Using a modified indicator of overall equipment efficiency for management decision-making

Abstract

The relevance of the study was determined by the need to take into account energy consumption costs, which are a significant item in the cost of production, when making management decisions. The aim of the study was to improve the formation of management decisions based on the assessment of a modified indicator of equipment efficiency, which takes into account the level of energy consumption (OEEe). The methodological basis of the study included the use of methods of analysis and synthesis, comparison and generalisation, visualisation of empirical data based on a diagram of the dynamics of the components of the overall equipment effectiveness indicator using the example of a company that manufactures packaging products for the first half of 2025. This gave grounds to argue that it is necessary to more fully assess the resource and economic efficiency of equipment by introducing an additional component, “E – energy efficiency”, which reflects the ratio of minimum and actual energy consumption in the production of a unit of output. Using the example of calculating OEEe for a production line for the manufacture of aluminium tubes, it was established that, with comparable values of overall equipment efficiency, there may be significant differences in specific energy consumption costs, which directly affects the cost and profitability of products. The results of the analysis proved that the main source of energy losses is an increase in the number of equipment changeovers required to fulfil small-volume orders. It is proposed to use the OEEe indicator for making management decisions aimed at optimising the production programme, managing the order portfolio, justifying investment decisions and forming a staff motivation system. The practical significance of the research results lies in the fact that the OEEe indicator can be used as a tool to increase energy efficiency, identify hidden economic losses, and integrate the indicator into the management reporting system.