No. 595 - An OEE index for the Bank of Italy's banknote production plant

by Michele Manna
February 2021
Vai alla versione italiana Site Search

The Overall Equipment Effectiveness (OEE) index identifies the share of manufacturing time that is truly productive. Following a manufacturing best practice, in this work we present a monthly series of the OEE index for the Bank of Italy's banknote production plant, from January 2014 to September 2020. During this time, the plant underwent a major reorganization, which was negotiated with the in-house trade unions (2017-18). More recently, the COVID-19 has brought about new challenges.

We measure an increase in the plant's OEE of 6 percentage points, from 57 to 63 per cent on average, after the rollout of the reorganization in March 2018. During the negotiations with the trade unions, a time of heightened uncertainty, the index fell below 50 per cent, providing empirical support to the existence of a pattern well known in the industrial organization literature. The developments in the index in 2020 prove that production was resilient even during the health emergency.

Full text

Sezione di approfondimento