Operational efficiency and effectiveness measurement

by Jeong K-Y., Phillips D.T
International Journal of Operations & Production Management ()

Abstract

The accurate estimation of equipment utilization is very important in capital-intensive industry since the identification and analysis of hidden time losses are initiated from these estimates. In this paper, a new loss classification scheme for computing the overall equipment effectiveness (OEE) is presented for capital-intensive industry. Based on the presented loss classification scheme, a new interpretation for OEE including state analysis, relative loss analysis, lost unit analysis and product unit analysis is attempted. Presents a methodology for constructing a data collection system and developing the total productivity improvement visibility system to implement the proposed OEE and related analyses.

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