Glossary
What is OEE?
Overall Equipment Effectiveness
Definition
OEE — overall equipment effectiveness — shows what share of a machine’s planned production time actually produced good parts at ideal speed. It is the product of availability, performance and quality.
The formula
OEE = availability × performance × quality
- Availability: actual run time ÷ planned production time
- Performance: actual output ÷ output possible at ideal speed in that run time
- Quality: good units ÷ total units
Example
A machine has 48 minutes of stops in an 8-hour shift (90% availability), runs at 95% of ideal speed and 98% of its output is good. OEE = 0.90 × 0.95 × 0.98 ≈ 84%.
About the 85% benchmark
An OEE of 85% is often called “world class” and attributed to Seiichi Nakajima, the founder of TPM. It was framed around discrete, repetitive manufacturing; process industries and high-mix plants are better compared against their own trend.
OEE in Fidar
Live OEE is designed into Fidar’s MES & Quality module. For context, read ERP for manufacturing.
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