MEASUREMENT OF MACHINE EFFICIENCY WITH DATA ENVELOPMENT ANALYSIS IN PRODUCTION SYSTEMS

Tuncay Özcan (), Oğuzhan Örde () and Cem TÜFEKÇİ ()

Eurasian Business & Economics Journal, 2019, vol. 18, issue 18, 66-79

Abstract: The efficient management of the limited resources carries critical importance for a manufacturing company. At this point, production companies benefit from different management approaches and lean manufacturing tools. Total productive maintenance (TPM) is one of the most important approaches aimed at increasing equipment efficiency and improving production performance by eliminating six major losses. In the TPM approach, the efficiency of the machines is evaluated by a performance indicator called overall equipment efficiency (OEE). The OEE measure is calculated by multiplication of availability, performance and quality values. This measure does not take into account many variables such as energy consumption, maintenance cost, operator experience, machine life, the number of failures that affect machine efficiency. Therefore, the OEE measure alone is not sufficient to evaluate the success of TPM projects. In this study, in order to overcome this deficiency, a model based on data envelopment analysis is proposed to evaluate the equipment efficiency in a production system. The applicability of the proposed approach is illustrated with a case study with data taken from a steel producer. Additionally, the machine efficiency values obtained by data envelopment analysis is compared with the total equipment efficiency.

Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:eas:buseco:v:18:y:2019:i:18:p:66-79

DOI: 10.17740/eas.econ.2019.V18-05

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