Top

Global Journal of Flexible Systems Management

Published in:

18-05-2020 | Original Research

Overall Equipment Effectiveness: Required but not Enough—An Analysis Integrating Overall Equipment Effect and Data Envelopment Analysis

Authors: Fabio Antonio Sartori Piran, Alaércio De Paris, Daniel Pacheco Lacerda, Luis Felipe Riehs Camargo, Rosiane Serrano, Ricardo Augusto Cassel

Published in: Global Journal of Flexible Systems Management | Issue 2/2020

Activate our intelligent search to find suitable subject content or patents.

search-config

AI-assisted search

Off

Abstract

The efficiency levels at which companies turn inputs into outputs may increase their competitive capacity. Nevertheless, in the literature, there is a lack of methods allowing evaluation of the performance of operations in production systems that take into account all of their components. The objective of this study is to present an analysis of efficiency for a production system using DEA and OEE in an integrated manner (DEA/OEE). To achieve this objective, we conducted a case study of a bus manufacturer and a comparative analysis using the results obtained by DEA/OEE compared with the results of the OEE measured in an operation of the company studied. The efficiency measured by DEA/OEE presents differences in relation to OEE results. The analysis of the causes of such differences pointed out that action taken to improve the OEE indicator decreased the efficiency of the operation analyzed. This study evidences that decision-making focused on improving OEE on its own may lead to an increase in the consumption of resources during an operation. Such an increase does not necessarily increase production levels and may reduce technical efficiency.

previous article Assessing the Readiness Level of Healthcare for Implementing Agility Using Fuzzy Logic Approach

Dont have a licence yet? Then find out more about our products and how to get one now:

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

über 102.000 Bücher
über 537 Zeitschriften

aus folgenden Fachgebieten:

Automobil + Motoren
Bauwesen + Immobilien
Business IT + Informatik
Elektrotechnik + Elektronik
Energie + Nachhaltigkeit
Finance + Banking
Management + Führung
Marketing + Vertrieb
Maschinenbau + Werkstoffe
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

inform now

Springer Professional "Wirtschaft"

Online-Abonnement

Mit Springer Professional "Wirtschaft" erhalten Sie Zugriff auf:

über 67.000 Bücher
über 340 Zeitschriften

aus folgenden Fachgebieten:

Bauwesen + Immobilien
Business IT + Informatik
Finance + Banking
Management + Führung
Marketing + Vertrieb
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

inform now

Andersson, C., & Bellgran, M. (2015). On the complexity of using performance measures: Enhancing sustained production improvement capability by combining OEE and productivity. Journal of Manufacturing Systems,35, 144–154.CrossRef

Anderson, T., & Sharp, G. (1997). A new measure of baseball batters using DEA. Annals of Operations Research,73, 141–155.CrossRef

Balfaqih, H., Nopiah, Z. M., Saibani, N., & Al-Nory, M. T. (2016). Review of supply chain performance measurement systems: 1998–2015. Computers in Industry,82, 135–150.CrossRef

Barbosa, L. M., Lacerda, D. P., Piran, F. A. S., & Dresch, A. (2017). Exploratory analysis of the variables prevailing on the effects of product modularization on production volume and efficiency. International Journal of Production Economics,193, 677–690.CrossRef

Bititci, U., Garengo, P., Dörfler, V., & Nudurupati, S. (2012). Performance measurement: Challenges for tomorrow. International Journal of Management Reviews,14(3), 305–327.CrossRef

Bititci, U. S., Mendibil, K., Nudurupati, S., Garengo, P., & Turner, T. (2006). Dynamics of performance measurement and organisational culture. International Journal of Operations & Production Management,26(12), 1325–1350.CrossRef

Braglia, M., Frosolini, M., & Zammori, F. (2009). Journal of manufacturing technology management overall equipment effectiveness of a manufacturing line (OEEML): An integrated approach to assess systems performance. Journal of Manufacturing Technology Management,20(1), 8–29.CrossRef

Bulak, M. E., & Turkyilmaz, A. (2014). Performance assessment of manufacturing SMEs: A frontier approach. Industrial Management and Data Systems,114(5), 797–816.CrossRef

Camargo, L. F. R., Rodrigues, L. H., Lacerda, D. P., & Piran, F. S. (2018). A method for integrated process simulation in the mining industry. European Journal of Operational Research,264(3), 1116–1129.CrossRef

Charnes, A., Cooper, W. W., & Rhodes, E. (1978). Measuring the efficiency of decision-making units. European Journal of Operational Research,2(6), 429–444.CrossRef

Cook, W. D., & Seiford, L. M. (2009). Data envelopment analysis (DEA)–thirty years on. European Journal of Operational Research,192(1), 1–17.CrossRef

Cook, W. D., Tone, K., & Zhu, J. (2014). Data envelopment analysis: Prior to choosing a model. Omega (United Kingdom),44, 1–4.

