The main purpose of the research is to develop a comprehensive model for measuring overall equipment effectiveness in the capital‐intensive industry such as steel, oil and chemical companies so as to meet their essential requirements.
Market time is used as a representation of all the losses, which affect incurred equipment effectiveness. Based on a comprehensive scheme for loss analysis within market time, the concept of Integrated Equipment Effectiveness (IEE) is developed. Multiple case studies including three different cases within one large Asian steel making company were developed to assess the proposed model.
The case study reveals the importance of the new scheme for loss analysis in the capital‐intensive industry. IEE provides a whole perspective on effectiveness based on loading, capital and market features.
IEE monitors manufacturing process to utilise equipment effectively as much as possible and also measures the equipment effectiveness for full process cycle in order to respond to the market. It provides a sound perspective on improvement to the capital‐intensive industry.
The paper provides information on a new model to more accurate estimation of equipment effectiveness in the capital‐intensive industry. It helps to optimise resource allocation and make better strategic decisions. The model may be applied as a benchmark to achieve world‐class standard.
