Structured problem solving, deviation management and continuous improvement application in improving overall equipment effectiveness (OEE): a case study in automative components manufacturing line

Overall Equipment Effectiveness (OEE) is a widely used indicator in the evaluation of machine or manufacturing lines effectiveness that consist of Availability, Performance and Quality rate. However, improving and stabilizing OEE always become the main challenge in industry. Low and fluctuated OEE performance will lead to ineffective processes and business operation. To overcome this challenge, this paper will present the case study of OEE performance improvement using the Deviation Management Line Information Board (LIB), Structured Problem Solving (SPS) and Continuous Improvement approach in Automotive Component Manufacturing Company in Pulau Pinang Malaysia. Application of Deviation Management LIB enable the visual interpretation and information decoding which promotes fast and decision support in performance management and improvement. It allowed interactive performance management involving employees of several hierarchy levels where production activities take place. Then by consistently review, with the application of Structured Problem Solving and Continuous Improvement methods, OEE performance was improved and stabilized. In this case study, this integration was being implemented in the context of a pilot company and in general it was successful improved average OEE for the Instrument Cluster Final Assembly Line from 68.04% to 72.75% with the 4.7% average improvement in OEE Performance.