Optimizing Auto Manufacturing: A Holistic Approach Integrating Overall Equipment Effectiveness for Enhanced Efficiency and Sustainability

Abstract

In the face of pandemic-induced emergencies and unpredictable natural disasters, industries are compelled to implement rescue plans to mitigate unexpected risks. In this context, Overall Equipment Effectiveness (OEE) is considered as a key metric, followed by sustainability efforts to manage unforeseen risks, encompassing social, environmental, and economic aspects. OEE is considered as a lean tool to determine the efficiency of equipment or processes on par with the world class OEE standard, i.e., 85%. Performance, Availability and Quality as three main drivers of OEE. This research study explores the implementation of OEE in conjunction with sustainability principles in an auto sector manufacturing firm, aiming to enhance operational efficiency and sustainability practices. The research involves a 12-week initial session from April to June 2022, followed by an analysis of July to September 2022, resulting in an impressive OEE value of 48%. Notable improvements in Availability (89.75%), Performance (72.68%), and Quality (73.82%) contribute significantly. The analysis reveals enhancements in scrap rework (17%), training (16%), maintenance (13%), material availability (12%), and production capability (11%). Achievements include improvements in green profile (25%), health and safety (20%), and energy efficiency (25%), along with reductions in carbon dioxide emissions (21%), waste management (17%), and scrap (15%). This research underscores the commitment of the case study industry to sustainable development and economic growth, showcasing significant enhancements in product quality and efficiency. The integration of sustainability principles into OEE initiatives is pivotal for modern industrial optimization. The study results highlight the profound significance of this synergistic relationship, particularly within the blending section, driving substantial positive outcomes in manufacturing processes and operational excellence. The implementation of sustainability efforts not only mitigates risks and fosters growth for automotive manufacturers but also yields environmental benefits. Based on findings of this study, a roadmap for automotive manufacturers is devised to achieve robust OEE while concurrently reaping economic and environmental rewards by employing sustainability principles.

1. Introduction

The global manufacturing industry continues to grow and faces multiple challenges pertaining to performance improvement. There are modern technologies emerging and new innovations introduced to improve the efficiency and production of the manufacturing industries. Over the years, while adapting modern technologies, industries have extensively focused on developing, testing, and implementing modern-day practices to attain performance standards. It is a well known fact that frequent technology replacement is cost-intensive; as such, industries with certain updates often follow other effective ways to improve the efficiency and thus performance. These measures include maintaining equipment, improving the work process, streamlining the production process, reducing losses, ensuring resources, training and retaining human resources, and implementing continuous improvement strategies. In this context, various approaches have been developed and implemented. Overall Operations Effectiveness (OOE) and Total Effective Equipment Performance (TEEP), and Overall Equipment Effectiveness (OEE) are the most commonly used manufacturing metrics to understand, measure, and improve the efficiency and thus performance. Amongst these and other performance improvement metrics, OEE, initially proposed by Seiichi Nakajima in 1970, has gained significant recognition as an important field of study in industrial engineering and management. It serves as a measure to improve the efficiency of the manufacturing process by maximizing its full potential. OEE encompasses three key attributes: availability, performance, and quality, which aid in assessing plant efficiency and effectiveness. Alongside OEE, sustainability has emerged as a crucial concept, encompassing considerations of the environment, society and economy. Integrating sustainability principles into the manufacturing process has become a pressing concern, driving attention towards achieving sustainable practices. Implementing OEE effectively reduces raw material needs, minimizes production waste, and lowers energy consumption. This not only leads to decreased environmental impact but also ensures optimal resource utilization, contributing to the longevity of systems. Sustained OEE implementation enhances operational performance, supporting the adoption of advanced production systems in future developments. Emphasizing existing resources and operational conditions, OEE facilitates the production of new items with minimal modifications [1].

In the rapidly evolving landscape of automotive manufacturing, the pursuit of Operational Excellence through OEE stands as a crucial endeavor. While OEE has proven instrumental in enhancing efficiency, it is imperative to contextualize its application within the current challenges faced by the industry. The automotive sector is grappling with multifaceted challenges, including heightened global competition, stringent environmental regulations, and an urgent need for sustainable practices. This study embarks on a comprehensive exploration of OEE, delving into its integration with sustainability principles.

It is evident from the contemporary literature that OEE has been often combined with other accepted and acknowledged practices to achieve the specific objective. For example, the integration of Failure Mode, Effect, and Criticality Analysis (FMECA) within the Overall Equipment Effectiveness (OEE) framework is acknowledged in the literature for addressing challenges in the emerging paradigm of Digital Servitization. As elucidated in the paper titled “Integrating Failure Mode, Effect and Criticality Analysis in the Overall Equipment Effectiveness Framework to Set a Digital Servitized Machinery: An Application Case”, it is established that the FMECA approach within OEE serves as a valuable reference for our research. The proposed methodology combining FMECA with OEE offers insights into improving machine functionality, preventing breakdowns, and delivering data-driven services, which aligns with the holistic optimization goals of our study [2].

Another study, titled “Optimizing Auto Manufacturing: A Holistic Approach Integrating Overall Equipment Effectiveness for Enhanced Efficiency Sustainability”, focuses performance improvement on machinery for producing plastic objects and container decorations (Company A). In this case, machine design optimization, organizational improvements, and the establishment of service functions have been achieved. The actionable recommendations derived from this case study contribute substantively to the discourse surrounding the implementation of methodologies like Overall Equipment Effectiveness (OEE) for sustainable efficiency improvements in auto manufacturing processes [3].

The advent of Industry 4.0 has ushered in a new era of industrial transformation, revolutionizing the way contemporary manufacturing processes operate. In this context, this research attempts to explores the vital intersection between Operational Equipment Effectiveness (OEE) and sustainability, both framed within the larger landscape of Industry 4.0-driven industrial advancements. As Industry 4.0 technologies and concepts continue to reshape the manufacturing sector, this paper underscores their pivotal role in fostering innovation in operational excellence and sustainability.

1.1. Research Gap and Knowledge Issues

The use of the OEE factors or indicators within industry practices can be considered almost evergreen. Nakajima in (1988) first presented this idea inside the Total Productive Maintenance (TPM) philosophy by OEE [4]. However, various manufacturing industries still face various challenges to cope with various losses and achieve production efficiencies in view of additional requirements following introduction of the SDGs. The auto sector manufacturing industry plays a pivotal role in global economies by producing vehicles and components. However, this industry still faces challenges of efficiency, quality, and sustainability. To address these challenges, the concept of OEE requires more effective implementation. In this context, sustainability principles have become imperative and inevitable to be introduced to ensure the accomplishment of efficiency, quality, and sustainability altogether. As such, integrating OEE improvements with sustainable development goals and specifically with SDG 8 can enhance operational efficiency and quality while aligning with environmental and societal goals. This research shall, therefore, explore the synergistic application of OEE and sustainability in the auto sector manufacturing industry, aiming to optimize processes and contribute to sustainable growth objectives.

1.2. Research Questions and Objectives

This study aims to comprehensively analyze the impact of implementing Overall Equipment Effectiveness (OEE) on operational efficiency within the auto sector manufacturing industry. The key research questions attempted to be addressed in this study are

(i)

What are current trends in OEE to improve the operational processes within an auto sector manufacturing industry?

(ii)

What are the key losses of the manufacturing process pertaining to availability, performance and quality within an auto sector manufacturing industry?

(iii)

How may implementation of sustainability practices help in mitigating losses and fostering sustainable development within the manufacturing process of the auto sector?

