Glossary

OEE – Overall Equipment Effectiveness

Overall Equipment Effectiveness (OEE) is a commonly used indicator in manufacturing plants. It allows to determine how efficient is a given production line, and thus how efficient the production is in relation to its production capabilities. The index is the result of three factors to measure the performance of a production line:

Availability = actual machine running time / scheduled time

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Productivity (actual production time / production capacity)

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Quality (number of pieces properly produced / total production)

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In the manufacturing industry, emphasis is placed on achieving optimum performance in all three areas, which is key to successful line operation as each area individually contributes to the profitability of a product or service and profitability.

OEE can also be represented as actual production divided in the denominator into scheduled time multiplied by one production cycle, as shown in the formula below:

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Ultimately, OEE is influenced by many factors that depend on the overall operation of the factory. Among the events that have an impact are

  1. Unplanned downtime
  2. Failures and repair times MTTR, MTBR, MTTF
  3. Slow start-up of production
  4. Late recognition that a process is unstable

Read more about OEE in the article “12 reasons why OEE is low”.

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