Original equipment effectiveness (OEE) can be used as a gauge to determine how effective and productive a manufacturing plant is.

The definition of Overall equipment effectiveness (OEE) is the percentage of manufacturing time that is productive. It is composed of three parts:

Availability – The percentage of time the process is running during planned production time

Performance – The percentage of production the process machinery is achieving when compared to a defined maximum capability

Quality – The percentage of good parts being produced. Parts being reworked are counted as defects.

OEE considers losses from all these factors, producing a percentage that represents the good parts being produced at the required rate with no downtime. A perfect OEE score is 100%.