Consequently, the research objectives of this study are as follows:

(i)

To determine the current status of Overall Equipment Effectiveness (OEE) of operational processes within an auto sector manufacturing industry;

(ii)

To identify and analyze the key factors that contribute to losses in availability, performance, and quality within the manufacturing process of the auto sector;

(iii)

To evaluate the effectiveness of sustainability practices in mitigating losses and fostering sustainable development within the manufacturing process of the auto sector.

Through achieving these objectives, this research seeks to provide valuable insights and recommendations for optimizing efficiency, reducing losses, and promoting sustainable growth in the auto sector manufacturing industry.

1.3. Integration of Overall Equipment Effectiveness and Sustainability in Auto Sector Manufacturing: A Holistic Approach

This research aims to explore the implementation of OEE in tandem with sustainability in an auto sector manufacturing firm, highlighting the importance of optimizing efficiency while addressing environmental and societal aspects. The case context emphasizes the need to integrate OEE and sustainability principles to enhance operational performance and promote sustainable practices within the auto sector manufacturing industry.

Encompassing this concept in the manufacturing process alongside OEE is, therefore, attracting more attention than ever, as illustrated in Figure 1. The link between key sustainability and OEE factors has created a serious need to achieve sustainability in the manufacturing process.

Figure 1 depicts the direct relationship of OEE contributors (Availability, Quality and Performance) with the sustainable factors (Environmental, social and Economic). It would, therefore, be worth mentioning here that the sustainable goals related to Decent work, Innovation and technology, and Energy, may be achieved using Overall Equipment Effectiveness.

In the realm of understanding industrial processes, it has been identified that when such processes are stationary or partly functioning, OEE takes note of this. To address any obstacles and delve into the reasons for low performance, various methods are employed [5].

Before classifying the performance-impacting barriers, according to the Pareto hierarchy, Total Productive Maintenance (TPM) is initially focused on the preservation function based on the famous “six major leaks” and followed by detailed detection [6].

The six major losses are as listed below:

(i)

The equipment failure;

(ii)

The adjustment loss and configuration;

(iii)

The slight stoppage;

(iv)

The reduction in speed;

(v)

The defection in process;

(vi)

The reduced output.

It is also pertinent to mention that prior to TPM, OEE and sustainable manufacturing concepts, S. Nakajima in the 1970s had introduced Universal Equipment Effectiveness (UEE) in Japanese companies under the comprehensive production and maintenance plan. However, over the years, it has been replaced and updated with more knowledge and understanding of the manufacturing processes.

Amongst various other motives of adopting UEE, TPM, and sustainable manufacturing processes, the key objective is to attain economic performance. All these practices have sufficiently added to the economic performance; however, the contemporary literature suggests that OEE can be more effective for specific manufacturing processes while considering sustainable development goals.

Sustainable development has been the focus of the United Nations (UN) for decades. In 2000, sustainability was conceived to rank economic opportunities over time. Sustainability determines many aspects, like social welfare and environmental and economic benefits for mankind. Sustainable manufacturing, therefore, could be achieved using environmentally friendly processes, conserving nature, saving energy, and improving economic performance and employee safety. To accomplish the objectives of sustainable development, the UN launched Sustainable Development Goals (SDGs) to achieve sustainability. The SDGs comprise 17 goals and 169 targets as a benchmark, for various nations, when designing their individual national agendas and policies from 2016 till 2030 [7].

Manufacturing sustainability is a meeting point of three important factors, which include economic enhancement, environmental conservation, and social efficiency, as shown in Figure 2.

It is pertinent to note from the above illustration that key factors of manufacturing, i.e., economic enhancement, environmental conservation, and social efficiency, are interlinked and dependent on system availability, equipment performance and production quality, which could be effectively achieved using OEE [8]. As such, integrating OEE and SDGs towards developing an effective framework and its implementation would greatly benefit both industries and mankind.

Recent research highlights the potential synergy between OEE and SDG-8. By aligning OEE goals with SDG-8 targets, auto sector manufacturers can enhance production efficiency while promoting decent work, economic growth, and sustainability [9].

The literature suggests that improving OEE directly contributes to SDG-8 targets related to increased productivity, job creation, and resource efficiency. For instance, reducing equipment downtime (a component of OEE) enhances productivity and supports the creation of decent jobs [10].

Examining successful case studies of auto manufacturing firms integrating OEE and SDG-8 principles provides tangible evidence of the positive impact on performance. These cases demonstrate how a holistic approach can lead to improved competitiveness, reduced environmental impact, and social responsibility [11].

Out of 17 SDGs, SDG-8 is decent work for all at large scale and encourages sustainable economic growth and job creation for all. Economic growth can be advanced by a sustained and inclusive approach to ensure the creation of decent work for all and promote living standards. Everyone has access to productive work and provides a fair-minded income, workroom safety and social and economic protection for the personal family, as well as better scenarios for personal development and social integration.

This research investigates the implementation of OEE alongside sustainability principles in an auto sector manufacturing firm. The goal is to reduce losses and improve efficiency in the manufacturing process. OEE, proposed by Seiichi Nakajima, is a recognized performance indicator for evaluating manufacturing effectiveness and productivity. By integrating sustainability considerations, including environmental, social, and economic factors, this study aims to identify areas of loss and inefficiency. The research examines key factors such as availability, performance, and quality that contribute to losses and explores how sustainable practices can mitigate them. A comprehensive approach involving data collection, analysis, and pre- and post-implementation comparisons will assess the impact of integrating OEE and sustainability on reducing losses and enhancing efficiency. The findings will provide valuable insights and recommendations for optimizing operations, reducing losses, and achieving sustainable growth in the auto sector manufacturing firm.

1.4. Significance of the Study

The significance of this study lies in its potential to provide valuable insights and practical implications for the auto sector manufacturing industry. By analyzing the impact of OEE implementation and sustainability practices, this research offers a deeper understanding of how operational efficiency and sustainability can be improved simultaneously. The findings can guide industry practitioners in identifying key factors contributing to losses in Availability, Performance, and Quality, enabling targeted improvements. Moreover, the study’s exploration of the correlation between OEE enhancement and the achievement of SDGs aligns with global sustainability initiatives. The proposed comprehensive framework can serve as a roadmap for companies seeking to optimize efficiency, reduce losses, and promote sustainable growth. Thus, this research contributes to both academic knowledge and practical advancements in the field of auto sector manufacturing, addressing critical industry challenges.

2. Related Literature

In the auto sector manufacturing industry, the pursuit of operational excellence and sustainable practices has become a paramount concern for firms seeking to maintain a competitive edge. One approach which has gained significant attention is the implementation of OEE in conjunction with sustainability principles. This literature review aims to critically examine existing research and scholarly works to explore the benefits, challenges, and best practices associated with integrating OEE methodologies and sustainability initiatives within auto sector manufacturing firms. By delving into the literature, we can gain valuable insights into how this integrated approach can enhance operational efficiency, optimize resource utilization, reduce environmental impacts, and foster long-term economic growth in the auto manufacturing sector. This review is ultimately aimed at finding the specific research gaps pertaining to the application of OEE and sustainability practices.

In a study, the implementation of OEE with sustainability in the auto sector manufacturing firm, it is proposed that an alternative approach by utilizing energy data for predicting OEE is a comprehensive indicator of machine performance. The study presents two alternative methods for predicting OEE based on a common underlying framework. The results indicate that energy-based OEE prediction is feasible with reasonable accuracy and effort [12]. This approach has advantages but requires further research to enhance accuracy and applicability, addressing limitations and improving models for various manufacturing equipment.

It is a well recognized fact that the role of machinery and equipment in the manufacturing industry is crucial for meeting production targets, thus necessitating thorough evaluation and maintenance to ensure optimal performance. In this context, Total Productive Maintenance (TPM) is also recognized as a contemporary approach that incorporates the calculation of OEE to gauge machine effectiveness [13].

