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Measuring Production Effectiveness: Industrial Case From Electronic Industry

Author

Listed:
  • Jan Vavra

    (Unversity of Pardubice)

  • Jan Suchy

    (University of Pardubice)

  • Ondrej Slezak

    (Hermetic Pumpen)

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.

Suggested Citation

  • Jan Vavra & Jan Suchy & Ondrej Slezak, 2015. "Measuring Production Effectiveness: Industrial Case From Electronic Industry," Proceedings of Business and Management Conferences 2304515, International Institute of Social and Economic Sciences.
    • Handle: RePEc:sek:ibmpro:2304515
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    File URL: https://iises.net/proceedings/business-management-conference-vienna/table-of-content/detail?cid=23&iid=022&rid=4515
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    References listed on IDEAS

    as
    1. Olli-Pekka Hilmola, 2005. "Total productivity measurement and competitiveness: towards ensuring sustainable business performance in manufacturing organisations: a literature review," International Journal of Process Management and Benchmarking, Inderscience Enterprises Ltd, vol. 1(1), pages 45-62.
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      More about this item

      Keywords

      production efficiency; operation management; value-added activities; corporate effectiveness;
      All these keywords.

      JEL classification:

      • D20 - Microeconomics - - Production and Organizations - - - General
      • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
      • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production

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