Glossary · Overall Equipment Effectiveness

OEE

Overall Equipment Effectiveness (OEE) expresses how much of its planned time a machine actually delivered, as a single ratio combining availability, performance and quality.

How it is calculated

  1. Availability

    Run time / planned time

  2. Performance

    Actual speed relative to ideal speed

  3. Quality

    Good count / total count

OEE = Availability × Performance × Quality

Definition

Definition

Overall Equipment Effectiveness (OEE) expresses how much of its planned time a machine actually delivered, as a single ratio combining availability, performance and quality.

In more detail

OEE is availability × performance × quality rate. Availability is the share of planned time the machine ran; performance is actual speed against theoretical; quality rate is good units over total. Because the three multiply, one weak factor drags the whole number down sharply.

The value of OEE lies less in the number itself than in showing which factor is weak. The same 60% means something entirely different when it comes from frequent stops than from speed loss or scrap.

The caveat is definitions. Whether breaks and planned maintenance count in planned time, and whether trial production counts as good output, moves the number a lot. Comparing values across plants without agreeing the basis is meaningless.

How it is used on the floor

  • Compute OEE on the same basis per machine and line to find the bottleneck.
  • Split improvement work by which of the three factors is lowest.
  • Compare before and after an improvement using an unchanged definition.

Availability is not OEE

Availability is only one of the three factors. A machine at 95% availability running at 70% of theoretical speed with a 90% quality rate has an OEE near 60%. Looking at availability alone makes equipment look healthier than it is.

Related terms

Terms that make more sense read together.

Related products

What IYULAB provides in this area.

Quick Answers

OEE — frequently asked

Questions that come up when evaluating OEE.

What is a good OEE?

It varies so much by industry and process type that absolute comparison is unhelpful. Watching your own trend on a fixed basis is far more useful.

What data do we need to calculate it?

Planned time, actual running time, total output and good output. Collecting these from machine signals keeps the basis consistent, but manual collection works to start.

How should we classify stop reasons?

Split them by who acts on them — breakdown, changeover, material wait, planned stop. Over-detailed categories degrade data entry and bury the signal, so start coarse.

How would this apply to your plant?

A look at your equipment and current workflow is usually enough to scope it.

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