What does OEE mean?

OEE, or Overall Equipment Effectiveness, is a Lean Management metric that measures the productivity of a plant or machine. OEE is an important indicator of the performance of industrial equipment and gives companies the opportunity to identify strengths and weaknesses and improve their production processes. To measure productivity or effectiveness, primarily the availability, performance and quality of plants and machines are measured.

What factors make up the OEE?

  1. Availability Availability refers to how long the plant or machine is available to produce. The actual operating time of the plant or machine is measured in relation to the planned operating time. Breakdowns, maintenance breaks or setup times lead to a reduction in availability. An availability score of 100% would mean that the actual operating time is the same as the planned operating time and that there are no unplanned malfunctions or failures.

  2. Performance Performance refers to the effectiveness of the plant or machine during the actual operating time. It is measured by the ratio of actual production to planned production. Interruptions, downtime or slow machines reduce performance. A performance score of 100% would mean that production is running at maximum speed.

  3. Quality Quality refers to the quality of the parts or products produced. It is measured by the ratio of defect-free parts produced to the total number of parts produced. Defective parts or products lead to a reduction in quality. A quality score of 100% would mean that there are no defective parts/products.

If all three values are 100%, this results in an OEE value of 100%. In this case, one speaks of "perfect production".

How to calculate the OEE?

Overall equipment effectiveness can be calculated using the following formula:

OEE = availability x performance x quality


In 2022, availability was 95%, performance was 89%, and quality was 92%.

OEE = 95% x 89% x 92% = 77.8%.

The OEE in 2022 was therefore 77.8%.

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