Productivity enhancement by Overall Equipment Effectiveness (OEE) improvement in Harberdashery industry: a case study

Mohamad Noor, Siti Amirah (2015) Productivity enhancement by Overall Equipment Effectiveness (OEE) improvement in Harberdashery industry: a case study. Project Report. Universiti Teknikal Malaysia Melaka, Melaka, Malaysia. (Submitted)

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Abstract

In the early 1990s, Overall Equipment Effectiveness (OEE) was regarded only as measurement tool for Total Productive Maintenance (TPM), but now it is viewed as a separate tool for measuring true production performance in a department or organization. OEE is a powerful metric of manufacturing performance integrating measures of the utilisation, yield and efficiency of a given process, machine or manufacturing line. When associated with the reasons for performance loss, OEE provides the means to compare and prioritise improvement efforts. The purpose of this research study is to develop the methodology to improve the OEE for the Pointing Machine at Haberdashery Department by using the Lean Manufacturing Tools. The productivity losses based on previous OEE were studied to identify factors contributing to the unfavourable performance of the machine. Based on the analysis, the Availability loss factor is identified with the highest non-value added activities and thus improvements are proposed. The improvement only focuses on Availability loss and not including Performance and Quality losses. Kaizen was implemented to reduce the machine downtime losses with regard to the machine setting problem. The monthly complete set of belt is made to overcome the lack of equipment at Pointing Department. Besides, the Standard Operating Procedure (SOP) for joining process of belt proposed to standardize the proper method. Improvement on the OEE is evaluated based on the results of machine downtime reduction. The improvements bring out an increase in the Availability and OEE percentages of 13.63% and18.51% respectively. The output of the machine increases when the machine downtime is reduced, therefore an enhancement of productivity can be achieved.

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