Evaluation of Effectiveness and Cost of Machine Losses using Overall Equipment Effectiveness (OEE) and Overall Equipment Cost Loss (OECL) Methods, a case study on Toshiba CNC Machine

Abstract

In a manufacturing company, the machine is one of the most important elements in their production process because machine failure can stop the production process. Therefore, the initial step to minimizing losses caused by machine failure can be done by evaluating the machine condition. Evaluation of machine performance is carried out by measuring the effectiveness of the machine with the Overall Equipment Effectiveness (OEE) method. Based on the calculation result, the OEE value of the machine is 68.63% and this value still under the Japanese Institute of Plant Maintenance standard. Six big losses analysis is performed to determine the biggest loss that affects the effectiveness of the machine. The result of six big losses calculation shows that the most influential factor for the low OEE value of the machine is Reduced Speed Loss (39.12%). Causal analysis with a fishbone diagram is done to find out the causes of the highly reduced speed loss. To calculate the equipment cost loss use the Overall Equipment Cost Loss (OECL) methods. The total of the overall equipment cost loss is IDR 849, 839, 947.53.