Mapping the dynamics of overall equipment effectiveness to enhance asset management practices
Journal of Quality in Maintenance Engineering
ISSN: 1355-2511
Article publication date: 29 March 2011
Abstract
Purpose
The importance of physical assets has been increasingly recognized in recent decades. The significant returns on small improvements in overall equipment effectiveness (OEE) justify investment in the management of physical assets, but the wide variation of OEE across firms raises a question: “Why do these differences persist despite a high return on investments to maximize OEE?”. To address this question the dynamic processes that control the evolution of OEE through time need to be better understood. This paper aims to answer this question.
Design/methodology/approach
Building on insights from system dynamics and strategy literature, the paper maps the reinforcing feedback loops governing the maintenance function and its interactions with various elements in a firm. Building on strategy literature it hypothesizes that these loops can explain wide variations in observed persistent variations in OEE among otherwise similar firms. The paper draws on previous literature, extensive case studies and consulting projects to provide such mapping using the qualitative mapping tools from system dynamics.
Findings
The research outlines several reinforcing loops; once active, any of them could lead a firm towards a problematic mode of operation where reactive maintenance, poor morale, and a culture of fire‐fighting dominate. Actions taken to fix problems in the short‐run often activate vicious cycles, erode the capability of the organization over the long run, and lead to a lower OEE.
Social implications
Knowing the factors affecting the asset management function of a plant increases the plant's safety and limits its environmental hazards.
Originality/value
Some of the common dynamics of organizations' asset management practices are illustrated and modeled. The strategic importance of OEE and its effect on companies' market capitalization is demonstrated.
Keywords
Citation
Zuashkiani, A., Rahmandad, H. and Jardine, A.K.S. (2011), "Mapping the dynamics of overall equipment effectiveness to enhance asset management practices", Journal of Quality in Maintenance Engineering, Vol. 17 No. 1, pp. 74-92. https://doi.org/10.1108/13552511111116268
Publisher
:Emerald Group Publishing Limited
Copyright © 2011, Emerald Group Publishing Limited