Calculation methodology for contributive managerial effect by OEE as a result of TPM activities

Ohwoon Kwon, Hongchul Lee

    Research output: Contribution to journalArticlepeer-review

    35 Citations (Scopus)

    Abstract

    This paper presents a new calculating methodology for estimating the quantitative monetary managerial effects as a result of total productive maintenance (TPM) activities. The suggested methodology is to calculate the total saving monetary amount composed of contribution profit and saving costs that are obtained by improving the overall equipment efficiency (OEE) of processing type equipment. The managerial effect that is the total saved monetary effect in keeping the OEE at the 1 percent upraised condition during a given period can be calculated by the sum of additive contribution profit and saved manufacturing cost. The proposed computation methodology is demonstrated by applying to a real industrial processing type of manufacturing equipment. This newly presented model is expected to contribute to raise the maturity of TPM activities by grasping the monetary quantitative managerial effects periodically.

    Original languageEnglish
    Pages (from-to)263-272
    Number of pages10
    JournalJournal of Quality in Maintenance Engineering
    Volume10
    Issue number4
    DOIs
    Publication statusPublished - 2004

    Keywords

    • Cost analysis
    • Modelling
    • Productive maintenance

    ASJC Scopus subject areas

    • Safety, Risk, Reliability and Quality
    • Strategy and Management
    • Industrial and Manufacturing Engineering

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