OEE (Overall Equipment Effectiveness)

OEE is a standard metric for how effectively equipment is used, combining Availability × Performance × Quality into a single percentage. A score of 100% means producing only good parts, as fast as possible, with no stop time.

OEE breaks losses into three buckets: Availability (downtime losses), Performance (speed losses) and Quality (defect losses). Multiplying them gives a single figure that makes losses visible and comparable. World-class discrete manufacturing is often cited around 85%, but the real value is using OEE to find and attack the biggest loss category, not chasing a number.

Related terms

Software