De Paris, A. D. (2016). Overall Equipment Effectiveness-OEE: necessário, mas não suficiente: uma análise integrando o OEE e a Data Envelopment Analysis-DEA. Dissertação de mestrado acadêmico: Universidade do Vale do Rio do Sinos - Unisinos.

Dubé, L., & Paré, G. (2003). Rigor in information systems positivist case research: current practices, trends, and recommendations. MIS Quarterly,27(4), 597–636.CrossRef

Eidelwein, F., Piran, F. A. S., Lacerda, D. P., Dresch, A., & Rodrigues, L. H. (2018). Exploratory analysis of modularization strategy based on the theory of constraints thinking process. Global Journal of Flexible Systems Management,19(2), 111–122.CrossRef

Esmaeilian, B., Behdad, S., & Wang, B. (2016). The evolution and future of manufacturing: A review. Journal of Manufacturing Systems,39, 79–100.CrossRef

Franco-Santos, M., Lucianetti, L., & Bourne, M. (2012). Contemporary performance measurement systems: A review of their consequences and a framework for research. Management Accounting Research,23(2), 79–119.CrossRef

Gibbons, P. M., & Burgess, S. C. (2010). Introducing OEE as a measure of lean Six Sigma capability. International Journal of Lean Six Sigma,1(2), 134–156.CrossRef

Gullickson, W. (1995), Measurement of productivity growth in U.S. manufacturing. Monthly Labor Review, 118(13), 1–10.

Hitt, M. A., Xu, K., & Carnes, C. M. (2016). Resource based theory in operations management research. Journal of Operations Management,41, 77–94.CrossRef

Jain, S., Triantis, K. P., & Liu, S. (2011). Manufacturing performance measurement and target setting: A data envelopment analysis approach. European Journal of Operational Research,214(3), 616–626.CrossRef

Jeon, J., Kim, C., & Lee, H. (2011). Measuring efficiency of total productive maintenance (TPM): A three-stage data envelopment analysis (DEA) approach. Total Quality Management & Business Excellence,22(8), 911–924.CrossRef

Jeong, K.-Y., & Phillips, D. T. (2001). Operational efficiency and effectiveness measurement. International Journal of Operations & Production Management,21(11), 1404–1416.CrossRef

Kenyon, G. N., Meixell, M. J., & Westfall, P. H. (2016). Production outsourcing and operational performance: An empirical study using secondary data. International Journal of Production Economics,171, 336–349.CrossRef

Konovalov, N., Gromoff, A., Vladimirova, A. V., & Gorchakov, Y. (2020). Can CRM flexibility raise bank efficiency? Global Journal of Flexible Systems Management,. https://doi.org/10.1007/s40171-020-00232-y.CrossRef

Konopka, J. M. (1995). Capacity utilization bottleneck efficiency system-CUBES. IEEE Transactions on Components, Packaging, and Manufacturing Technology: Part A,18(3), 484–491.CrossRef

Kundi, M., & Sharma, S. (2015). Efficiency analysis and flexibility: A case study of cement firms in India. Global Journal of Flexible Systems Management,16(3), 221–234.CrossRef

Lanza, G., Stoll, J., Stricker, N., Peters, S., & Lorenz, C. (2013). Measuring global production effectiveness. Procedia CIRP,7, 31–36.CrossRef

Liu, J. S., Lu, L. Y. Y., & Lu, W. M. (2016). Research fronts in data envelopment analysis. Omega,58, 33–45.CrossRef

Mansilha, R. B., Collatto, D. C., Lacerda, D. P., Morandi, M. I. W. M., & Piran, F. S. (2019). Environmental externalities in broiler production: An analysis based on system dynamics. Journal of Cleaner Production,209, 190–199.CrossRef

Mello, J. C. C. B. S., Gomes, E. G., Meza, L. A., & Leta, F. R. (2008). DEA advanced models for geometric evaluation of used lathes. WSEAS Transactions on Systems,7(5), 510–520.

Muchiri, P., & Pintelon, L. (2008). Performance measurement using overall equipment effectiveness (OEE): Literature review and practical application discussion. International Journal of Production Research,46(13), 3517–3535.CrossRef

Muthiah, K. M. N., & Huang, S. H. (2007). Overall throughput effectiveness (OTE) metric for factory-level performance monitoring and bottleneck detection. International Journal of Production Research,45(20), 4753–4769.CrossRef

Neely, A. (2005). The evolution of performance measurement research: Developments in the last decade and a research agenda for the next. International Journal of Operations & Production Management,25(12), 1264–1277.CrossRef

Neely, A. D., Gregory, M., & Platts, K. (1995). Performance measurement system design: A literature review and research agenda. International Journal of Operations & Production Management,15(4), 80–116.CrossRef

Nguyen, N. T. (2020). Performance evaluation in strategic alliances: A case of Vietnamese construction industry. Global Journal of Flexible Systems Management,21(1), 85–99.CrossRef

Nunes, F. D. L., Piran, F. S., Bortolini, F., & Antunes Júnior, J. A. V. (2015). Análise entre posicionamento estratégico, estratégia de produção clássica e estratégia de produção da Hyundai. Revista Espacios Caracas,36(3), 5–17.

