EVALUATION OF PRODUCTION PRODUCTIVITY USING OVERALL EQUIPMENT EFFECTIVENESS

The purpose of this paper is to evaluate production productivity by the use of the Overall Equipment Effectiveness (OEE) indicator. The OEE measures how effectively an equipment is utilized. A case study at Libyan Iron and Steel Company was conducted. The results show that the OEE for production line 2 is much better than production line1. However, the average OEE for both production lines are 67.62% and 72.79% respectively. These low values of OEE are a result mainly of the reduction in the quality rate. The average quality rate for both production lines 1 and 2 are 95.47% and 92.94% respectively.