What OEE Is & How To Use It

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OEE is often defined as availability x performance x quality rate. But it can really be much simpler & more intuitive than that.

OEE is simply the extent to which potential output was achieved over some scheduled period of time. That's it.

AV, SR, & QR are components of OEE:

Availability (AV) is a measure of equipment uptime.

Speed Ratio (SR) compares the target cycle time with the actual cycle time achieved. This is sometimes called Performance Efficiency.

Quality Rate (QR) captures the portion of total parts produced that were actually good parts.

Here is an explanation of why multiplying these three components together is algebraically equivalent to OEE & why improving any combination of them can help your business when strategic needs require producing more parts in less time.