Measuring For Improvement: A study of production processes’ effectiveness and the potential for improvements at Nobel Biocare

Abstract: Purpose:this thesis study aims to provide an analysis and an assessment of the current operations’ performance effectiveness at Nobel Biocare’s production plant in Karlskoga, Sweden and to describe the potential for improvement. It intends to clarify the importance of performance measurement and explain Overall Equipment Effectiveness (OEE) metrics in particular. Furthermore, it strives to identify causes for inefficiency in production and suggest recommendations to minimize losses. Methodology: the study is using both qualitative and quantitative approaches in parallel as measurements are implemented to discover effectiveness rates and detect causes for production losses while assessments are made using different models, such as the Capability Maturity Model(CMM) and OEE assessments, in order to evaluate the current development level and the potential for improvement. Findings: the research finds that major losses are closely related to frequency of changeovers in machining processes, where average effectiveness rates were 68%. In surface treatment and packaging equipment inspected, the values were found to be between 46% and 59% as the major common cause was the absence of work due to unstable flow of orders. Assessing process orientation and maturity levels, the findings indicate on high levels in general. However, areas of weakness were identified in the different processes in which the potential for improvement is embedded. In those areas, lower OEE values were registered; low levels of maturity and process orientation were found, as low development of losses improvement were assessed. The study finally suggests that the areas of weakness suffer from lack of learning orientation that is ought to be improved and at the same time, a variety of specific recommendations are provided.