The following data was recorded last period for production department that under the management of Mr. Cobblepot.  Budgeted labour hours  = 2,700 hours Number of units of product X manufactured = 350 units Number of units of product Y manufactured = 400 units Standard hours to produce one unit of X = 3 hours Standard hours to produce one unit of Y = 4 hours Actual labour hours worked = 3,110 hours   In order to measure the productivity of a labour , calculate the efficiency ratio ? show solution

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Overall Equipment Effectiveness

Overall equipment effectiveness or OEE as it is known can be defined as a widely standard to measure manufacturing productivity. In other words, it can also be defined as the exact percentage of time which is productive. If the score of overall equipment effectiveness is 100%, it is an indication that only good parts are being manufactured with no stop time. Hence OEE of 100% means 100% quality, performance & also availability.