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PROLOGUE
You are not the only one if you experience:
+ Equipment suffers unexplained
shutdown and failures or needs constant
repair.
+ Equipment operates at a slower speed
than designed.
+ Decreased productivity from machine-
related problems.
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PROLOGUE
+ Does your production have bottlenecks
that you are not aware of?
+ Does your equipment have excess
capacity that could be easily and
inexpensively tapped?
+ Could one machine be dragging down
the entire facility?
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PROLOGUE
If your response to the above
questions is positive, then you and your
organization, better have a good, hard look
at total productive maintenance.
What is at stake is your competitive
position in the market, your market share,
profitability and even the survival of your
enterprise.
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MAINTENANCE
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THE FIRST GENERATION
Maintenance activities during this era
thus got to be known as breakdown
maintenance and arose only when the
equipment or processes were not
functioning or were shut down because
they were producing unacceptable output
or were unsafe to operate.
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THE FIRST GENERATION
Average Farm Tractor
Year
Critical
components
No. of tractors failing /
year per 1000 tractors
1935 1200 113
1960 2250 201
1970 2400 213
1980 2600 229
1990 2900 252
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MAINTENANCE
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12
13
First Generation:
Fix it when it
broke
Second Generation:
Higher plant availability
Longer equipment life
Lower costs
Third Generation:
Higher plant
availability
Greater safety
Better product quality
No damage to the
environment
Longer equipment life
Greater cost
effectiveness
1940 1950 1960 1970 1980 1990 2000
GROWING EXPECTATIONS OF
MAINTENANCE
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15
First Generation:
Fix it when it
broke
Second Generation:
Scheduled overhauls
Systems for planning
and controlling work
Big, slow computers
Third Generation:
Condition monitoring
Design for reliability
and maintainability
Hazard studies
Small, fast computers
Failure modes and
effects analyses
Expert systems
Multiskilling and
teamwork
CHANGING MAINTENANCE
TECHNIQUES
1940 1950 1960 1970 1980 1990 2000
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The new developments include:
Decision support tools, such as hazard
studies, failure modes and effects
analysis and expert systems.
New maintenance techniques such as
condition monitoring.
Designing equipment with much
greater emphasis on reliability and
maintainability.
Major shift in organizational thinking
towards participation, team working
and flexibility shift towards Total
Productive Maintenance (TPM)
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Maintenance
Ensuring that physical assets
continue to do what their users want
them to do. It includes all actions
necessary for retaining a system or
production, or restoring it to a
serviceable condition.
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Productivity Improvement
through maximum
availability at
optimum cost
Forestall
rapid wear of
components
Elimination of
future defects
Enhance
performance
level
Reduce
maintenance cost
Reduce idle hours
due to component
malfunctioning
Maximize
operational
efficiency
Ensure safety
during
operation
Prevent
breakdown
during operation
OBJECTIVES OF MAINTENANCE
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Breakdown Maintenance
1950 1960 1970 1980 1990
Preventive Maintenance
Corrective Maintenance
Productive Maintenance
Total Productive Maintenance
1951
1957
1960
1971 TPM
Time-based era
Condition-based era
Q C
C
I
R
C
L
E
(1962)
Z D
G
R
O
U
P
(1965)
J K
A
C
T
I
V
I
T
Y
(1969)

