# What is OEE

What is OEE, How is it Calculated?
OEE (Overall Equipment Effectivenes) is one of the important KPIs used by production units. Before starting OEE, let’s talk about the concepts of Efficiency and Efficiency.

What is Efficiency?
It expresses the relationship between the inputs used in the process and the outputs obtained at the end of this process.
When we evaluate it from an investor’s point of view, we expect a benefit (output) in return for any input (labor, material, energy, tax, equipment, etc.) that we put forward as an investment. As a result, although we have made a profit, it is inevitable that there will be some losses on the inputs. If these losses are at acceptable levels, we conclude that the process is efficient.
What is an Event?
Activity; It is the comparison of an activity (output) performed with a predetermined theoretical output according to standard times. For the activity account;
Actual production amount
Standard time of one unit of output
Actual time spent on work
information is needed.
What is OEE?
The parameter that determines the production output in a production process can be operator speed/performance or machine speed/performance. If the number of outputs is determined by the performance of the operator, shift, daily and monthly performance follow-ups are made with the efficiency measurement.
If the number of outputs is determined by the equipment – in which case the machine can also work with human support, but it must be a job that it performs on its own – we choose OEE or OAE for performance tracking (KPI). Logic is the measurement of how long the machine investment has produced value-added work, just like productivity.
How is OEE Calculated?
It is the performance of the OEE production units in the areas of authority and responsibility and the data of the losses that determine it. 3 parameters that determine the OEE value; Availability; It is the ratio of the actual production time (running time) of the machine to the planned production time.
Performance; is the ratio of the actual output to the theoretical (calculated by taking into account cycle time and downtimes) output.
Quality; the ratio of the total number of solid parts to the total number of parts produced (FTQ)
Performances monitored during the specified period are determined under 3 main headings (Availability, Performance, Quality). The OEE value consists of the product of these 3 values;
OEE = Availability x Performance x Quality