Review: Implementation of Overall Equipment Effectiveness (OEE) Based on Lean Manufacturing Tools in the Indonesian Pharmaceutical Industry
Abstract
Increasing production in the industry is important to face the current global competition. Therefore, a performance measurement system is needed for the manufacturing process. Overall Equipment Effectiveness (OEE) is a method for monitoring and improving the efficiency of manufacturing processes. In this article, overall equipment effectiveness (OEE) is described as one of the performance measurement tools that measure different types of production losses and shows areas of process improvement. The analysis is done on how OEE evolved leads to other tools such as the performance of the total equipment effectiveness, such as the effectiveness of production equipment, the effectiveness of the overall plant, and the effectiveness of the asset as a whole. OEE consist of three metric measurement; availability, performance, and quality. Purpose of review articles is to apply these metrics to compare the efficiency and effectiveness of production activity in pharmaceutical industry and to categorize the highly occurence of loss productivity in the production activity that takes place in industry, especially pharmaceutical industry. This review included studies published in ScienceDirect database with the keyword “Lean Manufacturing” and “Overall Equipment Effectiveness”. The results obtained from study of the primary source is the OEE can be used to optimize the production process in the industry, especially the pharmaceutical industry, because this method can produce products efficiently and with the good quality of products that leads to consumer’s satisfactory.
References
Menteri Kesehatan RI. Peraturan Menteri Kesehatan Republik Indonesia Nomor 1799/MENKES/PER/XII/2010 tentang Industri Farmasi. 2010.
Theeb N, Nusairat A, Lubani M. Problem Solving and Enhancing the Overall Equipment Effectiveness in Pharmaceutical Industries. International Journal of Health and Medicine 2016;1:5–8.
Singh R, Shah D, Gohil A, Shah M. Overall Equipment Effectiveness (OEE) Calculation - Automation through Hardware & Software Development. Procedia Engineering 2013;51:579–84.
Gaspersz V. Lean Six Sigma for Manufacturing and Services Industries. Jakarta: PT Gramedia Pustaka Utama; 2007.
Shah R, Ward P. Defining and developing measures of lean production. Journal of Operations Management 2007;25:785–805.
Bakrie AH, ARNY. Boosting Lean Manufacturing via TPM. Social and Behavioural Sciences Procedia 2012;65:485–91.
Sharma R, Kumar D, Kumar P. Manufacturing Excellence Through TPM application: A Practical Analysis. Industrial Management &Data Systems 2006;106:256–80.
Almström P and AK. The productivity potential assessment method: Assessing and benchmarking the improvement potential in manufacturing systems. International Journal of Productivity and Performance Management 2011;60:758–70.
Wang F. Evaluating the efficiency of implementing total productive maintenance. Total Quality Management & Business Excellence 2006;17:655–67.
Andersson C and MB. On the complexity of using performance measures: Enhancing sustained production improvement capability by combining OEE and productivity. Journal of Manufacturing Systems 2015;35:144–54.
Huang SH, DJP, MA, RRB and RDE. Manufacturing productivity improvement using effectiveness metrics and simulation analysis. International Journal of Production Research 2003;41:513–27.
Hashim S, NHJC. The Integrated Between Total Production Maintenance Practices And Kaizen Event Practices In Malaysian Automotive Industry. International Journal of Engineering Research and Application 2012;3:62–7.
Anvari A, Ismail Y, Hossen S. A Study on TQM and Lean Manufacturing Through Lean Thinking Approach. World Applied Sciences Journal 2011.
Upadhiye N, Desmukh S, Garg S. Lean Manufacturing Systems Barriers. International Journal on Lean Enterprise Research 2016;1:46–65.
Enke J GRKAHJTMMJ. Industrie 4.0 – Competencies for a modern production system. Procedia Manufacturing 2018;23:267–72.
R. Al Janahi and H.-D. Wan. Measuring Fitness of a Production Line to Meet Customer Demand. Engineering Lean and Six Sigma Conference 2019;1.
Kedar AP, RPLVSDPVW and MVW. Comparative review of TQM, TPM and related organisational performance improvement programs. International Journal in Engineering and Technology 2008;2.
