There are many challenges associated with the implementation of OEE for monitoring and managing production performance, for example:
- how it is defined, interpreted and compared
- how the OEE data are collected and analyzed
- how it is monitored and by whom
- how it aligns with the overall production strategy
- how it could be utilized for sustainability purpose.
Moreover it is remarkable that setting high OEE goals in an environment with excessive capacity is of less value since it is not possible to utilize the equipment full time. OEE measure is less suitable as a target KPI, since OEE only measures the efficiency during the time the equipment is planned to be operating, while equipment and personnel drives manufacturing costs both when they are in operation and during downtime.
The purpose of measuring OEE can be questioned in the light of the financial crisis. There are some authors that have reported the need of further research work on linking OEE with financial measures. Dal et al.1 asserts “there would appear to be a useful line of research in exploring the link between OEE and the popular business models such as balanced scorecard”. Muchiri et al.2 suggests “Further research should explore the dynamics of translating equipment effectiveness or loss of effectiveness in terms of cost.” The authors agree with these statements, there is clearly a missing link between OEE and manufacturing cost. Jonsson et al. [39] presents a manufacturing cost model linking production performance with economic parameters. The utilization of this manufacturing cost model in developing industrially applicable productivity KPI ́s will be elaborated on in future research.
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