Proposing Leanness Measures in Equipment Level for Low-Volume Make-to-Order Production Environments – The Complementary Tools for OEE Sadeghi Khodayara, Aghdasi Mohammadb aPhD Student of Industrial Engineering, Tarbiat Modares University, Tehran, Iran bAssociate Professor of Industrial Engineering, Tarbiat Modares University, Tehran, Iran Online published on 15 September, 2015. Abstract This article presents two new assessment models to investigate the performance of production in a low volume make-to-order production environment. These tools can help companies running these production strategy to measure and monitor the degree to which implementation of lean discipline to be successful. Overall Equipment Effectiveness (OEE) is an important part of the proposed concepts. OEE is originally used as a measure for evaluation of utilization effectiveness of manufacturing operation, but it can also be used as an indicator of performance within a manufacturing environment. However, according to our experiences and research results, using OEE as a performance indicator is not appropriate for low-volume make-to-order production environments. This is mainly because, OEE has been, originally and historically, developed and used for mass-production environments and due to high amount of Typ-1 losses in low volume make-to-order environments, it cannot be considered as a proper tool for assessing leanness of a production environment in equipment level. Therefore, we propose Overall Equipment Deficiency (OED) and Overall Equipment Inertia (OEI) as two simple metrics to investigate Type-2 and Type-1 losses. Especially, the purpose of OED is to measure all hidden type-2 waste related to an equipment in the shop floor of the production environment. It is also used for diagnostic purposes such as finding root causes of waste. Top Keywords Lean production, waste measurement, low volume make-to-order production, Overall Equipment Effectiveness (OEE), Overall Equipment Deficiency (OED). Top |