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Overall Equipment Effectiveness: Required but not Enough—An Analysis Integrating Overall Equipment Effect and Data Envelopment Analysis

Author

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  • Fabio Antonio Sartori Piran

    (Universidade Do Vale Do Rio Dos Sinos)

  • Alaércio De Paris

    (Universidade Do Vale Do Rio Dos Sinos)

  • Daniel Pacheco Lacerda

    (Universidade Do Vale Do Rio Dos Sinos)

  • Luis Felipe Riehs Camargo

    (Universidade Do Vale Do Rio Dos Sinos)

  • Rosiane Serrano

    (Federal Institute of Education, Science and Technology of Rio Grande Do Sul- Campus Erechim)

  • Ricardo Augusto Cassel

    (Universidade Federal Do Rio Grande Do Sul)

Abstract

The efficiency levels at which companies turn inputs into outputs may increase their competitive capacity. Nevertheless, in the literature, there is a lack of methods allowing evaluation of the performance of operations in production systems that take into account all of their components. The objective of this study is to present an analysis of efficiency for a production system using DEA and OEE in an integrated manner (DEA/OEE). To achieve this objective, we conducted a case study of a bus manufacturer and a comparative analysis using the results obtained by DEA/OEE compared with the results of the OEE measured in an operation of the company studied. The efficiency measured by DEA/OEE presents differences in relation to OEE results. The analysis of the causes of such differences pointed out that action taken to improve the OEE indicator decreased the efficiency of the operation analyzed. This study evidences that decision-making focused on improving OEE on its own may lead to an increase in the consumption of resources during an operation. Such an increase does not necessarily increase production levels and may reduce technical efficiency.

Suggested Citation

  • Fabio Antonio Sartori Piran & Alaércio De Paris & Daniel Pacheco Lacerda & Luis Felipe Riehs Camargo & Rosiane Serrano & Ricardo Augusto Cassel, 2020. "Overall Equipment Effectiveness: Required but not Enough—An Analysis Integrating Overall Equipment Effect and Data Envelopment Analysis," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 21(2), pages 191-206, June.
    • Handle: RePEc:spr:gjofsm:v:21:y:2020:i:2:d:10.1007_s40171-020-00238-6
    DOI: 10.1007/s40171-020-00238-6
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    References listed on IDEAS

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    1. Mikhail Yurievich Ryabchikov & Elena Sergeevna Ryabchikova, 2022. "Big Data-Driven Assessment of Proposals to Improve Enterprise Flexibility Through Control Options Untested in Practice," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 23(1), pages 43-74, March.

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    More about this item

    Keywords

    Data envelopment analysis; Operational performance evaluation; Overall equipment effectiveness; Performance measurement;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General

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