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OEE – Overall Equipment Effectiveness

OEE is an abbreviation for the manufacturing metric Overall Equipment Effectiveness.

OEE breaks the performance of a manufacturing unit into three separate but measurable components: availability, performance and quality. Each component points to an aspect of the process that can be targeted for improvement. It may be applied to any individual production line or rolled up to department and plant levels. The tool also allows for drilling down for very specific analysis, such as a particular product, shift or any of several other parameters. It is unlikely that any manufacturing process can run at 100% OEE. Many manufacturers benchmark their industry to set a challenging target – 85% is not uncommon.

How OEE (Overall Equipment Effectiveness) is calculated?

Formula: OEE = quality x availability x performance
Example: OEE = 95% x 85% x 90% = 68,4%

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