Vol 4, Issue 1, 2022 (158-167)
http://journal.unpad.ac.id/idjp
*Corresponding author,
e-mail : prilly17001@mail.unpad.ac.id (P. M. Sandy)
https://doi.org/10.24198/idjp.v4i1.38707
2022 P. M. Sandy et al
Review: Implementation of Overall Equipment Effectiveness (OEE) Based on Lean
Manufacturing Tools in the Indonesian Pharmaceutical Industry
Prilly Mutiara Sandy*, 1, Nasrul Wathoni2
1Pharmacy Professional Program, Faculty of Pharmacy, Universitas Padjadjaran
2Department of Pharmaceutical and Formulation Technology, Faculty of Pharmacy,
Universitas Padjadjaran
Jalan Raya Bandung-Sumedang KM 21, Jatinangor 45363, Indonesia
Submitted : 13/03/2022, Revised : 23/03/2022, Accepted : 31/05/2022, Published : 02/06/2022
Abstract
Increasing production in the industry is important to face the current global
competition. Therefore, a performance measurement system is needed for the
manufacturing process. Overall Equipment Effectiveness (OEE) is a method for
monitoring and improving the efficiency of manufacturing processes. In this article,
overall equipment effectiveness (OEE) is described as one of the performance
measurement tools that measure different types of production losses and shows
areas of process improvement. The analysis is done on how OEE evolved leads to
other tools such as the performance of the total equipment effectiveness, such as
the effectiveness of production equipment, the effectiveness of the overall plant,
and the effectiveness of the asset as a whole. OEE consist of three metric
measurement; availability, performance, and quality. Purpose of review articles is
to apply these metrics to compare the efficiency and effectiveness of production
activity in pharmaceutical industry and to categorize the highly occurence of loss
productivity in the production activity that takes place in industry, especially
pharmaceutical industry. This review included studies published in ScienceDirect
database with the keyword “Lean Manufacturing” and “Overall Equipment
Effectiveness”. The results obtained from study of the primary source is the OEE
can be used to optimize the production process in the industry, especially the
pharmaceutical industry, because this method can produce products efficiently and
with the good quality of products that leads to consumer’s satisfactory.
Keywords: Lean Manufacturing, pharmaceutical industry, Overall Equipment
Effectiveness (OEE).
1. Introduction
Pharmaceutical industry is a business
entity that has a permit from the Minister of
Health to perform activities of manufacture
of drugs or medicinal ingredients [1]. In the
competition of industries, the company is
required to optimize resources to the quality
of products to increase productivity. When
manufacturing companies face this
problem, the usual way is to increase
159
overtime, add shifts, or buy new equipment.
However, it is better to optimize the
performance of existing machines to
improve equipment reliability, minimize
changeover time, improve operator
performance, and reduce overall downtime
[2]. There are activities in manufacturing
companies that are not value-added (non-
value added) or waste that will result in
inefficient production processes. Waste of
time, effort, money, and overworked staff
are common problem in many
pharmaceutical company [3].
One of the methods to minimize
waste in the production process is known as
Lean Manufacturing which serves as an
effort to improve the efficiency of
production process time by identifying
waste. Lean Manufacturing is a systematic
approach to identify and eliminate waste
through a series of improvement activities
[4].
Total Productive Maintenance (TPM)
is a lean manufacturing methodology that
aims to prevent machine failure and defects
in products. And when these things are
prevented and eliminated, the operating
rates of the machine increase, no additional
costs, inventory can be minimized, and
labor productivity increased [5,6]. TPM
concept which where launched by
Nakajima in the 1980s, have quantitative
metrics called Overall Equipment
Effectiveness (OEE) to measure the
productivity of individual equipment in the
factory [7,8]. These metrics identify and
measure the loss of the important aspects of
manufacturing, namely the availability,
performance, and quality level [9]. In this
case, the support increased the
effectiveness of the equipment and thus
productivity [10]. The Concept of OEE is
become increasingly popular and has been
widely used as quantitative tools that are
essential to the measurement of
productivity, especially in manufacturing
operations [11,12]. The OEE measure
attempts to identify wastes and the costs
associated with a piece of equipment. The
main goal is owning a very efficient
integrated system.
2. Methods
The preparation of the article review
is done by a literature search of primary and
secondary sources, namely regulation and
standard of authority institutions in
Indonesia, academic journal, and reference
books related to Lean Manufacturing. The
primary data obtained from the journal,
which then carried out the screening of the
journal published during the last 10 years as
a criteria needed. The literature obtained
online in various international journals and
national accessed from the site
ScienceDirect with the keyword “Overall
Equipment Effectiveness” and “Lean
Manufacturing System (LMS)”. Articles
are displayed with the keyword in the
database ScienceDirect shows the results of
517 articles [50 inclusion, 467 exclusion
(50 years of publication more than 20 years,
30 review articles, 387 other)].
