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Optimizing Performance: A Deep Dive into Overall Equipment Effectiveness

(OEE) for Operational Excellence

Article in Journal of Industrial Mechanics · December 2023

DOI: 10.46610/JoIM.2023.v08i03.004

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Optimizing Performance: A Deep Dive into Overall Equipment

Effectiveness (OEE) for Operational Excellence
Md Rahamat Ullah1*, Selim Molla2, Iqtiar Md Siddique3, Anamika Ahmed Siddique4,
Md. Minhajul Abedin5
1
Post Graduate Student, Department of Industrial and Systems Engineering, the University of Buffalo,
USA
2
Post Graduate Student, Department of Computational Science, University of Texas at El Paso, USA
3
Post Graduate Student, Department of Industrial, Manufacturing and Systems Engineering,
University of Texas at El Paso, US
4
Post Graduate Student, Department of Mechanical & Aerospace Engineering, University of Texas at
El Paso, US
5
Under Graduate Student, Department of Textiles Engineering, National Institute of Textile
Engineering and Research, Dhaka
*
Corresponding Author: [email protected]

Received Date: November 28, 2023 Published Date: December 08, 2023

ABSTRACT challenges and potential pitfalls that

This paper delves into the pivotal role of organizations may encounter when adopting
Overall Equipment Effectiveness (OEE) as a OEE as a performance measurement tool.
crucial performance measurement tool for
enhancing operational efficiency. OEE is a Keywords- Equipment, Heavy industry, Human
comprehensive metric that assesses the Factor, Production, Total Productive
utilization of equipment, availability, Maintenance (TPM)
performance, and quality to provide a holistic
view of operational performance. By
thoroughly analyzing OEE and practically INTRODUCTION
applying its principles, organizations can
unlock significant opportunities to optimize In the increasingly competitive global
their operational processes. The study begins business landscape, the imperative for
by elucidating the concept of OEE and its companies to assess and improve their
three core components: Availability, performance has never been more critical. This
Functioning, and Attribute. A comprehensive is especially pertinent in the realm of
analysis of each component is presented, manufacturing enterprises, where the efficiency
highlighting the importance of measuring, and output of production facilities are directly
and improving these aspects in any correlated with their ability to remain
operational setting. Through practical case competitive. To confront these challenges
studies and real-world examples, this paper effectively, the adoption of a performance
illustrates how organizations can harness the measurement system is imperative – one capable
power of OEE to identify areas of of offering a comprehensive evaluation of
improvement and implement targeted various facets of productivity within the
strategies for enhanced performance. It manufacturing process.
explores how OEE can uncover hidden losses, Operational performance is a
reduce downtime, and drive quality fundamental driver of success for organizations
improvements, ultimately leading to increased across various industries. Achieving and
productivity and profitability. Additionally, sustaining operational excellence is a continuous
the paper discusses best practices for OEE endeavour that demands meticulous evaluation
implementation and measurement, of processes, equipment, and workforce
emphasizing the importance of data efficiency. One essential tool that has gained
collection, analysis, and continuous prominence in the quest for operational
improvement. It also delves into the improvement is Overall Equipment

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Effectiveness (OEE). This comprehensive The Emergence of OEE as a Key Operation

