The best way to manage performance is to organize your metrics in a cascading tree. This allows you to drill down from the high-level effect to the specific, actionable cause.
Tier 1: The Score (Your Ultimate KPI)
At the very top of the tree, you have your single, most important manufacturing metric.
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Metric: Overall Equipment Effectiveness (OEE)
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What it measures: The single, high-level score of your plant's productivity, representing the percentage of time you are truly making good parts, as fast as possible, with no stop time.
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The Question it Answers: "How are we performing overall?"
Tier 2: The Factors (The "Why" Behind the Score)
If your OEE score is low, the reason will always be found in one of these three underlying factors. They are the primary diagnostic levers.
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Availability: This metric measures all losses from any time the machine is stopped, including both planned and unplanned downtime. Its core question is: "How much did we run versus our plan?"
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Performance: This metric measures all losses from the machine running slower than its top theoretical speed. Its core question is: "How fast were we running?"
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Quality: This metric measures all losses from producing defective parts that are scrapped or require rework. Its core question is: "How many good parts did we make?"
Tier 3: The Losses (The Root Cause Layer)
This is the most granular layer of the diagnostic tree. These specific loss metrics are the root causes that drive your Tier 2 scores down.
| Tier 2 Factor |
Related Tier 3 Loss Metrics |
| Availability |
Unplanned Stop Time, Planned Stop Time |
| Performance |
Minor Stop Duration, Slow Cycle Time Loss |
| Quality |
Reject Count (In-Process), Reject Count (Startup) |
When you see a problem in Tier 2 (e.g., poor Availability), you analyze Tier 3 to find the specific cause (e.g., Unplanned Stop Time).