ZERO
A C
C A
C M
I P
D A
E I
N G
T N
(1971)
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Evolution of TPM
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TQC AND TPM
Category TQC TPM
Purpose
Improvement of corporate culture (improvement in actual
performance, creating a cheerful working environment)
Object
Quality
(Output side, Effect)
Equipment
(Input side, Cause)
Means to
achieve the
end
Systematise the management
(Systematisation /
Standardisation)
-Software oriented-
Realisation of ideal production
operation
-Hardware oriented-
Cultivation
and education
of employees
Education focusing mainly on the
management technique
(QC technique)
Education centering on the
equipment / maintenance
technologies
Small group
activities
Voluntary circle activities Integrate the activities based
on job description and by small
group circles
Target Quality for PPM order
Through elimination of losses
and wastes (Aiming at
achievement of zero loss)
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TPM IS NOT ABOUT
TRADITIONAL MAINTENANCE
Traditional Maintenance
Total Productive
Maintenance
Functional organization Productive team
Demarcation Multi-skilled and
operator-based
Reactive to
breakdowns
Preventive
maintenance
Equipment is the
Maintenance
Departments
responsibility
Operator ownership
and pride in
equipment by
everyone
Necessary evil Vitally important
22
TPM has two goals:
- Zero Breakdowns
- Zero Defects
The closer one gets to these objectives,
the lower the costs become, reserves are
reduced and work productivity increases.
TPM GOALS
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OPERATIONAL AIMS OF TPM
+ Reducing the size of the cause of the
fault.
+ Reducing the frequency of the
appearance of the cause.
+ Reducing the growth speed of the stress.
+ Learning how to recognize and eliminate
the cause BEFORE the fault shows itself.
+ Reducing the total intervention costs
(Maintainability).
+ Increasing the strength of the component
(Robust Design).
24
WHAT DOES THE APPLICATION
OF TPM MEAN?
To maximize the efficiency of the plant
and machinery.
To develop complete production
maintenance system.
TPM is production maintenance to be
performed with the involvement and total
participation of all of the personnel.

