The impact of increasing overall equipment efficiency on corporate profitability
With a focus on small and medium-sized enterprises in the Hungarian automotive industry
DOI:
https://doi.org/10.14267/VEZTUD.2026.10.02Keywords:
productivity, overall equipment efficiency, automotive industry, small- and medium-sized enterprises, case study, scenario analysisAbstract
Productivity is a significant challenge for the Hungarian economy, particularly for small and medium-sized enterprises. The study’s question is how to increase it. It aims to investigate how increasing production process efficiency affects financial performance. The methodology applied is a case study and scenario analysis based on expert interviews. It models how the Overall Equipment Effectiveness indicator and its components impact profitability. Although improving it has a positive impact on costs, one of the main benefits is that it enables an increase in production volume without a change in capacity. The research also highlights the importance of Industry 4.0, as the effectiveness of Overall Equipment Efficiency investments have been previously hindered by the lack of reliable data and the challenges associated with indepth analysis. The research thus also highlights the magnitude of resources worth investing in Industry 4.0 technologies, including the application of data-based, capability-enhancing solutions.
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