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What are the three components of OEE and how do I find the biggest loss?
The three components are availability (lost to stoppages), performance (lost to slow running and small stops) and quality (lost to scrap and rework). Calculate each as a percentage; the component furthest from 100 percent is usually where the biggest improvement lies.
Formulas in words:
- Availability: run time divided by planned production time.
- Performance: (ideal cycle time x total units) divided by run time.
- Quality: good units divided by total units.
It matters because the total OEE number says little about where to act. Two lines with the same OEE can need entirely different fixes.
Commonly misread:
- Treating a low performance figure as an operator problem when it comes from an unrealistic ideal rate.
- Missing micro-stops, which are rarely recorded by hand.
Break losses down by reason code and rank them by lost time.
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