OperationsOEE

OEE (Overall Equipment Effectiveness)

Quick answer

The production efficiency metric: availability × performance × quality, expressed as a percentage.

Key takeaways

Availability - stoppages, changeovers, breakdowns
Performance - micro-stops, reduced speed
Quality - scrap, rework

What OEE is

Overall Equipment Effectiveness (OEE) measures how efficiently a machine or production line is used. It is the product of three factors: Availability (how long it ran) × Performance (how fast versus nominal) × Quality (how many good units out of total).

Why it matters to the board

OEE condenses production health into a single number. 85% OEE is considered world-class; many plants run at 40-60% without knowing, losing invisible capacity equal to a whole line.

The three losses

Availability - stoppages, changeovers, breakdowns

Performance - micro-stops, reduced speed

Quality - scrap, rework

How CRMconnect helps

CRMconnect doesn't replace the MES, but ties production data to orders and stock: better run planning, fewer needless changeovers and BI visibility into the factors eroding OEE.

Real-world example

A line with 90% availability, 85% performance and 95% quality has an OEE of 0.90 × 0.85 × 0.95 = 72.7% - clear room to improve on performance.

Last updated: 2026-07-17

Frequently asked

What OEE is considered good?+

85% is the world-class benchmark. 60% is typical for many manufacturers; below 40% indicates major losses and large improvement opportunity.

Does CRMconnect calculate OEE?+

CRMconnect integrates the relevant data and surfaces it in BI, but raw OEE comes from production systems (MES/SCADA). CRMconnect adds the order and stock context.

Where CRMconnect fits

Conectori ERP Software WMS Business Intelligence

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Related terms

Operations