You’re already tracking the OEE of your machines. The teams that operate them often have no substitutes, even though a production line can come to a halt just as quickly due to a lack of qualified operators as it can due to a shortage of parts.
The OLE (Overall Labor Effectiveness) measures overall workforce efficiency by multiplying three rates. Tracked by the team and analyzed by cause, it shows where time is being wasted, without singling anyone out.
How do you calculate a team's OLE?
A team’s OLE is calculated by multiplying three rates measured among the individuals in that position, hence the formula OLE = availability × performance × quality.
- Availability is calculated by dividing the time the team spends producing by the scheduled work time, excluding scheduled breaks. It accounts for time spent waiting for instructions, an authorized operator, or a replacement.
- Performance measures actual output against what the position's standard called for during that productive time.
- Quality is measured by the percentage of parts that are good on the first try, excluding rework and scrap.
The calculation is based on the scheduled time, since simply being present would mask the waiting time. An hour spent waiting for components counts as a loss of availability, even when you have the whole team on site.
The multiplication factor applies to each loss. Three rates of 90 %—which you might consider reasonable on their own—result in an OLE of 72.9 %.
Figure 1
Calculate a team's OLE based on your records
Default values: In the example, there are six operators on an assembly line. Each bar shows how much of the scheduled time remains after each rate is applied.
OLE: 70,8 %
OLE = availability × performance × quality. Expected production calculated based on productive time. Nothing is recorded or sent: the calculation is performed in your browser.
The standard always refers to productive time. If you compare it to the entire shift, you count twice the time lost, one for availability and one for performance.
OLE and TRS: What's the difference?
The TRS measures a machine's performance, while the OLE measures the people who keep it running, and both are based on the time when production was originally scheduled to begin.
Among the industrial performance indicators, the international standard that defines them (ISO 22400-2) does not include OLE, which emerged from workshop practices. You’ll get the most out of it in situations where the result depends on manual skills and human presence—such as in assembly, packaging, finishing, or quality control.
| Criteria | TRS | OLE |
|---|---|---|
| What it measures | The productivity of a machine or production line | The performance of the individuals assigned to the position |
| Basis for Calculation | The days when the machine had to produce | The team's scheduled work time |
| Typical losses | Breakdowns, adjustments, and process-related scrap | Delays, absences, missing authorization, pace discrepancies, rework |
| What affects it | Maintenance and Methods | Production supervision, training, and scheduling |
We often read that the two metrics compete with each other, when in fact they complement each other. And what happens when the machine breaks down? Both scores lose minutes, since the team has to wait for it to be restarted.
Follow them side by side, without ever multiplying them, since the same outage would be counted twice. Code each outage by its cause, and you'll know who needs to take action—maintenance or management.
What is a good OLE score?
No OLE threshold is recognized. Your first statement therefore serves as a starting point. Track the trend within a consistent scope, without comparing two sites with different product lines.
At first glance, the difference between the three rates tells you more than the overall score, because it shows where the loss is coming from.
Safety, experience, certification: what makes up the score
At Mercateam, we read the OLE on six components, in addition to the standard three-factor formula.
Availability, productivity (the formula’s performance), and quality determine the outcome. Safety, experience, and empowerment explain how it came about.
Figure 2
Safety, experience, and certification all affect the score
Our analytical framework, in addition to the standard three-factor formula: when a rate falls, first look at what drives it upstream.
What Makes Up the Score
The declining rate
SecurityA near-accident brings a line to a standstill and requires a supervisor to respond.
acts on Availability
AuthorizationAn expired license is enough to lose a job, regardless of one's qualifications.
acts on Availability
ExperienceThe departure of veteran players slows down the pace of the opening and restart plays.
acts on Productivity
Result: OLE = availability × productivity × quality, where productivity is the performance of the standard formula.
Mercateam's interpretation of the OLE based on six components.
- Safety comes at the cost of availability. A near-miss shuts down a production line and ties up a supervisor, and records kept on paper or in spreadsheets aren't reviewed on a weekly basis.
- Experience affects performance because a core group of veterans drives the initial and follow-up actions. When they leave, the pace slows down even though the training budget hasn't changed at all.
- Experience also provides protection. The 2025 Health Insurance Report notes that one-quarter of workplace fatalities, across all sectors, involve employees who have been on the job for less than a year.
- Certification grants access to the position. An operator whose electrical certification or operating license has expired may not hold the position, regardless of their skill level.
The loss is then recorded as a player being placed on the injured list for administrative reasons. When the OLE drops without anyone having slowed down, Check the deadlines first, because an expired license is enough to vacate a position.
That is why the authorization tracking is the first project we are launching at the sites undergoing an audit.
What data do you need to calculate the OLE?
Four sources are enough for a first OLE, and you already have them, even without MES (the software that tracks production in real time).
- Time tracking shows the scheduled work time and the hours spent on production.
- Production reports show the quantities produced by the line.
- The standard times for the position determine the expected output.
- Quality reports include rework and scrap.
For the six components, you will add the QHSE data, the HRIS, and the authorization file. Each has its own time period and scope, hence figures that do not match.
