In part one, “Overall Equipment Effectiveness,” (OEE) I gave a detailed explanation of how LNS Research thinks the OEE Formula is best applied to a given asset or production line to both maximize local production efficiency and overall supply chain performance. In this article, I’ll go through a fictional example and apply real numbers to all the OEE formula terms mentioned previously.

To start, let’s review the complete OEE formula. Remember, overall equipment effectiveness should be thought of as a composite metric that measures a particular asset’s uptime, production efficiency, and quality. It is best represented as:
OEE = Availability × Efficiency × Quality

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