Overall Equipment Effectiveness
One number tells a factory how well a machine really runs. OEE multiplies uptime, speed, and quality — and shows why "pretty good" on each still adds up to mediocre.
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OEE is the single number factories use to judge a machine, multiplying three losses: availability (uptime vs planned), performance (actual vs ideal speed), and quality (good parts vs total). Because they multiply, a chain of "pretty good" factors yields a mediocre result — 90% × 95% × 99% is only 85%. That 85% is the world-class benchmark.
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Governing equation
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How it works
Overall Equipment Effectiveness is the product of three factors: availability (uptime versus planned time), performance (actual versus ideal speed), and quality (good parts versus total). Because they multiply, small losses compound — 90% × 95% × 99% is only 85%, which happens to be the world-class benchmark. OEE pinpoints exactly which loss to attack first.
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