The research of this Praxis investigated the relationship between overall equipment effectiveness, its factors (availability, performance, and quality), and other internal hidden losses as predictors of on-time delivery at an automotive components manufacturer. This work attempts to solve the problem of poor overall equipment effectiveness and hidden losses contributing to zero percent on-time delivery capability by applying the Recognize (strategic), Define (strategic), define (tactical), measure (tactical), analyze (tactical), improve (tactical), control (tactical), Standardize (systems), and Integrate (systems) (RDdmaicSI) improvement methodology. Regression analysis revealed that improving overall equipment effectiveness by itself would not be sufficient to attain the required daily production schedule. This research introduces the Lean Effective Asset Performance (LEAP) metric, which led to identifying statistically significant predictors which were not previously visible to the management team, but were within the control of the organization. This finding enabled decision makers at an automotive components manufacturer to improve overall equipment effectiveness from 76.4% to 87.5%, while simultaneously improving schedule attainment from 82.8% to 115.1%, improving delivery capability from 0.0 sigma to 4.3 sigma, improving the shipment fill rate from 42.8% to 76.3%, and improving on-time delivery from 0.0% to 100%, while also reducing first year costs by more than $825,000. As a result of these findings, automotive components manufacturers are encouraged to identify and quantify hidden losses beyond overall equipment effectiveness to improve on-time delivery.
|Advisor:||Blackburn, Timothy, Etemadi, Amir|
|School:||The George Washington University|
|School Location:||United States -- District of Columbia|
|Source:||DAI-A 81/10(E), Dissertation Abstracts International|
|Subjects:||Industrial engineering, Automotive engineering, Management|
|Keywords:||Automotive components manufacturing, Lean, On-time delivery, Overall equipment effectiveness, Project and risk management, Six Sigma|
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