Proceedings of the 1st Business & Management Conference, Vienna

MEASURING PRODUCTION EFFECTIVENESS: INDUSTRIAL CASE FROM ELECTRONIC INDUSTRY

JAN VAVRA, JAN SUCHY, ONDREJ SLEZAK

Abstract:

Purpose – Production effectiveness have been recently, viewed as a critical factor in manufacturing system. A theoretical maximum capacity must be compared with the actual output and production time, equipment speed and quality of production processes must be adequately considered. The OEE approach is the only production indicator combining the factors of time, speed and quality in useful and straightforward way. The OEE is calculated by multiplying the availability rate, performance rate and quality rate, representing simple and valid way to measure production effectiveness, but literature does not discuss difficulties with determination of all the factors of the OEE calculation, especially causes of time losses and determination of productive and non-productive time. Measurement of availability loses due to breakdowns, changeover, waiting or administration activities must be closer supervised to identify potential decrease of performance and related costs. Design/methodology/approach - Based on theoretical basis concerning determination of relevant productive and non-productive administrative activities, there was performed research and time analyses in manufacturing company by realized measurement of OEE and time analyses. Findings – Realized study and time analyses contribute to understand the OEE value calculation and identification of time loss causes. The discussion of the industrial case shows the importance of crucial identification of productive and non-productive time for efficient OEE calculation. Originality/value – The paper deals with industrial case, performed in collaboration with important enterprise of electronic industry; by realized measurement of productive and non-productive times in relation to OEE calculation there was obtained an original qualitative analysis, showing contribution to OEE value and identified difficulties with proper identification of availability loses due to non-productive and non-value added activities.

Keywords: production efficiency; operation management; value-added activities; corporate effectiveness

DOI: 10.20472/BMC.2015.001.022

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