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Abstract The performance measurement for operating machines is very important for firms' performance. Managers make decisions from this correct evaluation. One of the important and widely used metrics of performance in manufacturing is Overall Equipment Effectiveness (OEE), especially for firms applying total productive maintenance (TPM). OEE is consists of three components, which are availability rate, performance rate, and quality rate; it is used to determine various types of productivity losses. For calculation of OEE, there are six big losses such as breakdowns, setup, and adjustments, small Stops, reduced speed, startup losses, and production losses; these losses are important to identify. However, classical OEE is ineffective for comparing the performance of different machines, in terms of type, capacity, and operating costs. Overall Equipment Cost Loss (OECL) can be used to calculate the cost of losses due to availability losses, performance loss, and quality losses. However, the lack of a benchmark limits the capability of the OECL method. It is necessary to find a way to overcome this problem, determine the target value, and make a benchmarking. Data envelopment analysis (DEA) has been widely applied in benchmarking and efficiency evaluation. Therefore, a method based on OECL and DEA was proposed to analyze and evaluate the performance of the industrial system with application to one of the industrial institutions specialized in printing and packaging. So, the DEA model is integrated with the classical OECL model to obtain target values as benchmarks. The main objective of this research is to evaluate and measure the effectiveness of the machines using the OECL and assigning target values to reduce the losses of machines using the DEA and the DEAP program. In addition to other objectives: - Comparing OEE of printing and packaging section with world-class OEE. - Analyzing how companies apply OEE and OECL to monitor losses. - Suggesting the ways to implement OECL and DEA in printing and packaging plants. The integrated method was implemented in Headline company for printing and packaging. Results showed the effectiveness of the proposed method, where the OECL for the machine (1) improved by 13.7%. As well, OEE does not directly relate to OECL where the ranking obtained using the OEE method is very different from that obtained using the OECL method because OEE doesn't take into account several aspects; price of product and production cost. |