Statistical
OEE formula: Availability x Performance x Quality (manufacturing KPI)
Calculate Overall Equipment Effectiveness (OEE) and reconcile the 3-factor loss breakdown against direct (GoodUnits * IdealCycleTime) / PlannedProductionTime.
Decompose factory capacity losses into Availability, Performance, and Quality
Overall Equipment Effectiveness (OEE) multiplies three percentages: (1) Availability = RunTimeMin / PlannedMin (downtime loss), (2) Performance = (IdealCycleSec * TotalCount) / (RunTimeMin * 60) (speed loss), and (3) Quality = GoodCount / TotalCount (scrap/rework loss).
Notice that RunTimeMin and TotalCount cancel out when multiplied—giving an instant audit check: OEE = (GoodCount * IdealCycleSec) / (PlannedMin * 60)!
| OEE Pillar (500 Planned Min, 2.7s Ideal Cycle) | Formula | Factor |
|---|---|---|
| Availability (450 Run Min) | =450 / 500 | 90.0% (0.90) |
| Performance (9,500 Total Units) | =(2.7 * 9500) / (450 * 60) | 95.0% (0.95) |
| Quality (9,310 Good Units) | =9310 / 9500 | 98.0% (0.98) |
| Overall OEE (0.90 * 0.95 * 0.98) | =(9310 * 2.7) / (500 * 60) | 83.79% (0.8379) |
Three-factor OEE and pillar-breakdown formulas
Convert PlannedMin and RunMin to seconds (* 60) whenever IdealCycleTime is measured in seconds per part.
=LET(avail, B2 / A2, perf, (C2 * D2) / (B2 * 60), qual, E2 / D2, ROUND(avail * perf * qual, 4))Direct algebraic OEE audit check
Divides value-adding seconds (GoodUnits * IdealCycleSec) directly by PlannedSeconds.
=ROUND((E2 * C2) / (A2 * 60), 4)Inputs and interpretation
Use consistent time units, positive planned/run times and total count, and 0 <= good count <= total count. Good units should meet the chosen first-pass quality definition. Run time cannot exceed planned time, and performance above 100% usually warrants checking the ideal cycle standard or measurements. A direct zero-output ratio can be zero while the three-factor form has undefined factors.
Try the example
Use the original values or change them to test your understanding.