Stochastic overall equipment effectiveness Harvard Case Solution & Analysis

Stochastic overall equipment effectiveness Case Solution

All these factors make the combined chain for the effective implementation of the OEE and also determines the factors that directly effects the equipment.

An interesting factor, which is discussed in the article, outlines the relationship and comparison of OEE and Net Utilization model. According to the factor, the net utilization model depicts the reasons that causes the losses, while the OEE only outlines the factors or losses that are directly related to the equipment.

Furthermore, the article also illustrates the analysis of the OEE with other factors that causes delays and are related to the OEE efficiency. Such includes the valuable time analysis that effects the corrective measures of the OEE and also changes the results associated with the OEE.

Efficiency of OEE and Corrective Actions:

Going further, the article illustrates the example of the coating machines that coats the floor in order to restrict the traces of pollution on the ground. The whole process is explained in the case including the starting and stopping point of the machine, a scheduling closing time making it operable by a single person. Such examples enables the readers to understand the importance of managing the equipment with OEE processes.

Perhaps it has been illustrated from the example that the scheduled maintenance and implementation of OEE has allowed the company to manage the operations and maintenance itself, Though it has been determined that the implementation of the process may increase the loss time by 2 minutes, yet the variance depicts the efficiency of the OEE in managing the loss occurring in the organization.


Lastly, the article concludes the findings, stating that the OEE implementation is a practical way to reduce the water usage and the time spent in operating to improve the productivity and efficiency of the machines in order to make the lean manufacturing effective and easily applicable in the organization.

Also it pinpoints the main loopholes of OEE model that is the inability to determine the variability of the manufacturing prices, which leads to poor identification of the loss factors making it difficult for the organization and the management to determine and develop the counter strategies accordingly. Such has been defined as the major limitation of the model, however, a new approach of making the OEE as stochastic variable has been mentioned in the article which helps to make the findings more uniform and sustained for the organization.

Perhaps, it has been proved under both the condition implication, the value for OEE has remained under 90% that confirms the validity of the process and its effectiveness on the overall organizational performance. Also, the industrial Implementation of the model depicts the efficiency attained in terms of the identification of the time loss factor, easy management and maintenance by single person...........


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