Mr Store who runs his photocopy business working8 hours per day process 100 scripts. He estimates his labour costto be €9 per hour. Also he has estimated that the total materialcost for each script is approximately €2; while the daily expensesare €28. Calculate the multifactor productivity.In an effort to increase the rate of the photocopy process to 150 scripts, he decides to change the quality of ink thus raising the mate-rial cost to €2.5 per day. Is the new productivity better than before? If Mr Store would like to increase the photocopy process to150 scripts without sacrificing the initial multifactor productivity,by what amount has the material costs to be increased?

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Overall Equipment Effectiveness

Overall equipment effectiveness or OEE as it is known can be defined as a widely standard to measure manufacturing productivity. In other words, it can also be defined as the exact percentage of time which is productive. If the score of overall equipment effectiveness is 100%, it is an indication that only good parts are being manufactured with no stop time. Hence OEE of 100% means 100% quality, performance & also availability.