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Overall equipment effectiveness (OEE) is being used increasingly in industry. This paper defines OEE and explores the purpose of this concept in modern operations. The paper discusses OEE as a total measure of performance that relates the availability of the process to the productivity and quality of the product. Therefore, the concept of OEE is appropriate to all operations containing plant and machinery. Research has shown that the most successful method of employing OEE is to use cross‐functional teams aimed at improving the competitiveness of business.