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

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  • 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

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    File URL: https://www.bancaditalia.it/pubblicazioni/qef/2021-0595/QEF_595_21.pdf
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    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. 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.
    3. Vito Introna & Alessio Giuiusa & Vittorio Cesarotti, 2013. "Using Overall Equipment Effectiveness for Manufacturing System Design," Chapters, in: Massimiliano M. Schiraldi (ed.), Operations Management, IntechOpen.
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    More about this item

    Keywords

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    JEL classification:

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

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