system of measurement, which assesses the Capacity Tool
utilization of equipment, availability,
performance, and quality, has emerged as a OEE is a versatile and insightful
cornerstone in the realm of performance performance measurement tool that provides a
measurement. By conducting a comprehensive comprehensive assessment of equipment and
analysis and practical application of OEE, process efficiency. It is structured around three
organizations can not only pinpoint areas for core components: Availability: Availability
enhancement but also initiate targeted strategies measures the percentage of time that equipment
for optimizing their operational processes. is available for production. It considers factors
In the modern business landscape, such as equipment breakdowns, setup times, and
competition is fierce, and the need for planned maintenance. Performance:
operational efficiency has never been more Performance evaluates the speed at which
critical. Organizations must navigate through a equipment runs when it is available. It accounts
web of challenges, such as fluctuating customer for factors like equipment speed loss, idling, and
demands, market volatility, and resource short stoppages. Quality: Quality evaluates the
constraints while striving to maintain percentage of good-quality products produced by
profitability. In this context, OEE offers a robust the apparatus, reflects deficiencies, alteration,
framework for assessing and improving and waste. By incorporating these three
operational performance. This two-page dimensions, OEE offers a multifaceted view of
introduction sets the stage for an exploration of an organization's operational performance. This
OEE's significance and the transformative comprehensive perspective enables
potential it holds for organizations aiming to organizations to uncover hidden losses, identify
enhance their operational efficiency. opportunities for improvement, and implement
strategies for enhancement in a structured and
The Significance of Operational Performance data-driven manner.
OEE has gained widespread acceptance
Operational performance, often due to its capacity to provide actionable insights
synonymous with operational excellence, is the into operational processes. It serves as a unifying
backbone of any successful organization. It metric, aligning various departments and
encompasses a wide spectrum of factors, stakeholders towards a common goal of
including the utilization of resources, improving overall operational efficiency.
Moreover, OEE can be applied across diverse
productivity, product quality, and cost-
industries, from manufacturing to healthcare,
effectiveness. Attaining optimal operational
making it a versatile and universally applicable
performance is a multi-faceted endeavour that
tool.
requires a holistic approach. Operational
As businesses strive to adapt to evolving
excellence influences an organization's
market dynamics and increasing customer
competitive advantage and, consequently, its expectations, the role of OEE in enhancing
long-term sustainability. It directly impacts the operational performance becomes more
bottom line by reducing operational costs, pronounced. In the subsequent sections of this
improving product quality, and increasing paper, we will delve deeper into the components
throughput. Furthermore, enhanced operational of OEE, explore its practical applications
performance can lead to better customer through real-world case studies, and discuss the
satisfaction, an improved reputation, and a best practices for its implementation. We will
stronger market position. To achieve operational also address potential challenges and pitfalls,
excellence, organizations need to adopt a providing organizations with a comprehensive
systematic approach that evaluates various understanding of how to harness the full
aspects of their operations. In this pursuit, the potential of OEE for operational excellence.
identification of performance metrics that align In conclusion, this introduction sets the
with the organization's goals is paramount. One stage for a thorough examination of Overall
such performance metric that has demonstrated Equipment Effectiveness (OEE) and its
its worth across industries is Overall Equipment transformative potential in elevating operational
Effectiveness or OEE. performance. OEE has emerged as a pivotal

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Industrial Mechanics Volume-8, Issue-3 (September-December, 2023)

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performance measurement tool, offering pinpoint which machines have the poorest
organizations a structured and data-driven performance, guiding the allocation of TPM
approach to identify and address operational resources (Nakajima, 1989) [6]. The concept of
inefficiencies. By comprehensively analyzing "six big losses," as defined by Nakajima (1988),
and practically applying OEE principles, plays a crucial role in OEE measurement, as it
organizations can unlock opportunities for aims to recognize and address losses resulting
improvement, reduce operational costs, and from persistent and periodic instability in the
ultimately gain a competitive edge in today's production process. These losses, including
dynamic and demanding business environment. equipment failure/breakdown, set-up/adjustment
time, stopping and marginal stoppages,
LITERATURE REVIEW condensed speed, decreased yield, and quality
defects and rewrite, are detrimental to
The research presented in this paper production efficiency and quality. OEE is
utilized an action research approach, primarily calculated based on these six significant failures
drawing on the work of Gill and Johnson (1991) and is a function of machine, production line, or
[1] and Easterby-Smith et al. (1991) [2]. It aimed factory performance in terms of accessibility,
to independently evaluate the effectiveness of performance rate, and quality rate.
OEE as an evaluation of production The literature offers different
advancement. Data was collected through a perspectives on ideal OEE values for its
longitudinal case study conducted over three components. Nakajima (1988) suggested
months, involving techniques such as member availability exceeding 90 percent, working
statements, paper assessment, and semi- efficiency over 95 percent, and quality
structured meetings, as recommended by Yin exceeding 99 percent, resulting in an OEE of
(1994) [3]. The chosen case study design approximately 85 percent. However, there is no
followed Yin's type 1 model, focusing on a consensus on acceptable OEE performance
specific case, specifically examining the levels. Various sources, such as Kotze (1993)
weaving department. Recent research by [7], Ericsson (1997) [4], and Ljungberg (1998)
Ericsson (1997) emphasized the importance of [8], present different views, with figures ranging
accurate apparatus functioning data for the from 30 percent to 80 percent. Ljungberg (1998)
achievement of TPM activities [4]. reported a mean OEE of 55 percent, with
Understanding the area of equipment availability approaching Nakajima's standard of
breakdowns and explanations for manufacturing 90 percent in the sampled cases [9].
losses is crucial for optimizing TPM actions and The OEE measurement device is rooted
addressing performance issues effectively. in the TPM hypothesis introduced by Nakajima,
Assembly losses, combined with implicit and which aims to eliminate breakdowns and defects
suppressed costs, constitute a significant portion in equipment, leading to improved production
of total production costs, as pointed out by rates, cost reductions, inventory management,
Ericsson. Nakajima (1988) highlighted that OEE and increased labour productivity [10]. TPM
is a measure designed to unveil these hidden places significant emphasis on production
costs and suggested that it is a very in-operation equipment, recognizing their impact on quality,
application that involves process teams in productivity, cost, safety, and health. OEE is
conjunction with rudimentary superiority control considered a measure of total equipment
tools like Pareto and cause-and-effect charting performance, focusing on availability,
[5]. OEE, in this context, should be viewed as an performance, and quality rate. It helps identify
operative assessment rather than a planned one. losses and serves as the basis for improvement
OEE serves various purposes within a significances and root cause analysis,
manufacturing environment. It can serve as a contributing to balanced production flow and
yardstick to assess the original execution of a tracking performance changes over time.
production plant, allowing for comparisons with Nazma et al. (2014) and Rahman (2015)
future OEE values to gauge improvement. It can interpret how supplier selection may affect the
also be used to compare the performance of overall equipment performance for giving
different production lines within a factory, significant output since the supplier quality for
identifying underperforming lines. Additionally, the equipment is a crucial factor for the overall
when machines operate independently, OEE can effectiveness [11, 12]. Rahman et al. (2023) try

