Glossary · O
Overall Equipment Effectiveness (OEE)
Overall Equipment Effectiveness
Availability × performance × quality
What it means
Overall equipment effectiveness combines availability, performance and quality to describe productive use of equipment during planned production time. It helps separate losses caused by downtime, reduced speed and rejected output. Comparisons require consistent definitions and operating conditions.
What it means for a business
A production team can break down OEE losses to investigate changeovers, stops, speed reductions or defects. It should prioritise improvements using its own production context and costs rather than treating a universal percentage benchmark as the target.