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21 – 30 of over 49000Performance measures are often used to increase the competitiveness and profitability of manufacturing companies through the support and encouragement of productivity…
Abstract
Performance measures are often used to increase the competitiveness and profitability of manufacturing companies through the support and encouragement of productivity improvements. This paper reviews the most frequently used performance measures to identify their strengths and weaknesses and the situations in which they are most appropriately deployed. The performance measures under review are compared in terms of how easily they are derived from strategic objectives, how easy they are to understand and whether they help form a long‐term view of performance. Suggests that it is important to select performance measures to match the situation in which they are to be used; more importantly, it is necessary to combine various types of performance measure to provide a fair complete and balanced view of a company or the operations under evaluation.
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Paul M. Gibbons and Stuart C. Burgess
The current paradigm for assessing overall equipment effectiveness (OEE) is challenged as being anachronistic to the needs of businesses that now require a more holistic indicator…
Abstract
Purpose
The current paradigm for assessing overall equipment effectiveness (OEE) is challenged as being anachronistic to the needs of businesses that now require a more holistic indicator of plant and process effectiveness. The purpose of this paper is to introduce a new framework that expands the original OEE measure to inform business performance at multiple levels focusing on adding benchmarkable indicators of asset management effectiveness and process capability. The ability to compare internal performance against external competition and vice verse is argued as being a critical attribute of any performance measurement system.
Design/methodology/approach
The research methodology taken incorporated an action research approach using a pilot study combining case study research with an action research process of planning, observing and reflecting summarized as taking an action case research design.
Findings
The OEE and related literature is replete with many different enhancements to the original OEE framework. Many of the revised OEE frameworks move away from a standard OEE format taking away the opportunity to benchmark against plant and process performance at multiple levels.
Research limitations/implications
The enhanced OEE framework is developed and tested in situ at a single factory manufacturing large batches of similar products. Future research should look to further develop the OEE framework in both continuous process environments and asset intensive service industry environments.
Originality/value
The enhanced OEE framework introduces a measure of Six Sigma process capability using extant data from the OEE framework. Similarly, indicators of plant reliability, maintainability and asset management effectiveness are calculated taking extant data from the OEE framework. This enhanced OEE framework combines measures of process effectiveness, asset management effectiveness, gross process performance, net process performance and Six Sigma process capability into a single lean Six Sigma key performance indicator of process/plant performance.
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The purpose of this paper is to address the gap between definition and practical aspects of production efficiency in mass customization (MC). The paper summarizes all major issues…
Abstract
Purpose
The purpose of this paper is to address the gap between definition and practical aspects of production efficiency in mass customization (MC). The paper summarizes all major issues impacting efficiency in MC. Also, the paper reviews metrics, relationship between various parameters and provides a best practices benchmark toolkit to achieve higher machine efficiencies.
Design/methodology/approach
The paper identified and categorized multiple challenges impacting machine efficiency in MC through a literature review spanning over three decades, and also ranked the identified issue-based parameters. Top issues were found varying across different types of industries identified through the review. Metrics pertaining to efficiency and degree of MC are reviewed in the paper. A chronological review of issues is presented, and a chain diagram is built in the paper. Toolkit of best practices created with solution strategies and tools are summarized through the review.
Findings
The paper found that MC reasonably impacts machine efficiency which needs to be addressed. Major issues through literature review-based ranking are uncovered, and worldwide research trend and comparison are presented. Active research in this area is observed to be at its peak since 2010. The extensive use of strategies and benchmark toolkit for improving efficiency are summarized.
Research limitations/implications
Ranking of issues has been done through a literature review; hence, there can be skewness depending on the frequency of issues researched by various authors in various areas of industries.
Practical implications
This paper is useful for manufacturing managers and companies willing to increase the size of their product portfolio and choices within their available resources without compromising machine efficiencies and, thereby, the cost. The identified issues help in providing a comprehensive issue list to the academia.
Originality/value
This paper describes what is believed to be the first study that explicitly examines the issues faced in achieving machine efficiency while manufacturing in an MC environment.
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Overall equipment effectiveness (OEE) provides a quantitative metric based on the elements availability, performance and quality for measuring the performance effectiveness of…
Abstract
Purpose
Overall equipment effectiveness (OEE) provides a quantitative metric based on the elements availability, performance and quality for measuring the performance effectiveness of individual equipment or entire processes. Although these elements are important, other performance factors such as the efficient use of raw materials and the production environment (e.g. production system, logistics, labour, etc.) in which the equipment or process operates may also have a significant contribution to process performance. The purpose of this paper is to present an alternative measure derived from OEE, overall resource effectiveness (ORE), which considers these factors.
