New approach towards formulation of the overall equipment effectiveness

Abstract

Purpose The purpose of this paper is to propose a new formulation of the overall equipment effectiveness (OEE) relying on the process approach (PA) in maintenance. This new indicator will be designated by OEE-TCQ. Design/methodology/approach Methodology followed in this paper is based on using two major parts. The first part deals with the use of time-driven activity-based costing (TDABC) and program evaluation and review technique (PERT) methods to formulate the temporal and financial components of the OEE-TCQ. The second part concerns the quality component formulation of OEE-TCQ by using the analytical hierarchy process (AHP) method and quality’s improvement (Six Sigma). Findings It is a new formulation of the OEE, based on the PA applied to operational maintenance processes, and also is interesting for improvement maintenance. Practical implications The new OEE-TCQ indicator can be used to support maintenance managers to have a three-dimensional analysis based on time, financial and quality criteria, also to improve time, cost and quality of each activity of maintenance operational processes. Originality/value This paper is one of few papers in maintenance proposing a new formulation of the OEE by using the combination of several methods especially TDABC, PERT, AHP and Six Sigma. It proposes in part a new quality evaluation approach for each activity of maintenance operational processes. Also, it suggests a new formulation for defects by millions of opportunities.