Glossary / OEE

OEE(Overall Equipment Effectiveness)

Overall equipment effectiveness (OEE) measures how effectively manufacturing equipment is used by combining availability, performance, and quality. It helps manufacturers understand whether losses come from downtime, slower-than-planned production, or defects and rework.

Formula

OEE = Availability x Performance x Quality

Example

If a production line has 90% availability, 80% performance, and 95% quality, OEE is 68.4%. Improving any one component raises overall equipment effectiveness.

Why it matters

OEE breaks manufacturing productivity into actionable causes. A low OEE number is less useful by itself than knowing whether the issue is downtime, speed loss, or quality loss.

Related terms

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