Developing Overall Equipment Cost Loss Indicator

Wudhikarn, Ratapol; Smithikul, Chanont; Manopiniwes, Wapee

doi:10.1007/978-3-642-10430-5_43

Cited by 15 publications

(35 citation statements)

References 3 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…This irrelevant outcome was not surprising. Normally, OEE does not directly relate to OECL, because the relation depends on several aspects consisting of machine capacity, price of product and production cost (Wudhikarn et al 2009). Therefore, OEE also possibly differs to OEQCL.…”

Section: Discussionmentioning

confidence: 99%

“…Furthermore, OEE is generally not suitable for comparing with the similar machine type that have different capacity and different machine type due to several factors; for example, production capacity, cost of material, quantity of operator, etc. (Wudhikarn et al 2009). …”

Section: Overall Equipment Cost Lossmentioning

confidence: 93%

“…The last two studies tried to solve OEE weaknesses which can lead management level to make critically wrong decision. However, these methods also are inappropriately improved, so the newest indicator has been proposed (Wudhikarn et al 2009). This modified method is called overall equipment cost loss indicator.…”

Section: Overall Equipment Effectiveness (Oee)mentioning

confidence: 99%

See 2 more Smart Citations

Improving overall equipment cost loss adding cost of quality

Wudhikarn

2011

International Journal of Production Research

View full text Add to dashboard Cite

This research has the objective of improving indicators for evaluating losses of equipment. It also proposes a newly developed computing methodology for estimating the quantitative losses in monetary unit. The presented methodology is to calculate losses following overall equipment effectiveness (OEE) consisting of opportunity and production cost losses and also from cost of quality (COQ) approaches. This method eliminates some of OEE's weaknesses and expands scope from overall equipment cost loss (OECL). The proposed calculating methodology is demonstrated by applying to a real manufacturer of equipment. This newly improved model can prioritise problematic equipment more appropriately than OEE and OECL.Keywords: performance measurement; overall equipment effectiveness; overall equipment cost loss; cost of quality; total preventive maintenance 1. Introduction Nowadays, business organisations are confronted with a complex and competitive environment. This circumstance forces manufacturers to improve their quality, price and also delivery time in order to have an advantage over their competitors. In these circumstances, increased competiveness and demand stimulate manufacturers to increase production capacity by replacing human labour with automatic machines. Machines have greater reliability, capacity, and also lower error and operating costs, than humans. Nevertheless the advantages only arise when the machines perform with higher effectiveness and efficiency. Therefore to attain higher prosperity a management system is required and one of the management systems commonly used is total preventive maintenance (TPM). TPM is adopted in order to strengthen the manufacturing business performance and to achieve world-class performance (McKone et al. 2001, Swanson 2001. However, a management system necessarily requires an appropriate information system to evaluate operating performance. The information gathered from operating machines is crucial for sustaining organisations. Management levels are able to make better decisions from these and also manage their production systems more effectively and efficiently. Appropriate measurement is necessarily established for these purposes (Nachiappan and Anantharam 2001). Ericsson (1997) indicated that accurate equipment performance information is essential to the success and long-term effectiveness of TPM activities. One of the important and widely used metrics of performance in manufacturing is overall equipment effectiveness (OEE), especially for firms applying TPM. OEE is a valuable tool that can help management to unleash hidden capacity and therefore reduce overtime expenditure and allow deferral of major capital investment (Muchiri and Pintelon 2006). Furthermore, it is not only as an operational measure, but also as an indicator of process improvement activities within a manufacturing environment (Dal et al. 2000). OEE is a simple indicator but still comprehensive. Moreover, it is an effective way of analysing the efficiency of a single machine and also an integrated machi...

show abstract

Section: Discussionmentioning

confidence: 99%

Section: Overall Equipment Cost Lossmentioning

confidence: 93%

See 1 more Smart Citation

Improving overall equipment cost loss adding cost of quality

Wudhikarn

2011

International Journal of Production Research

View full text Add to dashboard Cite

show abstract

“…This study put efforts on improving the OEE's weaknesses to prevent a wrong decision making. It was still, however, inappropriately developed, thus, a new indicator has been proposed by Wudhikarn et al [18]. This modified method is called an overall equipment cost loss indicator (OECL).…”

Section: A Overall Equipment Effectivenessmentioning

confidence: 99%

A Framework for Integrating Overall Equipment Effectiveness with Analytic Network Process Method

Wudhikarn¹

2013

IJIMT

Self Cite

View full text Add to dashboard Cite

When managing with equipment, an organizationrequires to apply an appropriate decision method in order to unleash hidden losses and identify existing performance also. One of crucial and widespread applied tools of performance measurement in manufacturing industry is Overall Equipment Effectiveness (OEE). However, OEE is still not suitably comparable method, because the weighting of each element in OEE is still equivalent, whereas, their losses are totally different and also interrelate to each other, hence these unconformities possibly mislead a judgment of decision maker. Therefore, this research has an objective to propose a new quantification frameworkby applying Analytic Network Process (ANP) with OEE for improving the weaknesses of original the OEE and other adapted measurement.Index Terms-Performance measurement, overall equipment effectiveness, total preventive maintenance, multi criteria decision making, analytic network process.

show abstract

“…After several improvements of the OEE concept (as described previously), all drawbacks of the improved OEE concept using the weighted method notify that there is difficulty when determining the weight for each OEE element (Raouf, 1994; Sheu, 2006; Wudhikarn et al, 2010). Drawbacks of several OEE concept developments are shown in Table 1.…”

Section: Research Backgroundmentioning

confidence: 99%

Calculation of overall equipment effectiveness weight by Taguchi method with simulation

Yuniawan

Ito

Mohamad

2013

Concurrent Engineering

View full text Add to dashboard Cite

Overall equipment effectiveness is a comprehensive performance measurement that is used to measure equipment effectiveness on the production line. Overall equipment effectiveness is a key performance indicator to measure the implementation of total productive maintenance. Nevertheless, as the time passes, the usage of overall equipment effectiveness is transformed to a system that analyses production data, to identify potential areas of improvement and support lean initiatives. Therefore, overall equipment effectiveness characteristically advances from being a base measure of efficiency as its initial purpose, to being a tool that improves effectiveness. Even though overall equipment effectiveness appears to be a complete performance measurement indicator, it still requires proper modification. Many researches related to overall equipment effectiveness improvement have used weighted overall equipment effectiveness to advance this performance measurement for production line use. Until now, only a few researches have been conducted by other researchers related to overall equipment effectiveness improvement. Several overall equipment effectiveness improvements have included the cost variable into the overall equipment effectiveness calculation; others have attempted to develop a new technique to set up the weights of overall equipment effectiveness. Since several researches of overall equipment effectiveness improvement have met with difficulty when determining the proper weight for each overall equipment effectiveness element, this research proposes a new procedure to cover this drawback. The baseline for weighting overall equipment effectiveness elements in this research refers to overall equipment effectiveness element characteristics that are obtained by a combined result of simulation and experiment, through the Taguchi method. The research outcome proves that this combination of methods gives a more accurate result for providing characteristic data of a production line related to overall equipment effectiveness and for obtaining a weight calculation of overall equipment effectiveness elements.

show abstract

Developing Overall Equipment Cost Loss Indicator

Cited by 15 publications

References 3 publications

Improving overall equipment cost loss adding cost of quality

Improving overall equipment cost loss adding cost of quality

A Framework for Integrating Overall Equipment Effectiveness with Analytic Network Process Method

Calculation of overall equipment effectiveness weight by Taguchi method with simulation

Contact Info

Product

Resources

About