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to consider the cryptocurrency system for the applications can serve as valuable supplements
procurement of the equipment since the to the existing factory performance measurement
measurement of the performance of equipment system. In this context, OEE should be regarded
greatly depends on the pricing system during as an operating measure rather than a calculated
purchasing [13]. Ambiguity exists in the one (Nakajima, 1988) [6]. The purpose of OEE
literature regarding whether OEE assesses encompasses various points within a production
effectiveness or efficiency. Effectiveness, as atmosphere. Firstly, OEE can serve as a
defined in this context, pertains to the extent to "benchmark" for assessing the initial
which the procedure production aligns with performance of an entire manufacturing plant.
specified requirements, essentially determining By comparing the initial OEE measure with
whether tasks are carried out correctly. subsequent values, the level of improvement
Conversely, efficiency signifies how well the achieved can be quantified. Secondly, an OEE
process generates the necessary output with value computed for a specific industrialized link
minimal resource utilization, also entailing the can be used to compare line operation
correct execution of tasks. The three metrics throughout the plant, spotlighting any
encompassed by OEE, namely availability rate, underperforming lines. Thirdly, in cases where
performance rate, and quality rate, reflect the machines operate independently, an OEE
level of adherence to output requirements. evaluation can recognize the machine with the
Consequently, OEE is a measure of lowest performance, indicating where to
effectiveness, following the literature's definition concentrate TPM resources (Nakajima, 1989).
that OEE evaluates apparatus routine established Rahman et. al (2023) use the machine learning
on availability, performance, and quality rate. algorithm and big data tools which is very useful
for this study specifically for the performance
What is Overall Equipment Effectiveness prediction accuracy of the measurement system
(OEE) [14-25]. Fayshal et al. (2023) consider the
environmental factors and safety risk assessment
As per Nakajima (1989), Total for the worker and the environment and this
Productive Maintenance (TPM) is built on three study has significantly depended on these factors
interconnected principles: (1) the maximization [17,18].
of equipment effectiveness; (2) operators' Understanding and quantifying
autonomous maintenance; and (3) small group disruptions in the manufacturing process is of
activities [5]. Within this framework, OEE can paramount importance. According to Johnson
be viewed as an amalgamation of the operation, and Lesshammar (1999), these disruptions can
maintenance, and management of production be categorized as chronic or sporadic based on
equipment and resources [9]. Recent research by their frequency. Chronic disruptions are typically
Ericsson (1997) underscores the vital importance inconspicuous, recurrent, and complex, often
of accurate equipment performance data for the stemming from multiple concurrent causes. In
success and long-term effectiveness of TPM contrast, sporadic disruptions are more evident,
activities. Without a comprehensive characterized by rapid and significant deviations
understanding of the extent of equipment from the norm [10]. Sporadic disruptions occur
failures and the reasons behind production irregularly and are often perceived as leading to
losses, TPM activities cannot be optimally severe problems due to their dramatic impact.
deployed to address major issues or mitigate However, examined evidence suggests that it is
rejecting performance. Assembly losses, coupled chronic disruptions that result in small
with other implicit and concealed costs, equipment utilization and significant
constitute a significant portion of the total expenditures because of their recurring nature.
production expenses (Ericsson, 1997). Nakajima Identifying chronic disruptions is challenging
(1988) thus suggests that OEE serves as "a since they can often be perceived as the regular
measure that attempts to reveal these hidden state of the method. Recognizing chronic
costs." Nakajima further recommends that the disruptions is only feasible by comparing the
most effective utilization of OEE involves performance with the equipment's theoretical
process teams working in combination with
capacity. Both chronic and sporadic disruptions
basic quality management tools like Pareto
have distinct adverse effects on the production
analysis and cause-and-effect charts. Such

