Development of Economic Weight-Based FOM-OEE Model for Performance Evaluation of Hydraulic Component Machining Processes

This study proposes an FOM-OEE model to supplement OEE for manufacturing SMEs, reinterpreting performance analysis from simple equipment efficiency to diagnosis, analysis, and improvement perspectives. Conventional OEE metrics typically fail to capture the specific nuances of precision hydraulic-component machining, such as unit cost variations and product-specific workload differences. Hence, we developed an FOM-OEE model integrated into the FOM architecture. The proposed model incorporates availability correction efficiency to account for the essential setup time when evaluating process flexibility, precision-adjusted performance efficiency to integrate product-specific workload differences, and value-adjusted quality efficiency to reevaluate quality as a financial-value retention rate. Validated using 6,636 production logs from Company J, the model established a multidimensional performance diagnosis framework. This framework integrates financial insight with resource prioritization, thus rendering it highly effective for improving operations in an FOM-driven manufacturing environment.