Apte U, Goh H. Applying Lean Manufacturing Principles to Information Intensive Services. International Journal of Services Technology and Management 2004;5:488–506.
Hoellthaler G BSRG. Digital Lean Production – An Approach to Identify Potentials for the Migration to a Digitalized Production System in SMEs from a Lean Perspective. Procedia CIRP 2018;67:522–7.
Andersson R, HE and HT. Similarities and differences between TOM, six sigma and lean. The TQM Magazine 2006;18:282–96.
Belekoukias I, JRVK. The Impact of Lean Methods and Tools on The Operational Performance of Manufacturing Organizations. International Journal of Production Research 2014;52:5346–66.
Adesta Y, Prabowo H. Evaluating 8 pillars of Total Productive Maintenance (TPM) implementation and their contribution to manufacturing performance. IOP Conference Series: Materials Science and Engineering, 2018.
Stamatis D. The OEE primer: understanding overall equipment effectiveness, reliability, and maintainability. . 2017.
Chen C. A developed autonomous preventive maintenance programme using RCA and FMEA. International Journal of Production Research 2013;51:5408–12.
Puvanasvaran T. Consideration of demand rate in overall equipment effetiveness (OE) on equipment with constant process time. Journal of Industrial Engineering and Management 2013;6.
P. Ghafoorpoor Yazdi AA and MH. An Empirical Investigation of the Relationship between Overall Equipment Efficiency (OEE) and Manufacturing Sustainability in Industry 4.0 with Time Study Approach. Sustainability 2018;10.
Huang SH, Dismukes JP, Mousalam A, Razzak R, Robinson B. Manufacturing productivity improvement using effectiveness metrics and simulation analysis. Int J Prod Res 2003;41:513–27.
N. A. B. Aminuddin JAG-RVKJA and LR-L. An analysis of managerial factors affecting the implementation and use of overall equipment effectiveness. Journal of Production Research 2016;54:4430–47.
Prabowo HA, FRI. Improve the Work Effectiveness with Overall Equipment Effectiveness (OEE) as the Basis for Optimizing Production. International Journal of Engineering Research and Application 2009;9.
Jeong K, Phillips D. Operational Efficiency and Effective Measurement. International Kournal of Production and Management 2003:1404–16.
Chapko MK. Equivalence of two healthcare costing methods: bottom-up and topdown. Health Economics 2010;18:1188–201.
Fleischer J, WU and NS. Calculation and optimisation model for costs and effects of availability relevant service elements. Proceedings of LCE 2006;2.
Chan F. Implementation of total productive maintenance: A case study. International Journal of Production Economics 2005;95:71–94.
Nakajima S. Introduction to Total Productive Maintenance. Cambridge: Productivity Press; 1988.
Thanki S, Govindan K, Jittes T. An investigation on lean-green implementation practices. Journal of Cleaner Production 2016;135:284–96.
Muchiri P and P. Performance measurement using overall equipment effectiveness (OEE). International Journal of Production 2008;46:3517–35.
Kampker A KKSM. Mathematical model for proactive resequencing of mixed model assembly lines. Procedia Manufacturing 2019;33:438–45.
F. Zammori MB and MF. Stochastic overall equipment effectiveness. International Journal of Production Research 2011;49:6469–90.
M. Braglia MF and FZ. Overall equipment effectiveness of a manufacturing line (OEEML). Journal of Manufacturing Technology Management 2009.
Oliveira J SJFA. Continuous Improvement through “Lean Tools”: An Application in a Mechanical Company. Procedia Manufacturing 2017;13:1082–9.
Subramaniyan M. Production Data Analytics – To identify productivity potentials. Gothenberg: Chalmers University of Technology; 2015.
Corrales LC LMKMRJ. Overall Equipment Effectiveness. Applied Sciences 2020;11:6469.
Parihar S JSBL. Calculation of OEE for an Assembly Process. Internal Journal of Research in Mechanical Engineering and Technology 2012;2:25–7.
Antoniolli I GPPTFLSF. Standardization and optimization of an automotive components production line. Procedia Manufacturing 2017;13:1120–7.