Table 1. Methods performed for review
Articles from the database: 517 articles
160
3. Results and Discussion
3.1 Lean Manufacturing (LM)
The first concept LM proposed by
the Japanese automotive company Toyota
during the 1970s when it was known as the
Toyota Production System (TPS). The first
objective of TPS is to increase productivity
and reduce cost by eliminating waste or
activities that are not value-added [13].
There are nine obstacles that play an
important role in the success of the
implementation of the LM, i.e. a high
rejection rate, setup time high, lead time,
high inventory levels are high, the lack of
commitment of top management, lack of
employee involvement and training, the
level of OEE is low, the lack of a supplier
who is dedicated, and the lack of
infrastructure and computerized systems
[14,15].
LM refers to the process of a new
dynamic and developing of production
include the overall company, covering all
aspects of industrial operations (product
development, manufacturing, organization
and human resources, customer support)
and includes the network of suppliers-
customers, which are governed by a set of
systems, principles, methods, and practices
[16]. Principles LM is of perfect quality,
minimization of waste by removing all
activity that does not add value, continuous
improvement, flexibility, and long-term
relationships [13]. LM can be considered as
an essential element of any approach to the
repair of the main themes eliminate the
seven types of Muda (waste:
Transportation, Inventory, Motion,
Waiting, Over-processing, Over-
production, Defects) [5,17].
The principle of Lean
Manufacturing is essentially driven by
customer value, which makes the
production of industry is right on target and
effective. There are five basic principles of
the LM, i.e.: [18,19]
• Understand customer value. This
point can be identified by observing
about the value that customer needs,
especially what most people need.
• Value stream analysis. After
understanding its value to the
customer, the next step is to analyze
the business process to determine
which ones actually beneficial or
adding value. If an action does not
belongs to added value, then it
should be modified or eliminated
from the process.
• Flow. Focus on the groove of
organizing sustainable through the
production or supply chain rather
than move commodities in large
quantities.
• Pull. Inventory is considered one of
the biggest waste in any production
system. It is required to manage
supply chain in purpose to prevent
the production of commodities to be
stored. So, the product are created at
Inclusion (n=50)
Exclusion (n=467)
--- Research articles (n=48)
--- OEE Calculation Method (n=2)
--- Published date is over 20 years (n=50)
--- Article review, secondary source (n=30)
--- Others (n=467)
161
the time that they are needed and
just in the needed quantities.
• Perfection. Elimination of non-
value added (waste) is a process that
is continuously carried out. There is
no end to reduce the time, cost,
space, error and effort.
However, the principle does not always
apply when the customer demand in the
conditions of unstable and
unpredictable[20]. Seven types of waste are
avoided and are not of value-added: [21,22]
1. Defect (defects)
The form of the imperfection of the
product, lack of manpower at the time the
process runs, the process of rework
(rework), and claims from customers.
2. Waiting (waiting)
The form of the process of waiting for the
arrival of the materials, information,
equipment, and supplies. The workers only
observe the production machine is running
or standing waiting for the next process
step.
3. Unnecessary inventory
Storage of inventory that exceeds the
volume of the warehouse specified, a
material which is damaged because of too
long stored or expired.
4. Improper processing
The process / method of operation of the
product is not appropriate due to the use of
tools that are not in accordance with its
function or the error of the procedure/
operating system.
5. Unnecessary movement
In the form of movements that should be
avoided, such as components and controls
that are far from reach, double handling
layouts that are not standard.
6. Transportation (transportation)
Wastage of time due to the distance of the
warehouse of raw materials to the remote
machine or remove material between
machines or from the engine to the
warehouse of finished products.
7. Overproduction (excess
production)
In the form of the production of goods that
have not been ordered or the product is idle.
3.2 Total Productive Maintenance
(TPM)
Total Productive Maintenance (TPM) is a
management methodology that aims to
maximize plant and equipment
effectiveness to achieve the optimum life
cycle cost [23]. This principle was
originally introduced in 1971 by Nakajima
as productive maintenance carried out by
all employees thoroughly [9]. Until this
time, this principle has evolved and
customized by the needs of one’s industry.
An indicator to quantify Total
Productive Maintenance (TPM) of an
industrial process is by calculating Overall
Equipment Effectiveness (OEE). OEE as a
metric to evaluate the ability of
manufacturing, with the goal to improve the
value of OEE. [24,25] OEE is a metric to
measure the percentage of time that is truly
productive [26]. OEE is calculated by
multiplying availability, performance and
quality, and represented by a percentage.
