OEE is a single percentage that shows how much of a machine's planned production time actually produced good parts at full speed. It multiplies three factors. Availability is run time divided by planned time, so it captures breakdowns and changeovers. Performance compares the actual output with what the ideal cycle time allows, so it captures slow running and small stops. Quality is good parts divided by total parts, so it captures scrap and rework. Each factor points to a different kind of loss.
Example: A machine is planned for 480 minutes and is down for 60, so availability = 420 ÷ 480 = 87.5%. At an ideal cycle of 1 minute it makes 380 parts: performance = 380 ÷ 420 = 90.5%. 361 are good: quality = 361 ÷ 380 = 95%. OEE = 0.875 × 0.905 × 0.95 = 75.2%.
OEE shows where capacity is going before anyone buys another machine. The useful part is the breakdown: a low availability score calls for maintenance or faster changeovers, while a low quality score is a job for the quality team. Compare a machine with itself over time, not with other plants.
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