IDEAS home Printed from https://ideas.repec.org/p/bdi/opques/qef_595_21.html
   My bibliography  Save this paper

An OEE index for the Bank of Italy’s banknote production plant

Author

Listed:
  • Michele Manna

    (Bank of Italy)

Abstract

In this paper, we present a monthly series of the Overall Equipment Effectiveness (OEE) index for the Bank of Italy’s banknote production plant, from January 2014 to September 2020. The OEE index identifies the share of manufacturing time that is truly productive, measured as the ratio between the actual standard-compliant production volume achieved within a given time interval and the planned output for the same period. The paper highlights the increase in the plant’s OEE after the rollout of the reorganization in March 2018, as well as the resilience of the production even during the ongoing health emergency. Based on the results of an econometric exercise, we measure a fall of about 10 percentage points in the index during the negotiations with the trade unions that led to the reorganization, a time of heightened uncertainty. This evidence provides empirical support to the existence of a pattern well known in the industrial organization literature.

Suggested Citation

  • Michele Manna, 2021. "An OEE index for the Bank of Italy’s banknote production plant," Questioni di Economia e Finanza (Occasional Papers) 595, Bank of Italy, Economic Research and International Relations Area.
    • Handle: RePEc:bdi:opques:qef_595_21
    as

    Download full text from publisher

    File URL: https://www.bancaditalia.it/pubblicazioni/qef/2021-0595/QEF_595_21.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Alexandre Mas, 2008. "Labour Unrest and the Quality of Production: Evidence from the Construction Equipment Resale Market," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 75(1), pages 229-258.
    2. Vito Introna & Alessio Giuiusa & Vittorio Cesarotti, 2013. "Using Overall Equipment Effectiveness for Manufacturing System Design," Chapters, in: Massimiliano M. Schiraldi (ed.), Operations Management, IntechOpen.
    3. Morris M. Kleiner & Jonathan S. Leonard & Adam M. Pilarski, 2002. "How Industrial Relations Affects Plant Performance: The Case of Commercial Aircraft Manufacturing," ILR Review, Cornell University, ILR School, vol. 55(2), pages 195-218, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Panos, Georgios & Theodossiou, Ioannis, 2009. "Union Mediation and Adaptation to Reciprocal Loyalty Arrangements," MPRA Paper 15471, University Library of Munich, Germany.
    2. Qi Ge & Michael J. Lopez, 2016. "Lockouts and Player Productivity," Journal of Sports Economics, , vol. 17(5), pages 427-452, June.
    3. Akerlof, Robert & Ashraf, Anik & Macchiavello, Rocco & Rabbani, Atonu, 2020. "Layoffs and productivity at a Bangladeshi sweater factory," CAGE Online Working Paper Series 499, Competitive Advantage in the Global Economy (CAGE).
    4. Jonathan Gruber & Samuel A. Kleiner, 2012. "Do Strikes Kill? Evidence from New York State," American Economic Journal: Economic Policy, American Economic Association, vol. 4(1), pages 127-157, February.
    5. Mariesa A. Herrmann & Jonah E. Rockoff, 2012. "Worker Absence and Productivity: Evidence from Teaching," Journal of Labor Economics, University of Chicago Press, vol. 30(4), pages 749-782.
    6. Morris M. Kleiner & Jerry Nickelsburg & Adam M. Pilarski, 2012. "Organizational and Individual Learning and Forgetting," ILR Review, Cornell University, ILR School, vol. 65(1), pages 68-81, January.
    7. Thommes, Kirsten & Vyrastekova, Jana & Akkerman, Agnes, 2015. "Behavioral spillovers from freeriding in multilevel interactions," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 56(C), pages 78-87.
    8. Omesh Kini & Mo Shen & Jaideep Shenoy & Venkat Subramaniam, 2022. "Labor Unions and Product Quality Failures," Management Science, INFORMS, vol. 68(7), pages 5403-5440, July.
    9. Samer Matta & Michael Bleaney & Simon Appleton, 2022. "The economic impact of political instability and mass civil protest," Economics and Politics, Wiley Blackwell, vol. 34(1), pages 253-270, March.
    10. Stefan Bauernschuster & Timo Hener & Helmut Rainer, 2017. "When Labor Disputes Bring Cities to a Standstill: The Impact of Public Transit Strikes on Traffic, Accidents, Air Pollution, and Health," American Economic Journal: Economic Policy, American Economic Association, vol. 9(1), pages 1-37, February.
    11. Adam Seth Litwin, 2011. "Technological Change at Work: The Impact of Employee Involvement on the Effectiveness of Health Information Technology," ILR Review, Cornell University, ILR School, vol. 64(5), pages 863-888, October.
    12. Addison, John T. & Teixeira, Paulino, 2019. "Strikes, employee workplace representation, unionism, and industrial relations quality in European establishments," Journal of Economic Behavior & Organization, Elsevier, vol. 159(C), pages 109-133.
    13. Charness, Gary & Kuhn, Peter, 2011. "Lab Labor: What Can Labor Economists Learn from the Lab?," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 3, pages 229-330, Elsevier.
    14. Alexandre Mas, 2017. "Does Transparency Lead to Pay Compression?," Journal of Political Economy, University of Chicago Press, vol. 125(5), pages 1683-1721.
    15. Barrero, Jose Maria, 2022. "The micro and macro of managerial beliefs," Journal of Financial Economics, Elsevier, vol. 143(2), pages 640-667.
    16. John T. Addison, 2016. "Collective bargaining systems and macroeconomic and microeconomic flexibility: the quest for appropriate institutional forms in advanced economies," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-53, December.
    17. Poeschel, Friedrich, 2018. "Why do employers not pay less than advertised? Directed search and the Diamond paradox," MPRA Paper 87920, University Library of Munich, Germany.
    18. Dohmen, Thomas, 2014. "Behavioral labor economics: Advances and future directions," Labour Economics, Elsevier, vol. 30(C), pages 71-85.
    19. Brenøe, Anne Ardila & Canaan, Serena & Harmon, Nikolaj & Royer, Heather, 2019. "Is Parental Leave Costly for Firms and Coworkers?," IZA Discussion Papers 12870, Institute of Labor Economics (IZA).
    20. Chad Syverson, 2011. "What Determines Productivity?," Journal of Economic Literature, American Economic Association, vol. 49(2), pages 326-365, June.

    More about this item

    Keywords

    : OEE index; reorganization; negotiations with unions;
    All these keywords.

    JEL classification:

    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • L64 - Industrial Organization - - Industry Studies: Manufacturing - - - Other Machinery; Business Equipment; Armaments

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bdi:opques:qef_595_21. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/bdigvit.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.