what is oee

OEE stands for Overall Equipment Effectiveness, and it is a measure of how well a manufacturing operation is utilized compared to its full potential during the periods when it is scheduled to run. It identifies the percentage of manufacturing time that is truly productive. An OEE score of 100% means that the manufacturing process is producing only good parts, as fast as possible, with no stop time. OEE is a powerful yet simple concept, but it performs only if we apply it rigorously. It is a continuous improvement tool that allows us to eliminate waste and target “the six main losses” that are present in virtually every production facility. OEE is calculated as the ratio of Fully Productive Time to Planned Production Time. It is useful as both a benchmark and a baseline. By measuring OEE and the underlying losses, manufacturers can gain important insights on how to systematically improve their manufacturing process.