How do you measure production effectiveness?

OEE (Overall Equipment Effectiveness) is the gold standard for measuring manufacturing productivity. It identifies the percentage of manufacturing time that is truly productive. 

  • An OEE score of 100% means you are manufacturing only Good Parts, as fast as possible, with no Stop Time. 
  • In the language of OEE that means 100% Quality (only Good Parts), 100% Performance (as fast as possible), and 100% Availability (no Stop Time).


Measuring OEE is a manufacturing best practice. By measuring OEE and the underlying losses, you will gain important insights on how to systematically improve your manufacturing process. 


OEE is the single best metric for identifying losses, benchmarking progress, and improving the productivity of manufacturing equipment (i.e., eliminating waste).


Overall equipment effectiveness is a maintenance KPI that measures an asset’s level of productivity. 

OEE is a combination of three factors that tell you how efficient an asset is during the manufacturing process: 

1. Asset availability, 

2. Asset performance

3. Production quality


Each one tell you something different about how an asset operates.

  • Availability – How often does the asset function when needed?
  • Performance – How much does the asset produce?
  • Quality – How many high-quality items does the asset produce?


OEE formula is calculated by multiplying availability, performance and quality and is represented by a percentage.



Overall equipment effectiveness is a tool for evaluating the efficiency of assets during the manufacturing process. 

It can also be used to investigate the people, processes and tools that impact how assets operate. 

When combined with the insight from other maintenance metrics, OEE provides a great foundation for identifying areas of an operation that can be improved and a quantifiable way to measure progress.


Author: Barbara Pirola