In the workshops, distilleries, and forges across the Sword Coast, production rarely fails because of a single dramatic event like a broken enchantment or collapsed furnace. Instead, loss arises from small pauses, slow runs, spoiled batches, and quiet rework that never clearly reaches the ledger. A half hour here, a failed batch there, and suddenly the quarterly margins tell a different story than the production logs promised.
The Waterdeep Trading Company recognizes this truth. To see what truly happens on the shop floor, rather than what should happen according to plan, the company employs a measurement discipline known as Overall Equipment Effectiveness, or OEE. This metric does not judge the skill of artificers or the dedication of laborers. Instead, it measures how well equipment turns planned time into sellable goods. It captures time, speed, and quality in a single actionable metric that reveals the hidden costs of production.
OEE matters because it connects the reality of the workshop to the expectations of the counting house. It indicates whether delays are attributable to bad luck, poor maintenance, inadequate training, or systemic issues that require investment. For guild masters, production supervisors, and finance scribes alike, OEE transforms vague impressions into clear data.
This article explains OEE in plain terms, shows how it applies to Faerûnian production environments, and walks through worked examples using a heated cauldron line operated by the Waterdeep Trading Company.
What OEE Is
OEE is a single measure built from three distinct components. Each component represents a different approach, which can result in lost planned production time. Together, they answer one essential question: Of all the time we planned to produce, how much became a good product ready for sale?
The three components are Availability, Performance, and Quality. Each is expressed as a percentage, and their product yields the overall OEE score.
The Three Components Explained
Understanding each component separately is essential before combining them into the full OEE calculation.
Availability
Availability measures time lost to stoppages. If a cauldron is scheduled to run but sits idle due to cleaning, repair, missing ingredients, or equipment failure, that time is lost availability. Availability only checks whether the equipment is running. It does not matter how fast the equipment runs or whether the output is good. It simply asks: Was the equipment operating when it should have been?
Common causes of availability loss in Faerûn include arcane instability requiring recalibration, material shortages from delayed caravans, mechanical failures in gears or seals, and unplanned cleaning due to contamination.
Performance
Performance measures lost speed. If a cauldron is running but heating more slowly than expected, pausing briefly between batches, or operating at reduced output due to worn components, the slowdown reduces performance. Performance is measured by comparing the actual output rate to the ideal output rate. Even if the equipment never fully stops, running at 80% of expected speed results in a 20% performance loss.
In Faerûnian workshops, performance loss often comes from aging enchantments, inexperienced operators, inconsistent ingredient quality, or temperature fluctuations in the workshop environment.
Quality
Quality measures lost output. If a batch fails inspection, requires rework, or must be discarded entirely, that loss reduces quality. Quality looks only at usable output. Even if availability and performance are perfect, quality loss means that production time was spent creating goods that cannot be sold at full value.
Typical quality issues include failed enchantments, contamination from improper cleaning, incorrect ingredient ratios, or structural defects in the finished product.
The OEE Formula
The formula for OEE is straightforward. It multiplies the three components together.
OEE equals Availability multiplied by Performance multiplied by Quality.
Each value is expressed as a percentage, and the result is also a percentage. An OEE of 85 percent means that 85 percent of planned production time resulted in good output. The remaining 15 percent was lost due to downtime, slow speed, or defective products.
Worked Example 1: Single Heated Cauldron, One Shift
For example, OEE can be illustrated by a single heated cauldron operated by the Waterdeep Trading Company over an eight-hour shift. The cauldron produces alchemical potions in batches, each requiring a defined heating and cooling cycle.
The shift begins with a plan. The following table shows how the planned shift time is allocated before any actual production begins.

The planned production time of 420 minutes represents the time available for actual manufacturing after subtracting scheduled breaks, shift handovers, and routine inspections. This is the baseline against which OEE will be measured.
During the shift, several events occur that affect production. A seal failure causes a 30-minute stoppage while repairs are made. The cauldron runs slower than expected for part of the shift due to inconsistent heat from a weakening enchantment. One batch fails quality inspection due to improper mixing and must be discarded.
Now we calculate each component of OEE step by step.
Step 1: Calculating Availability
Availability compares the time the equipment operated to the planned production time. The following table breaks down the calculation.

Availability equals operating time divided by planned production time. This gives us 390 ÷ 420, which equals 92.86%. The cauldron was available to produce for just under 93 percent of the planned time.
Step 2: Calculating Performance
Performance compares actual output to the ideal output based on the equipment’s design speed. The cauldron is designed to produce one batch every 20 minutes when running at full capacity.
With 390 minutes of operating time, the ideal output is 390/20, which equals 19.5 batches. However, the actual output before quality checks is 18 batches.
Performance equals actual output divided by ideal output. This gives us 18 ÷ 19.5, which equals 92.31%. The cauldron ran at just over 92 percent of its expected speed.
Step 3: Calculating Quality
Quality compares good output to total output. Out of the 18 batches produced, one fails inspection and must be discarded. This leaves 17 good batches.
Quality equals good batches divided by total batches. This gives us 17/18, which equals 94.44%. Just over 94 percent of production met quality standards.
Step 4: Calculating OEE
We now multiply the three components to compute the overall equipment effectiveness.
OEE equals 92.86% × 92.31% × 94.44%, which gives approximately 80.9%.
This means that just over 80% of the planned production time resulted in sellable output. The remaining nineteen percent was lost due to downtime, reduced speed, and quality failures. Each of these losses represents real cost to the company, whether in wasted materials, wasted labor time, or lost revenue from goods that could not be sold.
Worked Example 2: Comparing Two Cauldrons
The Waterdeep Trading Company operates two heated cauldrons in parallel, both using the same recipe and running for the same shift length. While both produce the same product, their performance characteristics differ significantly. The following table compares their OEE components.