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process. They utilize reserves without benchmarks for the OEE element assessments
contributing profit to the result. OEE aims to obtainability exceeding 90 percent, execution
pinpoint these failures. OEE can, therefore, be productivity surpassing 95 percent, and
defined as a bottom-up methodology where an characteristics exceeding 99 percent. Achieving
incorporated employee collaborates to enhance these levels of accessibility, presentation, and
overall equipment effectiveness by mitigating attribute would affect an OEE of almost 85
the impact of the "six big losses," as defined by percent [4]. However, the information does not
Nakajima (1988) [5]. Nakajima's "six big losses" provide a clear consensus on the appropriate
are detailed as follows: levels of these OEE components. Here are the
 Equipment miscarriage or failure losses varying opinions regarding what constitutes
encompass both time losses, where satisfactory effectiveness performing.
productivity declines, and quantity losses Kotze (1993) argues that an OEE that
due to defective products. illustrated larger than 50 percent is more
 Set-up and regulation time losses occur practical and, consequently, a more reasonable
during downtime and are associated with target [7]. Ericsson (1997) states that adequate
imperfect produce when transitioning from OEE value can be limited from 30 percentage to
producing one item to configuring the 80 percent [4]. Additional research by Ljungberg
equipment for another item. These first two (1998) presents OEE appears between 60
major losses, known as downtime losses, percent and 75 percent in various cases [4]. In an
are crucial for determining the true measure analysis of values related to each OEE element,
of machine availability. Ljungberg (1998) notes that the normal OEE
 Dismissing and secondary stoppage losses measurement throughout the experimented items
happen when manufacture is suspended due occurred at 55 percent. Using the same data
to malfunctions or when a system is idling. source, the standard readiness figure was 80
 Reduced speed losses denote the variance percent, approaching the standard proposed by
between the equipment's device speed and Nakajima, where a readiness of 90 percent is
its actual operation speed. The third and considered world-top-notch functioning. The
fourth significant losses, referred to as standard performance efficacy was 69 percent,
speed losses, directly influence a machine's though this research (Ljungberg, 1998) observes
performance efficiency, representing losses between losses due to stopping and those due to
incurred when operating below optimal minor stoppages, with the common attribute to
conditions. the latter. Ljungberg (1998) states that most
 Reduced yield losses occur during the companies achieved performance levels
preliminary stages of assembly, spanning exceeding 70 percent, with one company
from machine startup to equilibrium. reaching 95 percent, the specification set by
 Quality faults and alter losses result from Nakajima (1988). The ultimate OEE element
production equipment malfunctions. These informed by Ljungberg was excellent, with a
final two losses pertain to defects and regular estimate of 99 ratios [8], aligning with
contribute to a lower quality rate for Nakajima's suggested standard.
components in the interior of the facility. Therefore, it's worth noting that determining an
OEE is assessed based on these six optimal OEE table for the mentioned book
significant losses, which are essentially appears challenging due to the variable standards
derived from the availability, performance in each manufacturing.
rate, and quality rate of the device,
assembly line, or factory, depending on the Establishing an OEE Figure
focus of the OEE application.
OEE (%) = Availability (%) *Performance rate To calculate the Overall Equipment
(%) * Rate of Quality (%). (1) Effectiveness (OEE) accurately, it is essential to
precisely measure the six major types of losses.
OEE literature Support The OEE value is derived by multiplying the
values for availability, performance, and quality,
Nakajima (1988) offered ideal as illustrated below (Table 1):

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Table 1: Measured data.

Total hour (h) 172 172
Non-scheduled time (h) 0 0
Standby time (h) 70 62
Manufacture hour (h) 79 79
Industrial interval (h) 0 0
Unprepared interruption (h) 13 22
Hypothetical Operation time per unit (h) 0.046 0.046
Maximum throughput (h−1) 23.73 23.74
No. of objects 1765 1765
No. of suitable items 1910 1910

Computation of OEE Elements maintenance.

