Business, finance and operations

Overall equipment effectiveness (OEE)

  • Business, finance and operations

Definition

A measure of how productive equipment is, combining how often it runs, how fast it runs and the quality of what it makes.

Also called

OEE, Overall equipment effectiveness

Example

90% availability × 95% performance × 98% quality gives an OEE of about 84%.

For your role

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Why it matters

It shows how much hidden capacity a production line has.

Where it is used

Manufacturing dashboards and production reviews.

How to calculate it

Availability × performance × quality

Worked example

90% availability × 95% performance × 98% quality gives an OEE of about 84%.