What is overall equipment efficiency & how to calculate

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Accepted Answer

Overall Equipment Efficiency (OEE) is a measure of how effectively equipment is being utilized to produce quality products.

OEE is calculated by multiplying Availability, Performance, and Quality rates.
Availability rate measures the percentage of time the equipment is available for production.
Performance rate measures the speed at which the equipment is producing products compared to its maximum capacity.
Quality rate measures the percentage of products that meet the required quality standards.
OEE = Availability rate x Performance rate x Quality rate
OEE is used to identify areas for improvement in equipment utilization and production efficiency.

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