 Training provided to operators.
The subsequent segment presents the Availability denotes the Actual operating time
formulas for every component of the OEE (mins)*100% /Planned functioning time(mins).
estimate, starting with machinery or procedure (2)
availability. The obtainability section of OEE where Planned operating time (mins) equals the
addresses the entire measure lost entitled to Total transfer time (mins)- Strategic maintenance
spontaneous interruption, process setup, (mins). (3)
changeovers, and other unexpected interruptions. and Actual working time (mins) is equal to the
To put it simply, it quantifies the fraction of the Planned operating time (mins) - Unplanned
actual effective time to the planned operating maintenance (mins) - Minor stoppages (mins) –
time and accounts for the hypothetical Set-up & alteration (mins).
fabrication period during which unplanned (4)
downtime is identified. It's crucial to emphasize The 2nd component in the OEE estimate
that planned preventative maintenance is not is the "performing rate," which assesses the ratio
considered a loss in this context. Calculating of the equipment's authentic operating speed to
availability in this manner may result in the principal speed. There are various ways to
extended protective maintenance performance or calculate the performance rate within the OEE
longer process setup times. Nonetheless, even in framework. Nakajima (1988) gauges a fixed
such scenarios, the calculated OEE value would quantity of output, where "performance"
still show low, representing the need to reduce signifies the actual deviation in production time
planned maintenance by implementing more from the standard sequence period in his
efficient and effective Total Productive definition. De Groote (1995), on further
Maintenance (TPM) practices. An essential involvement, concentrates on a corrected
factor to consider within the availability timeframe and determines the variation in
component is the loading time Kamal et. al manufacture from the planned production.
(2019) give empirical evidence by using RFID Nevertheless, both definitions measure the actual
technology for warehouse management by volume of production. Performance efficiency is
Android application which has a great impact on determined by the product of the operational run
effectiveness measurement [19]. Loading Period frequency and the net functioning rate. The
can be described as the overall duration of a operating speed rate reflects the variance
shift, excluding any deductions made for between the ideal speed and the equipment's
scheduled interruption. Scheduled downtime actual operating speed. Meanwhile, the net
usually encompasses the following situations: operating rate assesses the achievement of
waiting times caused by the completion of consistent processing speed over a specified
current orders and periods when no labour is duration, such as a 12-hour production shift,
available due to worker rests. rather than whether the actual speed surpasses or
 Scheduled maintenance tasks. falls short of the design universal speed. This
 Experimentation with equipment and efforts calculation considers losses developing from
to enhance processes. minor documented blockages, and those that
 Cleaning of machines and routine operator remain undocumented in the daily logbook, such

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as minor issues and adjustment-related losses. depicted in the figure below (refer to Fig. 1).
The existing OEE, before our implementation, is

OEE before implementation

90

80

70

60
efficiency

50

40

30

20

10

0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Days
:
Figure 1: OEE of the existing plant.

Performing efficiency (%) = (Net operational the six major defeats necessitate thorough
rate *Operational run rate)100 (5) performance data. Initially, this may lead to
Where, Net operating scale = No. manufactured rather intricate statistics assembly conditions, as
*Actual cycle time /Operation time. and (6) the need for OEE performance data is likely to
Running speed rate = Hypothetical cycle time be more detailed than any prior presentation
/Actual rotation time (7) capacity demands. However, there is room for
The third and last component in the OEE simplification. Instead of meticulously recording
calculation is the "quality rate," which is the precise duration of each downtime and speed
employed to show the ratio of defective loss, for instance, it may be more practical to
production to the overall production quantity. It's initially record the frequency of these
important to emphasize that the quality rate occurrences. While the former approach offers
exclusively considers defects that arise within greater precision, the second can serve as a
the stage of production under examination, preliminary phase for method operatives. Jeong
typically associated with a specific instrument or and Phillips (2001) categorize equipment
manufacturing line. The respective formulas for starvation and operator unavailability as distinct
computing availability, performance, and quality equipment losses. Recognizing that a piece of
are provided below. equipment cannot be held responsible for its
Quality rate= (Total no. produced - No. surroundings, they introduce two equipment
scrapped) *100 / Total no. produced (8) declarations: the "no-input state" and the "no-
output state” [22] (Fig. 2).
Primary Statistics Gathering for OEE

The essential constraints associated with

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.
Figure 2: OEE equipment states [22].

