OEE:
Actually this is overall equipment effectiveness.
This is a measure of equipments performance(A) ,the down time(B) and the quality(C)
1.0 PERFORMANCE(A)
It is easy to understand this with an example:
Equipment “A” rated output is 1000 parts per hour. The available time is say 8hrs per shift. This equipment is suppose to produce 8000 parts in the shift.
But due to downtime then available time could be 7 hrs and in 7 hrs if that equipment produces the rated output as 7000 parts the performance part of the equipment is 100%.
Let us fix some value: rated output:1000 per hour
Available time :8hrs(NO DOWNTIME)
Suppose to produce:8000
Actual production:7000
Performance of the equipment = 87.5%(A)
2.0 DOWN TIME

B)
The available hours per shift is 8 hrs.
10minutes machine breakdown and 20 minutes for change over-total down time is 30minutes
Down time in % 6.25% and available time is 93.75%(B)
3.0 QUALITY(C)
REJECTED PARTS PERCENTAGE :SAY 1%
OK PARTS =99% (C)
THE OEE IS A*B*C = 87.5% * 93.75%* 99%=81.2%
Normally for continuous process industries the value of OEE should be above 95% and in batch processes since there will be some inventory the recommended /BENCHMARK will be above 85%.
Hope it is clear to some extent.
It is not enough if you conider only downtime.That is the reason why people are moving towards TPM and a measure of that is OEE.(MANDATORY FOR QS9000 COMPANIES TO CONTINOUSLY IMPROVE ON THIS)