Evaluation of overall equipment effectiveness performance in the Malaysian Palm Oil Mill: a case study

Abdul Munir Abdul Karim, . and Wan Hasrulnizzam Wan Mahmood, . and Ilyana Abdullah, . and Mohd Nizam Ab Rahman, . and Zairul Amri Zakaria, . Evaluation of overall equipment effectiveness performance in the Malaysian Palm Oil Mill: a case study. pp. 186-198. ISSN 2462-1757

Palm oil consumption is increasing worldwide urging Palm Oil Mills (POM) to maximise efficiency in equipment and resources utilisation towards fulfilling demands and sustaining competitiveness in the global market. Employment of Overall Equipment Effectiveness (OEE) that focuses on availability performance and quality rate of a production system is one of the most important strategies to approach this challenge. The main objective of this paper is to evaluate the current performance level of OEE the selected Malaysian POM. The calculation of OEE performance is established according to data suitability and important part of the POM process. The results of OEE measured is benchmarked to the world-class OEE scale. Then the study investigates the crucial factors that affect the OEE performance in the Malaysian POM. The data is gathered from the POM production records for three years period. The results show that the OEE performance in the POM is in the range of 60 to 85 mostly in the Level 2 relating to the world-class OEE scale. Among three elements of OEE the availability rate of the POM shows the lowest value 0.582 that contributed to the lower OEE level. The decrease of OEE performance to level 3 is observed during the period between the months of November until March for these three years. The key factor that affect the availability rate contributes to the lower OEE performance especially during these periods is long waiting time. Besides unscheduled maintenance activities also affected the availability rate thus reduce the OEE performance of the POM. The practical implication of the study from the presented OEE evaluation approach will serve as a useful guide to the managers in the Malaysian POM to recognise the crucial losses in the production line that require further improvement. Furthermore the analysis provides practitioners overview in decision making process for continuous improvement of productivity and quality.

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Abstract

Palm oil consumption is increasing worldwide urging Palm Oil Mills (POM) to maximise efficiency in equipment and resources utilisation towards fulfilling demands and sustaining competitiveness in the global market. Employment of Overall Equipment Effectiveness (OEE) that focuses on availability performance and quality rate of a production system is one of the most important strategies to approach this challenge. The main objective of this paper is to evaluate the current performance level of OEE the selected Malaysian POM. The calculation of OEE performance is established according to data suitability and important part of the POM process. The results of OEE measured is benchmarked to the world-class OEE scale. Then the study investigates the crucial factors that affect the OEE performance in the Malaysian POM. The data is gathered from the POM production records for three years period. The results show that the OEE performance in the POM is in the range of 60 to 85 mostly in the Level 2 relating to the world-class OEE scale. Among three elements of OEE the availability rate of the POM shows the lowest value 0.582 that contributed to the lower OEE level. The decrease of OEE performance to level 3 is observed during the period between the months of November until March for these three years. The key factor that affect the availability rate contributes to the lower OEE performance especially during these periods is long waiting time. Besides unscheduled maintenance activities also affected the availability rate thus reduce the OEE performance of the POM. The practical implication of the study from the presented OEE evaluation approach will serve as a useful guide to the managers in the Malaysian POM to recognise the crucial losses in the production line that require further improvement. Furthermore the analysis provides practitioners overview in decision making process for continuous improvement of productivity and quality.

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Item Type:	Article
AGROVOC Term:	Palm oils
AGROVOC Term:	Plant performance
AGROVOC Term:	Feed efficiency
AGROVOC Term:	Productivity
AGROVOC Term:	Data collection
AGROVOC Term:	analysis
AGROVOC Term:	Machinery industry
AGROVOC Term:	Production increase
Depositing User:	Mr. AFANDI ABDUL MALEK
Last Modified:	24 Apr 2025 00:55
URI:	http://webagris.upm.edu.my/id/eprint/10542

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