How the wastes of raw material influences in OEE?

Does material wastes consider in machine performance or in Quality i.e . The raw material lost will be consider in term of input material lost.

Quality= Total Feed Material- Rejected material

Rejected Material= Raw material rejection+Total Finished Product Rejection

Either Quality is focus only finished good rejection.

because uncomfortable raw material that identify as waste effected in smooth running of equipment that may cause corrosion & mechanical damage or maintenance need which not matching design of it 

OEE is a common measure for company’s effectiveness. It is also very important to improve effectiveness and reduce the waste of production while you reduce the production cost.  on optimal inventory management uses criteria of cost minimization or profit maximization , which also makes it cost-effective.

DEFINITION OF KEY TERMS

1. Capacity: the total amount or of things that something can hold (Cambridge Business Dictionary,2012).
2. Excess cost: difference between purchase cost and salvage value of items left over at the end of a period (
3. Holding (carrying) costs: cost to carry an item in inventory for a length of time, usually a year (Stevenson,2005).
4. JIT: a technique for reducing wastage through procedures that establish good communications throughout the production process to ensure that all resources are used optimally, so that there are only minimum stocks on site for work in progress (Eti et al.,2004).
5. Lead-time: time interval between ordering and receiving the order (Stevenson,2005).
6. rdering costs: It is the cost of ordering and receiving inventory (Stevenson,2005).
7. Pareto Principle: the idea that a small quantity of work or resources (= time, money, employees, etc.) can produce a large number of results (Cambridge Business Dictionary,2012).
8. Safety stock: the small extra supply of goods, materials, etc. that a company keeps in case the demand for them is greater than is expected (Cambridge Business Dictionary,2012).
9. Setup cost; the amount of money needed to start a business, service, process, etc. (Cambridge Business Dictionary,2012).
10. Shortage: a situation in which there is less of something than people wants or need (Cambridge Business Dictionary,2012).
11. Shortage costs: costs when demand exceeds supply (Stevenson,2005).
12. LIST OF ABBREVATIONS
13. AHP Analytical Hierarchy Process
14. CNC Computer Numerical Control
15. DSS Decision Support System
16. EOQ Economic Order Quantity
17. EPQ Economic Production Quantity
18. IT Information Technology
19. JIT Just in Time
20. KPI Key Process Indicator
21. M2 Square meter
22. MCDM Multi Criteria Decision Maki=
23. MCIC Multi criteria Inventory Classification
24. MM Millimeter
25. MS Excel Microsoft Excel
26. OEE Overall Equipment Effectiveness
27. RM Raw Material
28. RaMIM Raw Material Inventory Management
29. TPS Toyota Production System
30. WIP Work in Process
31. ∀ For all
32. element of OEE is availability.  availability is defined as a measure of production equipment’s condition to function. Therefore, it does not cover the availability of raw material and does not have any relation with RM inventory. This is why the availability is assumed to be constant during the study. The focus is given on performance rate and quality rate because; these measures can be improved by enhancing inventory management.