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Optimizing OEE, productivity and production cost for improving sales volume in an automobile industry through TPM: a case study

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  • Pardeep Gupta
  • Sachit Vardhan

Abstract

The aim of this paper is to investigate how increase in sales volume has evolved by improving overall equipment effectiveness (OEE) of machines, plant productivity and production cost through total productive maintenance (TPM) initiatives in a reputed tractors manufacturing industry in India. In the present scenario of global competitive market, the manufacturing industry needs to improve their operational performance for surviving and prospering. TPM is practised by industry as a business tool for rapid and continuous improvement in its manufacturing capabilities. OEE offers a powerful control tool to overcome production deficiencies and operational performance constrains. Productivity and manufacturing cost are also crucial operational measures to analyse the manufacturing performance. In this study, evaluation and analysis of the methodology adopted for improving sales volume through TPM initiatives was carried out using an interactive research approach. The industrial example on the application of OEE tool demonstrates that it has a remarkable potential to enhance the equipment effectiveness. The empirical findings of the study reveal that augmented OEE and productivity, and reduced production cost resulted to double the sales revenue and triple the profit within a period of three years. The industry also achieved notably tangible and intangible benefits with the TPM implementation.

Suggested Citation

  • Pardeep Gupta & Sachit Vardhan, 2016. "Optimizing OEE, productivity and production cost for improving sales volume in an automobile industry through TPM: a case study," International Journal of Production Research, Taylor & Francis Journals, vol. 54(10), pages 2976-2988, May.
    • Handle: RePEc:taf:tprsxx:v:54:y:2016:i:10:p:2976-2988
    DOI: 10.1080/00207543.2016.1145817
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    1. Gunasekaran, A. & Korukonda, A. R. & Virtanen, I. & Yli-Olli, P., 1994. "Improving productivity and quality in manufacturing organizations," International Journal of Production Economics, Elsevier, vol. 36(2), pages 169-183, September.
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    Cited by:

    1. Hung, Yick-Hin & Li, Leon Y.O. & Cheng, T.C.E., 2022. "Uncovering hidden capacity in overall equipment effectiveness management," International Journal of Production Economics, Elsevier, vol. 248(C).
    2. Santosh B. Rane & Sandesh Wavhal & Prathamesh R. Potdar, 2023. "Integration of Lean Six Sigma with Internet of Things (IoT) for productivity improvement: a case study of contactor manufacturing industry," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 14(5), pages 1990-2018, October.

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