It's crucial to remember that the primary Cutting of two plastic layers together at the
point of OEE is not to attain an ideal level but to assembly stage. The plastic for the traditionally
obtain a straightforward metric that highlights formed cover is purchased as pre-scoured plain
regions in need of advancement [4, 8, 9]. plastics from Milliken, making this method more
labour-intensive due to the additional cutting
Case Investigates and Evaluation step. Before packaging, a final inspection
ensures the device meets customer standards.
The subsequent division provides an The employment of OEE at the
overview of Automated Industry, a company Company began with four weeks of information
located in Texas, US, as a case study. In this compilation for the three OEE variables:
section, we delve into the manufacturing availability, performance, and quality. Existing
processes and primary product lines of device Injection department data on downtime, velocity
companies. We also discuss the application of losses, and quality losses served as a basis for
Overall Equipment Effectiveness (OEE) within developing the initial OEE rate. Extremely of the
the company's manufacturing environment. data had to be restructured to be suitable for the
Manufacturing at the Company involves the OEE dimension. The collected data was used to
production of medical devices, a multi-stage create daily OEE execution figures, displayed in
process depicted in Fig. 3. To create these cover the injection shed. Histograms were used to
mechanisms, high-quality resin with strength visualize the data, providing insight into
and flexibility is sourced from three European injection loom performance.
suppliers: Akzo, Dupont, and Rhone Poulenc. The initial OEE measure indicated an
Two techniques are utilized for Cover average performance of 75%, prompting a closer
production. The earliest method results in a examination of the causes. The main
"one-piece" Electronics product, eliminating the contributors to this low performance were
need for additional modification. identified as a lack of protective cases,
After Heating, the plastic undergoes corrective maintenance, high defect rates, and
scouring at a subcontractor's facility, followed by speed losses. In the following sections, we
silicone coating to enhance heat resistance and explore each OEE flexible separately and
reduce permeability. Upon completion of the investigate the explanations behind the little
coating process, AIL laser cuts the plastics into OEE performing (Table 2).
individual covers. The second method involves

Table 2: Actual OEE values calculated.

Percentage
Performance 86.5
Availability 92

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Quality 99.98
Overall equipment effectiveness 72

Availability issues were related to to address these issues. Performance efficiency

downtime, emphasizing the importance of was calculated based on functioning speed rate
preventative maintenance and operator training and net operational rate, with a target of 95%
to minimize downtime. Total Productive performance rate. Minor stoppages were
Maintenance (TPM) was employed to reduce addressed, aiming to keep them under three to
availability losses through incremental four minutes. Quality rate issues focused on
improvements. Data on process downtime was identifying and addressing quality defects during
collected and analyzed, leading to the the injection process. Data collection and
identification of maintenance and loom analysis were improved, leading to daily updates
breakdown as major causes of downtime. of rejected data. Pareto analysis helped highlight
Standard operating procedures (SOPs) were common faults and their root causes.
defined for processing interruption endeavours

OEE for 15 Days

94

92

90
Efficiency

88

86

84

82

80

78
1 2 3 4 5 6 7Days 8 9 10 11 12 13 14 15

Figure 3: OEE for consecutive 15 days.

The involvement of weaving personnel data crew for the trio of OEE components -
played a significant role in the company’s OEE disposal, operation, and quality - was conducted
performance. Effective improvements were over four weeks. The initial creation of this OEE
implemented after introducing Kaizen activities measure involved utilizing existing performance
like TPM workshops. The substantial work data from the weaving department, specifically
atmosphere at the Company was reflected related to interruption, velocity fatalities, and
reasonably, and job fulfilment, commitment, and quality failures. Although much of the existing
pride in workmanship were seen as essential for data provided a suitable foundation for
achieving higher performance. developing the OEE measure, a significant
portion of the manufacturing loss information
Original Advancement of OEE had to be reconfigured to make it applicable for
OEE measurement. The primary objective of
To initiate the OEE capacity procedure, measuring production losses was to identify the

