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OEE glossary — key terms (2026)

Plain-language definitions of the OEE terms that matter on the floor.

OEE

Overall Equipment Effectiveness — Availability × Performance × Quality; the share of planned time that produced good output.

Availability

Run time ÷ operating time; the losses are breakdowns and setup/changeover.

Performance

(Ideal cycle time × total count) ÷ run time; the losses are minor stops and reduced speed.

Quality

Good count ÷ total count; the losses are startup and production rejects.

TEEP

Total Effective Equipment Performance — OEE across all calendar time, including unscheduled hours.

Six Big Losses

Breakdowns, setup/adjustments, minor stops, reduced speed, startup rejects and production rejects.

Downtime

Any period a machine is not running when it was scheduled to; planned or unplanned.

Micro-stop

A short stop, usually under five minutes, that manual logs miss but sensors catch.

Cycle time

The time to produce one piece; the ideal cycle time is the fastest sustainable rate.

Takt time

The pace of production needed to meet customer demand.

MTBF

Mean Time Between Failures — average running time between breakdowns.

MTTR

Mean Time To Repair — average time to restore a machine after a failure.

Changeover / SMED

Switching a line to a new product; SMED is the method for cutting changeover time.

Yield

The proportion of good units out of total units produced.

More OEE research