What is OEE and what components is it calculated from?

OEE (Overall Equipment Effectiveness) is a measure of the overall efficiency of equipment used to assess the productivity of manufacturing processes.

It is calculated as the product of three components:

1. Availability — the proportion of time when the equipment was actually available for operation, relative to the scheduled time.

   Formula: Availability = (Operating time) / (Scheduled time)

2. Performance — how quickly the equipment operates compared to its maximum speed.

   Formula: Performance = (Actual output) / (Maximum possible output during operating time)

3. Quality — the proportion of produced products that meet quality standards.

   Formula: Quality = (Good units produced) / (Total units produced)

Result:

OEE = Availability × Performance × Quality

For example, if the equipment is available 90% of the time, operates at 95% of its maximum speed, and 98% of the products meet quality standards, then:

OEE = 0.9 × 0.95 × 0.98 ≈ 0.838 (83.8%)

This means the equipment is used efficiently at 83.8% of the ideal level.