Overall Equipment Effectiveness

The Overall Equipment Effectiveness (OEE) model is based on an established method for manufacturers to measure truly productive time. The OEE method aims to identify losses in production and categorizes them into three categories: availability, performance, and quality.

The OEE metric is then calculated based on the actual equipment’s availability, performance, and quality losses in relation to the maximum expected performance.

  • Availability

    The equipment available time for production. This is the planned production time and the actual run time.

  • Performance

    The equipment performance ratio. This is the potential output and the actual output.

  • Quality

    The equipment quality ratio. This is the actual output and the good quantity.

These are then used to calculate the OEE metric: OEE = Availability x Performance x Quality

OEE measures to get the KPIs are measured in the unit of time.


OEE is best analyzed when the operation is closed (status 90) and not tagged as fixed time (Fixed Time = No). Time spent is attributed to the actual finish date, for example, an operation that is started in January and finished in February will have its record posted in February.

Source information

The model is mainly retrieved from the MO Operation (MWOOPE) and Operation Transaction (MWOPTR) files from M3. The planned hours and manufactured and scrapped quantities are directly mapped from MWOOPE and stored in the MO Operation grain, while non-disturbance hours and rework quantity are retrieved from MWOPTR and stored in the MO Operation Transaction grain. Records from MWOPTR are aggregated to manufacturing order operation level and are stored in the MO Operation grain.