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PurposeThis paper proposes a new metric, named Operational Space Efficiency (OpSE), intended to diagnose and quantify the inefficient use of floor space for stocking materials in industrial workstations. OpSE presents a formulation analogous to the well-known Overall Equipment Effectiveness and can be obtained as the product of three distinct indicators: Standard Compliance Effectiveness, Standards Selection Effectiveness and Design Space-usage Effectiveness.Design/methodology/approachThis indicator scrutinizes how usefully floor space in workstations is used to temporarily stock materials in the form of raw materials, semi-finished products, parts and components. It is suited for analyzing fixed-position layouts as well as product layouts typical of repetitive manufacturing settings, such as assembly lines in the automotive sector. The proposed indicator leverages an appropriate loss structure that features those factors affecting floor space utilization in workstations with regard to supplying and stocking materials.FindingsAn Italian manufacturer in the field of electro-technology was used as an industrial case study for the application of the methodology. The application shows how the three indicators work in practice, the effectiveness of OpSE and the methodology as a whole, in diagnosing floor space usage inefficiencies and in properly addressing improvement actions of the internal logistics in industrial settings.Originality/valueThe paper scrutinizes some important Key Performance Indicators (KPIs) dealing with space usage efficiency and identifies some significant drawbacks. Then it suggests a new, inclusive structure of losses and a KPI that not only measures efficiency but also allows to identify viable countermeasures.

PurposeThe paper proposes a new workforce effectiveness metric that is a sophisticated evolution of a pre-existing overall labour effectiveness (OLE) indicator. The KPI, named revised OLE (ROLE), provides a structured methodology to measure in a holistic way the losses relating to labour, maintaining some formal similitude to the overall equipment effectiveness (OEE)Design/methodology/approachA new structure of losses is proposed to overcome the drawbacks and the difficulties that usually affect the data collection stage, referring to directly measurable quantities or, when this is not the case, suggesting a viable method to quantify the loss. Besides, this approach facilitates the comprehension of labour-related issues, suggesting potential countermeasures. The novel ROLE indicator has been defined, based on this new structure, to evaluate the labour effectiveness in batch process industries. A real case study is provided, which explains the methodology and illustrates the capability of the corresponding KPI.FindingsThe present work analyses the labour performance indexes available in literature, with the aim of evidencing those aspects that can be properly observed and quantified and, at the same time, categorizing them to identify their possible drawbacks. A new structure of losses is derived, with respect to four different categories, which may help to measure the losses themselves more effectivelyOriginality/valueThe paper investigates some important KPIs dealing with labour performance and individuates some significant drawbacks. Then it suggests a new, inclusive structure of losses and a modified KPI that not only measures effectiveness but also allows to identify viable countermeasures.

Purpose The purpose of this paper is to propose a new Lean metric named Overall Task Effectiveness (OTE), which can help analyst to define target task times and to identify the hidden losses that account for most of the recorded time of manual assembly activities. Design/methodology/approach An alternative classification structure of the losses is developed to divide them in two classes. In the first one the losses that are external to the project order are included, and in the other one those due to inefficiencies directly ascribable to the project order are considered. Starting from this classification structure of the losses, a novel Lean metric, inspired from the well-known Overall Equipment Effectiveness (OEE), is developed to evaluate the effectiveness of a manual assembly task. A case study, which briefly explains the methodology and illustrates the capability of the corresponding metric, is provided. Findings This tool can be considered a suitable method to achieve simultaneously a dual purpose to establish time standards and to identify the hidden losses that account for most of the recorded time of manual assembly activities, estimating the impacts of potential corrective actions in terms of both efficiency and effectiveness. Practical implications OTE provides practitioners with an operative tool useful to highlight the points where the major inefficiencies take place in industries producing large complex items via manual assembly lines. Its practical application is demonstrated using a case study concerning a manufacturer of train wagons. Originality/value One distinctive, and contemporarily appealing, feature of OTE with respect to other analogous KPIs is that it provides a breakdown structure for process losses that simplifies the task of evaluating the current performances and, at the same time, individuates both the source of losses and the corresponding corrective actions.