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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From definition to practice

See how these concepts work on real company data in Fidar.