The results reveal an interesting pattern. Cauldron B stops more often, resulting in more downtime and lower availability. However, when it runs, it runs faster and produces cleaner output. Cauldron A runs more consistently with fewer stoppages but loses effectiveness through slower speed and more quality issues.
Despite their different loss patterns, both cauldrons deliver nearly identical overall effectiveness, approximately 80%. This informs the production supervisor and the finance scribe that both lines require attention, but for different reasons. Cauldron A may require improved training or maintenance to enhance speed and quality. Cauldron B may need more reliable components or better preventive maintenance to reduce stoppages. Focusing solely on total output would obscure these differences. OEE reveals where improvement efforts should focus.
Why OEE Matters to the Ledger
OEE connects the shop floor to finance without guesswork or assumptions. Each component of OEE has direct financial implications that are reflected in the cost accounting system.
Low availability increases labor cost per unit because workers are paid for time when the equipment sits idle. It also increases per-unit overhead allocation because fixed costs, such as workshop rent and lighting, are spread across fewer units of output.
Low performance hides capacity loss. A workshop that believes it has space to take on more orders may be running its existing equipment at reduced speed. OEE reveals this hidden constraint before the company overcommits to customers.
Low quality creates scrap, rework, and delayed revenue. Materials are consumed but produce no sellable output. Labor is spent twice on the same batch. Delivery promises are broken because good output arrives later than planned.
By linking OEE trends to cost and margin analysis, the Waterdeep Trading Company avoids the common mistake of blaming weak demand for execution issues. When revenues fall short, OEE data can show whether the problem is market conditions or internal capacity utilization.
Using OEE the Right Way
OEE is a signal, not a weapon. When used properly, it guides continuous improvement and reveals systemic issues. When used improperly, it becomes a tool for blame that drives workers to hide problems rather than solve them.
Good use of OEE focuses on patterns over time rather than on single shifts. A bad day tells you little. A trend of declining performance over weeks indicates that something fundamental requires attention. OEE should be reviewed with operators, not against them. The people closest to the equipment often know exactly what is wrong and simply need permission and resources to fix it.
The goal of tracking OEE is to remove friction from the system, not to punish those working within it. Equipment that consistently exhibits low availability may require investment in improved maintenance or replacement parts. Low performance may indicate the need for improved training, clearer work instructions, or enhanced capabilities. Low quality may indicate issues with ingredient sourcing, inadequate inspection tools, or process design flaws.
OEE works best when it is transparent, regularly discussed, and used to justify investments in improvement rather than to assign blame for shortfalls.
Realms Aware Considerations
Production in Faerûn faces unique challenges that are less common in purely mechanical manufacturing environments. Some losses are specific to the magical and logistical realities of the Sword Coast.
Magical instability affects quality. Enchantments can fade, interfere with each other, or behave unpredictably during storms or planar convergences. Quality losses from arcane sources require different solutions than mechanical defects.
Ingredient variance affects performance. Raw materials sourced from different regions or different seasons may behave differently in the same process. A potion recipe that works perfectly with Cormyrian herbs may run slower or produce inconsistent results with substitutes from Amn.
Enchantment maintenance affects availability. Unlike purely mechanical equipment, magical apparatus requires periodic recalibration, attunement, or recharging. These maintenance activities may be less predictable than oiling gear or replacing worn belts.
Despite these unique factors, the losses are still losses. OEE allows them to be measured, discussed, and planned for, rather than accepted as inevitable. By quantifying the impact of magical instability or ingredient variance, the company can make informed decisions about whether to invest in better enchanters, source more consistent materials, or adjust customer delivery promises.
Final Thoughts
OEE does not promise perfection. No production system will ever achieve 100% effectiveness. Equipment breaks, people make mistakes, and materials vary. OEE clarifies where production time is spent and why planned output differs from actual results.
For the Waterdeep Trading Company, OEE turns the shop floor into a reliable source of truth. Time, speed, and quality cease to be narrative elements in shift reports and become metrics that inform better decisions. Finance scribes can calculate true production costs. Operations supervisors can prioritize improvement projects. Guild masters can set realistic expectations for capacity and delivery times.
In a competitive market where margins are measured in units per copper piece, the difference between 80% and 90% OEE can determine whether a product line thrives or fails. OEE makes that difference visible, measurable, and actionable.
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