A case study of causes of manufacturing losses in palm oil mill

Mohd Ghazali, Athirah (2015) A case study of causes of manufacturing losses in palm oil mill. Project Report. Universiti Teknikal Malaysia Malaysia, Melaka, Malaysia. (Submitted)

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Abstract

Manufacturing losses can be defined as any unexpected problems or so called a non-value added activities exists during the production process routine. It can be due to machinery malfunctions, supply shortages, human error, weather and other issues that companies have varying abilities to control. To be able to create such sustainable environment, companies are urging to manage production processes with sustainable inputs which include energy, people, equipment and machines. This study is prepared to identify the various causes of manufacturing losses which are based on three important factors in computing an Overall Equipment Effectiveness (OEE) that affect the company’s productivity especially in palm oil mill. The methodology used for this study is focuses on three types of data collection which are questionnaire, site visit and observation, and semi-structured interview which are later is analysed by performing a statistical analysis. A total of 28 respondents have been involved in the survey of this study that has been conducted in several palm oil mills in Malaysia. There are two palm oil mills been selected to be the venue for conducting the case studies. Later, the verification of top 10 critical causes of manufacturing losses exists in palm oil mill is comprehensively been discussed. The results show that there are two parameters of OEE which are availability and quality losses factors that can be considered as new formula to compute OEE. Finally, the results is also stressing towards the initiation that should be taken by the palm oil mill in order to eliminate those losses and how do the losses can be set as a parameter to compute OEE for further research purposes.

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