on the shop floor.
Those who secure knowledge, support operators with training and digital tools, and provide leadership with a fixed method of feedback and learning, restore the knowledge chain and are able to make world-class OEE possible.
Do you have questions?
Would you like to improve your organization’s OEE and do you want advice on how to use the knowledge in your organization to achieve that? Contact us and we will be happy to tell you more about our support!