Figure 3
Seven sources already available on your site
Each one has its own time period and scope. To ensure the numbers match up, align them with the same measurement window and the same team scope.
A First OLE
Time SheetScheduled Work Time and Hours Spent on ProductionAvailability
Production ReportsQuantities produced by the linePerformance
Standard Work Times for the PositionExpected ProductionPerformance
Quality ReportsAlterations and ScrapsQuality
The Six Components
QHSE DataIncidents and Near-MissesSecurity
HRISContracts and SeniorityExperience
Authorization FileSecurities and MaturitiesAuthorization
Four sources are sufficient for an initial OLE, even without MES. The other three are used for playback across six components.
Mercateam consolidates these data streams without requiring you to replace your existing systems, so that your teams' data is reported to a single location, covering the same time period and scope.
Errors That Cause OLE to Return "False"
From Outdated standard times distort performance without any indication of this. The teams, who know that the product line has changed, will then stop trusting the figures you present.
Review your standard times after each key change, because when you transpose the piece, the error in the standard time carries over to the entire score.
What should you do when the OLE drops?
The rate that stands out refers to the lever to be operated first, because each rate accounts for different types of losses. If you implement a general training program, it will only address some of them.
- A decline in availability can result from last-minute absences, impromptu substitutions, or expired certifications. The solution is a production planning who verifies clearances.
- A decline in performance can be addressed by reviewing the team lineups before the training budget is finalized, since having two rookies in the same position prevents the team from reaching its standard pace.
- A decline in quality on a particular item requires a review of the workstation procedures. The versatility matrix It then shows you which operators have mastered the process.
For the team in the example, you would first focus on availability, at 85 %. It stems from a meeting and a delay in receiving components, and no operator is to blame. These are organizational inefficiencies.
Figure 4
Which component is failing?
Select the component that is malfunctioning: the module will display its probable causes and the action to take first.
Availability
Probable causes
- Last-minute absences
- Impromptu Substitutions
- Expired Authorizations
Lever
A scheduling system that verifies authorizations at the time of assignment.
Productivity
Probable causes
- Unbalanced team lineups
- Two beginners in the same position
- Outdated standard time
Lever
Review the team assignments and the standard before finalizing the training budget.
Quality
Probable causes
- Defect concentrated on a specific part number
- Operator Assigned Without Mastering the Operation
Lever
Review the instructions at the workstation, then check the cross-training matrix to see who is qualified to perform the task.
Security
Probable causes
- Near-misses that bring the line to a standstill
- Paper or spreadsheet records that are illegible on a weekly basis
Lever
Record incidents on a weekly basis, in the same place as the three rates.
Experience
Probable causes
- Departure of alumni who led the opening and closing ceremonies
- Recent Hires for This Position
Lever
Organize the briefing on startup and restart procedures before departures.
Authorization
Probable causes
- Expired electrical certification or driver's license
- Deadlines tracked outside the schedule
Lever
Keep track of deadlines before staffing assignments are made, so that no position remains unfilled due to administrative reasons.
Causes and factors taken from the article. No personally identifiable information.
At the sites we equip, follow the versatility And managing assignments within a single tool saves up to one day per week on scheduling. Automating training reduces the time required by a factor of four.
Mercateam Work Schedule
Your schedules and authorizations all in one tool
See how assignments take into account your teams' skill sets and versatility.
Demo on your own computers · Connection to your HRIS and ERP systems · Hosting in Europe
Is it necessary to notify the CSE in order to comply with the OLE?
Yes, in a company with at least 50 employees, because there is a metric that tracks employee activity to the CSE before the decision to establish it (Article L2312-38 of the Labor Code).
Each user must also know, before the first data collection, what information is being collected about them. We are adding three disclosure rules.
- The OLE is published by team or by position, and any reading of specific works is not permitted in the studio.
- It should be tracked on a weekly or monthly basis, because productivity varies for reasons beyond a person's control, and a longer period provides a more accurate picture.
- Its purpose is clearly stated—to identify losses—and the data collected is limited to this calculation.
Would you like to evaluate each employee to improve accuracy? A metric based on individual performance ultimately measures the ability to produce the right number, and actual losses fall by the wayside.
The CNIL imposed a penalty on Amazon France Logistique in late 2023, in particular for retaining detailed metrics on each employee for 31 days without justifying the need to do so. In December 2025, a decision by the Council of State upheld this finding and reduced the fine from 32 to 15 million euros. Three real-time metrics, including inactivity lasting more than ten minutes, were not deemed excessive.
Submit Your First OLE Report
Have your first statement sent to a stable team and a stable week, first the three rates, then the root causes, to establish your baseline. This monitoring serves the same purpose as that for your machines: to deliver to the customer by the promised date. On Monday morning, you’ll then review the staffing levels for critical positions and the authorizations that are set to expire within the next six weeks.
We are working on an analytics layer that will suggest trade-offs before the gap emerges. To view your teams' OLE based on your own data, Request a demo of Mercateam.
Mercateam Demo
View your teams' OLE based on your data
The demonstration is conducted using your actual site environment: your teams, your workstations, and your access permissions.
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