"For manufacturing that is equipment-intensive, how the equipment works is often the main factor in productivity. Total Productive Maintenance (TPM) has become a buzzword in lean and a generally accepted metric is Overall Equipment Effectiveness (OEE). This is measured as the product of three factors:
OEE = Availability x Performance x Quality
Availability = run time/total time
Performance = Total count of parts/target count (based on a standard)Quality = Good count/Total count
Ignacio S. Gatell, questions whether companies using OEE really understand it, can explain it clearly to their customers, and understand what it means to compare OEE as a KPI across plants. He questions whether even plant managers understand how it is calculated and what it means.
The only good argument for OEE is that at a macro-level in a plant it provides a high level picture of how your equipment is functioning."