O.E.E. means overall equipment effectiveness.It is a method to find out overall effectiveness of equipment. It is obtained by multiplication of three ratios.
1. Availability ratio - Time for which equipment was available for operation divided by total calender period for which O.E.E. is being calculated.
2. Quality Ratio - Quantity of "A" grade/Prime grade material produced divided by total production (Off grade+Prime grade)
3.Performance Ratio - Rate of production divided by Capacity of machine to produced.
Normaly O.E.E. is presented in terms of percentage.