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Overall Equipment Effectiveness

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Improve productivity will increase the profit of the company. One of the ways to improve productivity is reducing the cost of breakdown maintenance and accident occurs. Department Of Safety Health Environment in HICOM Diecasting Sdn Bhd use Overall Equipment Effectiveness (O.E.E) to calculate manufacturing productivity on their company. Overall equipment effectiveness, O.E.E can be refer as the standard for measuring the manufacturing productivity. It identifies the percentage of manufacturing time that is truly productive. The formulation to calculate for the overall equipment effectiveness is referred through the equation below. If the overall equipment effectiveness score for the 100%, it gives the meaning that the industry only manufacture …show more content…
The value of overall equipment increases as the availability ratio increases. Availability ratio gives the meaning of stop the planned production long enough where it makes sense to track a reason for being down which typically it takes only several minutes. Usually, availability ratio occurred when there has maintenance of the machine and if there has any breakdown, it will be fixed immediately. An availability take the score of 100% when the process is always running during planned production time. Availability ratio is opposite with the downtime ration which is the system fails to perform its primary function due to the unplanned event or planned event; routine maintenance. So, by increasing the value for availability ratio, it directly will reducing the value for the downtime ratio which will give losses to the industry. Besides that, quality ratio, QR also take into account for the manufactured parts that do not meet the quality standard including the parts that need to rework. In the overall equipment effectiveness, the quality similar to first pass yield which is good parts as a part that successfully pass through the manufacturing process for the first time without need any rework. A quality will achieve the score of 100% if there have no defects by means only good parts are being produced from the …show more content…
Even though deaths from the natural disaster tend to be more newsworthy than workplace deaths, their actual impact is substantially less. But, the impact from the deaths at workplace give high impact which affect the production of the industry. The factor that increased the cost of the accident are lost wages, medical expenses, insurance administration, fire-related losses, motor vehicle property damage and indirect cost.
It is hard to predict the estimating cost over the year because there has some time that accident is not occur but the estimating cost is depends on the type of accident occur in the industry. Based in the company of HICOM DieCasting Sdn Bhd, the estimating cost for practising OSH has been keep due to the privacy of the company. But, the budget estimated for a year is depends on the personal protective equipment (PPE), Department of Occupational Safety and Health (DOSH) if there has any accident occur and also for the improvement made through the training provided which are firefighting and first

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