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.[1]
^RP news wires, Noria Corporation. "New KPI measures plants' overall labor effectiveness". Retrieved November 30, 2011.
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