Overall equipment effectiveness (OEE)
A manufacturing metric that multiplies availability, performance and quality to show what share of planned production time a machine spent producing good parts at full speed.
OEE breaks production losses into three factors. Availability captures downtime, planned or not. Performance captures slow cycles and minor stops. Quality captures scrap and rework. Multiplying them gives one number that is easy to compare across machines and shifts, and the breakdown shows where the loss is.
Calculating OEE by hand relies on operator logs, which are late and incomplete. Industrial IoT automates it: machine states come from the PLC or a retrofit sensor, cycle counts from a part sensor, and quality from inspection systems, so the KPI updates in real time. The trade-off is that OEE can be gamed by changing what counts as planned time, so definitions must be agreed before the dashboards go up. The Industrial IoT guide discusses it as a first use case.
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