Last edited 22 Feb 2021

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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