Operational efficiency and effectiveness measurement

The accurate estimation of equipment utilization is very important in capital‐intensive industry since the identification and analysis of hidden time losses are initiated from these estimates. In this paper, a new loss classification scheme for computing the overall equipment effectiveness (OEE) is presented for capital‐intensive industry. Based on the presented loss classification scheme, a new interpretation for OEE including state analysis, relative loss analysis, lost unit analysis and product unit analysis is attempted. Presents a methodology for constructing a data collection system and developing the total productivity improvement visibility system to implement the proposed OEE and related analyses.