In the meantime, the contemporary literature also suggests that integrating sustainability into the OEE framework in auto manufacturing enhances understanding. This involves exploring energy efficiency and waste reduction. However, effective integration and synergetic implementation of OEE and sustainability practices still require sufficient investigation. Filling such research gaps requires strategies to improve machine performance, productivity, and environmental sustainability in manufacturing [14].

Another study [15] introduces an AM-specific OEE framework, addressing production losses in the AM workflow through simulation analysis. It emphasizes adaptability but is limited to single-machine AM operations and OEE scope. To overcome limitations, expanded metrics and consideration of simulation constraints are proposed. The research provides insights into OEE implementation in AM, stressing the need for further investigation, especially in the auto sector’s manufacturing sustainability [15].

Sustainability practices are now well recognized in various industries, and the introduction of 17 Sustainable Development Goals (SDGs) by the United Nations (UN) has greatly added to their significance for various perspectives, including for the manufacturing industry A search engine database confirmed that recent searches by scholars for ‘Sustainable Development Goals’ yielded 5593 articles, while a Google Scholar search resulted in approximately 330,000 hits [16].

Recent research trends also highlight the urgency of quantifying consumption-based CO₂ emissions and their interplay with global carbon leakage, while their alignment with the SAARC region’s Sustainable Development Goals (SDGs) remains understudied. In this context, a study [17] examines emissions in key SAARC nations, emphasizing household consumption as a major contributor (62.39% of regional emissions), led by India (37.27%) and Nepal (0.61%), with notable imported emissions, particularly in India and Bangladesh. Concurrently, exploring OEE enhancements in auto manufacturing through the Six Big Losses framework establishes a crucial link between manufacturing progress and sustainability. These insights, combined with SDG-focused FMOLS and causal modeling, unveil intricate connections linking consumption-based CO₂ emissions and SAARC’s sustainable development trajectory [17].

This research informs the need for equitable climate policies, enlightened decisions, and the fusion of emissions accountability with global sustainability objectives, fostering a symbiotic evolution in emissions reduction and eco-conscious automotive manufacturing.

In many organizations, continuous efforts lead towards sustainability and manufacturing processes-integrated assessment of environmental and economic sustainability. A large amount of literature, however, suggests that no standard method was available To assess social sustainability, social sustainability indicators were generally evaluated through discussions and surveys conducted among manufacturing industries. [18].

In another study, the risks associated with improper application of OEE indicators are analyzed from the context of indicator contents, production processes and communication and external context factors, improving the social impact of indicators which influence performance and avoiding the different risks. This concept of risk is very helpful in terms of experimental findings and for framing justifications and recommendations [19].

Another study analyzed OEE as “an assessment during production’s performance and productivity, which is shown as a percentage”, and observed it as a degree to which a manufacturing operation is more productive and serves as a general or inclusive measurement of how a company’s manufacturing operations are performing [20].

It is well recognized that during the manufacturing process, OEE method is considered as the main factor for all equipment, and guidelines for assessment of the system with the help of the manufacturing operation during the process are devised. These subsequently can increase the performance and sustainability of manufacturing operations.

However, the existing literature lacks a clear roadmap for companies to enhance Smart connected product–service systems (PSS). These enhancements encompass not only the physical product but also the concurrent definition and structuring of data requirements within cloud-based databases. This synergy deepens the understanding of solution operations and offers insights into the root causes of breakdowns and quality issues. To address this, one paper proposes a methodology that combines failure mode and effect analysis with the OEE framework [21].

The integration of Industry 4.0 (I4.0) principles and technologies has significantly reshaped the landscape of the auto manufacturing sector. Key principles associated with I4.0, namely connectivity, data analytics, and smart manufacturing, have emerged as transformative pillars, offering unprecedented opportunities for enhancing manufacturing efficiency and sustainability. Connectivity enables real-time data exchange among manufacturing components and systems, paving the way for more responsive and adaptive processes. Data analytics, on the other hand, empowers manufacturers with the ability to harness vast amounts of data, providing actionable insights for informed decision-making. The introduction of smart manufacturing leverages automation and artificial intelligence to streamline operations and minimize resource wastage. This literature underscores the pivotal role these I4.0 principles play in the auto sector’s evolution, underlining their impact on operational excellence and sustainability [21].

OEE is the formulated method by which equipment performance can be analyzed, and six major losses are to be computed throughout the process [22]. OEE and lean manufacturing both interweave during production processes and productive maintenance [23].

During the manufacturing process, the OEE method is essentially regarded as the primary factor for all equipment and serves as a guideline for assessing the system, aiding manufacturing operations. Through this method, the performance and sustainability of manufacturing operations can be enhanced [23].

The OEE method generally analyzes and measures the six major losses as described below:

(i)

Equipment failure:

The breakdown of machines is caused by a random failure of equipment during the manufacturing process.

(ii)

Adjustment and setup:

The SMED (Single-Minute Exchange of Die) method involves calculating the loss of production time during equipment setup by workers. It is implemented alongside total preventive maintenance, with the premise that it reduces setup time significantly.

(iii)

Reduced yields:

Reduced yield is required time by the machine to make required product with required probable product with standard quality, reduced yield is caused by equipment handling in wrong way and incorrect installation of equipment.

(iv)

Rework and defects:

For any production process, rework on some equipment will increase costs and idle time, which affects the sustainability of the manufacturing process. This can be reduced by applying the OEE methodology.

(v)

Minor stoppage and idling:

Minor stoppages and idling, occur when tools remain idle for short durations. The author describes these stoppages as being caused by barriers, jams, machine cleaning, and incorrect settings.

(vi)

Reduced speed:

Reduced speed is known as slow cycles or operations during production; reduced speed is calculated from differences in actual and operating speed and machine design speed.

In summary, within OEE, there are three factors that affect the performance of the manufacturing process, as shown in Figure 3.

The diagram presented above illustrates six significant losses, the mitigation of which would contribute to the sustainability of the manufacturing process. The components of OEE, specifically Availability, Quality, and Performance, are independently distributed with respective losses. The losses of breakdown, setup, and adjustment fall under the umbrella of the availability rate. The quality rate encompasses the losses attributable to defects, rework, and startup, while the performance rate encompasses losses related to reductions in speed, idling, and minor stoppages.

Table 1. Major applications of sustainable manufacturing through OEE.