To create TPM means:
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WHAT DOES THE APPLICATION OF TPM MEAN?
To involve all those who plan, use or
maintain the installations in the TPM
implementation programme.
To involve all company personnel from
the top management to the workers.
To make the activities of small work
groups become operational habits.
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WHAT DOES TPM MEAN?
The word Total in TPM has three meanings
correlated to three important TPM missions:
Total efficiency: The pursuit of a level of
efficiency which makes maintenance
remunerative.
Total production maintenance: The
activation of maintenance prevention (in
the planning phase), of preventive
maintenance and of a lower maintenance
requirement (by corrective maintenance
during the life of the installation).
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WHAT DOES TPM MEAN?
Productive maintenance is therefore the
group of activities which tend to
maximize the exploitation of the
capacities of the plant and machinery by
retaining the correct balance between
maintenance costs and cost effective
maintenance.
Total participation: The constitution of
small work groups and the activation of
autonomous maintenance.
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In this way, maintenance is no longer a
task entrusted to a few specialists, it
becomes an activity which involves the
entire company structure, the design
office, production and administrative
support offices etc.
WHAT DOES TPM MEAN?
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THE ROLE OF OPERATORS
Who else knows the machinery better
than the operators? And who else is
most interested in its efficiency?
Infact many companies when faced with
losses in production capacities, resign
themselves to these and consider them
to be unavoidable.
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THE ROLE OF OPERATORS
O It is useless to stop the running
machinery.
The following considerations are typical:
O All installations always have some
breakdowns etc.
31
In Japanese, the word for breakdown
(Kosho) means:
Damage voluntarily caused by a
human action.
It tells us that the elimination of
breakdowns is only possible if the
attitude towards the breakdowns
changes or more specifically
The installations must never
breakdown
THE ROLE OF OPERATORS
32
Because early TPM activities were
targeted at production departments, TPM
was originally defined by the Japan
Institute of Plant Maintenance (JIPM) to
include the following five strategies:
DEFINITION OF TPM
JIPM VERSION
33
w Maximize overall equipment effectiveness
w Establish a comprehensive PM system
covering the life of the equipment
w Involve all departments that plan, use, and
maintain equipment.
w Involve all employees from top
management to frontline workers.
w Promote TPM through motivation
management i.e. autonomous small group
activities.
DEFINITION OF TPM
34
JIPM introduced a new definition of TPM in
1989 with the following strategic
components:
O Build a corporate constitution that will
maximize the effectiveness of a
production system
O Using a shop-floor approach, build an
organization that prevents every type of
loss (by ensuring zero accidents, zero
defects, and zero failures) for the life of
the equipment.
DEFINITION OF TPM
35
O Involve all departments in implementing
TPM including development, sales and
administration.
O Involve everyone from top management
to shop-floor workers
O Conduct zero-loss activity through
overlapping small group activities.
DEFINITION OF TPM
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OBJECTIVES OF TPM
TPM aims at the improvement of an
enterprise through radical reforms in
equipment and personnel.
(1) Radical Reforms of Personnel
Radical reforms of personnel refers
to the upbringing of employees to
enable them to cope with the era of
fault analysis. Each employee should
acquire following abilities:
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OBJECTIVES OF TPM
O Operator should possess ability to
perform Self Initiated Maintenance
O Maintenance man should posses
ability to do maintenance of all types
of equipments
O Production Engineering man should
acquire the ability to design such
equipments which shall not require
any maintenance.
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OBJECTIVES OF TPM
(2) Improvement of Equipment
O Aim at improvement in overall
efficiency through improvement
of equipment in use at present.
O Plan for LCC (Life Cycle Cost).
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THE OVERALL GOALS OF TPM
1. Cleaning becomes checking
2. Checking becomes discovery
of abnormalities
3. Abnormalities become things
to be restored or improved
4. Restoration and improvement
become positive effects
5. Positive effects become pride
in the workplace
Programme of Activities
Motivation
Department
leaders
Pride in
ones work
Effects
Reduction of
defects and
breakdowns
Changing
the
equipment
Changing
the
people
Continued in next slide
40
Changing attitudes
Breakdowns and
defects should be
seen as an
embarrassment
Changing attitudes
Breakdowns and
defects should be
seen as lost profit
Effects
Achievement
of Zero
breakdown
goals
Changing
(invigorating)
the work
place
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TPM REQUIRES A DIFFERENT
APPROACH TO ACHIEVE THE
OVERALL GOALS
+ Managers are typically process and
results oriented and leave equipment
management to the maintenance
department
+ With TPM Managers will need to change
to:
managing the equipment, the
process and the results.
+ TPM will require everyone to shift their
paradigms.
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TRADITIONAL
MANUFACTURING
Breakdown
Breakdown
Setting
Defects
Adjustment
Misc.
stoppage
8 hrs.
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MANUFACTURING WITH TPM
Operators
meet
8 hrs.
10 Mins.
Equipment
cleaning/checkin
g
10 Mins.
Full output of defect free products
7 hrs. 40 min.
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TPM AND IMPROVEMENT
TPM acts in
the
improvement
area through
three
approaches
Kaizen
Gradual and constant
improvements of the
machine systems
Kairyo
Innovation in the
systems and
machines as a feed
back effect towards
design
Kai Fuku
Restoring design
normality (speed,
pressure etc. )
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TOP MANAGEMENT
Planning Finance Personnel
General
Affairs
Administration
TPM Stage 2
Plant Plant Plant Plant
TPM Stage 1
Production
Development
Sales
TPM Stage 1: Production-department TPM
TPM Stage 2: Companywide TPM embracing production,
development, sales, and administration
FROM PRODUCTION-DEPARTMENT
TPM TO COMPANYWIDE TPM
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There are three main reasons why TPM has
spread so rapidly throughout Japanese
industry and why companies outside Japan
are becoming interested:
It guarantees dramatic results
Visibly transforms the workplace
Raises the level of knowledge and skill
in production and maintenance
workers.
WHY IS TPM SO POPULAR?
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Companies practicing TPM invariably
achieve startling results, particularly in
reducing equipment breakdowns,
minimizing idling and minor stops, lessening
quality defects and claims, boosting
productivity, trimming labour and costs,
shrinking inventory, cutting accidents and
promoting employee involvement.
SIGNIFICANT TANGIBLE
RESULTS
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EXAMPLES OF TPM RESULTS
P Net productivity up by 1.5 2 x
Number of sudden breakdowns down to
1/10 1/250 of baseline
Overall plant effectiveness 1.5 2x
Q Process defect rate down 90%
Customer claims down 75%
C Production costs down 30%
D Product and work-in-process inventories halved
S Shutdown accidents 0
Pollution incidents 0
M Improvement suggestions up by 5 10x
Tangible Benefits
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EXAMPLES OF TPM RESULTS
+ Achieving full self-management --- operators
have ownership of the equipment, they look
after it by themselves without direction.
+ Eliminating breakdowns and defects and
instilling confidence and a can-do attitude.
+ Making previously dirty, grimy, and oily
workplaces unrecognizably clean, bright and
lively.
+ Giving plant visitors a better image of the
company and thereby winning more orders.
Intangible Benefits
51
Through TPM, a filthy, rusty plant covered
in oil and grease, leaking fluids and spilt
powders can be reborn as a pleasant, safe
working environment. Customers and other
visitors are impressed by these changes
and their confidence in the plants products
increases.
TRANSFORMING THE PLANT
ENVIRONMENT
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As TPM activities begin to yield concrete
results improving the working environment,
minimizing breakdowns, improving quality,
reducing change over times and so on,
workers become motivated, involvement
increases and improvement suggestions
proliferate. People began to think of TPM as
part of their job. TPM helps operators
understand their equipment and widens the
range of maintenance and other tasks they
can handle.
TRANSFORMING THE PLANT
WORKERS
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THE ELIMINATION OF EIGHT
BIG LOSSES
Experience inside manufacturing
companies has taught that there are eight
families of losses which reduce the
efficiency of plant and machinery. The
TPM objectives for each of the families of
loss are:
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FAMILY OF
LOSS
OBJECTIVE
Loss from
Breakdown
To reduce stoppages due to
breakdown to a minimum
Set up Loss To reduce the set up time to less than
10 minutes
Production
Adjustment
Loss
to minimize effects of supply and
demand requirements on production
rates.

