Implementation of the overall equipment cost loss (OECL) methodology for comparison with overall equipment effectiveness (OEE)
Journal of Quality in Maintenance Engineering
ISSN: 1355-2511
Article publication date: 14 March 2016
Abstract
Purpose
The purpose of this paper is to describe the overall equipment cost loss (OECL) methodology and an implementation of this methodology, to compare the outcomes of OECL with those of overall equipment effectiveness (OEE), and finally to identify the benefits offered by this new methodology.
Design/methodology/approach
The proposed methodology, OECL, combines six large loss models and a financial model in the performance evaluation of equipment. The six large losses are converted into monetary units. OECL is a new way of evaluating equipment performance that differs from the original OEE methodology and overcomes some of the limitations of OEE. This new methodology can be used to rank problematic machines by accounting for production elements together with finance elements.
Findings
The OECL and OEE methodologies rank problematic machines differently.
Research limitations/implications
Efforts were made in this research to identify factors affecting OECL outcomes, but it was found that it was not possible to apply OECL to all scenarios.
Practical implications
The OECL model can be implemented in a real manufacturing company to help decision-makers better determine the magnitudes of equipment problems and rank problematic pieces of equipment appropriately.
Originality/value
This OECL method is able to overcome some of OEE’s weaknesses. It can properly prioritise problematic machines by considering both cost and losses.
Keywords
Citation
Wudhikarn, R. (2016), "Implementation of the overall equipment cost loss (OECL) methodology for comparison with overall equipment effectiveness (OEE)", Journal of Quality in Maintenance Engineering, Vol. 22 No. 1, pp. 81-93. https://doi.org/10.1108/JQME-12-2011-0001
Publisher
:Emerald Group Publishing Limited
Copyright © 2016, Emerald Group Publishing Limited