Evaluation of overall equipment effectiveness based on market

Abstract

Purpose

Continuous manufacturing systems used within the steel industry involve different machines and processes that are arranged in a sequence of operations in order to manufacture the products. The steel industry is generally a capital‐intensive industry and, because of high capital investment, the utilisation of equipment as effectively as possible is of high priority. This paper seeks to illustrate a new method, overall equipment effectiveness market‐based (OEE‐MB) for the precise calculation of equipment effectiveness for full process cycle in order to respond to the steel market.

Design/methodology/approach

A refinement of the existing concept of OEE is developed based on a new scheme for loss analysis within market time. The paper illustrates the concept with a case study based on compact strip manufacturing processes within the steel industry.

Findings

While the results for OEE by ignoring a considerable amount of possible hidden losses might be satisfying, the OEE‐MB report shows potential room for improvement. It reflects changes in both the internal and external market for the steel industry, and therefore provides a tool not only for monitoring but also for managing improvement.

Practical implications

OEE‐MB is an applicable method for the precise calculation of equipment effectiveness that provides a sound perspective on improvement of steel plants by taking into consideration all losses within market time for meeting both internal and external demands.

Originality/value

OEE‐MB monitors production and measures the equipment effectiveness for full process cycle in order to meet the market. It makes communication more efficient and easier within the steel industry and may be used as a benchmark to achieve world‐class standard.

Citation

Anvari, F., Edwards, R. and Starr, A. (2010), "Evaluation of overall equipment effectiveness based on market", Journal of Quality in Maintenance Engineering, Vol. 16 No. 3, pp. 256-270. https://doi.org/10.1108/13552511011072907