Small
Stoppage Loss
To reduce them to zero
THE ELIMINATION OF EIGHT BIG LOSSES
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FAMILY OF
LOSS
OBJECTIVE
Defect Loss To make acceptability limits very
tight, 0.1 percent to 0.
Start up Loss To minimize it so that it does not
account for more than 0.1 percent of
the lot.
Reprocessing
Loss
Reduce non-conforming products to
almost zero
Process
Failure Loss
Shut down time due to external
factors such as defective materials,
operating errors etc. to be reduced to
bare minimum
THE ELIMINATION OF EIGHT BIG LOSSES
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1. ESTABLISHING BASIC TPM
POLICY AND GOALS
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EXAMPLE OF BASIC TPM POLICY
AND GOALS (KANSAI NEC)
With everyones participation, to aim for zero
breakdowns and zero defects and seek to
maximize overall equipment effectiveness.
To create well-engineered equipment and use
it to build in quality.
To develop equipment-competent personnel
and have them exercise their full potential.
To create lively, energetic workplaces.
BASIC TPM POLICY
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EXAMPLE OF BASIC TPM POLICY
AND GOALS (KANSAI NEC)
Annual Policy and Companywide TPM Goals
FY 1986 Policy
FY 1987 Policy
FY 1988 Policy
1. Establish a
profitable
corporate
constitution.
2. Promote a
Cut Total
Cost by Half
campaign
3. Promote TPM
September 1988 Target
(relative to April 1986 baseline)
Number of failure: 1/100 or less

Number of minor 1/20 or less
stops:

(Mean time between (4 h or more)
minor stops):

