Overall equipment effectiveness, or OEE, combines availability, performance and quality for a defined production period. The result is useful when each factor has a clear denominator and the same measurement boundaries are used over time.
Availability is running time divided by planned production time. Performance is ideal cycle time multiplied by total units, divided by running time. Quality is good units divided by total units. Multiply the three ratios to obtain OEE, keeping cycle time and production time in the same units and defining good units consistently.
For example, 480 planned minutes, 420 running minutes, an ideal cycle of 0.1 minute per unit, 4,000 total units and 3,900 good units yield 87.5% availability, about 95.24% performance and 97.5% quality. Their product is 81.25% OEE. Investigate the individual losses rather than treating one overall percentage as a complete explanation of line performance.
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