Zandieh S TSGM. Evaluation of Overall Equipment Effectiveness in a Continuous Process Production System of Condensate Stabilization Plant. Applied Sciences 2012;2:590–6.
Huang S. Manufacturing system modelling for productivity improvement. J Manuf Syst 2002;21:249–59.
Garza-Reyes J, Eldridge K, Barber D, Soriano-Meier H. Overall equipment effectiveness (OEE) and process capability (PC) measures. International Journal of Quality & Reliability Management 2010;27:48–62.
Aleš Z PJLVMFJ v. Methodology of Overall Equipment Effectiveness Calculation in the Context of Industry 4.0 Environment. Maintenance and Reliability 2019;21:411–8.
Kusiak A. Smart manufacturing. International Journal of Production Research 2018;56:508–17.
Hossain SJ SB. Overall Equipment Effectiveness measures of engineering production system. Conference Paper, 2016.
Menteri Kesehatan RI. Peraturan Menteri Kesehatan Republik Indonesia Nomor 1799/MENKES/PER/XII/2010 tentang Industri Farmasi. 2010.
Theeb N, Nusairat A, Lubani M. Problem Solving and Enhancing the Overall Equipment Effectiveness in Pharmaceutical Industries. International Journal of Health and Medicine 2016;1:5–8.
Singh R, Shah D, Gohil A, Shah M. Overall Equipment Effectiveness (OEE) Calculation - Automation through Hardware & Software Development. Procedia Engineering 2013;51:579–84.
Gaspersz V. Lean Six Sigma for Manufacturing and Services Industries. Jakarta: PT Gramedia Pustaka Utama; 2007.
Shah R, Ward P. Defining and developing measures of lean production. Journal of Operations Management 2007;25:785–805.
Bakrie AH, ARNY. Boosting Lean Manufacturing via TPM. Social and Behavioural Sciences Procedia 2012;65:485–91.
Sharma R, Kumar D, Kumar P. Manufacturing Excellence Through TPM application: A Practical Analysis. Industrial Management &Data Systems 2006;106:256–80.
Almström P and AK. The productivity potential assessment method: Assessing and benchmarking the improvement potential in manufacturing systems. International Journal of Productivity and Performance Management 2011;60:758–70.
Wang F. Evaluating the efficiency of implementing total productive maintenance. Total Quality Management & Business Excellence 2006;17:655–67.
Andersson C and MB. On the complexity of using performance measures: Enhancing sustained production improvement capability by combining OEE and productivity. Journal of Manufacturing Systems 2015;35:144–54.
Huang SH, DJP, MA, RRB and RDE. Manufacturing productivity improvement using effectiveness metrics and simulation analysis. International Journal of Production Research 2003;41:513–27.
Hashim S, NHJC. The Integrated Between Total Production Maintenance Practices And Kaizen Event Practices In Malaysian Automotive Industry. International Journal of Engineering Research and Application 2012;3:62–7.
Anvari A, Ismail Y, Hossen S. A Study on TQM and Lean Manufacturing Through Lean Thinking Approach. World Applied Sciences Journal 2011.
Upadhiye N, Desmukh S, Garg S. Lean Manufacturing Systems Barriers. International Journal on Lean Enterprise Research 2016;1:46–65.
Enke J GRKAHJTMMJ. Industrie 4.0 – Competencies for a modern production system. Procedia Manufacturing 2018;23:267–72.
R. Al Janahi and H.-D. Wan. Measuring Fitness of a Production Line to Meet Customer Demand. Engineering Lean and Six Sigma Conference 2019;1.
Kedar AP, RPLVSDPVW and MVW. Comparative review of TQM, TPM and related organisational performance improvement programs. International Journal in Engineering and Technology 2008;2.
Apte U, Goh H. Applying Lean Manufacturing Principles to Information Intensive Services. International Journal of Services Technology and Management 2004;5:488–506.
Hoellthaler G BSRG. Digital Lean Production – An Approach to Identify Potentials for the Migration to a Digitalized Production System in SMEs from a Lean Perspective. Procedia CIRP 2018;67:522–7.
Andersson R, HE and HT. Similarities and differences between TOM, six sigma and lean. The TQM Magazine 2006;18:282–96.
