Enhancing operational efficiency through overall equipment efficiency optimization and Kaizen initiatives

Abstract

This case study aims to investigate the causes of low efficiency in a carton production line by calculating Overall Equipment Effectiveness (OEE). A typical carton factory has been chosen for this study, which has two production lines, namely finished goods and corrugated boards. The define, measure, analyze, improve, and control approach is applied while implementing Six Sigma principles such as Kaizen, fishbone diagrams, and 5W+1H as its systematic procedure. The analysis involves estimating four machines’ average OEE across 12 shifts. A cost-effective method is applied to resolve the problems that cause the lines to be less efficient. By applying the proposed method, the OEE becomes more efficient by 29% for finished goods and 9% for corrugated boards. Value stream mapping has been used to track the improvements. It is found that emphasizing higher OEE values enhances operational performance, leading to better efficiency, power usage, cycle time, and equipment repair.