KaizumiKaizumi™

OEE

Overall Equipment Effectiveness

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What is OEE?

Overall Equipment Effectiveness (OEE) is the gold-standard metric for measuring manufacturing productivity. It answers one question: "Of the time we planned to run, how much truly productive output did we get?" OEE combines three independent factors — Availability, Performance, and Quality — into a single percentage that exposes hidden losses.

OEE was developed as part of Total Productive Maintenance (TPM) by Seiichi Nakajima. A perfect OEE of 100% means you are manufacturing only good parts, as fast as possible, with no downtime. In practice, even world-class plants rarely exceed 90%.
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What is OEE?

Overall Equipment Effectiveness (OEE) is the gold standard for measuring manufacturing productivity. It combines three factors — Availability (did the machine run when scheduled?), Performance (did it run at full speed?), and Quality (did it produce good parts?) — into a single percentage. World-class OEE is generally considered to be 85% or above.

The real value of OEE is not the headline number but the breakdown. If availability is low, focus on reducing changeover time and unplanned downtime. If performance lags, investigate minor stops and speed losses. If quality is the issue, use a Fishbone diagram to find root causes of defects. OEE turns vague "the machine isn't running well" into specific, actionable categories.

When to use this tool

Calculate OEE for any equipment where utilization matters — bottleneck machines, expensive capital equipment, or any process that limits throughput. Track it daily to spot trends, or use it as a baseline before and after a kaizen event. Pair OEE data with the Process Capacity Sheet to understand whether capacity shortfalls are caused by process design or equipment losses.

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