Study	Area	Aim	Methodology	Limitation
Crawford, J. et al. (2022) [16]	Individual industrial organizations society	17 SDGs with 169 targets were implemented for universal development for both organizations and society.	Scholars searched “Sustainable Development Goals” with 5593 and 330,000 results on Google Scholars.	The research has primarily concentrated on conducting surveys through online platforms, with comparatively limited emphasis placed on enhancing physical outcomes.
Vikas Swarnakar, A.R. Singh (2021) [24]	Manufacturing Process	Development of conceptual method for sustainable assessment in manufacturing process	Sustainability Indicators and Value Stream Mapping	This research focused on manufacturing firms that were only sustainable on customer perspectives but not on the Triple Bottom Line sustainable scopes point of view.
Okpala and Anozie (2020) [20]	Pharmaceutical Company	In a pharmaceutical company optimization of overall equipment effectiveness.	implementation of TPM	The limitation of the study, to delay the initial commencement of the study triggered by the power outages which caused unbalanced power supply in one of the countries mentioned, Nigeria
Sandeep Singh et al. 2020 [25]	Sugar mill	Justification of overall equipment effectiveness (OEE) in Indian sugar mill industry for attaining core excellence	Traditional Maintenance Practices	This study only highlights OEE initiatives, traditional maintenance practices towards improving (PP) process performance.
Massimiliano M. Schiraldi and Martina (2020) [26]	Manufacturing operations management	Consistency of ISO standard with literature, Overall equipment effectiveness.	analysis of the ISO22400.	The researchers report in this study on the analysis of the ISO22400 OEE factors and suggest a classification of equipment state.
Abhijeet K, Digalwar, (2019) [18]	Machining Industry	In Indian manufacturing industry, framework for social sustainability assessment.	Developed mathematical model of social sustainability.	This study focuses on social sustainability assessment with specific emphasis on the manufacturing industry.
Mohammad Baghbania and Soleyman Iranzadeha (2019) [27]	Sugar factory	The relationship between RPN parameters in fuzzy and OEE in a sugar factory.	PFMEA, RPN Fuzzy logic	This study identifies the relationship between Risk Priority Number (RPN), and Overall Equipment Effectiveness (OEE) in the production price.
Anita Susilawati et al. 2019 [28]	Manufacturing industry	To develop a framework to assess the implementation of overall equipment effectiveness (OEE) to eliminate waste for increased productivity	Maintenance-FMEA	This study presents only implementation of maintenance (FMEA) to improve Overall Equipment Effectiveness (OEE) in a semiconductor manufacturing firm.
Orlando Duran, Andrea Capaldo et al. (2018) [29]	Production System	Sustainable overall throughput ability effectiveness as a metric for production system.	Overall environmental equipment effectiveness and Overall equipment effectiveness	In this work, a new indicator is proposed; this proposed indicator only allows a system-level assessment of environmental and operational efficiencies.
Pires. Sénéchal, O. Loures in 2016 [30]	In Organization.	An approach to the prioritization of sustainable maintenance drivers in the TBL framework	AHP, Triple Bottom Line	This study proposes an approach to identify and prioritize the attributes of the TBL dimensions, extracted from the Global Reporting Initiatives guidelines (GRI).
Fakhruddin Esa and Yusri Yusof (2016) [31]	Diecasting industry	Implementing overall equipment effectiveness (OEE) and sustainable competitive advantage: a case study of Hicom diecasting’s	Questionnaire survey	This research only focuses on employees’ implementation of OEE in Hicom Diecasting industry.
Wan Hasrulnizzam Wan Mahmood et al. 2014 [32]	Palm oil mills	The potential of overall equipment efficiency (OEE) measures for a sustainable environment in palm oil mills	Developed the conceptual model of OEE.	The study explores the potential of OEE measures to contribute to manufacturing sustainability in the organization, especially to reduce greenhouse gas emissions, utilization of raw material, pollution control of soil, air, and water, as well as utilization of natural resources

presents a concise overview of prior sustainable development initiatives in manufacturing processes, specifically relating to studies and applications of OEE. The details contained in this literature review table include the study year, area of study, the aim, methodology and identified limitations of these studies in summary.

The review analyzes the scholarly works and provides the benefits, challenges, and best practices associated with integrating OEE methodologies and sustainability initiatives. The ramifications pertaining to OEE have been underscored and subsequently added for incorporation into the framework of the methodology being employed in this research.

3. Materials and Methods

The methodology employed in this study focuses on the implementation of OEE in conjunction with sustainability principles in an auto sector manufacturing firm. The research methodology involved data collection from the company, identification and analysis of relevant losses, and studying the impact of social, economic, and environmental factors on sustainability. Subsequently, the collected data were utilized to assess the effectiveness of the OEE approach. A comparison was made between pre-implementation and post-implementation outcomes to evaluate the improvements achieved. The findings obtained from this methodology will inform the conclusions drawn regarding the successful integration of OEE and sustainability practices in the auto sector manufacturing firm.

It is a well known quote that “If you can’t measure it, you can’t improve it” (Lord Kelvin). As such, the process efficiency assessment plays a crucial role in the strategic performance measurement of a firm, in addition to evaluating the values received from suppliers and employees, and the values provided to the stakeholders [33].

This research commenced by comprehensively reviewing the pertinent literature and synthesizing critical implications in contemporary research concepts. Additionally, data were gathered from a company to augment the findings.

To gather comprehensive data for the study, a multifaceted approach was employed. Data collection involved the administration of a questionnaire survey conducted on the manufacturing floor, direct observations, and engaging in direct discussions with both managers and workers. This mixed-methods approach allowed us to capture a holistic view of the operational landscape. Furthermore, the selection of the specific industry under investigation was meticulously based on the broader population of the manufacturing sector in Pakistan where Overall Equipment Effectiveness (OEE) has been implemented. This strategic selection ensured that our study is rooted in the industry’s real-world context, contributing to the robustness and applicability of our findings.

The research methodology establishes an indirect connection with Industry 4.0, utilizing data collection and analysis techniques aligned with its principles. While Industry 4.0 principles like connectivity and real-time monitoring are integrated, the primary focus remains on OEE and sustainability in the auto sector. This approach optimizes manufacturing processes, enhances efficiency, and promotes sustainability.

3.1. Literature on Methodological Rigor

Ensuring methodological rigor is paramount when investigating the intricate relationship between OEE improvements and sustainable practices in the auto sector manufacturing industry. The convergence of these complex domains necessitates a robust methodology to yield reliable and valid insights. Scholarly perspectives underscore the critical role of methodological rigor in ensuring the credibility and significance of research outcomes.

In the realm of OEE analysis, Nakajima’s pioneering work (1988) emphasizes the importance of a well-structured approach to measure manufacturing effectiveness. This serves as a foundation for our study’s methodological rigor, aligning our research design with the essence of OEE enhancements [34].

Furthermore, aligning with the sustainability dimension, Elkington’s “triple bottom line” framework (1997) highlights the need for comprehensive and integrative methodologies to address economic, environmental, and social factors. This resonates with our study’s approach to evaluate the holistic impact of OEE improvements on sustainability [35].

In the literature surrounding the integration of sustainability metrics into operational performance assessment, valuable insights have been gleaned from guidelines. These guidelines serve to bolster our research effort in methodologically capturing and analyzing the intricate interplay between OEE and sustainable development within the auto sector. This alignment with established methodologies contributes to the robustness of our study’s framework, further enhancing our understanding of the dynamics between OEE improvements and sustainable outcomes [36].

In a similar vein, Yin’s guidance on conducting case study research (2018) aligns with our methodology’s structure of data collection, analysis, and post-implementation assessment. This aligns with our pursuit of methodological rigor in elucidating the relationship between OEE and sustainable outcomes [37].

Drawing inspiration from these methodological perspectives, our research strives to uphold the highest standards of rigor. By ensuring methodological soundness, we endeavor to contribute meaningful insights into the synergy between OEE enhancements and sustainable practices within the auto sector manufacturing industry.

Regarding research workflow, after conducting a thorough review of the relevant literature, significant implications were discerned and subsequently integrated into the analysis. The present study involved the computation of the correlation coefficient that corresponds to the measure of OEE, utilizing data procured from the company.

Subsequently, the present study elucidated the interrelated losses and factors that exert a significant influence on the socio-economic and environmental facets, thereby affecting the OEE.

The data were computed utilizing the software tool, Microsoft Excel, and were subsequently visually depicted with an emphasis on delineating significant losses.

The present study involved the individual assessment of key factors, namely, Availability, Quality, and Performance as shown in Figure 4. The identified factors were further scrutinized to determine their prominent role in the reduction of OEE.

The relationship between sustainable improvement and major causal factors as well as impediments within OEE has been established.

A comparison between pre- and post-implementation stages has been conducted to obtain factual outcomes and remediate any previously identified obstacles. The conclusion has been reached based on the results attained and the previous research conducted.

3.2. Implementation of OEE

To ascertain the prevailing state of productivity and efficacy within the industry, the subsequent equations were adopted to derive the OEE.