Processing Productivity: at least 50% higher

Materials wastage rate: 1/3 or less

Total cost: 60% or less

Number of shutdown 0
Accidents:
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PILLARS OF TPM
5 S
2. CORE TPM ACTIVITIES
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Other important activities include:
Diagnostics & predictive maintenance
Equipment management
Product development and equipment
design & construction
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Focused Improvement
In addition to major losses, experienced in
fabrication and assembly industries
process industry sustain three additional
types of losses:
People related losses such as work
and misoperation losses
Raw material losses such as yield,
unit consumption and recycling
losses
Management losses such as shut
down maintenance and energy losses
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Autonomous Maintenance
When tailoring autonomous maintenance to
individual process environments planning
team must
Consider how autonomous maintenance
steps can be conducted most effectively
on different types of equipment
Investigate the relative importance of
different equipment items and determine
appropriate maintenance approaches
Prioritize maintenance tasks
Allocate responsibilities appropriately
between production and specialized
maintenance personnel.
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Planned Maintenance
Planned or scheduled maintenance
embraces three forms of maintenance
Breakdown
Preventive
Predictive
65
Quality Maintenance
Quality characteristics are mainly
influenced by the four production inputs
Equipment
Peoples actions (Skills)
Materials
Methods used
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Education and Training
67
Early Management
Early equipment management concerns
equipment users, engineering companies
and equipment manufacturers and
addresses the following areas:
Equipment investment planning
Process design
Equipment design, fabrication and
construction
Test operation
Start up management
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In planning such a project, the project team
determines
The plant and equipments required
technical levels (functions and
performance)
Its availability levels (reliability,
maintainability etc.)
Establish budgets and schedule to
achieve them
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TPM in Administrative & Support
Departments
Autonomous maintenance in administrative
support departments aims for efficient, trouble
free work execution from two angles:
Administrative
Functions
Implemented step-by-step
this function reduces costs
and boasts efficiency by
improving administrative
process
Administrativ
e Environment
Activities here remove
obstacles to effective work
hidden in the physical
environment.
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TPM in Administrative & Support Departments
Focussed improvement of administrative
tasks aims to improve their efficiency and
speed and reduce the number of staff
required.
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Safety & Environment Management
Certain issues are of particular
importance in the process environment
It is particularly important to incorporate
fail-safe mechanisms that is, to design
equipment that will remain safe even
when people do not take proper
precautions.
Assuring safety during maintenance.
During shut down maintenance
considerable assistance is taken from
outside contractors, as do operations
such as cleaning. This makes it doubly
important to ensure safety during such
operations.
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Safety & Environment Management
Check the skills and qualifications of
sub contract workers. Take every
practicable step to assure safety
including given rigorous safety
training and carefully supervising the
work itself.
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EXAMPLE OF TPM
EFFECTIVENESS
1 3 5 7 9 11
Good
100
200
300
400
500
Number
- Breakdowns per month
Year 1 Year 2 Year 3
1 3 5 7 9 11 1 3 5 7 9 11
Months
Note: TPM is not a quick fix!
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THE EFFECTIVENESS OF TPM
Tangible Effect ( 3 to 4 years)
Results from
successful TPM
Companies
( P ) Productivity
Reduction in Number of
Breakdown Failures
Overall Equipment
Efficiency
1/50 of current level

