Overall Equipment Effectiveness (OEE)

Excel Formulas › Manufacturing & Operations

All versions

OEE is the gold-standard productivity score — availability × performance × quality. It rolls uptime, speed, and yield into one percentage that says how close a machine runs to its full potential.


Quick formula: OEE from the three factors:
=availability * performance * quality
Multiply the three component percentages; world-class is ~85%, typical is 60%.

The example

90% × 95% × 99%.

AB
1FactorValue
2Avail × Perf × Qual
3OEE→ 84.6%

The formula

The formula:

=availability * performance * quality // the three factors multiplied

How it works

How it works:

  1. Availability = run time ÷ planned time (uptime, after breakdowns and changeovers).
  2. Performance = actual rate ÷ ideal rate (speed, after slow cycles and minor stops).
  3. Quality = good units ÷ total units (yield, after scrap and rework).
  4. Multiply the three for OEE — ~85% is world-class, 60% is typical.

OEE is multiplicative, so the weakest factor dominates. 90% × 90% × 90% is only 73%, not 90% — three “good” numbers compound into a mediocre score. That’s the point: it forces attention on whichever of availability, performance, or quality is dragging the line down, rather than letting a strong number hide a weak one.

Try it: interactive demo

Live demo

Availability, performance, quality (%).

OEE:

Variations

Availability

Uptime:

=run_time / planned_time

Performance

Speed:

=(ideal_cycle * total_units) / run_time

Quality

Yield:

=good_units / total_units

Pitfalls & errors

Percentages as decimals. 90% is 0.90 in the multiplication.

Multiplicative. Three 90%s give 73% — the weakest factor dominates.

Define planned time. Exclude no-demand and breaks consistently from availability.

Practice workbook

📊
Download the free Overall Equipment Effectiveness (OEE) practice workbook
An OEE sheet with the availability, performance, and quality variants, plus 4 challenges with answers. No sign-up required.

Frequently asked questions

How do I calculate OEE in Excel?
Multiply the three factors: =availability * performance * quality. 90% × 95% × 99% is about 84.6%.
What are the three OEE factors?
Availability (run/planned time), performance (actual/ideal rate), and quality (good/total units).
Why does OEE drop so fast?
It's multiplicative — three 90% factors give only 73%, so the weakest factor dominates the score.

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