Glossary · OEE
Overall equipment effectiveness
A single score for how well a machine is really being used.
Technical definition
A composite metric combining availability, performance, and quality into one percentage.
Formula
OEE = Availability × Performance × Quality
Manufacturing example
A line at 90% availability, 95% performance, and 99% quality has an OEE of about 85%.
Common misconception
A high OEE on a non-bottleneck machine does not mean more throughput; OEE matters most at the constraint.
Why it matters operationally
OEE reveals hidden losses — downtime, slow cycles, and scrap — that erode capacity.
Related terms
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