Evidently, similarly to TEEP, OPE measures the OEE relative to the calendar time, but it is suitable for different kinds of manufacturing processes.

Total Available Time = Loss Time + Total Production Time,

(1)

The total available time is the total production time for finishing one piece of finished product in addition to the loss time, which must be reduced.

Total Actual Output = Total Rejections + Goods Output,

(2)

where total actual output is the total number of finished pieces, in addition to the rejected pieces that have to be reduced.

$$\mathrm{Actual} \mathrm{Speed}=\left(\mathrm{Total} \mathrm{Actual} \mathrm{Output}\right)/\left(\mathrm{Total} \mathrm{Production} \mathrm{time}\right),$$

(3)

It is the actual speed of the machine, which is calculated from total actual output divided by total production time to achieve the possible speed.

$$\mathrm{Total} \mathrm{Possible} \mathrm{Output}=\left(\mathrm{Total} \mathrm{Production} \mathrm{Time}\right)/\left(\mathrm{Possible} \mathrm{Speed}\right),$$

(4)

It is the optimized total number of finished pieces that can be produced by the machine if it is working at its possible speed.

After calculating the above parameters, it is now time to compute OEE, utilizing the major key parameters

$$\mathrm{OEE}=\left(\mathrm{Availability} \times \mathrm{Performance} \times \mathrm{Quality}\right)/10000,$$

(5)

Equations (1)–(5), which are widely acknowledged by productivity management experts and practitioners, offer useful insights for front-line managers to pinpoint production improvement opportunities, evaluating OEE for a single piece of equipment using four distinct methodologies [1].

The authors discovered that the methods are appropriate for manual assembly lines, workstations, or job shops that frequently combine manual and mechanical technology [38].

It was stated that the best manufacturing operations in the survey achieved an OEE value of 96.9%, while the laggards only received 31.2%, based on a study of more than 100 global manufacturing operations.

The survey’s best-in-class category exhibited an OEE value that was 2.6 times greater than that of the worst 25% of firms. The results of the study indicate that a significant proportion of commercial enterprises have yet to optimize their productivity and operational effectiveness.

4. Results and Analysis

The results and analysis section of this research focuses on the implementation of OEE in conjunction with sustainability practices in an auto sector manufacturing firm. The aim of this study is to identify and analyze the related losses within the manufacturing process and assess the improvements achieved in terms of operational efficiency and economic growth in the auto sector. Through a comprehensive analysis of the collected data, this section presents the findings that shed light on the areas where losses were identified, the extent of their impact, and the subsequent improvements resulting from the integration of OEE and sustainability principles. The analysis will provide valuable insights into the enhanced efficiency of the manufacturing firm and its contribution to the overall economy of the auto sector.

The present study aimed to identify and assess the key factors that lead to a decrease in OEE. Specifically, the individual components of OEE, namely Availability, Quality, and Performance, were measured and analyzed. The results of this analysis were used to identify the major factors that impact OEE, highlighting the key factors that contribute to its decline. Through a meticulous examination of collected data, this section reveals the areas of losses, their impact, and the subsequent improvements achieved by integrating OEE and sustainability principles.

Equations (1)–(5) (pp. 13, 14), widely acknowledged in productivity management, provided the foundation for evaluating OEE’s facets. These equations are recognized for their insights into production improvement opportunities. Their selection aligns with the auto sector manufacturing context and the goal of integrating OEE with sustainability. The rationale for this choice lies in their effectiveness and applicability in similar contexts, ensuring consistency with the existing literature.

Factors hindering availability were systematically assessed, with improvements observed in machine performance, maintenance, and employee training. Strategies targeting quality enhancements resulted in notable improvements in product quality. The study also focused on social and environmental sustainability, showcasing progress in areas such as worker health and safety, carbon emissions reduction, and energy efficiency.

The analysis demonstrates the company’s commitment to sustainable development across economic, social, and environmental aspects. Notably, improvements were seen in production capability, maintenance, and material availability. Training initiatives significantly enhanced workers’ expertise, while measures to address environmental concerns yielded substantial improvements. In contrast, the previous research paper focuses on the use of energy data for predicting OEE. It discusses the challenges related to energy data, including temporal resolution and the occurrence of multiple machine states in one measurement point. The paper recommends measures to overcome these challenges. The application of the presented approaches to different real production machines is also discussed, highlighting the influence of temporal resolution on the accuracy of results [12].

In conclusion, this discussion elucidates the strategies that contributed to the improvements observed in the auto sector manufacturing firm. The integration of OEE with sustainability principles facilitated operational enhancements, economic growth, and a commitment to responsible practices.

4.1. Analysis of OEE Factors Related to Availability

The objective of the present research endeavor was to identify and evaluate the principal factors that contribute to a decline in OEE. The findings obtained from this analysis were utilized to determine the primary factors that influence OEE, with emphasis on the critical factors that are responsible for its deterioration.

A comparative analysis between pre- and post-implementation stages was conducted in pursuit of obtaining accurate results and identifying potential barriers that may be addressed for improvement.

During the initial 12-week analysis, we pinpointed key factors affecting Availability, crucial for improving OEE. We have highlighted major areas lacking improvement, directly linked to OEE enhancement. To boost product efficiency, addressing these issues and minimizing time losses are essential, as illustrated in Figure 5.

During the initial 12 weeks of data calculation, the attained level of availability reached 76%. However, the primary hindrances contributing to losses and issues were at-tributed to die change complications, absence of electrical power, malfunctions, and defective torpedoes.

Following the initial analysis, a Pareto analysis was conducted on OEE factors, revealing the most impactful areas requiring improvement. The top factors identified were die problems, torpedo issues, shutdown occurrences, breakdowns, lack of electricity, repair work, and excessive time taken for lunch. Addressing these key factors strategically will significantly contribute to overall OEE enhancement.

The availability factors are depicted in Figure 6 together with the initially estimated time losses and the desperate efforts to increase availability. The main 14 factors that prevent availability from rising were identified and repeatedly calculated.

4.2. Analysis of OEE Factors Related to Performance

The data analysis conducted pertains to performance factors impacting OEE within the initial 12-week timeframe. The analyses were instrumental in identifying and delineating key factors that significantly influence OEE, bringing attention to areas where improvement is essential for enhancing overall equipment efficiency. The subsequent presentation shown in Figure 7 will illuminate these critical insights, offering a strategic roadmap for targeted interventions aimed at elevating OEE and, consequently, optimizing operational performance.

A Pareto analysis was meticulously executed on factors associated with the performance dimension of OEE shown in Figure 8. The primary objective was to discern and prioritize the major contributors to time losses and waste, strategically pinpointing areas for efficiency improvement within the machinery.

The analysis pinpointed magnetron, rpm speed, curling, and soft batch as the predominant factors exerting significant influence. These findings, encapsulated in the forthcoming graph presentation, illuminate key domains requiring targeted intervention to enhance OEE and streamline machine performance.

Initially, performance achieved a 72% rate in the first week of data calculation. It falls under the category of worker aptitude and losses that need to be reduced, along with machine performance losses. The obstacles that affect performance, primarily total rejections, goods output, total production time, and possible speed, were computed for total actual output and total possible output.

4.3. Analysis of OEE Factors Related to Quality

The data analysis conducted pertains to Quality factors improving OEE within a 12-week dataset, specifically looking at factors related to improving the quality of products within. Our goal is to minimize rework, reduce time losses, and boost productivity in our targeted industry. The forthcoming graph presentation shown in Figure 9 will highlight key insights, providing a clear roadmap for improving quality and overall operational efficiency.

