Calculation methodology for contributive managerial effect by OEE as a result of TPM activities

Ohwoon Kwon (Department of Industrial Systems and Information Engineering, Korea University, Seoul, Korea)
Hongchul Lee (Department of Industrial Systems and Information Engineering, Korea University, Seoul, Korea)

Journal of Quality in Maintenance Engineering

ISSN: 1355-2511

Publication date: 1 December 2004

Abstract

This paper presents a new calculating methodology for estimating the quantitative monetary managerial effects as a result of total productive maintenance (TPM) activities. The suggested methodology is to calculate the total saving monetary amount composed of contribution profit and saving costs that are obtained by improving the overall equipment efficiency (OEE) of processing type equipment. The managerial effect that is the total saved monetary effect in keeping the OEE at the 1 percent upraised condition during a given period can be calculated by the sum of additive contribution profit and saved manufacturing cost. The proposed computation methodology is demonstrated by applying to a real industrial processing type of manufacturing equipment. This newly presented model is expected to contribute to raise the maturity of TPM activities by grasping the monetary quantitative managerial effects periodically.

Keywords

Citation

Kwon, O. and Lee, H. (2004), "Calculation methodology for contributive managerial effect by OEE as a result of TPM activities", Journal of Quality in Maintenance Engineering, Vol. 10 No. 4, pp. 263-272. https://doi.org/10.1108/13552510410564882

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Publisher

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Emerald Group Publishing Limited

Copyright © 2004, Emerald Group Publishing Limited

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