Fuzzy Overall Equipment Effectiveness (FOEE): capturing performance fluctuations through LR Fuzzy numbers

Abstract

The paper focuses on the Overall Equipment Effectiveness (OEE), a performance indicator that is extensively used in the industry. The aim is to extend the capabilities of the OEE, so as to capture the day-to-day fluctuations to which manufacturing performances are subjected. To this aim, manufacturing losses are decomposed into elementary causes and modelled as LR fuzzy numbers. Next, in order to compute the Fuzzy Overall Equipment Effectiveness (FOEE), single losses are aggregated using the ‘fuzzy transformation model’. This approach limits the fuzzy overestimation phenomenon and assures both results’ accuracy and robustness. An industrial application, part of a lean project carried on by an important Italian manufacturing firm, is finally presented. Results are encouraging, since the FOEE made it possible to trace back the share of the overall fluctuations that is ascribable to each cause of loss. In this way, it provided the basis for setting improvement priorities and directed the lean team toward the selection of appropriate corrective actions.

Keywords:

• Overall Equipment Effectiveness
• performance measurement
• Fuzzy transformation model

Acknowledgments

The author is grateful to Prof M. Braglia and Dr. D. Castellano and wants to express all his appreciation for their precious suggestions, which greatly contributed to the quality of the paper.