An Application of Overall Equipment Effectiveness (OEE) for Minimizing the Bottleneck Process in Semiconductor Industry

Overall Equipment Effectiveness (OEE) is an effective tool in identifying bottleneck. It can be integrated with other continuous improvement tools and techniques. OEE has been utilized through Lean Six Sigma DMAIC and the resulting framework is applied to a bottleneck process for a multi - national semiconductor company in the Philippines. The conceptual framework covered the integration of various approaches proven by related studies such as Total Productive Maintenance (TPM), FMEA, Visual Management, Mistake-Proofing, Single Minute Exchange of Dies (SMED) and DOE. Results showed that Overall OEE increased from 68% to 87% which indicated a 30% improvement. In terms of Hit Rate, it increased from 35% to 66% which is a 25% improvement. The highest improvement contributor is from the Performance component equivalent to a 24% improvement in OEE % and 67% improvement in Hit Rate. The conceptual framework derived from this study can be a guide in improving bottleneck processes for similar industries.