What metric is used to quantify process efficiency?

Overall Equipment Effectiveness (OEE) is a key performance indicator that quantifies process efficiency by measuring how well a manufacturing operation is performing compared to its full potential. OEE takes into account three primary factors: availability, performance, and quality.

1. Availability reflects the percentage of scheduled time that the equipment is actually operating. This considers any downtime that might occur due to maintenance, repairs, or other interruptions.

2. Performance measures the speed at which the equipment operates compared to its maximum designed speed. It reflects how efficiently the process runs when it is up and operating.

3. Quality accounts for the proportion of products produced that meet quality standards compared to the total products produced, thus eliminating defects that do not meet the required specifications.

By combining these factors into a single percentage, OEE provides a comprehensive view of the process's effectiveness, enabling organizations to identify areas for improvement and drive operational efficiency. It is widely used in lean manufacturing and Six Sigma practices as a benchmark for performance.

The other metrics listed serve different purposes. Return on Investment (ROI) focuses on financial returns relative to investments made, providing insight into profitability rather than process efficiency. Customer Satisfaction Index (CSI) evaluates customer experiences and perception of products or