OEE explained: availability, performance and quality
Published
How Overall Equipment Effectiveness is calculated and why explaining losses matters more than the percentage.
The calculation
OEE = Availability × Performance × Quality. Availability is run time divided by planned production time. Performance is ideal cycle time multiplied by total count, divided by run time. Quality is good count divided by total count.
Why the number is not enough
OEE shows that time or output is lost, not why. Typical loss categories are faults, waiting, setup, tool changes, cycle-time losses, micro-stops, reduced speed, scrap, rework, inspection delay and process instability.
The practical goal is to attribute the biggest losses to causes so improvement work starts from evidence rather than from a search through dashboards.