How it works
OEE multiplies three ratios. Availability is the share of planned time the machine was actually running. Performance compares the parts made with how many it could have made at its ideal cycle time. Quality is the share of parts that were good first time.
The split matters more than the headline number: low availability points at breakdowns and changeovers, low performance at slow cycles and small stops, low quality at scrap and rework.
Availability = Run time / Planned production time
Performance = (Ideal cycle time × Total count) / Run time
Quality = Good count / Total count
OEE = Availability × Performance × QualityWorked example
A shift plans 480 minutes and loses 60 to downtime, so availability is 420 / 480 = 87.5%. With a 2-second ideal cycle it made 11,000 parts: 22,000 s of ideal time in 25,200 s of run time is 87.3% performance. 10,670 good parts give 97.0% quality, so OEE = 0.875 × 0.873 × 0.970 = 74.1%.