AbstractTo compete in global market, no organization will tolerate losses. Overall Equipment Effectiveness (OEE) is such a performance measure metric which will indicate performance rate with very simple calculations. It considers all important measures of productivity. Implicitly it indicates amount of losses each parameter contributes to reduce productivity. By applying quality improvement tool such as failure Mode and Effect Analysis (FMEA) root cause of any OEE measure can be found out. It will help to improve OEE and correspondingly productivity.In this paper an attempt has been made to establish a relationship between OEE and FMEA. All the parameters of OEE (i.e. Availability, Performance Rate and Quality Rate) are evaluated with respective to FMEA (i.e. severity, occurrence and Detection). Total 32 hypothesis are considered to establish relation between OEE and FMEA. A case study conducted in one of reputed process industry gives very significant insight for OEE improvement. Power of Excel tool is explored in this paper.