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chief reasons for these losses, enabling the correlation between availability and downtime
prioritization of improvement and Total led to the realization that downtime could be
Productive Maintenance (TPM) behaviour [4]. minimized by placing a strong prominence on
Data necessary for the OEE measure preventive protection sustained by the
was gathered regularly by shopfloor operators, development technicians. This underscored the
and the definite OEE performing figures were belief that some availability issues stemmed
calculated by shift leaders. Each day, the new from a shortage of worker training in technical
data indicating the OEE performance over the learning and remedial programs.
past 24 hours was displayed in the injecting Within the company, the operating time
shed. Each organized OEE data included three was determined by deducting apparatus
distinct histograms representing quality rate, interruption from the filling time. Equipment
marginal barriers, and OEE records, with downtime encompassed losses led by equipment
percentages for all the injection looms listed closures, setup and adjustment procedures,
separately by machine number. To provide a changeovers to new products, and similar
clearer understanding of the percentage figures, factors. Total Productive Maintenance (TPM)
histograms were created to visualize these served as the mechanism for incremental
values. As a result of this process, an average increases and the gradual reduction of
OEE measure was computed to indicate the availability losses. Shift-based teams were used
weaving department's current performance. The to analyze all factors affecting the low
specific values for the availability, performance availability metric, leading to several
rate, quality, and overall OEE figure are improvements. Hossain et. al (2023) discuss the
presented in Table 2. However, the real estimates effectiveness of portable wind generators which
for these section calculations are measured leads to the prevention of maintenance work
reliably. After a thorough examination, it became during production work that has a significant
evident that the relatively low OEE performance impact on TPM [26]. Ullah et al. (2023) show
of 75 percent had multiple underlying causes. how the job sequence can have a significant
Initially, the primary factors included a lack of impact on production scheduling and this
preventive measures, corrective maintenance, scenario has a potential contributing factor for
frequent breakdowns, a high incidence of TPM [27].
deficiencies, and velocity deficiencies. The Administer idle time performance data
subsequent sections of this paper will delve into was stored on a shift commencing for each loom
each OEE variable, namely availability, by injection workers. Operators were responsible
performance, and quality, individually, exploring for reporting instances of unplanned loom
the hypothetical purposes for the suboptimal downtime, specifying the reasons on the
OEE performance in order. recording layer, which was assembled regularly
by shift supervisors. Initially, the reliability of
Readiness Issues this information was deemed subpar due to
inaccurate descriptions of idle time and process
The accessibility metrical was utilized to accessibility. In some cases, downtime was not
gauge the overall time missing when the even documented, resulting in a lack of insight
approaches occurred not in operation due to into the problem. Recognizing this robustness, a
breakdowns, setup adjustments, and former comprehensive analysis of injecting interruption
obstacles. It represented the fraction of the was presented in a TPM workspace organized
genuine functioning period to the projected for injecting machinists and shift supervisors,
available count. The central focus for availability using documents from the completed two
was set at 95 percent. The planned time was months' manufacture. The objective was to
computed as 700 minutes per shift. This emphasize continuing maintenance issues in the
calculation was based on a 12-hour shift (720 injecting process and employ direct yet
minutes), allowing for 20 minutes per shift successful explanations.
dedicated to preventive repair actions. The

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SOP Name DATE ISSUED

1 SCOPE
1.1 This SOP specifies the general requirements of whatBest
? Quality product at right time with optimum price
1.2 This SOP is applicable "where" ? when sourching /purchasing any product /Machinery
1.3 ThisSOP is not applicable for what ? when an imported item needed within very short time limit/emergency purposes
1.4 What are the limitations of this SOP ?
1.5 Defination and abbreviation
1.5.1 of those terms which are used in this SOP if required
1.5.2 of those terms which are used in this SOP if required

2 PURPOSE & OBJECTIVE

2.1 PURPOSE
2.1.1 What are the reasons of these activity? To Check and Monitor the price and quality of a product/Machinery & ensuring the best one
2.2 OBJECTIVE
2.2.1 What is the output to accomplish by doing it? Huge amount of financial savings and qualityfull products

DRAFT CHECK (1) CHECK (2) APPROVAL (1) APPROVAL (2)

Dept Name
Section

PAGE NO. 01 OF …… Ref. No. Rev. No. Sub Section

Figure 4: SOP of the plant.

The TPM workroom identified two most whether they were documented in daily shift
important reasons for unplanned downtime that logs or not.
involved pressing attention: maintenance and Following the injection process, the plastic resin
loom breakdowns. Collectively, these two issues underwent inspection to detect any flaws already
accounted for around 87 percent of downtime. being sent for exterior commission
While the influence of maintenance activities on administering. Each weaving loom was equipped
process downtime was already understood, the with an individual fault sheet where information
extent of this relationship had never been such as the alteration, invention segment total,
thoroughly examined. By pinpointing the root and fault code had to be recorded. Different fault
causes, a deeper understanding was gained. codes signified various reasons for defects.
Additionally, the TPM workshops highlighted Responsibility for collecting data on the fault
the lack of management control over operator sheet rested with the weaving operators. At the
activities during downtime. Many actions taken end of each shift, these defective layers were
by operators in such situations were not gathered and consolidated into reject reports,
documented, allowing ineffective practices to go which were then submitted to the manufacturing
unnoticed. The introduction of TPM workshops organization. Before the adoption of OEE, these
led to the identification of these activities and reject reports were prepared every week.
the establishment of standard operating However, this weekly occurrence was found to
procedures (SOPs) for all activity downtime- be inadequate for implementing timely
related tasks (Fig. 4). corrective actions. OEE measurement
necessitated the daily updating of this rejected
Manufacturing Efficiency Issues data. The reject report contained details about
the loom, part number, airbag type, fault code,
Performance efficiency was determined and the occurrence of each culpability. Utilizing
by considering both the functioning speed the Pareto investigation, the utmost ordinary
frequency and the net operating rate. The faults were identified, and their underlying
operating speed rate of the equipment sources were checked.
represented the difference between its theoretical
speed and its actual operational speed. Quality Rate Issues
Meanwhile, the net operating rate assessed the
ability to maintain a consistent operating speed The calculation of the quality rate serves
over a specified timeframe. This calculation to identify quality-related losses, specifically the
factored in losses arising from minor stoppages, total of items discarded due to quality