The ensuing graph presentation in Figure 10 highlights key factors, namely insertion, magnetron, head, solid blow, spots, unbroken, curling, and flow cut, strategically identified for target-ed intervention to optimize OEE and drive improvements in quality, product performance, and operational efficiency.

4.4. Analysis of OEE Improvements

Following a 12-week data collection period on OEE, the analysis reveals an OEE standing at 33%. This breakdown includes Availability at 76%, Performance at 72%, and Quality at 59%. The assessment underscores the imperative for further improvement to align with world-class OEE standards. Notably, Quality emerges as a pivotal factor contributing to waste, necessitating targeted improvement. Additionally, there is identified room for enhancement in both Availability and Performance, acknowledging their crucial roles in bolstering OEE. The upcoming graph presentation will visually communicate these key insights, providing a strategic framework for achieving heightened efficiency and performance standards.

The study demonstrates significant improvements in OEE and various aspects of the company’s operations with notable improvements in availability, performance, and quality as shown in Figure 11. Additionally, it emphasizes the positive impact of sustainable practices on operational performance and product quality.

After reviewing data from the first 12 weeks (April to June 2022), Pareto analysis pinpointed key factors. We then extended our analysis to the next 16 weeks (July to September 2022), comparing the two periods. The sections that follow delve into this comparison, with the overarching goal of improving overall equipment effectiveness.

4.5. Comparison of OEE Factors Related to Availability (Initial and Final)

The presented graph encapsulates the results of Availability factors within OEE. Following an initial 12-week assessment, an additional 16 weeks of data collection ensued, and a focused Pareto analysis streamlined the relevant factors. The refined results are vividly portrayed in the figure, offering a clear visual representation of the key elements influencing OEE availability.

The Figure 12 illustrates a comparative analysis of the initial and final outcomes of availability factors associated with OEE. Significant achievements include a reduction in setup time from 20% to 5%, a decrease in die change time from 10% to 4%, a substantial decline in torpedo-related issues from 30% to 8%, and a notable improvement in addressing no-electricity occurrences, decreasing from 30% to 7%. These noteworthy adjustments in key factors have played a major role in facilitating improvements, thereby contributing significantly to the enhanced availability within the context of OEE.

4.6. Comparison of OEE Factors Related to Performance (Initial and Final)

The graph presented encapsulates the outcomes of Performance factors in OEE. Combining insights from an initial 12-week assessment and an additional 16 weeks of data collection, a focused Pareto analysis streamlined key factors. Notably, magnetron, hot air oven, cure slow, and curling emerged as significant elements, undergoing targeted reduction efforts. The refined results are visually depicted in the figure, offering a concise representation of the pivotal factors influencing OEE Performance.

The Figure 13 presents a comparative analysis of the initial and concluding results of performance factors within the framework of OEE. Notable accomplishments encompass a significant decrease in magnetron-related issues from 11% to 1%, a reduction in hot air oven incidents from 6% to 2%, and a substantial improvement in addressing curling issues, decreasing from 8% to 5%. RPM speed remained consistent throughout. These substantial adjustments in key factors have played a pivotal role in fostering enhancements, thus making a considerable contribution to the overall improvement of performance within the realm of OEE.

4.7. Comparison of OEE Factors Related to Quality (Initial and Final)

The graph illustrates the outcomes of Quality factors within OEE. Integrating insights from a preliminary 12-week assessment and an additional 16 weeks of data collection, a focused Pareto analysis streamlined critical factors. Notably, cure, rusted, spots, air block, head, zone, and curling emerged as noteworthy elements, undergoing targeted reduction efforts. The refined results are visually depicted in the figure, providing a succinct representation of the key factors influencing the enhancement of Quality factors in OEE.

The graphical representation as shown in Figure 14 portrays a comparative examination of the initial and concluding advancements in quality factors associated with OEE. Notable accomplishments are evident, including a notable decrease in cure from 4% to 2%, a reduction in rusted incidents from 3% to 1%, a substantial improvement in addressing spots, declining from 8% to 4%, and notable reductions in air block from 5% to 3%, head from 11% to 3%, zone from 3% to 1%, and curling from 8% to 3%. These adjustments, subject to targeted reduction efforts, signify significant strides in enhancing quality within the OEE framework. The figure visually articulates these impactful refinements, offering a comprehensive view of the improved quality factors between the initial and final assessments.

4.8. Comparison of OEE Improvements (Initial and Final)

The graphical representation as shown in Figure 15 elucidates the accomplishments in OEE. Through the integration of insights garnered from a comprehensive 12-week initial assessment and an additional 16 weeks of meticulous data collection, a methodical application of focused Pareto analysis was employed to systematically refine critical factors associated with availability, performance, and quality.

The figure provides a visual representation comparing the initial 12 weeks to the final achieved OEE after an additional 16 weeks. The results reveal a commendable improvement in OEE, rising from 33% to 48%, aligning with the benchmarks of world-class OEE standards. Notably, the figure highlights the significant contributions to this enhancement, showcasing an increase in availability from 76% to 89%, an improvement in quality from 69% to 73%, and a marginal uptick in performance from 72% to 73%. These outcomes, as depicted in the figure, underscore the concerted efforts undertaken to elevate OEE across its critical components.

Presented herein is a week-by-week graph as shown in Figure 16 encapsulating the entirety of data spanning from the initial 12 weeks to the final 16 weeks and beyond. The graphical representation unveils significant improvements, with a noteworthy spike evident in the 27th week, indicative of a substantial enhancement in performance.

During the initial 10-week period, there was a progressive upturn in the observed OEE value, ascending from 30% to 40%. However, a subsequent decline was observed, primarily attributable to quality improvement initiatives that had a discernible impact on the overall performance rate.

During the 20th week, an annual shutdown was conducted, which played a significant role in improving the performance of machines, as they were thoroughly lubricated and inspected. However, the intermittent nature of the shutdown resulted in a decline in worker productivity. Nonetheless, this issue was addressed after the 27th week, and a commendable target of 15% was achieved. These findings demonstrate the importance of strategic shutdowns for machine maintenance and the need for effective measures to mitigate productivity declines. The analysis of OEE offers valuable insights for identifying areas of improvement and optimizing performance in the auto parts manufacturing company. The graphical representation of the overall enhancement in OEE clearly highlighted the disparities among the target, actual (achieved), and forecast values. It is noteworthy that the highest rate of improvement was observed after the 27th week, exhibiting a substantial 15% increase compared to the initial week and approaching the set target.

Overall, the decline in OEE after initial improvement was due to quality initiatives. The annual shutdown improved machine performance but affected worker productivity. Strategic shutdowns and performance optimization are vital for sustaining productivity. The analysis highlights OEE disparities and significant improvements after the 27th week.

4.9. Calculated Improvements in Sustainable Development

The provided graph illustrates the distinct factors associated with economic, social, and environmental aspects that contribute to the emergence of sustainable development. The obtained results present an analysis of various factors that have acted as barriers to sustainable development, The outcomes encompass the initial 12 weeks, followed by an additional 16 weeks.

The findings of the comprehensive analysis as shown in Figure 17 conducted in the economic section reveal remarkable progress across various factors, including maintenance, production capability, training, material availability, and scrap rework. Notably, a significant 17% improvement was observed in scrap and rework, indicating effective measures in optimizing processes. Furthermore, training initiatives demonstrated a commendable 16% enhancement in developing workers’ professional expertise. Maintenance practices exhibited a substantial 13% improvement, underscoring the commitment to ensuring optimal equipment performance. Additionally, improvements of 12% in material availability and 11% in production capability contributed to enhancing overall operational efficiency. These findings highlight the company’s dedication to continuous improvement and economic growth.