1.5 to 2 times
( Q ) Quality
Reduction in Process
Defects
1/10 of current level
( C ) Cost Manufacturing costs Reduced by 30%
( D ) Delivery Inventory
Reduced by 30% to
50%
( S ) Safety
Time off work for
accidents
Reduced to zero
( M ) Morale
Implemented employee
suggestion
5 to 8 per month per
employee
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OVERALL TPM EFFECTIVENESS
Customer, Quality
defects
Productivity
Program Chart
Overall equipment
effectiveness
(Progress Chart of
number of
breakdowns
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MEASURING WORLD CLASS
PERFORMANCE
Performance
Measure
World
Class
2nd Class 3rd Class
Quality rejects per
million parts
< 500 1000 2000
Setup time < 10 min < 20 min < 30 min
Utilized capacity 90% 75% 55%
Breakdown losses 1% 5% 19%
On schedule
production
100% 90% 80%
Engineering
change process
response time
1 Day 5 Days 10 Days
Annual training
days per employee
20 10 < 5
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1. Equipment Failure / Breakdown
Losses
+ Sporadic and chronic equipment failure /
breakdowns.
+ Sudden and unexpected sporadic
breakdowns result from the deterioration
of the electrical and mechanical operating
components. For example a hydraulic
error in tool changer of the CNC machine
tool or an electrical error in the CNC-
Control etc. These breakdowns are
infrequent.
81
1. Equipment Failure / Breakdown Losses
+ Chronic breakdowns, which are the result
of the defects in equipment, tools,
materials and operating methods, occur
frequently, resulting in small amounts of
lost time for example, unexpected cutting
tool breakdowns in the chip breaking of
difficult materials, mistakes in the choice
of manufacturing methods etc.
82
2. Set Up and Adjustment Losses
+ Are caused by changes in operating
conditions, such as commencement of
production runs or start-up at each shift,
changes in products and conditions of
operation.
+ These losses, for example consist of
downtime, set up (equipment
changeovers, exchange of dies, jigs and
tools), start up and adjustment.
+ The losses are generally accepted as a
process variable, but account for
considerable productivity loss.
83
3. Equipment Idling and Minor
Stoppage Losses
+ Caused by minor machine malfunctions
sticking, faulty sensors, material
abnormalities that can be overcome by
replacing materials or resetting
components.
84
4. Reduced Running Speed Losses
+ Equipment cannot be operated at original
or theoretical speed.
+ At higher operating speeds, quality
defects and minor stoppages frequently
occur.
+ Equipment thereby is required to operate
at a lower moderate speed.
85
5. Defects in Process / Quality
Defect Losses
+ Caused by off specification or defective
products. These must be reworked or
scrapped.
+ Losses consist of labour required to
rework the products and the cost of
materials to be scrapped.
+ They are also designated as Quality
Defects in Process in order to
distinguish them from other quality
defects like unsaleable or defective
products manufactured during startup
and adjustment operations.
86
6. Start Up / Reduced Equipment
Yield Losses
+ Start up losses result from quality
defects associated with stabilizing
operating conditions at the
commencement of work, change over
etc.
+ Yield losses are caused by unused or
wasted raw materials and are exemplified
by the quantity of rejects, scraps, chips
etc.
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88
THE SIX BIG LOSSES
Looking at equipment operation, we
distinguish, six types of waste, we refer to
as losses, because they reflect lost
effectiveness of the equipment. These Six
Big Losses are grouped in three major
categories:
+ Down Time
+ Speed Losses
+ Defect Losses
89
THE SIX BIG LOSSES
Loss Categories The Big Losses
Down Time
(Lost availability)
Equipment failures set
up and adjustments
Speed Losses
(Lost performance)
Idling and minor
stoppages reduced
speed operation
Defect Losses
(Lost quality, sometimes
also called Yield Losses)
Scrap and rework
start up / yield losses
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91
THE OVERALL EQUIPMENT
EFFECTIVENESS METRIC
Most industries have some kind of
gauge on their equipment that measures
such quantities such as uptime, units
produced and sometimes even the
production speed.
These are appropriate things to look at
if the focus is on whats coming out of
the machine.
92
THE OVERALL EQUIPMENT EFFECTIVENESS METRIC
TPM takes a slightly approach. Besides
whats coming out of the machine, we
also want to know what could have
come out, and where we are losing
effectiveness.
Overall equipment effectiveness, or
OEE, offers a simple but powerful
measurement tool to get inside
information on what is actually
happening.
93
THE OVERALL EQUIPMENT EFFECTIVENESS METRIC
The OEE calculation is a metric that
gives us daily information about how
effectively the machine is running and
which of the six big losses we need to
improve.
OEE is not the only indicator to assess
a production system, but it is certainly
very important if our goal is
improvement.
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95
THE ELEMENTS OF OEE
The three main categories of equipment
related losses downtime, speed loss
and defect or quality / yield loss are
also the main ingredients for determining
the overall equipment effectiveness.
OEE is calculated by combining the three
factors that reflect these losses:
- The Availability Rate
- The Performance Rate
- The Quality Rate
96
The availability rate is the time the
equipment is really running, versus
the time it could have been running.
A low availability rate reflects
downtime losses:
Equipment failures
Setup and adjustments
Availability Rate =
Operating Time Downtime
Total Operating Time
OR
Loading Time Breakdown &
Setup time loss
Loading Time
Loading time is the time that
the machinery was planned to
be in operation
The performance rate is the
quantity produced during the running
time versus the potential quantity,
given the designed speed of the
equipment.
A low performance rate reflects
speed losses:
Idling and minor stoppages
Reduced speed operations

