What is OLE
- Overall Labor Effectiveness (OLE) is a metric that evaluates three critical components of labor productivity: Availability, Performance, and Quality. By assessing these components, OLE provides a holistic view of how effectively a workforce is contributing to the production process.
- It provides a comprehensive view of how effectively labor is contributing to the production process.
- OLE is calculated by evaluating three main components:
- Availability : measures % of time employees are available to work, considering factors like absences and breaks.
- Performance : assesses how efficiently tasks are completed compared to standard times or benchmarks.
- Quality : evaluates the accuracy and excellence of the work performed, considering the rate of defects or errors.