Abstract
The objective of this research is to propose an enhancement of the overall equipment effectiveness (OEE) by including information on OEE estimation, value added (VA) cost, and non-value added (NVA) cost through simulation and the Taguchi experimental method. This additional information can enhance the original OEE as a key performance indicator (KPI) and act as a guide for a company in deciding on the priority improvement required. If a company relies solely on the ordinary OEE calculation, it can only arrive at a decision for priority improvement through the lowest score measured and will be in the dark as to the level of improvement required in the production line. Decision-makers in the company need to consider information other than the OEE score if their intention is to see a profound improvement in the performance of the production line. This research proposes a procedure which employs simulation and the Taguchi experimental method.
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