Application of Overall Labor Effectiveness (OLE) and Root Cause Analysis for Workforce Performance Improvement

Authors

  • Benyamin Sojdeh ei * Department of Industrial Engineering, Karaj Branch, Islamic Azad University, Karaj, Iran.

https://doi.org/10.48314/apem.v3i2.73

Abstract

This study evaluates workforce performance using the Overall Labor Effectiveness (OLE) index in the cleaning workshop of an investment casting factory over a one-year period. OLE was calculated monthly across availability, performance, and quality components and compared against global benchmarks. The annual average OLE of 81.44% fell below the benchmark of 85%, with Quality identified as the primary limiting factor. Root Cause Analysis (RCA) using the 5 Whys technique revealed two systemic issues: a misaligned incentive system that prioritized production volume over quality, and inadequate production planning leading to end-of-period overworking. Redesigning the incentive system and adopting risk-based production planning are proposed as primary improvement interventions.

Keywords:

Overall labor effectiveness, Operator performance, Root cause analysis, 5 whys, Performance improvement, Investment casting

References

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Published

2026-07-27

Issue

Vol. 3 No. 2 (2026): Annals of Process Engineering and Management

Section

Articles

License

Copyright (c) 2026 Annals of Process Engineering and Management

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

How to Cite

Sojdeh ei, B. (2026). Application of Overall Labor Effectiveness (OLE) and Root Cause Analysis for Workforce Performance Improvement. Annals of Process Engineering and Management, 3(2), 77-85. https://doi.org/10.48314/apem.v3i2.73

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