Toyota Production System Concepts - Understanding OEE in Lean Production #741697

Overall Equipment Effectiveness (OEE) measures how efficiently a machine, process, or production line is performing by comparing the number of defect-free products it produces to its maximum potential output. An OEE score of 100% indicates that the equipment is operating at peak capacity with no losses, downtime, or defects.
OEE is composed of three critical components:

• Availability – the proportion of scheduled time that the equipment is actually running
• Performance – the speed at which the equipment operates compared to its designed capacity
• Quality – the percentage of products that meet specifications without rework or scrap

By analyzing these three factors, manufacturing professionals, production managers, and maintenance teams can identify bottlenecks, inefficiencies, and waste, implement process improvements, and maximize equipment productivity. OEE provides a powerful metric for continuous improvement, lean manufacturing, and overall operations excellence.