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What Is Overall Equipment Effectiveness (OEE)?
OEE, or Overall Equipment Effectiveness, is a key metric used in manufacturing to measure how efficiently a machine or production line is running. It compares actual performance to its full potential during scheduled production time, helping businesses spot and fix productivity losses.
How to Calculate OEE?
OEE (Overall Equipment Effectiveness) is calculated by multiplying three key factors: Availability × Performance × Quality.
- Availability measures how often the equipment is ready to run during scheduled time.
- Performance shows how fast the machine runs compared to its top speed.
- Quality tracks how many of the units produced are actually good (non-defective).
So, the formula looks like this:
OEE = Availability × Performance × Quality
A perfect OEE score of 100% means your equipment is always available, runs at full speed, and produces only high-quality products.
What Does 100% OEE Mean?
A 100% OEE score means your production is running at peak performance—no downtime, no slowdowns, and no defects. In simple terms, you’re making only good parts, as fast as the equipment allows, with zero stop time. It’s the gold standard for manufacturing efficiency.
