Title: Implementation of overall equipment effectiveness and financial performance assessment framework in a semiconductor manufacturing facility: a case study

Authors: Chen Fung Liew; Joshua Prakash; Kok Seng Ong

Addresses: Faculty of Engineering and Green Technology, Universiti Tunku Abdul Rahman, Jalan Universiti Bandar Barat, 31900 Kampar, Perak, Malaysia ' Faculty of Engineering and Green Technology, Universiti Tunku Abdul Rahman, Jalan Universiti Bandar Barat, 31900 Kampar, Perak, Malaysia ' Faculty of Engineering and Green Technology, Universiti Tunku Abdul Rahman, Jalan Universiti Bandar Barat, 31900 Kampar, Perak, Malaysia

Abstract: This paper expands the overall equipment effectiveness (OEE) so that the financial performance of the equipment at any OEE can be evaluated. The equipment performance in operationally and financially completely narrates the effectiveness of the operation. Prior studies related OEE to profit, revenue, equipment acquisition cost, operating cost, and maintenance cost to measure equipment financial performance in OEE. A discussion is provided why the profit, revenue, and operating cost are not relevant to OEE. This study suggests the equipment cost efficiency (ECE) metric in the framework to quantify how much of the equipment acquisition cost and maintenance cost are wasted by OEE losses. The ECE framework is demonstrated by a semiconductor manufacturer. The framework effectively saves 48.7% cost wastage by increasing the OEE by 21.6%.

Keywords: overall equipment effectiveness; OEE; equipment efficiency cost; equipment acquisition cost; maintenance cost; improvement cost.

DOI: 10.1504/IJPQM.2026.150896

International Journal of Productivity and Quality Management, 2026 Vol.47 No.1, pp.1 - 22

Received: 18 Sep 2022
Accepted: 12 Jul 2023
Published online: 05 Jan 2026 *

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