Design/methodology/approach
The paper reviews the OEE’s background and explores its limitations. Then, it shows the conceptual and mathematical development of the ORE measure and the formulas used for its calculation. Empirical and simulation-based investigations and applications of ORE are carried out through two cases study for its validation.
Findings
The results derived from both the empirical and simulation-based investigations demonstrate that OEE may not be an appropriate measure for some specific processes and that ORE may offer a more complete perspective on and information of key performance indicators.
Practical implications
ORE can provide production managers with more complete information concerning the performance of their processes. This will allow them to take better decisions regarding the management and actions needed to improve their processes.
Originality/value
This paper presents a novel and alterative approach to measure the performance of manufacturing equipment and processes.
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Raman Kumar and Harwinder Singh
The purpose of this paper is to explore the success factors for the assessment of manufacturing system output.
Abstract
Purpose
The purpose of this paper is to explore the success factors for the assessment of manufacturing system output.
Design/methodology/approach
Exploratory factor analysis and second-order confirmatory factor analysis were used to analyze data and test hypotheses, respectively. A total of 36 observed variables were transformed into nine success factors, namely role of management (ROM), technical strength, employee strength, organizational strength (OS), resources (RS), production system, market research, effective planning, and research and development (RD).
Findings
The finding indicates that only four success factors, namely ROM, RS, OS, and RD, are positively related to all four outputs. Moreover, all nine success factors are positively associated with profit.
Research limitations/implications
The outcomes of the present work provide meaningful implications for researchers and practitioners as well.
Originality/value
Earlier studies have laid focus on single output only in the manufacturing system. In the present study, an effort has been made to focus on four output dimensions, namely final product, customer relationship, reputation, and profit, which are further strengthened by incorporating the concept of performance in manufacturing systems.
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The purpose of this paper is to evaluate the contributions of total productive maintenance (TPM) initiatives towards improving manufacturing performance in Indian Manufacturing…
Abstract
Purpose
The purpose of this paper is to evaluate the contributions of total productive maintenance (TPM) initiatives towards improving manufacturing performance in Indian Manufacturing Industry.
Design/methodology/approach
In this study, a large number of manufacturing organizations have been extensively surveyed, to ascertain contributions made by TPM initiatives in the Indian manufacturing industries towards realizing manufacturing performance improvements. The correlations between various TPM implementation dimensions and manufacturing performance improvements have been evaluated and validated by employing various statistical tools.
Findings
The research focuses upon the significant contributions of TPM implementation success factors like top management leadership and involvement, traditional maintenance practices and holistic TPM implementation initiatives, towards affecting improvements in manufacturing performance in the Indian industry. The inter‐relationships between various TPM implementation success factors with the manufacturing performance improvement parameters have been evaluated, to efficiently manage the TPM implementation program to realize organizational objectives of growth and sustainability.
Research limitations/implications
The study establishes that focused TPM implementation over a reasonable time period can strategically contribute towards realization of significant manufacturing performance enhancements.
Practical implications
The study stresses upon the need for improving the synergy between maintenance function and other organizational quality improvement initiatives in the organizations, to establish maintenance as a competitive strategy for meeting the challenges of highly competitive environments.
Originality/value
The study highlights the strong potential of TPM implementation initiatives in affecting organizational performance improvements. The achievements of Indian manufacturing organizations through proactive TPM initiatives have been evaluated and critical TPM success factors identified for enhancing the effectiveness of TPM implementation programs in the Indian context.
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Marcus Bengtsson, Lars-Gunnar Andersson and Pontus Ekström
The purpose of the study is to test if it, by the use of a survey methodology, is possible to measure managers' awareness on, and specifically if there exist preconceived beliefs…
Abstract
Purpose
The purpose of the study is to test if it, by the use of a survey methodology, is possible to measure managers' awareness on, and specifically if there exist preconceived beliefs on, overall equipment effectiveness (OEE) results. The paper presents the design of the survey methodology as well as a test of the survey in one case company.
Design/methodology/approach
Actual OEE logs from a case company are collected and a survey on the data is designed and managers at the same case company are asked to answer the survey. The survey results are followed-up by an interview study in order to get deeper insights to both the results of the survey as well as the OEE strategy at the case company.
Findings
The findings show that the managers at this particular case company, on a general level, does not suffer too much from preconceived beliefs. However, it is clear that the managers have a preconceived belief that lack of material is logged as a loss much more often than what it actually is.
Research limitations/implications
The test has only been performed with data from one case company within the automotive manufacturing industry and only the managers at that case company has been active in the test.
Practical implications
The survey methodology can be replicated and used by other companies to find out how aware their employees are on their OEE results and if possible preconceived beliefs exists.
Originality/value
To the authors' knowledge, this is the first attempt at measuring if preconceived beliefs on OEE results exist.
