American Journal of Applied Sciences

Improvement of Manufacturing Performance Measurement System and Evaluation of Overall Resource Effectiveness

Karuppana Gounder Eswaramurthi and Pidugun Venkatachalam Mohanram

DOI : 10.3844/ajassp.2013.131.138

American Journal of Applied Sciences

Volume 10, Issue 2

Pages 131-138


In the present highly competitive business environment, well run organizations continually strive to enhance their capabilities to create excellent value for the customers by improving the cost effectiveness of the operations. Significant improvement has taken place in the management of resources associated with manufacturing systems, to reduce the wastage of resources. The Total Productive Maintenance (TPM) concept provides a quantitative metric-Overall Equipment Effectiveness (OEE), for measuring the effectiveness of equipment or a production line. In this study, a method is developed to evaluate Overall Resource Effectiveness (ORE) by including the factors known as readiness, changeover efficiency, availability of material and availability of manpower. ORE addresses various kinds of losses associated with manufacturing system, which can be targeted for initiating improvements. Further, a case study is presented for the evaluation of ORE in a manufacturing line.


© 2013 Karuppana Gounder Eswaramurthi and Pidugun Venkatachalam Mohanram. This is an open access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.