OEE (Overall Equipment Effectiveness)

Overall Equipment Effectiveness (OEE) is a key performance indicator for evaluating the productivity of machines and systems. It is made up of the three factors of availability, performance and quality and measures how efficiently a machine or system works in relation to its maximum possible output.
OEE helps to identify inefficiencies and the biggest disruptive factors in production. Companies often use OEE as an introduction to the continuous improvement process (CIP) in order to specifically eliminate weak points and increase overall plant effectiveness.

Example:
A packaging company measures the OEE of its production lines. The analysis shows that frequent set-up times reduce availability. By optimizing the setup processes (SMED), the company increases the OEE from 68% to 85%.