Overall Resource Effectiveness (ORE) - an improved approach for the measure of manufacturing effectiveness and support for decision-making

José Arturo Garza Reyes, Steve Eldridge, Kevin D Barber, Eddie Archer, Tim Peacock

Research output: Contribution to Book/Report typesConference contribution

Abstract

Overall Equipment Effectiveness (OEE) provides a quantitative metric, based on the elements Availability, Performance and Quality, for measuring the effectiveness of individual equipment and entire processes. This is significant but insufficient because not only those three factors have an impact on the overall performance of a machine or process but also some others such as the efficiency usage of raw materials, their quality and cost, as well as the environment (e.g. logistics, production system, labour, etc.) where the equipment or process operates. This paper presents an improved approach, Overall Resource Effectiveness (ORE), which considers those elements in the overall effectiveness evaluation. The paper shows the logical development of the concept and formulas used in the calculation of ORE. Then, a practical investigation of this approach is done through a case study. The case study demonstrates that OEE is not a “generic” measurement system appropriate for all types of processes as well as the broader perspective and information of performance that can be obtained from the use of ORE.
Original languageEnglish
Title of host publicationProceedings of the 18th International Conference on Flexible Automation and Intelligent Manufacturing
EditorsLeo J de Vin, Amos H C Ng, Peter Thorvald
Place of PublicationSweden
PublisherFAIM
Pages823-830
Number of pages8
ISBN (Print)9789163327575
Publication statusPublished - 30 Jun 2008
EventInternational Conference on Flexible Automation and Intelligent Manufacturing - University of Skövde, Sweden
Duration: 30 Jun 20082 Jul 2008

Conference

ConferenceInternational Conference on Flexible Automation and Intelligent Manufacturing
CountrySweden
Period30/06/082/07/08

Fingerprint

Decision making
Logistics
Raw materials
Availability
Personnel
Costs

Keywords

  • Automation
  • Intelligent manufacturing
  • Factory of the Future
  • Flexible Fertigung
  • Intelligente Fertigung
  • Kongress

Cite this

Reyes, J. A. G., Eldridge, S., Barber, K. D., Archer, E., & Peacock, T. (2008). Overall Resource Effectiveness (ORE) - an improved approach for the measure of manufacturing effectiveness and support for decision-making. In L. J. de Vin, A. H. C. Ng, & P. Thorvald (Eds.), Proceedings of the 18th International Conference on Flexible Automation and Intelligent Manufacturing (pp. 823-830). Sweden: FAIM.
Reyes, José Arturo Garza ; Eldridge, Steve ; Barber, Kevin D ; Archer, Eddie ; Peacock, Tim. / Overall Resource Effectiveness (ORE) - an improved approach for the measure of manufacturing effectiveness and support for decision-making. Proceedings of the 18th International Conference on Flexible Automation and Intelligent Manufacturing. editor / Leo J de Vin ; Amos H C Ng ; Peter Thorvald. Sweden : FAIM, 2008. pp. 823-830
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Reyes, JAG, Eldridge, S, Barber, KD, Archer, E & Peacock, T 2008, Overall Resource Effectiveness (ORE) - an improved approach for the measure of manufacturing effectiveness and support for decision-making. in LJ de Vin, AHC Ng & P Thorvald (eds), Proceedings of the 18th International Conference on Flexible Automation and Intelligent Manufacturing. FAIM, Sweden, pp. 823-830, International Conference on Flexible Automation and Intelligent Manufacturing, Sweden, 30/06/08.

Overall Resource Effectiveness (ORE) - an improved approach for the measure of manufacturing effectiveness and support for decision-making. / Reyes, José Arturo Garza; Eldridge, Steve; Barber, Kevin D; Archer, Eddie; Peacock, Tim.

Proceedings of the 18th International Conference on Flexible Automation and Intelligent Manufacturing. ed. / Leo J de Vin; Amos H C Ng; Peter Thorvald. Sweden : FAIM, 2008. p. 823-830.

Research output: Contribution to Book/Report typesConference contribution

TY - GEN

T1 - Overall Resource Effectiveness (ORE) - an improved approach for the measure of manufacturing effectiveness and support for decision-making

AU - Reyes, José Arturo Garza

AU - Eldridge, Steve

AU - Barber, Kevin D

AU - Archer, Eddie

AU - Peacock, Tim

PY - 2008/6/30

Y1 - 2008/6/30

N2 - Overall Equipment Effectiveness (OEE) provides a quantitative metric, based on the elements Availability, Performance and Quality, for measuring the effectiveness of individual equipment and entire processes. This is significant but insufficient because not only those three factors have an impact on the overall performance of a machine or process but also some others such as the efficiency usage of raw materials, their quality and cost, as well as the environment (e.g. logistics, production system, labour, etc.) where the equipment or process operates. This paper presents an improved approach, Overall Resource Effectiveness (ORE), which considers those elements in the overall effectiveness evaluation. The paper shows the logical development of the concept and formulas used in the calculation of ORE. Then, a practical investigation of this approach is done through a case study. The case study demonstrates that OEE is not a “generic” measurement system appropriate for all types of processes as well as the broader perspective and information of performance that can be obtained from the use of ORE.

AB - Overall Equipment Effectiveness (OEE) provides a quantitative metric, based on the elements Availability, Performance and Quality, for measuring the effectiveness of individual equipment and entire processes. This is significant but insufficient because not only those three factors have an impact on the overall performance of a machine or process but also some others such as the efficiency usage of raw materials, their quality and cost, as well as the environment (e.g. logistics, production system, labour, etc.) where the equipment or process operates. This paper presents an improved approach, Overall Resource Effectiveness (ORE), which considers those elements in the overall effectiveness evaluation. The paper shows the logical development of the concept and formulas used in the calculation of ORE. Then, a practical investigation of this approach is done through a case study. The case study demonstrates that OEE is not a “generic” measurement system appropriate for all types of processes as well as the broader perspective and information of performance that can be obtained from the use of ORE.

KW - Automation

KW - Intelligent manufacturing

KW - Factory of the Future

KW - Flexible Fertigung

KW - Intelligente Fertigung

KW - Kongress

M3 - Conference contribution

SN - 9789163327575

SP - 823

EP - 830

BT - Proceedings of the 18th International Conference on Flexible Automation and Intelligent Manufacturing

A2 - de Vin, Leo J

A2 - Ng, Amos H C

A2 - Thorvald, Peter

PB - FAIM

CY - Sweden

ER -

Reyes JAG, Eldridge S, Barber KD, Archer E, Peacock T. Overall Resource Effectiveness (ORE) - an improved approach for the measure of manufacturing effectiveness and support for decision-making. In de Vin LJ, Ng AHC, Thorvald P, editors, Proceedings of the 18th International Conference on Flexible Automation and Intelligent Manufacturing. Sweden: FAIM. 2008. p. 823-830