The Proposed OEE-SIGMA Prediction for Increased Profits

Most of the organizations adopt methods to measure their operational performance based on timeframe and requirements. One of the most commonly used measures of performance against capability of the equipment is the Overall Equipment Effectiveness (OEE). Overall Equipment Effectiveness (OEE) metric application in industry has been facing a challenge of continuing advancement in industrial operations. A smart OEE is required for a quick response to the dynamism in industrial system. In this study, OEE metric is made smart by integrating sigma continuous improvement tool into it for the enhancement of dynamism required of the traditional OEE model measured basically on three factors-availability, performance and quality. System productivity dynamism is measured and predicted through sigma statistical variation of the production process defined as a ratio of delivered output (supply) to the expected (planned) output. In this research, the model was applied to made dynamics simulation for increased profits of many manufacturing organizations. The result obtained are increased elements in OEE in line with increased of profits. This indicated that smart OEE-sigma model is a better tool for enhancing continuous improvement which can accurately measuring the financial benefits of proposed improvement projects.