Overall Task Effectiveness: a new Lean performance indicator in engineer-to-order environment

Resource Overall Equipment Cost Loss indicator to assess equipment performance and product cost

Purpose

This paper aims to overcome the inability of both comparing loss costs and accounting for production resource losses of Overall Equipment Effectiveness (OEE)-related approaches.

Design/methodology/approach

The authors conducted a literature review about the studies focusing on approaches combining OEE with monetary units and/or resource issues. The authors developed an approach based on Overall Equipment Cost Loss (OECL), introducing a component for the production resource consumption of a machine. A real case study about a smart multicenter three-spindle machine is used to test the applicability of the approach.

Findings

The paper proposes Resource Overall Equipment Cost Loss (ROECL), i.e. a new KPI expressed in monetary units that represents the total cost of losses (including production resource ones) caused by inefficiencies and deviations of the machine or equipment from its optimal operating status occurring over a specific time period. ROECL enables to quantify the variation of the product cost occurring when a machine or equipment changes its health status and to determine the actual product cost for a given production order. In the analysed case study, the most critical production orders showed an actual production cost about 60% higher than the minimal cost possible under the most efficient operating conditions.

Originality/value

The proposed approach may support both production and cost accounting managers during the identification of areas requiring attention and representing opportunities for improvement in terms of availability, performance, quality, and resource losses.

Developing and Implementing a Lean Performance Indicator: Overall Process Effectiveness to Measure the Effectiveness in an Operation Process

The purpose of this paper is to build up and implement a framework of a lean performance indicator with collaborative participation. A new indicator derived from OEE is presented, overall process effectiveness (OPE), which measures the effectiveness of an operation process. The action research (AR) methodology was used; collaborative work was done between researchers and management team participation. The framework was developed with the researchers’ and practitioners’ experiences, and the data was collected and analyzed; some improvements were applied and finally, a critical reflection of the process was done. This new metric contributes to measuring the unloading process, identifying losses, and generating continuous improvement plans tailored to organizational needs, increasing their market competitiveness and reducing the non-value-add activities. The OEE framework is implemented in a new domain, opening a new line of research applied to logistic process performance. This framework contributes to recording and measuring the data of one unloading area and could be extrapolated to other domains for lean performance. It was possible to generate and validate knowledge applied in the field. This study makes collaborative participation providing an effectiveness indicator that helps the managerial team to make better decisions through AR methodology.

Maintenance scheduling of a cheddar cheese manufacturing plant based on RAM analysis

Purpose

The purpose of this research is to calculate and enhance the cheese cheddar manufacturing plant efficiency under actual workplace conditions by measuring reliability, availability and maintainability (RAM) indices. The authors highlight how RAM analysis is important in determining periodic maintenance and in scheduling and managing the appropriate maintenance policy.

Design/methodology/approach

The current work is conducted using statistical approaches to evaluate failure and repair statistics. The RAM estimation was calculated on the basis of quantitative data obtained over a span of 32 months. Descriptive statistics, Pareto analysis, as well as the presumption of independence were ensured through trend and serial correlation tests. In addition, the reliability and maintainability of the cheddar cheese processing plant and its machines were calculated at various mission periods.

Findings

The primary goal of the implementation approach is to understand the fault patterns and the accurate quantitative assessment of the reliability and maintainability of the cheddar production plant. The findings revealed the essential aspects of the line, which need improvement by an appropriate maintenance program.

Originality/value

This study is intended to serve to highlight the RAM assessment and its impact on the performance of the real-time system. The benefit of the technique is the continual control of the manufacturing process by means of acceptable indexes, whose use corresponds to a continuous improvement process.

Overall Equipment Effectiveness: Systematic Literature Review and Overview of Different Approaches

Overall equipment effectiveness (OEE) is a key performance indicator used to measure equipment productivity. The purpose of this study is to review and analyze the evolution of OEE, present modifications made over the original model and identify future development areas. This paper presents a systematic literature review; a structured and transparent study is performed by establishing procedures and criteria that must be followed for selecting relevant evidences and addressing research questions effectively. In a general search, 862 articles were obtained; after eliminating duplicates and applying certain inclusion and exclusion criteria, 186 articles were used for this review. This research presents three principal results: (1) The academic interest in this topic has increased over the last five years and the keywords have evolved from being related to maintenance and production, to being related to lean manufacturing and optimization; (2) A list of authors who have developed models based on OEE has been created; and (3) OEE is an emerging topic in areas such as logistics and services. To the best of our knowledge, no comparable review has been published recently. This research serves as a basis for future relevant studies.

Revised overall labour effectiveness

Purpose

The paper proposes a new workforce effectiveness metric that is a sophisticated evolution of a pre-existing overall labour effectiveness (OLE) indicator. The KPI, named revised OLE (ROLE), provides a structured methodology to measure in a holistic way the losses relating to labour, maintaining some formal similitude to the overall equipment effectiveness (OEE)

Design/methodology/approach

A new structure of losses is proposed to overcome the drawbacks and the difficulties that usually affect the data collection stage, referring to directly measurable quantities or, when this is not the case, suggesting a viable method to quantify the loss. Besides, this approach facilitates the comprehension of labour-related issues, suggesting potential countermeasures. The novel ROLE indicator has been defined, based on this new structure, to evaluate the labour effectiveness in batch process industries. A real case study is provided, which explains the methodology and illustrates the capability of the corresponding KPI.

Findings

The present work analyses the labour performance indexes available in literature, with the aim of evidencing those aspects that can be properly observed and quantified and, at the same time, categorizing them to identify their possible drawbacks. A new structure of losses is derived, with respect to four different categories, which may help to measure the losses themselves more effectively

Originality/value

The paper investigates some important KPIs dealing with labour performance and individuates some significant drawbacks. Then it suggests a new, inclusive structure of losses and a modified KPI that not only measures effectiveness but also allows to identify viable countermeasures.

Criticality assessment of the barriers to Lean Construction

Purpose

The purpose of this study seeks to identify the critical barriers for the deployment of Lean Construction (LC).

Design/methodology/approach

In order to identify the barriers of Lean Construction, a systematic review of the scientific literature was carried out, in addition to analysis of the content of papers presented at a major Lean Construction conference. After the barriers were identified, a Lawshe study was conducted with experts in Lean Construction to verify the criticality of each of the barriers encountered.

Findings

This study identified 83 potential pre-deployment barriers in the literature, of which eight were considered critical by the experts. The results of Lawshe study pointed that critical barriers refer to leadership characteristics, cultural aspects and structural aspects.

Research limitations/implications

Variations in the assessment of the criticality of the barriers may occur from one country to another due to regional differences in the construction sector.

Practical implications

The implications of this study are recognizing and identifying the characteristics of an organization that can hinder Lean Construction allows these issues to be resolved before beginning the Lean journey.

Originality/value

This article is the first of its kind to assess the criticality of barriers to Lean Construction using a quantitative technique. Knowledge of this set of barriers provides both practical and theoretical readers with an increased chance of success in the deployment of an LC project.