Overall equipment effectiveness
QCD: measuring manufacturing performance, Published by the Department of Trade and Industry in 2004 suggested that Overall Equipment Effectiveness (OEE) measures: ‘…the availability, performance and quality of a process.’
It shows how well the business is utilising its resources, including equipment and labour, and is calculated by combining three elements:
- Availability – expressed as a percentage, compares the planned and actual time of the process run.
- Performance – expressed as a percentage, compares the actual and ideal output achieved during the running of the process.
- Quality – expressed as a percentage, compares the number of good parts made against the total parts made.
Overall Equipment Effectiveness (%) = Availability X Performance X Quality.
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