What does Overall Equipment Effectiveness (OEE) mean in manufacturing?
Overall Equipment Effectiveness (OEE) measures how effectively manufacturing equipment is utilized by considering availability, performance efficiency, and quality yield. A key performance indicator used to measure manufacturing productivity by evaluating how efficiently equipment operates concerning availability, performance speed, and quality output. OEE is calculated using the formula: OEE = Availability x Performance x Quality; this metric helps identify areas for improvement within production systems enhancing overall operational effectiveness.