Overall equipment effectiveness (OEE) is a manufacturing measure of how much planned production time is used to make good products at the intended speed. It combines three factors: availability, performance, and quality.
OEE = Availability × Performance × Quality. Availability compares run time with planned production time; performance compares actual output with the ideal rate during run time; quality is the share of total output that meets requirements.
Use OEE to identify losses over a defined machine or production period. Teams need consistent definitions for planned time, downtime, ideal cycle time, and good output before comparing results. OEE highlights where loss occurs; it does not identify the root cause by itself.