Oechsner, R., Pfeffer, M., Pfitzner, L., Binder, H., Müller, E., & Vonderstrass, T. (2002). From overall equipment efficiency (OEE) to overall Fab effectiveness (OFE). Materials Science in Semiconductor Processing,5(4–5), 333–339.CrossRef

Pacheco, D. A. D. J., Lacerda, D. P., Corcini Neto, S. L. H., Jung, C. F., Júnior, A., & Valle, J. A. (2014). Flow balancing or capacity balancing? Systemic analysis and propositions. Gestão & Produção,21(2), 355–368.CrossRef

Park, J., Lee, D., & Zhu, J. (2014). An integrated approach for ship block manufacturing process performance evaluation: Case from a Korean shipbuilding company. International Journal of Production Economics,156, 214–222.CrossRef

Pinheiro de Lima, E., Gouvêa, E., da Costa, S., & Reis de Faria, A. (2009). Taking operations strategy into practice: Developing a process for defining priorities and performance measures. International Journal of Production Economics,122, 403–418.CrossRef

Piran, F. A. S., Lacerda, D. P., Camargo, L. F. R., Viero, C. F., Dresch, A., & Cauchick-Miguel, P. A. (2016). Product modularization and effects on efficiency: An analysis of a bus manufacturer using data envelopment analysis (DEA). International Journal of Production Economics,182, 1–13.CrossRef

Piran, F. A. S., Lacerda, D. P., Camargo, L. F. R., Viero, C. F., Teixeira, R., & Dresch, A. (2017). Product modularity and its effects on the production process: An analysis in a bus manufacturer. The International Journal of Advanced Manufacturing Technology,88(5–8), 2331–2343.CrossRef

Raouf, A. (1994). Improving capital productivity through maintenance. International Journal of Operations & Production Management,14(7), 44–52.CrossRef

Scott, D., & Pisa, R. (1998). Can overall factory effectiveness prolong Mooer's law? Solid State Technology,41(3), 75–81.

Silva, A. F., Marins, F. A. S., Tamura, P. M., & Dias, E. X. (2017). Bi-Objective Multiple criteria data envelopment analysis combined with the overall equipment effectiveness: An application in an automotive company. Journal of Cleaner Production,157, 278–288.CrossRef

Souza, I. G., Lacerda, D. P., Camargo, L. F. R., Dresch, A., & Piran, F. S. (2018). Do the improvement programs really matter? An analysis using data envelopment analysis. BRQ Business Research Quarterly,21(4), 225–237.CrossRef

Telles, E. S., Lacerda, D. P., Morandi, M. I. W. M., & Piran, F. A. S. (2020). Drum-buffer-rope in an engineering-to-order system: An analysis of an aerospace manufacturer using data envelopment analysis (DEA). International Journal of Production Economics,222(2020), 107500.CrossRef

Voss, C., Tsikriktsis, N., & Frohlich, M. (2002). Case research in operations management. International Journal of Operations & Production Management,22(2), 195–219.CrossRef

Wagner, J. M., & Shimshak, D. G. (2007). Stepwise selection of variables in data envelopment analysis: Procedures and managerial perspectives. European Journal of Operational Research,180, 57–67.CrossRef

Title: Overall Equipment Effectiveness: Required but not Enough—An Analysis Integrating Overall Equipment Effect and Data Envelopment Analysis
Authors: Fabio Antonio Sartori Piran
Alaércio De Paris
Daniel Pacheco Lacerda
Luis Felipe Riehs Camargo
Rosiane Serrano
Ricardo Augusto Cassel
Publication date: 18-05-2020
Publisher: Springer India
Published in: Global Journal of Flexible Systems Management / Issue 2/2020
Print ISSN: 0972-2696
Electronic ISSN: 0974-0198
DOI: https://doi.org/10.1007/s40171-020-00238-6

Springer Professional

Abstract

Please log in to get access to your license.

Dont have a licence yet? Then find out more about our products and how to get one now:

Springer Professional "Wirtschaft+Technik"

Springer Professional "Wirtschaft"

Other articles of this Issue 2/2020

Theory Building on Supply Chain Resilience: A SAP–LAP Analysis

Assessing the Readiness Level of Healthcare for Implementing Agility Using Fuzzy Logic Approach

Can CRM Flexibility Raise Bank Efficiency?

Competitive Environment Between Green and Non-green Products Considering Disruption and Alliance Strategy