Turning our attention to the social factors, the analysis reveals significant progress in several areas. Notably, the company has achieved a remarkable 25% improvement in enhancing its profile as a green standard and promoting a green image, underscoring its commitment to sustainability. Furthermore, the implementation of health and safety measures has yielded a substantial 20% improvement, positively influencing quality improvement, labor satisfaction, and stakeholder satisfaction, all of which have shown a commendable 10% enhancement. These findings highlight the company’s proactive approach towards fostering a socially responsible and sustainable environment.

Within the environmental section, the analysis centered on critical factors including greenhouse gas emissions, waste management, scrap elimination, and energy efficiency. The findings demonstrate notable improvements, with the highest achievement observed in energy efficiency, achieving a significant 25% improvement. Additionally, carbon dioxide emissions exhibited a commendable reduction of 21%, while waste management showcased a substantial 17% decrease. Furthermore, efforts towards scrap elimination resulted in a noteworthy improvement of 15%. Finally, an improvement of 8% was observed in the equipment life cycle, emphasizing the company’s commitment to environmental sustainability and resource efficiency.

Overall, this analysis emphasizes the company’s commitment to sustainable development, considering economic, social, and environmental aspects. The comprehensive analysis conducted in the economic section shows remarkable progress across various factors, including maintenance, production capability, training, material availability, and scrap rework. Effective measures have led to significant improvements in optimizing processes, developing workers’ expertise, and ensuring optimal equipment performance. These advancements contribute to enhanced operational efficiency and underscore the company’s commitment to continuous improvement and economic growth. Additionally, the company has demonstrated a proactive approach in fostering a socially responsible and sustainable environment by achieving notable improvements in enhancing its green profile, implementing health and safety measures, and addressing environmental concerns such as greenhouse gas emissions, waste management, and scrap elimination. These findings highlight the positive impact of sustainable development practices on the company’s economic prosperity.

4.10. Attained Economical Improvements in Company

In the course of the conducted analysis, a comparison was drawn between the observed component counts in the initial 12 weeks and the subsequent 16 weeks. This examination aimed to evaluate the level of improvement achieved in terms of economic enhancement of the company over the specified period.

The provided comparative analysis shown in

Table 2. Quantitative Analysis: Progression of Finished Product Output Over the Initial 12 Weeks and Final 16 Weeks.

Product Names	April–June 2022	July–September 2022
Glass run channels	80	90
Vinyl edge trim	75	81
Quarter window seal	100	113
Door protectors	90	101
O rings	80	89
Engine seals	65	71
Wind screen weather	75	83
Rubber to bond metal	85	95
Door seals	100	112
Filter seal and sponge	110	125
Trunk seals	95	105
Clips	85	95
Bonnet seals	110	125

Unit. Units related to data fields are in Count.

, offers insights into the production of finished products from the 1st week to the 27th week. This comparison serves to illustrate the improvements achieved through the implementation of OEE in conjunction with sustainability practices. Notably, significant improvements are observed in the bonnet seal category, with an increase from 110 to 125 counts, as well as in the quarter window seal category, which rose from 100 to 113 counts. However, it is worth noting that further attention is required in the department responsible for engine seal production, as it witnessed an increase from 56 to 71 counts.

The comparative analysis presented in the table demonstrates the positive impact of implementing OEE and sustainability practices on the production of finished products. Noteworthy improvements are observed in the bonnet seal and quarter window seal categories. However, attention is needed in the department responsible for engine seal production. The accompanying graph further visualizes these improvements, highlighting the effectiveness of the implemented strategies in enhancing production outcomes.

The presented graph provides a visual representation of the comprehensive economic improvement achieved through the utilization of OEE in conjunction with sustainable development practices. The graph showcases the progressive increase in the quantity of produced parts because of these combined efforts.

The presented graph shown in Figure 18 visually demonstrates the notable improvement in quantity, which subsequently impacts the economic development of a company while utilizing minimal resources and maintaining product quality. Specifically, in the finished products category, significant improvements have been observed in bonnet seals with a substantial increase of up to 13%, followed by filter seal, quarter window seal, door protectors, and door seal, all of which have seen improvements of up to 12% compared to the initial week. Moreover, to address customer requirements, enhancements ranging from 10% to 12% have been achieved in Glass run channel, O-Rings, Rubber to bond metal, Trunk seals, and Clips. Conversely, the lowest improvements, ranging from 8% to 10%, have been observed in vinyl edge trim, Engine seal, and Windscreen weather.

4.11. A Strategic Framework Synthesizing OEE and Sustainability

A comprehensive six-month study in the automotive manufacturing sector has concentrated on enhancing Overall Equipment Effectiveness (OEE). This study integrates OEE with sustainability, examining the gains in both OEE and sustainability factors. The outcomes show notable improvements in productivity and quality, contributing to the economic growth of the industry. The overall findings were systematically derived through a framework that consolidates all aspects of OEE and sustainability, providing substantial evidence for the study, as can be seen from the Figure:

The presented framework as shown in Figure 19 stands as a visual representation of the harmonious integration between OEE factors and sustainability elements. This innovative model signifies a strategic alignment, fostering a synergistic approach to drive operational efficiency and promote sustainable practices within the automotive manufacturing sector.

4.12. Results and Findings: Navigating the I4.0 Landscape

Our investigation into the symbiotic relationship between OEE and sustainability unveils insights that resonate with the broader industrial transformation under the Industry 4.0 (I4.0) paradigm. In this section, we establish a direct connection between our findings and the pervasive trends that I4.0 technologies and principles have set in motion.

(i)

Data driven decision making:

Our findings reinforce the significance of data-driven decision-making, a cornerstone of I4.0. The meticulous analysis of machine performance and sustainability indicators underscores that data are the linchpin in optimizing operations. By leveraging real-time data to drive actionable insights, our study aligns with the I4.0 concept of harnessing the power of data for process improvement.

(ii)

Automation and smart manufacturing:

As we delved into enhancing OEE within the blending section, we adopted automated processes and smart manufacturing concepts. The integration of these I4.0-driven technologies streamlined operations, reducing losses and enhancing efficiency. Our results exemplify the role of automation in the evolving manufacturing landscape.

(iii)

Connectivity and interoperability:

Our research findings further highlight the transformative potential of connectivity and interoperability. In the pursuit of operational excellence, we integrated diverse machinery and processes, emphasizing the interconnectedness of our manufacturing ecosystem. This mirrors the I4.0 ethos of creating seamless connections across the production chain for improved performance.

(iv)

Efficiency, sustainability, and resource optimization:

Notably, the positive outcomes of our study extend beyond operational efficiency. By concurrently addressing sustainability concerns, we demonstrate the shared goals of I4.0 and sustainable manufacturing. Our ability to reduce batch processing time while minimizing resource consumption echoes the I4.0 principle of achieving sustainable and efficient production practices.

4.13. Operational Excellence through OEE and Sustainability

In the realm of industrial optimization, a pivotal endeavor lies in the pursuit of operational excellence, a goal that has been at the forefront of countless industries’ strategic aspirations.

Efforts to enhance OEE across machinery and floor-level processes were meticulous but yielded limited improvements in batch production. The study then focused on the blending section, developing a comprehensive operational layout aligned with OEE criteria to reduce losses. Insights from the literature prompted the integration of sustainability factors, resulting in more successful outcomes and reduced batch processing time.

Upon reaching the predetermined milestones, an extensive and rigorous analysis of the results yielded clear evidence. This underscored the profound significance of the symbiotic relationship between OEE and sustainability, which emerged as a pivotal driver of substantial and positive outcomes in the context of our research, as can be seen in Figure 20.

The key findings outlined in Figure 20 illuminate the potential for this integrated approach to transform not only our manufacturing processes but also the broader landscape of operational excellence, ushering in an era of increased productivity, resource efficiency, and environmental responsibility.

