AbstractContinuous availability of reliable sophisticated equipment with precision is need of the competitive market. Overall equipment effectiveness (OEE) is important performance measure metric for equipment effectiveness. An attempt has been done to measure and analyze existing overall equipment effectiveness of critical machinery producing important automobile components like serration cap, Dowel rod and sequence rod. Which are used by leading automobile company. By measuring the performance of existing system, reference values are obtained for design of experiments. By using MiniTab15 software an experimentation has been done on three factors and two level of OEE. Main effect plots and regression analysis provides information about which is most influencing factor and classic relationship between availability, performance rate and quality rate. Significance of each factor is indicated by P-value in the given analysis. Finally counter plots and response surface method results in to optimized values of three factors of OEE. Simulated values of the output will be useful information to industry.