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

Ohwoon Kwon, Hong Chul Lee

Research output: Contribution to journalArticle

27 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 Dec 3

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Profitability
Processing
Costs
Methodology
Total productive maintenance
Profit
Manufacturing cost
Cost savings
Manufacturing
Maturity

Keywords

  • Cost analysis
  • Modelling
  • Productive maintenance

ASJC Scopus subject areas

  • Industrial and Manufacturing Engineering

Cite this

Calculation methodology for contributive managerial effect by OEE as a result of TPM activities. / Kwon, Ohwoon; Lee, Hong Chul.

In: Journal of Quality in Maintenance Engineering, Vol. 10, No. 4, 03.12.2004, p. 263-272.

Research output: Contribution to journalArticle

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