Belekoukias I, JRVK. The Impact of Lean Methods and Tools on The Operational Performance of Manufacturing Organizations. International Journal of Production Research 2014;52:5346–66.
Adesta Y, Prabowo H. Evaluating 8 pillars of Total Productive Maintenance (TPM) implementation and their contribution to manufacturing performance. IOP Conference Series: Materials Science and Engineering, 2018.
Stamatis D. The OEE primer: understanding overall equipment effectiveness, reliability, and maintainability. . 2017.
Chen C. A developed autonomous preventive maintenance programme using RCA and FMEA. International Journal of Production Research 2013;51:5408–12.
Puvanasvaran T. Consideration of demand rate in overall equipment effetiveness (OE) on equipment with constant process time. Journal of Industrial Engineering and Management 2013;6.
P. Ghafoorpoor Yazdi AA and MH. An Empirical Investigation of the Relationship between Overall Equipment Efficiency (OEE) and Manufacturing Sustainability in Industry 4.0 with Time Study Approach. Sustainability 2018;10.
Huang SH, Dismukes JP, Mousalam A, Razzak R, Robinson B. Manufacturing productivity improvement using effectiveness metrics and simulation analysis. Int J Prod Res 2003;41:513–27.
N. A. B. Aminuddin JAG-RVKJA and LR-L. An analysis of managerial factors affecting the implementation and use of overall equipment effectiveness. Journal of Production Research 2016;54:4430–47.
Prabowo HA, FRI. Improve the Work Effectiveness with Overall Equipment Effectiveness (OEE) as the Basis for Optimizing Production. International Journal of Engineering Research and Application 2009;9.
Jeong K, Phillips D. Operational Efficiency and Effective Measurement. International Kournal of Production and Management 2003:1404–16.
Chapko MK. Equivalence of two healthcare costing methods: bottom-up and topdown. Health Economics 2010;18:1188–201.
Fleischer J, WU and NS. Calculation and optimisation model for costs and effects of availability relevant service elements. Proceedings of LCE 2006;2.
Chan F. Implementation of total productive maintenance: A case study. International Journal of Production Economics 2005;95:71–94.
Nakajima S. Introduction to Total Productive Maintenance. Cambridge: Productivity Press; 1988.
Thanki S, Govindan K, Jittes T. An investigation on lean-green implementation practices. Journal of Cleaner Production 2016;135:284–96.
Muchiri P and P. Performance measurement using overall equipment effectiveness (OEE). International Journal of Production 2008;46:3517–35.
Kampker A KKSM. Mathematical model for proactive resequencing of mixed model assembly lines. Procedia Manufacturing 2019;33:438–45.
F. Zammori MB and MF. Stochastic overall equipment effectiveness. International Journal of Production Research 2011;49:6469–90.
M. Braglia MF and FZ. Overall equipment effectiveness of a manufacturing line (OEEML). Journal of Manufacturing Technology Management 2009.
Oliveira J SJFA. Continuous Improvement through “Lean Tools”: An Application in a Mechanical Company. Procedia Manufacturing 2017;13:1082–9.
Subramaniyan M. Production Data Analytics – To identify productivity potentials. Gothenberg: Chalmers University of Technology; 2015.
Corrales LC LMKMRJ. Overall Equipment Effectiveness. Applied Sciences 2020;11:6469.
Parihar S JSBL. Calculation of OEE for an Assembly Process. Internal Journal of Research in Mechanical Engineering and Technology 2012;2:25–7.
Antoniolli I GPPTFLSF. Standardization and optimization of an automotive components production line. Procedia Manufacturing 2017;13:1120–7.
Zandieh S TSGM. Evaluation of Overall Equipment Effectiveness in a Continuous Process Production System of Condensate Stabilization Plant. Applied Sciences 2012;2:590–6.
Huang S. Manufacturing system modelling for productivity improvement. J Manuf Syst 2002;21:249–59.
Garza-Reyes J, Eldridge K, Barber D, Soriano-Meier H. Overall equipment effectiveness (OEE) and process capability (PC) measures. International Journal of Quality & Reliability Management 2010;27:48–62.
