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Overall equipment effectiveness (OEE)
Strategic perspective
Operational processes and supply chain perspective
Key performance question this indicator helps to answer
To what extent is our operating equipment effective?
Why is this indicator important?
When a company invests in equipment and machines it wants to make sure that these are effective, i.e. producing the desired output. If not, then as a consequence it will reduce operating efficiency and profit margins.
Overall equipment effectiveness (OEE) is a composite KPI that measures output based on capacity, taking into account process availability, efficiency and quality. It rolls up a number of output losses into a single index which reduces complex production problems to a good ...
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