Overall Labor Effectiveness
Overall Labor Effectiveness (OLE) is a key performance indicator (KPI) that measures the utilization, performance, and quality of the workforce and its impact on productivity.
Similar to Overall Equipment Effectiveness (OEE), OLE measures availability, performance, and quality.
- Availability – the percentage of time employees spend making effective contributions
- Performance – the amount of product delivered
- Quality – the percentage of perfect or saleable product produced
OLE allows manufacturers to make operational decisions by giving them the ability to analyze the cumulative effect of these three workforce factors on productive output, while considering the impact of both direct and indirect labor.
OLE supports Lean and Six Sigma methodologies and applies them to workforce processes, allowing manufacturers to make labor-related activities more efficient, repeatable and impactful.
Read more about Overall Labor Effectiveness: Measuring Availability, Measuring Performance, Measuring Quality, OLE Calculation, Labor Information Tracked By OLE, See Also, External Links
Famous quotes containing the word labor:
“The rights and interests of the laboring man will be protected and cared for, not by the labor agitators, but by the Christian men to whom God in His infinite wisdom has given control of the property interests of the country.”
—George Baer (1842–1914)