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deficiencies during the manufacturing stage. In introduction and execution of pertinent Kaizen
the injection department, a target of 99.5 percent performance, such as TPM inductions, that
was set for the attribute ratio component of OEE. substantial improvements were realized. The
It's significant to clarify that this objective solely physical working environment within the
accounted for defective products discovered manufacturing facility was considered
during the injection process. The quality metric's satisfactory. The injection area maintained
improvement hinged on effective data collection. cleanliness, orderliness, and safety, all of which
Following the injection process, the plastic positively affected the workforce's drive. Parvez
underwent inspection to detect any flaws before et. al (2022) give a Great discussion on the
being sent for outside commission dealing. Each ergonomics factor of students from which we
fabricating material was equipped with an consider the human working posture for the
individual fault sheet where information such as efficiency measurement [20,21]. Maskell (1991)
the shift, product part number, and fault code asserts that there are robust connections between
had to be recorded. Different fault codes job satisfaction, ongoing improvement, customer
signified various reasons for defects. contentment, and overall performance.
Responsibility for collecting data on the fault Additionally, Maskell suggests that dedication
sheet rested with the injection operators. At the and a sense of pride in one's workmanship play
end of each shift, these defective areas were pivotal roles in achieving elevated performance
gathered and consolidated into rejected levels [24].
information, which was then presented to the
manufacturing administration. With the adoption CONCLUSION
of OEE, these eliminated details were prepared
every week. Shakil et. al (2013) depict how a This study provides a concise summary
flowchart visualization helps the operational of key insights from a paper focused on Overall
performance of jute mills [23]. However, this Equipment Effectiveness (OEE) within the
weekly frequency was found to be inadequate environment of process enhancement. The
for implementing timely corrective actions. OEE conclusions are organized into three main
measurement necessitated the daily updating of sections. Firstly, it addresses overarching
this rejected data. The reject report contained concerns surrounding OEE, including debates
details about the loom, part number, cover types, about acceptable OEE performance levels,
defect code, and the frequency of each fault. OEE's potential to drive improvements, the
Utilizing the Pareto assessment, the most importance of precise performance data, and the
ordinary failings were identified, and their need for a comprehensive approach to
essential grounds were considered. performance measurement. Secondly, it delves
into OEE's position within the broader
Social Concerns Interacting with OEE performance measurement literature,
Performance highlighting its relatively underexplored status
and its potential for further research examining
As was previously indicated, procedure its connection to strategic business models.
convenience, performance, and quality ratios Lastly, it shares insights gained from
were the main causes of the low OEE measure in implementing OEE in a specific case company,
the injection production process. Among these emphasizing improved data accuracy, a
factors, one universal element was the heightened awareness of inefficient practices,
attachment of injection personnel. According to and the identification of areas for operational
Nakajima (1988), creating a "favourable exertion enhancement. The paragraph also highlights the
atmosphere" is one of the essential preconditions impact of maintenance on production losses and
for effectively implementing OEE, with the underscores the significance of operator
other existence preparation for TPM (Total development and training. Remarkably, OEE
Productive Maintenance) happenings and measurement has taken centre stage in the
fostering a culture of nonstop enhancement. weaving department. While the initial OEE
The commitment to permanent performance didn't quite meet the internal
advancement at the period managers smoothly production management's targets, it remains
received has not been adequately transmitted to relatively strong when compared to industry
the functioning stage. It was only after the standards distinguished in research (Ljungberg,

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CITE THIS ARTICLE

Md Rahamat Ullah, et al. (2023). Optimizing Performance: A Deep Dive into Overall
Equipment Effectiveness (OEE) for Operational Excellence, Journal of Industrial Mechanics,
8(3), 26-40.

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