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Overall Equipment Effectiveness - OEE

Simple tool with one of the fastest returns-on-investment helps understand the impact of productivity losses and available improvement potential

Overall Equipment Effectiveness (OEE) is an industry standard, versatile measurement for production efficiency. It suits any industry or process.

OEE is the result of three factors, Availability, Performance and Quality, which describe the six big losses. Together these factors form OEE = A x P x Q. Availability is reduced by equipment failure, setup and adjustment. Performance is reduced by idling, minor stops, and reduced speed. Quality is reduced by process defects and startup losses.

Research has shown that improving any of these factors will have a major impact on efficiency. In order to drive operational excellence in any industry or process, it is recommended to monitor OEE and make it a baseline for improvement efforts.

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