A study on overall equipment effectiveness (oee) for performance measurement case study for surface mount technology (smt) department
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Date
2018-05
Authors
Siti Nor Atiqah Shamsudin
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Abstract
Efficiency and effectiveness are buzzwords in today’s fluctuating and
competitive market. The greater the efficiency and effectiveness, the more productive
is the organization. Many organizations are forced to implement various productivity
improvement programs in order to continue to cope with the complexities and survive
in today's turbulent and competitive business environment. Performance measurement
is the language of progress, and provides a sense of where we are and more importantly
where we are going. There are many reasons for companies to measure performance.
By measuring the performance, the company can improved control, since feedback is
essential for any system. Furthermore, clear responsibilities and objectives can be seen,
because good performance measures clarify who is responsible for specific results or
problems and also helps in understanding business processes. This is because
measuring data requires an understanding of the manufacturing process. Overall
Equipment Effectiveness (OEE) is such a performance measure, which indicates
current status of production. OEE is one of the metric used for identifying losses,
benchmarking progress, and improving the productivity of manufacturing equipment.
However, having the OEE matrices without proper understanding of the occurrence of
losses will hinder improvement of the process. This research was conducted to study
and analyse on how the OEE matrices are used to measure the performance at the
Surface Mount Technology (SMT) Department. The six big losses mainly are identified
and Pareto analysis method was used and it is found that non-scheduled time and
changeover activity contribute to the greatest loss. Thus, single minute exchange dies
(SMED) technique was recommended to reduce time taken for the changeover. This
project indicate that OEE is a powerful yardstick that can be used by companies to
measure their performance.