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Overall Equipment Effectiveness (OEE)

Business analysisQuality management and monitoring

Reference model

Overall Equipment Effectiveness ComponentsA canvas of 5 boxes laid out on a grid of 3 columns and 3 rows: Availability, Performance, Quality, OEE Calculation, Losses.AvailabilityThe percentage of scheduled timethat the equipment is availablefor production.PerformanceThe speed at which the equipmentoperates as a percentage of itsdesigned speed.QualityThe percentage of produced unitsthat meet quality standards.OEE CalculationOEE = Availability x Performance x QualityLossesIdentify losses in availability, performance, and quality.

OEE = Availability x Performance x Quality. Availability = run time / planned time. Performance = (ideal cycle time x total units) / run time. Quality = good units / total units.

About this model

OEE combines three ratios into one measure of how effectively planned production time is used: availability (was the machine running), performance (did it run at ideal speed) and quality (were the units good).

Originator not stated.

How to read it

  • Read the three components first; the lowest one is usually the best place to start improving.
  • A higher OEE means more of the planned time produced good units at ideal speed.
  • Compare OEE over time for the same line and product, and against the loss table to see what drives it.
  • Teams often quote 85% as a world-class convention; treat it as a reference point, not a target for every process.

What this does

Measures how much of the planned production time is truly productive by combining availability, performance and quality into one percentage, and shows where the losses sit so you can decide what to fix first.

When to use it

Use it when you need to assess a line or machine with repeatable output, find the biggest sources of lost time, and prioritise improvement actions.

Not when: Do not use it when the process is one-off or highly variable, when there is no agreed ideal cycle time, or when downtime and reject data are not reliably recorded.

What happens next

Run a root-cause analysis (such as 5 Whys or a fishbone) on the largest loss, then turn the agreed fixes into an improvement plan and track OEE weekly.

Golden thread

Builds on ←

  • Production schedule
  • Downtime records
  • Quality reject records

Feeds into →

  • Root-cause analysis
  • OEE improvement plan

Use this tool, free

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Drafted with AI and reviewed by Eccellere on 04/11/2026. Guidance, not advice: apply your own judgement.