What OEE Actually Measures
OEE = Availability × Performance × Quality. A score of 100% means you ran every planned minute, at maximum speed, with zero defects. World-class OEE is 85%. Most Indian factories we work with are between 45–65% when they first measure properly.
Availability: The Most Misunderstood Component
Availability = (Planned Production Time − Downtime) ÷ Planned Production Time. The mistake most factories make: they subtract both planned and unplanned downtime. Planned downtime (breaks, planned maintenance) should NOT count against availability. Only unplanned stops do.
Performance: Where Time Is Silently Lost
Performance = (Ideal Cycle Time × Total Count) ÷ Run Time. This measures speed losses — running slower than design speed and minor stoppages. In our experience, performance losses account for 30–40% of total OEE loss and are invisible without automated measurement.
Quality: The Easiest to Measure
Quality = Good Count ÷ Total Count. Make sure you count rework as defects — parts that needed any correction should not count as "good" in the first cycle.
If your OEE is above 90% and you are measuring manually, your data is wrong. True OEE measurement requires automated cycle counting and real-time downtime logging from the machine.
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