Overall Equipment Effectiveness

Overall Equipment Effectiveness (OEE) measures the extent to which existing machines and equipment is producing the desired output. Overall Equipment Effectiveness (OEE) is a composite KPI that measures output based on capacity taking into account process availability, efficiency and quality.

 

OEE = Availability x Performance x Quality

 

This indicator is included in the book: Key Performance Indicators - the 75+ measures every manager needs to know, which contains an in-depth description of this KPI, as well as practical advice on data collection, calculations, target setting, and actual usage.

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