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Machine learning for KPIs prediction: a case study of the overall equipment effectiveness within the automotive industry

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Abstract and Figures

Key performance indicators are tools for management, decision support and forecasting; they reflect the strategy and vision of the company in terms of objectives and allow to always staying in step with the expectations of the stakeholders. Accurate forecasting of the indicators allows decisions to be reoriented to ensure performance optimization while reducing both cost and effort. This paper aims to apply different machine learning methods, namely support vector regression, optimized support vector regression (using genetic algorithm), random forest, extreme gradient boosting and deep learning to predict the overall equipment effectiveness as a case study. We will make use of several configurations of the listed models in order to provide a wide field of comparison. The data used to train our models were provided by an automotive cable production industry. The result shows that the configuration in which we used cross-validation technique, and we performed a duly splitting of data, provides predictor models with the better performances.
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METHODOLOGIES AND APPLICATION
Machine learning for KPIs prediction: a case study of the overall
equipment effectiveness within the automotive industry
Choumicha EL Mazgualdi
1
Tawfik Masrour
1
Ibtissam El Hassani
1
Abdelmoula Khdoudi
1
Published online: 5 October 2020
Springer-Verlag GmbH Germany, part of Springer Nature 2020
Abstract
Key performance indicators are tools for management, decision support and forecasting; they reflect the strategy and vision
of the company in terms of objectives and allow to always staying in step with the expectations of the stakeholders.
Accurate forecasting of the indicators allows decisions to be reoriented to ensure performance optimization while reducing
both cost and effort. This paper aims to apply different machine learning methods, namely support vector regression,
optimized support vector regression (using genetic algorithm), random forest, extreme gradient boosting and deep learning
to predict the overall equipment effectiveness as a case study. We will make use of several configurations of the listed
models in order to provide a wide field of comparison. The data used to train our models were provided by an automotive
cable production industry. The result shows that the configuration in which we used cross-validation technique, and we
performed a duly splitting of data, provides predictor models with the better performances.
Keywords Machine learning Key performance indicators Overall equipment effectiveness Prediction
Improvement
1 Introduction
1.1 Key performance indicators (KPI)
Today, dashboards have become an indispensable tool. It
must provide managers, from operational management to top
management, with the information they need in order to
make decisions. It consists of a set of indicators designed to
allow managers to see the progress of their systems, and it
reflects the company’s strategy and vision in terms of
objectives. So, it allows to follow both the targeted results
and the actions, both corrective and preventive ones that
achieve the objectives set. Key performance indicators are
most often the result of a long chain of information gathering
and aggregation, and they generally allow responsiveness
and decisions are made more and more quickly.
But that is not enough in the current context. Today, in order
to maintain or gain competitive advantage, organizations place
the search for ‘‘proactivity’’ at the forefront of their concerns:
the precise forecasts of the indicators make possible to redirect
decisions in order to guarantee an optimization of the perfor-
mances, and reducing costs and efforts. Nowadays, in the
digitalization age, information systems are managing more and
more data, making them useful for predicting KPI’s thanks to
advances in artificial intelligence algorithms, notably machine
learning. This new generation of intelligent systems of pre-
diction is precisely the engines of the proactivity, as computing
power has become cheaper and more available.
1.2 Overall equipment effectiveness (OEE)
The overall equipment effectiveness (OEE) is a perfor-
mance measurement metric widely used. Its calculation
Communicated by V. Loia.
&Tawfik Masrour
t.masrour@ensam.umi.ac.ma
Choumicha EL Mazgualdi
c.elmazgualdi@edu.umi.ac.ma
Ibtissam El Hassani
i.elhassani@ensam.umi.ac.ma
Abdelmoula Khdoudi
a.khdoudi@edu.umi.ac.ma
1
Laboratory of Mathematical Modeling, Simulation and Smart
Systems (L2M3S), Artificial Intelligence for Engineering
Sciences Team, ENSAM-Meknes, Moulay ISMAIL
University, B.P. 15290, Marjane 2, Al-Mansor,
50500 Meknes, Morocco
123
Soft Computing (2021) 25:2891–2909
https://doi.org/10.1007/s00500-020-05348-y(0123456789().,-volV)(0123456789().,-volV)
Content courtesy of Springer Nature, terms of use apply. Rights reserved.
... OEE is proposed as an operational improvement measure [30]. OEE is a vital tool for eliminating and identifying production losses which help in improving the efficiency of production systems [31,32]. The categories of these losses can be classified into six categories: minor stoppage loss, adjustment loss, breakdown loss, speed loss, and quality defects, start-up loss, and rework loss [33,34]. ...
... Different machine learning methods are applied to predict the OEE of an automotive cable production industry. These methods provide predictor models with improved and better performances [31]. An improved OEE method is developed for a full process cycle in the steel market. ...
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... A deeper understanding of the sensitivity and robustness of the forecasts may be obtained as well through the use of simulation approaches. System dynamics designing, discrete event simulation, agent-based modeling, and other similar approaches are just some of the common simulation methods that can be used for KPI forecasting [12]. ...
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... El Haddad et al. [25] investigated the application of ML algorithms for predicting Overall Equipment Effectiveness (OEE) in manufacturing environments. Their findings emphasize the adaptability of ML in improving industrial efficiency through accurate KPI measurement. ...
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... Another research stream, present in the literature, includes the application of various machine learning methods for predicting the most used efficiency measures in industrial settings. An industrial case study from the automotive industry documents the application and comparison of different machine learning algorithms to determine OEE [15]. The application of deep learning algorithms has been documented to predict performance indicators of packaging equipment in [16]. ...
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... • using decision tree, neural networks, support vector machine at intraday forecasting of OEE [13] • simple moving average with Holt's double exponential smoothing method using Python [14] • recurrent neural networks to reveal hidden correlation that affecting to OEE [15] • Person correlation and one-sample T-test with Design Expert software [16] • using grid search algorithm by decision tree, K-nearest neighbor, neural networks and support vector machine [17] • support vector machine, random forest, gradient boost, deep learning [18,19] • OEE prediction by Bayes-based machine learning, decision tree, support vector machine and logistic regression [20,21]. ...
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... For example, Kuo & Lin [7] developed an integration of neural networks and decision trees to predict availability efficiency, a metric strongly correlated with OEE, specifically for a set of washing machines. Meanwhile, Mazgualdi et al. [8] [9] employed SVM, SVM with optimization, RF, XGBoost and ANNs to predict OEE in an automotive cable production industry. Among these models, ANNs and RF demonstrated superior accuracy and performance. ...
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