Abstract: Today the world is highly competitive. In order to be successful in today’s world it is essential to be highly productive. Productivity can be improved in many ways. In this paper the scope for implementation of Overall Equipment Effectiveness (OEE) in a fabrication industry are presented. Using Overall Equipment Effectiveness one can determine the present condition of the machines, worker-skill and utilization of machine in the industry and also identify the scope for improvement. Two critical machines have been identified and studied and the results are presented.