Overall, the adapted methodology provides significant improvements in quantity, fostering the company’s economic development. Efficient resource utilization and a dedication to product quality yielded substantial progress. Notably, the finished products category witnessed noteworthy enhancements in various components, demonstrating the company’s commitment to sustainable economic growth.

5. Discussion

In the dynamic automotive manufacturing landscape, achieving operational excellence and sustainable practices is imperative for maintaining competitiveness. This study systematically addresses the challenge of minimizing losses in the auto sector by focusing on Availability, Performance, and Quality—integral components of Overall Equipment Effectiveness (OEE). The investigation demonstrates a positive correlation between enhancing OEE and fostering sustainable development within the automotive sector.

The comprehensive analysis identifies strategies to mitigate losses, emphasizing sustainability across social, economic, and environmental dimensions. Noteworthy collaborative efforts reveal losses related to factors such as hot air presence affecting material characteristics. Recommendations for dedicated improvements in this area aim to bolster the manufacturing process.

Over six months, the OEE progressed from an initial 33% to an enhanced 48%, characterized by an availability rate of 89.75%, performance rate of 72.68%, and quality rate of 73.82%. Quantitative gains directly contributed to sustainability objectives, with improvements observed in scrap rework (17%), training initiatives (16%), maintenance endeavors (13%), material availability (12%), and production capability (11%).

Significant strides in product quality were evident, ranging from 8% to 13% across components. Customer-centric enhancements of 10% to 12% demonstrated the company’s commitment to economic progress and operational efficiency.

The synergy between OEE, sustainability, and Industry 4.0 not only transforms manufacturing processes but also propels operational excellence. This research underscores the company’s commitment to sustainable development, economic prosperity, and customer satisfaction, positioning it at the forefront of sustainable practices in the automotive manufacturing industry.

This study makes a significant contribution by demonstrating the successful integration of OEE with sustainability practices in the automotive manufacturing sector. It showcases an initiative from April 2022 to June 2022, the first session lasting for 12 weeks, and further analysis from July 2022 to September 2022. This initiative effectively improved OEE while addressing economic, social, and environmental aspects.

In discussing the implications of this research findings, it is important to acknowledge the broader international relevance of this study, despite its focus on the specific context of Karachi, Pakistan. While the auto manufacturing industry in Karachi serves as primary case study, similar challenges and opportunities are likely to be encountered in auto manufacturing hubs worldwide. The methodologies and strategies developed in this research can thus offer valuable insights and best practices applicable to auto manufacturing industries in other countries facing analogous circumstances. By sharing our findings and methodologies with the global community, we aim to contribute to the advancement of sustainable practices and operational excellence in auto manufacturing on an international scale.

In summary, the research provides concrete evidence of how sustainable practices can be harnessed to optimize manufacturing efficiency, reduce losses, and enhance product quality.

6. Conclusions

In the dynamic landscape of the automotive manufacturing industry, the pursuit of operational excellence and sustainable practices remains a pressing priority for firms striving to maintain their competitive edge. Our investigation has elucidated the systematic calculation for minimizing losses rooted in available capacity on a daily basis. This study has unequivocally demonstrated the positive correlation between enhancing OEE and fostering sustainable development in manufacturing companies within the automotive sector.

The primary focus of this research has been to address the challenge of minimizing losses in auto sector manufacturing. With a keen emphasis on the critical components of Availability, Performance, and Quality, intrinsic to OEE, and their interaction with social, economic, and environmental factors integral to sustainability, we have delved into a comprehensive analysis. The aim has been to uncover strategies and interventions that can effectively mitigate losses and uplift the overall performance benchmarks within the auto sector manufacturing realm. This research underscores the significance of nurturing these pivotal aspects through a lens of sustainability.

Our innovative approach within the automotive manufacturing domain has been met with enthusiastic engagement, leading to collaborative endeavors. Through rigorous testing, we have unveiled losses linked to factors such as hot air presence, significantly influencing material curling, hardening, and cohesion. We recommend dedicated improvements in this area to bolster the manufacturing process.

The empirical findings presented herein signify substantial enhancements in OEE and various operational dimensions. Over the span of six months, the initial OEE of 33% witnessed remarkable progress, culminating in an enhanced OEE of 48%, characterized by an availability rate of 89.75%, a performance rate of 72.68%, and a quality rate of 73.82%.

Our analysis yielded commendable quantitative gains that directly contribute to sustainability objectives. Noteworthy improvements of 17% in scrap rework, 16% in training initiatives, 13% in maintenance endeavors, 12% in material availability, and 11% in production capability have been observed. These enhancements epitomize the company’s steadfast dedication to sustainable development and economic growth, underscored by a resolute commitment to process optimization, skill enhancement, and environmental stewardship.

Furthermore, the research uncovered notable strides in product quality, evident in improvements ranging from 8% to 13% across components such as bonnet seals, filter seals, quarter window seals, door protectors, and door seals. Customer-centric enhancements of 10% to 12% have been achieved in Glass run channels, O-Rings, Rubber to bond metal, Trunk seals, and Clips. These outcomes not only reflect the company’s devotion to economic progress but also highlight its unwavering commitment to augmenting product quality and operational efficiency.

In the grand tapestry of modern industrial transformation, our research serves as a testament to the relevance and applicability of Industry 4.0 principles and technologies. The synergy between OEE, sustainability, and I4.0 is unmistakable, offering a blueprint for industries to navigate this era of profound change. As we move forward, the intersection of operational excellence and sustainability, guided by I4.0 ideals, is poised to redefine the industrial landscape, ushering in an era of heightened productivity, resource efficiency, and environmental responsibility.

Our research underscores the remarkable potential of harmonizing sustainability principles with OEE, particularly within the blending section. This integration not only transforms manufacturing processes but also propels operational excellence, ushering in an era characterized by heightened productivity, resource efficiency, and environmental responsibility.

This study focuses on the specific context of Karachi, Pakistan, it is essential to recognize the broader implications of our findings in an international context. While the analysis primarily pertains to the unique socio-economic and environmental dynamics of Karachi, the insights gleaned from this research can contribute to the global discourse on auto sector manufacturing firms. Furthermore, while the specific strategies and recommendations proposed may be tailored to the local context, the underlying principles can be adapted and applied in similar urban settings worldwide. Future research endeavors should aim to explore comparative analyses with cities across different regions to foster cross-cultural learning and the exchange of best practices.

In summation, this research unequivocally showcases the affirmative influence of sustainable practices on both operational performance and product quality, reaffirming the company’s resolute commitment to sustainable development, economic prosperity, and customer contentment.

6.1. Applicability

The research findings have practical relevance for the automotive manufacturing industry and beyond. By showcasing the successful implementation of OEE and sustainability principles, this research offers a blueprint for other manufacturing firms seeking to enhance their operational efficiency while adhering to sustainable development goals. The strategies and insights presented in this study can be applied in various manufacturing settings to achieve similar improvements in OEE and contribute to both economic growth and environmental sustainability.

6.2. Future Directions

Study prompts several avenues for further investigation. To fortify the comprehensiveness of our analysis, future research could delve into the integration of emerging technologies such as AI and IoT to monitor and enhance OEE while concurrently minimizing environmental impacts. Additionally, investigating the implementation of circular economy principles within the auto sector manufacturing framework could offer insights into achieving even greater sustainability milestones. Furthermore, exploring the role of workforce engagement and social indicators in driving sustainable manufacturing practices warrants careful consideration [39]. Lastly, conducting longitudinal studies to track the long-term effects of sustainability-driven interventions on OEE and overall business performance would provide invaluable insights for industry practitioners and scholars alike.