Aleš Z PJLVMFJ v. Methodology of Overall Equipment Effectiveness Calculation in the Context of Industry 4.0 Environment. Maintenance and Reliability 2019;21:411–8.
Kusiak A. Smart manufacturing. International Journal of Production Research 2018;56:508–17.
Hossain SJ SB. Overall Equipment Effectiveness measures of engineering production system. Conference Paper, 2016.
Menteri Kesehatan RI. Peraturan Menteri Kesehatan Republik Indonesia Nomor 1799/MENKES/PER/XII/2010 tentang Industri Farmasi. 2010.
Theeb N, Nusairat A, Lubani M. Problem Solving and Enhancing the Overall Equipment Effectiveness in Pharmaceutical Industries. International Journal of Health and Medicine 2016;1:5–8.
Singh R, Shah D, Gohil A, Shah M. Overall Equipment Effectiveness (OEE) Calculation - Automation through Hardware & Software Development. Procedia Engineering 2013;51:579–84.
Gaspersz V. Lean Six Sigma for Manufacturing and Services Industries. Jakarta: PT Gramedia Pustaka Utama; 2007.
Shah R, Ward P. Defining and developing measures of lean production. Journal of Operations Management 2007;25:785–805.
Bakrie AH, ARNY. Boosting Lean Manufacturing via TPM. Social and Behavioural Sciences Procedia 2012;65:485–91.
Sharma R, Kumar D, Kumar P. Manufacturing Excellence Through TPM application: A Practical Analysis. Industrial Management &Data Systems 2006;106:256–80.
Almström P and AK. The productivity potential assessment method: Assessing and benchmarking the improvement potential in manufacturing systems. International Journal of Productivity and Performance Management 2011;60:758–70.
Wang F. Evaluating the efficiency of implementing total productive maintenance. Total Quality Management & Business Excellence 2006;17:655–67.
Andersson C and MB. On the complexity of using performance measures: Enhancing sustained production improvement capability by combining OEE and productivity. Journal of Manufacturing Systems 2015;35:144–54.
Huang SH, DJP, MA, RRB and RDE. Manufacturing productivity improvement using effectiveness metrics and simulation analysis. International Journal of Production Research 2003;41:513–27.
Hashim S, NHJC. The Integrated Between Total Production Maintenance Practices And Kaizen Event Practices In Malaysian Automotive Industry. International Journal of Engineering Research and Application 2012;3:62–7.
Anvari A, Ismail Y, Hossen S. A Study on TQM and Lean Manufacturing Through Lean Thinking Approach. World Applied Sciences Journal 2011.
Upadhiye N, Desmukh S, Garg S. Lean Manufacturing Systems Barriers. International Journal on Lean Enterprise Research 2016;1:46–65.
Enke J GRKAHJTMMJ. Industrie 4.0 – Competencies for a modern production system. Procedia Manufacturing 2018;23:267–72.
R. Al Janahi and H.-D. Wan. Measuring Fitness of a Production Line to Meet Customer Demand. Engineering Lean and Six Sigma Conference 2019;1.
Kedar AP, RPLVSDPVW and MVW. Comparative review of TQM, TPM and related organisational performance improvement programs. International Journal in Engineering and Technology 2008;2.
Apte U, Goh H. Applying Lean Manufacturing Principles to Information Intensive Services. International Journal of Services Technology and Management 2004;5:488–506.
Hoellthaler G BSRG. Digital Lean Production – An Approach to Identify Potentials for the Migration to a Digitalized Production System in SMEs from a Lean Perspective. Procedia CIRP 2018;67:522–7.
Andersson R, HE and HT. Similarities and differences between TOM, six sigma and lean. The TQM Magazine 2006;18:282–96.
Belekoukias I, JRVK. The Impact of Lean Methods and Tools on The Operational Performance of Manufacturing Organizations. International Journal of Production Research 2014;52:5346–66.
Adesta Y, Prabowo H. Evaluating 8 pillars of Total Productive Maintenance (TPM) implementation and their contribution to manufacturing performance. IOP Conference Series: Materials Science and Engineering, 2018.
