1/ Definition

Overall Equipment Effectiveness is the ratio of actual good production (planned grade products) over the production that could have been achieved in the same time period.

• Maximum production is at bottleneck.
• The total time is based on 24hr x 365 days
• It is the product of the availability, performance rate, and quality rate. It is a comprehensive indicator of a plant's condition that takes into account operating time, performance and quality.
  The performance rate is determined against a Maximum Demonstrated Capacity (MDC) in order to express all losses in terms of either "time" or "quantity".
  
  

2/ Objective / Target

Measure the technical performance and capacity utilization of a manufacturing asset and hence to judge the effectiveness with which an asset is being used to add value to the business.
It allows the analysis of all the sources of capacity losses, whatever their origin may be.

3/ Formula

4/ Frequency

5/ SAP extraction and detailed calculation

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