OEE (Overall Equipment Effectiveness) is the standard for measuring manufacturing productivity. Simply put: it identifies the percentage of manufacturing time that is truly productive. An OEE score of 100% means you are manufacturing only Good Parts, as fast as possible, with no Stop Time. In the language of OEE that means 100% Quality (only Good Parts), 100% Performance (as fast as possible), and 100% Availability (no Stop Time).
Measuring OEE is a manufacturing best practice. By measuring OEE and the underlying losses, you will gain important insights on how to systematically improve your manufacturing process. OEE is the single best metric for identifying losses, benchmarking progress, and improving the productivity of manufacturing equipment, i.e., eliminating waste.
Calculate OEE
A x P x Q =OEE
Availability takes into account Unplanned and Planned Stops. An Availability score of 100% means the process is always running during Planned Production Time.
Performance takes into account Slow Cycles and Small Stops. A Performance score of 100% means when the process is running it is running as fast as possible.
Quality takes into account Defects (including parts that need Rework). A Quality score of 100% means there are no Defects (only Good Parts are being produced).
OEE takes into account all losses. An OEE score of 100% means you are manufacturing only Good Parts, as fast as possible, with no Stop Time.