Glossary Term: Overall Equipment Effectiveness (OEE)

Overall Equipment Effectiveness (OEE) is a manufacturing best practice for measuring productivity in a plant. Measuring the utilization of raw materials, time and machinery, OEE offers a percentage score, where 100% indicates firms are manufacturing products as efficiently as possible with no defects and no lag time. By measuring OEE, managers can assess the overall performance of the cycle and insights can be generated on how to best improve workflow.

Similarly, total effective equipment performance (TEEP) can be used to quantify OEE against total calendar hours rather than scheduled operating hours.

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