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Shashank Thanki and Jitesh J. Thakkar
Improved performance in operational (lean) and environmental (green) dimensions has been extremely critical to the global competitiveness of organizations. As the performance of…
Abstract
Purpose
Improved performance in operational (lean) and environmental (green) dimensions has been extremely critical to the global competitiveness of organizations. As the performance of small- and medium-sized enterprises (SMEs) is influenced by various external and internal factors, the purpose of this paper is to analyze the lean–green performance of Indian manufacturing SMEs by investigating the influential relationships of various factors along with the set of lean and green practices adopted by the firms.
Design/methodology/approach
The study employs a holistic approach by integrating multiple case study and data envelopment analysis (DEA) in eight manufacturing SMEs to verify a set of five propositions relating issues such as organizational factors, quality and environmental management certifications, implementation of lean and green practices with operational and environmental performance in Indian SMEs. Within-case analysis and cross-case analysis are used for a qualitative investigation of cases while DEA with four input variables, two desirable output variables and one undesirable output variable, is used for quantitative investigation with returns to scale (RTS) and damages to scale (DTS) analysis.
Findings
The RTS/DTS results suggest that Indian SMEs exhibit decreasing RTS and increasing DTS, implying that they need to decrease their operational sizes in order to improve the operational and environmental performance. The possible alternative and more practical strategy could be to introduce new technology innovation and holistic adoption of manufacturing excellence initiatives such as lean and green.
Originality/value
The research findings provide insights into the lean and green performance enhancement approach in the context of SMEs. The study extends key managerial implications and policy-related guidelines.
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Elena Stefana, Paola Cocca, Federico Fantori, Filippo Marciano and Alessandro Marini
This paper aims to overcome the inability of both comparing loss costs and accounting for production resource losses of Overall Equipment Effectiveness (OEE)-related approaches.
Abstract
Purpose
This paper aims to overcome the inability of both comparing loss costs and accounting for production resource losses of Overall Equipment Effectiveness (OEE)-related approaches.
Design/methodology/approach
The authors conducted a literature review about the studies focusing on approaches combining OEE with monetary units and/or resource issues. The authors developed an approach based on Overall Equipment Cost Loss (OECL), introducing a component for the production resource consumption of a machine. A real case study about a smart multicenter three-spindle machine is used to test the applicability of the approach.
Findings
The paper proposes Resource Overall Equipment Cost Loss (ROECL), i.e. a new KPI expressed in monetary units that represents the total cost of losses (including production resource ones) caused by inefficiencies and deviations of the machine or equipment from its optimal operating status occurring over a specific time period. ROECL enables to quantify the variation of the product cost occurring when a machine or equipment changes its health status and to determine the actual product cost for a given production order. In the analysed case study, the most critical production orders showed an actual production cost about 60% higher than the minimal cost possible under the most efficient operating conditions.
Originality/value
The proposed approach may support both production and cost accounting managers during the identification of areas requiring attention and representing opportunities for improvement in terms of availability, performance, quality, and resource losses.
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R S Velmurugan and Tarun Dhingra
This paper aims to synthesize and categorize the published literatures related to maintenance strategies formulation, selection and implementation in various industries. The…
Abstract
Purpose
This paper aims to synthesize and categorize the published literatures related to maintenance strategies formulation, selection and implementation in various industries. The purpose of this paper is to develop a conceptual framework based on literature review for formulation of maintenance strategies, selection and the implementation of selected strategies. Further, to study on impact of maintenance strategies implementation in maintenance function.
Design/methodology/approach
A literature review has been carried out to identify the existing frameworks related to maintenance strategies formulation, selection of maintenance strategy and implementation of maintenance strategy in the industry. Literature support for all the conceptual constructs referred in the framework has been discussed to establish a logical sequence.
Findings
A conceptual framework for maintenance strategies formulation, selection and implementation and its impact in maintenance function has been developed. Further, constructs and sub-constructs which form the basis for maintenance strategies formulation, selection and implementation have been identified from the literatures. In addition, propositions have also been formulated to support the conceptual framework and these propositions provide the logical relationship among the maintenance strategies formulation, selection among the formulated strategies and the implementation of these strategies.
Research limitations/implications
The conceptual framework developed in this paper for maintenance strategy formulation and selection is yet to be empirically tested. The proposed framework can be tested in various industries.
Practical implications
Literature study on maintenance strategy formulation and selection has so far been very limited. Maintenance strategy selection is a critical decision-making problem for the maintenance managers working in the process plant, manufacturing companies, etc. The conceptual framework proposed in this paper will help maintenance managers to asses, formulate, select suitable maintenance strategy and implement for their organization.
Originality/value
The paper provides comprehensive study on maintenance strategy problem which will be useful to researchers, maintenance managers and other professionals in various industries such as process industry, manufacturing industry, etc., to understand maintenance strategy selection problem and implementation of maintenance strategy.
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