Pharmaceutical industry has gone through significant changes in the past decades. Competition has increased drastically. To stay competitive, improving efficiency and productivity is a key driver. Product quality also acts a major role in pharmaceutical industry as it is directly connected with the living beings. Keeping that in mind, industry should introduce OEE (Overall Equipment Effectiveness) which is a key performance indicator within Total Productive Maintenance (TPM) that weighs equipment productivity by appraising availability, performance & quality. This study possessed real-time production data of tablet and capsule packaging machines of multiple shifts and calculated the OEE scores. The resulted OEE scores falls between from 28.02% to 48.93% and was compared with the world class OEE standards, which falls significantly short. This study also pinpointed the root causes such as high breaks and idle time of workers, high breakdown and setup loss, no planned maintenance for low OEE scores through the implementation of Root Cause Analysis. Optimization recommendations using TPM schemes such as planned maintenance, quality control and operator training to gradually coincide the packaging operation with world class OEE standards was also proposed in the study.