Stamatis D. The OEE primer: understanding overall equipment effectiveness, reliability, and maintainability. . 2017.
Chen C. A developed autonomous preventive maintenance programme using RCA and FMEA. International Journal of Production Research 2013;51:5408–12.
Puvanasvaran T. Consideration of demand rate in overall equipment effetiveness (OE) on equipment with constant process time. Journal of Industrial Engineering and Management 2013;6.
P. Ghafoorpoor Yazdi AA and MH. An Empirical Investigation of the Relationship between Overall Equipment Efficiency (OEE) and Manufacturing Sustainability in Industry 4.0 with Time Study Approach. Sustainability 2018;10.
Huang SH, Dismukes JP, Mousalam A, Razzak R, Robinson B. Manufacturing productivity improvement using effectiveness metrics and simulation analysis. Int J Prod Res 2003;41:513–27.
N. A. B. Aminuddin JAG-RVKJA and LR-L. An analysis of managerial factors affecting the implementation and use of overall equipment effectiveness. Journal of Production Research 2016;54:4430–47.
Prabowo HA, FRI. Improve the Work Effectiveness with Overall Equipment Effectiveness (OEE) as the Basis for Optimizing Production. International Journal of Engineering Research and Application 2009;9.
Jeong K, Phillips D. Operational Efficiency and Effective Measurement. International Kournal of Production and Management 2003:1404–16.
Chapko MK. Equivalence of two healthcare costing methods: bottom-up and topdown. Health Economics 2010;18:1188–201.
Fleischer J, WU and NS. Calculation and optimisation model for costs and effects of availability relevant service elements. Proceedings of LCE 2006;2.
Chan F. Implementation of total productive maintenance: A case study. International Journal of Production Economics 2005;95:71–94.
Nakajima S. Introduction to Total Productive Maintenance. Cambridge: Productivity Press; 1988.
Thanki S, Govindan K, Jittes T. An investigation on lean-green implementation practices. Journal of Cleaner Production 2016;135:284–96.
Muchiri P and P. Performance measurement using overall equipment effectiveness (OEE). International Journal of Production 2008;46:3517–35.
Kampker A KKSM. Mathematical model for proactive resequencing of mixed model assembly lines. Procedia Manufacturing 2019;33:438–45.
F. Zammori MB and MF. Stochastic overall equipment effectiveness. International Journal of Production Research 2011;49:6469–90.
M. Braglia MF and FZ. Overall equipment effectiveness of a manufacturing line (OEEML). Journal of Manufacturing Technology Management 2009.
Oliveira J SJFA. Continuous Improvement through “Lean Tools”: An Application in a Mechanical Company. Procedia Manufacturing 2017;13:1082–9.
Subramaniyan M. Production Data Analytics – To identify productivity potentials. Gothenberg: Chalmers University of Technology; 2015.
Corrales LC LMKMRJ. Overall Equipment Effectiveness. Applied Sciences 2020;11:6469.
Parihar S JSBL. Calculation of OEE for an Assembly Process. Internal Journal of Research in Mechanical Engineering and Technology 2012;2:25–7.
Antoniolli I GPPTFLSF. Standardization and optimization of an automotive components production line. Procedia Manufacturing 2017;13:1120–7.
Zandieh S TSGM. Evaluation of Overall Equipment Effectiveness in a Continuous Process Production System of Condensate Stabilization Plant. Applied Sciences 2012;2:590–6.
Huang S. Manufacturing system modelling for productivity improvement. J Manuf Syst 2002;21:249–59.
Garza-Reyes J, Eldridge K, Barber D, Soriano-Meier H. Overall equipment effectiveness (OEE) and process capability (PC) measures. International Journal of Quality & Reliability Management 2010;27:48–62.
Aleš Z PJLVMFJ v. Methodology of Overall Equipment Effectiveness Calculation in the Context of Industry 4.0 Environment. Maintenance and Reliability 2019;21:411–8.
Kusiak A. Smart manufacturing. International Journal of Production Research 2018;56:508–17.
Hossain SJ SB. Overall Equipment Effectiveness measures of engineering production system. Conference Paper, 2016.
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