Is Overall Equipment Effectiveness (OEE) Universally Applicable? The Case of Saint-Gobain

Charaf, Karim; Ding, Huifang

doi:10.5539/ijef.v7n2p241

Cited by 10 publications

(10 citation statements)

References 6 publications

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“…In meeting up with the challenges of world-class manufacturing, overall equipment effectiveness has become an important subject in the literature of maintenance management and manufacturing performance. In the contemporary industrial phase, overall equipment effectiveness is gaining weight as evidenced in the numerous research works [8][9][10].…”

Section: Literature Reviewmentioning

confidence: 99%

“…Pradhan & Bhol (2006) [12] posit that overall equipment effectiveness is the total productive maintenance metric for measuring equipment effectiveness or productivity. The optimization of equipment, productivity and continuous improvement of equipment for manufacturing process is what Ding & Kamaruddin (2015) [10] depict as overall equipment effectiveness. Normariah, Salina, Shuib & Hasnida (2017) [13] view overall equipment effectiveness as a metric that is a function of equipment availability, quality rate and equipment performance efficiency.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Studies by [14], Marcello, Marco & Francesco (2009) [15], Jose, Steve, Kelvin & Horacio (2010) [16], Muchiri, Pintelon, Gelder & Martin (2010) [17], Vijayakumar & Gajendran (2014) [18]. Ding & Kamaruddin (2015) [10] admit that overall equipment effectiveness (OEE) is expressed as a function of availability, performance and quality i.e OEE= f(A x P x Q). They further express that other terms which can be used to express overall equipment effectiveness (OEE) are utilization, efficiency and yield.…”

Section: Literature Reviewmentioning

confidence: 99%

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Impact of overall equipment effectiveness on return on investment in the Nigerian cement manufacturing industry

Ugbomhe

Monday²

2021

Front Manage Bus

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The formidable challenge of maintenance of heavy duty equipment for the day-to-day manufacturing activities informed this research investigation. The study examined the impact of overall equipment effectiveness on return on investment in the Nigerian cement manufacturing industry. It focused on the key indicators of overall equipment effectiveness and their impact on return on investment. Ex-post facto research design was adopted in conducting the empirical investigation. The firms in the industry quoted in the Nigeria Stock Exchange (NSE) were studied. Longitudinal data of 15 years observation (2005-2019) were obtained and analyzed with ordinary least squares regression (system-OLS). The key indicators of overall equipment effectiveness subjected to empirical test proved positively significant to return on investment at the Coefficient values a1, a2 & a3 > 0; Prob.-values a1, a2, & a3 < 0.05 and t-Statistic values a1, a2, & a3 absolutely ≥ 2. These analysis results suggested that machine availability rate (MAR), machine production rate (MPR), product quality rate (PQR) variables of overall equipment effectiveness have significant linear effect on ROI. Based on these results, the study therefore recommends among others for top management’s support and commitment to proactive and continuous improvement production facilities maintenance for improved overall equipment effectiveness and sustainable corporate performance of firms in the industry.

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Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

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Impact of overall equipment effectiveness on return on investment in the Nigerian cement manufacturing industry

Ugbomhe

Monday²

2021

Front Manage Bus

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“…For Charaf and Ding [30], the OEE frees managers from short-term vision and provides the prospect of continuous improvement. Using the OEE, the performance of the equipment is evaluated, unmasking all machine performance losses and indicating possible corrective or preventive actions.…”

Section: Introductionmentioning

confidence: 99%

Prioritization of Physical Assets for Maintenance and Production Sustainability

Durán

2019

Sustainability

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Maintenance is one of the main drivers for ensuring the sustainability of manufacturing in capital-intensive production systems. However, in many cases, as a result of budgetary constraints, it is necessary to select which machines will be subject to maintenance actions on the basis of a list of priorities. Traditionally, such prioritization decisions are made using techniques which, in general, do not consider the systemic impact of maintenance actions. This paper is focused at the definition of a novel graphical technique for physical assets prioritization. This technique is aimed at establishing maintenance priorities considering the impact on the overall throughput of the production system. Due to the fact that the proposed technique is based on the well-known Overall Equipment Effectiveness (OEE) index, its use is not only limited to measuring the effects of maintenance decisions and actions (availability), but also to operational implications (productivity and utilization). The results could be displayed graphically, which makes it particularly useful and manageable for different types of users. The methodology is illustrated though an example based on a comminution plant from the copper mine industry. It is evident how the proposed technique facilitates business-oriented and economic sustainability focused decisions.

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“…For more details on data collection and the calculation/application of OEE, see three references focused specifically on OEE: Muchiri and Pintelon's 2008 article "Literature Review and Practical Application Discussion" [11]; Hansen's Overall Equipment Effectiveness book [12]; and The OEE Primer: Understanding Overall Equipment Effectiveness, Reliability, and Maintainability [13] by Stamatis. As with the world-wide spread of Scientific Management, the use of OEE by industrial engineers has spread to practitioners in Europe (e.g., see an application in France to large-scale production of ductile iron pipe [14], and in Asia, for example, applications to sugar mills in India [15,16]).…”

mentioning

confidence: 99%

A Service Management Metric with Origin in Plant Management

Batson¹

2021

Concepts, Applications and Emerging Opportunities in Industrial Engineering

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The discipline of industrial engineering (IE) was originated in the US by Frederick W. Taylor, who first applied what he termed scientific management to machine shop management in the 1880s. IE expanded worldwide with applications of work measurement to all manner of manufacturing, then to services. A century later, as the Japanese practice of Total Productive Maintenance (TPM) became known in the US, the associated equipment management metric Overall Equipment Effectiveness (OEE) became well-known as a production metric that could be applied to individual manufacturing machines, production lines, and the overall production system. In this chapter, illustrations of the calculation of OEE are provided, along with modification of the three OEE inputs (availability, performance efficiency, and quality rate) to create a new service management metric Overall Service Effectiveness (OSE). Definitions and measures of service quality are reviewed. The first published application of OSE was to a city public transportation system, and is reviewed as a prototype. Essentially, applications of OSE require the industrial engineer to define service-specific measures of availability, processing rate, and quality at the management's level of interest: work station, process, or system. The data collected to calculate OSE will also point toward actions that would improve OSE.

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Is Overall Equipment Effectiveness (OEE) Universally Applicable? The Case of Saint-Gobain

Cited by 10 publications

References 6 publications

Impact of overall equipment effectiveness on return on investment in the Nigerian cement manufacturing industry

Impact of overall equipment effectiveness on return on investment in the Nigerian cement manufacturing industry

Prioritization of Physical Assets for Maintenance and Production Sustainability

A Service Management Metric with Origin in Plant Management

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