3.3 Overall Equipment Effectiveness
(OEE)
OEE is designed to identify losses
that reduce the effectiveness of the
equipment. The disadvantage of this is the
activity that absorbs resources but creates
no value. OEE is a tool to measure the
degree to which the equipment is doing
what it should do, based on availability,
performance, and quality level [27,28].
OEE measurement is obtained by
comparing the results (output) of the
162
equipment divided by the result (output)
maximum equipment on the condition of
the equipment performance the best [29]. It
is a bottom-up approach where labor is
integrated strives to achieve overall
equipment effectiveness by eliminating the
losses [30]. The bottom-up approach is
done when we want to assess how much
variation in cost that is required in the
production activity [31].
Losses avoided in the method of
OEE, namely: [32,33]
Downtime losses:
a. Breakdown losses are includes
wasting of time and quantity
losses because of the impact in
stopped production caused by
machine failure, so that the
machine can not be operated.
b. Loss of set-up and adjustment
occurs when the production is
changed from the needs of one
item to the other items. In the
industry, the type of loss is
encountered during the set-up of
the machine between different
products, testing during start-
up, and fine-tuning of the engine
and instruments.
Speed losses:
a. Idling (waiting time) occurs
when the production is
interrupted by a malfunction
while or when the machine is in
the idle state.
b. The reduction of the loss of
speed refers to the difference
between the speed of the design
of the equipment and the speed
of the actual operation.
Quality losses:
a. Quality defects and rework are
the quality loss caused by
malfunctions of the production
equipment.
b. The reduction of the production
yield is the yield loss that occurs
from a machine that does not
work stable.
163
Figure 1. Overall Equipment Effectiveness [34]
Measurements with the OEE has
advantages in how to integrate the
important aspects of manufacturing into
one measuring tool. Perspective is
integrated with the tool OEE is the
effectiveness of the maintenance,
production efficiency, and the efficiency
of the quality, as shown in Figure 1.
Six big losses are measured by the OEE,
which is a function of availability(A),
performance (P) and the level of
quality(Q) [35]. Where: [36,37]
a. Availability rate (A) =
Operating time = Loading time –
down time
b. Performance Efficiency (P) =
c. Quality rate (Q) =
d. OEE = A x P x Q
The numerical value of OEE is between 0
and 100%, where 0 is not very efficient and
100% is very efficient and if the OEE value
of 85% is considered as benchmarks to be
manufacturing capabilities are ideal.[38]
Manufacturing the ideal is to produce zero
equipment failure, zero defects and rework,
and zero industrial accidents. [39]
Indicator OEE are characterized in these
following ways:
1. The reliability of the production
network [40]
2. An effective tool to maximize
production [41,42]
3. Used to measure the
productivity of the equipment
[43]
4. The ratio of productivity
between manufacturing real and
what can be produced in an ideal
manner [44]
5. Benefits on the side of the
equipment, personnel, process
and quality [45]
Application the use of OEE in industry,
vary from one industry to another. The
basis of the measurement of effectiveness is
derived from the concept of OEE original,
manufacturers have varying OEE to suit
their needs with the requirements of the
industry [46,47].
OEE is described as a multi-layered
indicator that can be used in many
industries regardless of whether production
is continuous or batch-sized. [45.48] OEE
measurement in production is essential for
different purposes including planning,
capacity estimation, human resource
allocation, and budgeting [49].
Furthermore, the term OEE has been
modified in the literature for other terms
that differ with regard to the concept of the
app. This has led to the expansion of the
OEE to the overall factory effectiveness
(OFE), overall plant effectiveness (OPE),
overall throughput effectiveness (OTE),
production equipment effectiveness (PEE),
overall asset effectiveness (OAE), and the
total equipment effectiveness performance
(THIP) [36,50].
4. Conclusion
OEE method is used to optimize the
production process in the industry,
especially the pharmaceutical industry,
because this method can increase the
production efficiently and the product
having quality as expected.
The measurement of OEE can help them
optimize the performance of existing
capacity. This helps to reduce the
variability of the process, reducing the time
change and improve operator performance
and substantially increase the profit of the
production operation and improve the
competitiveness of the company.
164
In addition, regular and consistent
maintenance can also be sought to reduce
loss time caused by damage to the machine
that is light and heavy so that the packaging
process can run more effectively and
efficiently.
Acknowledgements
Author of this article is grateful to the
lecturer and preceptor in the Working
Practice of the Pharmacy Professional
Program who has been supportive and
helpful in providing data and information
for the purpose of this study.
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