Consideration of demand rate in Overall Equipment Effectiveness (OEE) on equipment with constant process time
Abstract: The paper is
primarily done on the purpose of introducing new concept in defining the
Overall Equipment Effectiveness (OEE) with the consideration of both machine
utilization and customer demand requested. Previous literature concerning the
limitation and difficulty of OEE implementation has been investigated in order
to track out the potential opportunities to be improved, since the OEE has been
widely accepted by most of the industries regardless their manufacturing
environment.
Design/methodology/approach: The paper is conducting the study based on
literature review and the computerized data collection. In details, the novel
definition and method of processing the computerized data are all interpreted
based on similar studies performed by others and supported by related journals
in proving the validation of the output. Over the things, the computerized data
are the product amount and total time elapsed on each production which is
automatically recorded by the system at the manufacturing site.
Findings: The finding of this paper is firstly the exposure and emphasis
of limitation exists in current implementation of OEE, which showing that high
utilization of the machine is encouraged regardless of the customer demand and
is having conflict with the inventory handling cost. This is certainly obvious
with overproduction issue especially during low customer demand period. The
second limitation in general implementation of OEE is the difficulty in
obtaining the ideal cycle time, especially those equipments with constant
process time. The section of this paper afterward comes out with the proposed
solution in fixing this problem through the definition of performance ratio and
then usage of this definition in measuring the machine utilization from time to
time. Before this, the time available for the production is calculated incorporating
the availability of OEE, which is then used to get the Takt time.
Research limitations/implications: Future research should be conducted to
test the possibility and to verify the definition of such performance ratio
including Takt time on those processes of which its operating time is possibly
to be reduced, especially those are not constant and fixed. This piece of
research is temporarily done on the process where its operating time is
constant from time to time and there is no ideal cycle time possible.
Practical implications: The awareness of the overproduction should be
emphasized and raised in the intention of pursuing higher OEE value. As the
definition proposed such, the process with constant cycle time could even be
defined in different performance ratio from time to time regarding to the
customer demands and corresponding production rate. These two variables can be
adjusted and balanced to increase the OEE value through optimization of average
cycle time. Over this, optimization of average cycle time on equipment with
constant operating time can be achieved through the optimization of loading
number per each processing.
Originality/value: The novelty of the paper is the inclusion of customer
demand in obtaining OEE value of any particular equipment. Besides that, the
equipment without ideal cycle time, which means those processes carried out in
constant cycle time are possibly to be evaluated with performance ratio. As
consequence of that, the machine utilization and capability used could be quantified
and visualized using the performance ratio data of the OEE proposed.
Keywords: Overall Equipment
Effectiveness (OEE), Takt time, Average cycle time, Performance ratio,
Availability
Author: Perumal Puvanasvaran,
Teoh Y.S., Tay C.C.
Journal Code: jptindustrigg130025
