Availability — Time

Total scheduled time per shift, minus planned breaks
Breakdowns, changeovers, material shortage, waiting

Performance — Speed

Theoretical fastest cycle time per part
Total units run during operating time (good + reject)

Quality — Defects

Parts that did not meet quality first time
OVERALL EQUIPMENT EFFECTIVENESS
%
Availability
Run time / planned time
Performance
Actual / ideal output
Quality
Good / total parts

Loss summary

Operating time: min
Run time lost to breakdowns: min
Speed loss vs ideal: min
Defective parts: units
Theoretical max output: parts

OEE benchmarks

OEE RangeClassTypical IndustryAction
85% +World-classToyota Production System, top automotive Tier-1sMaintain & document best practices
70–85%GoodEstablished Tier-1 / Tier-2 manufacturersTargeted Kaizen on top loss
60–70%AcceptableMost Indian Tier-1 / SME automotiveSMED, autonomous maintenance
40–60%TypicalAverage Indian SME job-shopsTPM rollout, root-cause for top 3 losses
Below 40%LowUnmonitored shops, ad-hoc operationsStart with availability tracking — measure before fixing

What is OEE?

OEE (Overall Equipment Effectiveness) is the gold-standard KPI for production efficiency. It rolls three losses — downtime, slow cycles, and defects — into one number that tells you what fraction of your planned production time was perfectly productive.

OEE Formula

OEE = Availability × Performance × Quality
Availability = Run Time / Planned Production Time
Performance = (Ideal Cycle × Total Count) / Run Time
Quality = Good Count / Total Count

Worked OEE Example

An 8-hour shift on a CNC machine.

OEE Benchmarks

Six Big Losses That Kill OEE

  1. Equipment failures (Availability)
  2. Setup & changeover (Availability)
  3. Idling & minor stoppages (Performance)
  4. Reduced speed (Performance)
  5. Process defects (Quality)
  6. Reduced yield / startup losses (Quality)

How to Improve OEE

Related Tools

For cycle time analysis, use Cycle Time Calculator. Calculate machining parameters with Speeds & Feeds. Quality losses tie directly to Cp/Cpk capability and DPMO / Sigma level. To quantify the financial impact of OEE losses, use Cost of Poor Quality.