Improvement of Manufacturing Performance Measurement System and Evaluation of Overall Resource Effectiveness

In the present highly competitive business environment, well run organizations continually strive to enhance their capabilities to create excellent value for the customers by improving the cost effectiveness of the operations. Significant improvement has taken place in the management of resources associated with manufacturing systems, to reduce the wastage of resources. The Total Productive Maintenance (TPM) concept provides a quantitative metric-Overall Equipment Effectiveness (OEE), for measuring the effectiveness of equipment or a production line. In this study, a method is developed to evaluate Overall Resource Effectiveness (ORE) by including the factors known as readiness, changeover efficiency, availability of material and availability of manpower. ORE addresses various kinds of losses associated with manufacturing system, which can be targeted for initiating improvements. Further, a case study is presented for the evaluation of ORE in a manufacturing line.