Resource Overall Equipment Cost Loss indicator to assess equipment performance and product cost

Purpose This paper aims to overcome the inability of both comparing loss costs and accounting for production resource losses Overall Equipment Effectiveness (OEE)-related approaches. Design/methodology/approach The authors conducted a literature review about studies focusing on approaches combining OEE with monetary units and/or issues. developed an approach based Cost Loss (OECL), introducing component consumption machine. A real case study smart multicenter three-spindle machine is used test applicability approach. Findings proposes Resource (ROECL), i.e. new KPI expressed in that represents total cost (including ones) caused by inefficiencies deviations or equipment from its optimal operating status occurring over specific time period. ROECL enables quantify variation product when changes health determine actual given order. In analysed study, most critical orders showed 60% higher than minimal possible under efficient conditions. Originality/value proposed may support managers during identification areas requiring attention representing opportunities improvement terms availability, performance, quality, losses.