Performance Rate =

Total output
Potential output at rated speed
OEE METRIC
97
Performance Rate (Contd)
There are, however, situations
where only few parts are produced
per day or per week or even per
month or year.
In these cases standard production
times are rarely used or accurate
enough, and there-fore, it is
necessary to measure minor
stoppages and reduced speed losses
directly in this case.
Performance =
Time Run Minor Stoppage
Reduced speed
Time Run
Performance figure can be
calculated in either way, but it is
usually simpler to use the first
formula when reasonable
quantities and standard
throughput rates are available.
The quality rate is the amount of
good products versus the total
amount of products produced.
A low quality rate reflects defect
losses:
Scrap and Rework
Start up losses
Quality Rate = Good Output
Total output

Quality Rate =
Amount Produced Amount
Defectives Amounts
reprocessed
Amount Produced
OEE METRIC
98
THE ELEMENTS OF OEE
To calculate OEE, we multiply the three
factors together
OEE = Availability Rate x Performance Rate
x Quality Rate
Although it is strictly not a percentage, it is
usually represented in percentage terms.
99
DIAGRAM OF OVERALL EQUIPMENT
EFFECTIVENESS
TOTAL OPERATING TIME
A Net Operating Time
No
Scheduled
Production
B Running Time
Failures
Setup
C Target Output
D Actual Output
Minor stoppage
Reduced speed
E Actual Output
F
Good
Output
Scrap rework
Startup losses
OEE = B/A x D/C x F/E
Availability Rate Performance Rate Quality Rate
A
v
a
i
l
a
b
i
l
i
t
y

P
e
r
f
o
r
m
a
n
c
e


Q
u
a
l
i
t
y


Lost Effectiveness
100
101
OBJECTIVES OF OEE
OEE is used to identify a single asset
(machine or equipment) and / or single
stream process related losses for the
purpose of improving total asset
performance and reliability.
OEE is used to identify and categorize major
losses or reasons for poor performance.
102
OBJECTIVES OF OEE
OEE provides the basis for setting
improvement priorities and beginning
root cause analysis.
OEE is used to track and trend the
improvement, or decline, in equipment
effectiveness over a period of time.
OEE can point to hidden or untapped
capacity in a manufacturing process and
lead to balanced flow.
103
OBJECTIVES OF OEE
The use of OEE is also intended to
develop and improve collaboration
between asset operations, maintenance,
purchasing, and equipment engineering
to jointly identify and eliminate (or
reduce) the major causes of poor
performance since Maintenance alone
cannot improve OEE.
104
105
BENEFITS OF OEE MEASUREMENT
Since equipment effectiveness affects
shop floor employees more than any
other group, it is appropriate for them to
be involved in tracking OEE and in
planning and implementing equipment
improvements to reduce lost
effectiveness.
106
BENEFITS OF OEE MEASUREMENT
It is recommended that the operator
collect the daily data about the
equipment for use in the OEE calculation.
Collecting this data will:
- Teach the operator about the
equipment.
- Focus the operators attention on
losses.
- Grow a feeling of ownership of the
equipment.
107
BENEFITS OF OEE MEASUREMENT
The shift leader or line manager is often
the one who will receive the daily
operating data from the operator and
process it to develop information about
the OEE. Working hands on with the data
will:
- Give the leader / manager basic facts
and figures on the equipment.
- Help the leader / manager give
appropriate feedback to the
operators and others involved in
equipment improvement.
108
BENEFITS OF OEE MEASUREMENT
- Allow the leader to keep management
informed about equipment status and
improvement results.
109
OEE EXAMPLES
Example 1
- Planned Time to Run = 8 Hours (480 Minutes)
- Breaks and Scheduled Maintenance = 20 Minutes
- Loading Time = 480-20 = 460 Minutes
- Downtime Encountered = 20 minutes breakdowns and 40 minutes
changeover and adjustment
- Percentage Availability = Loading Time Downtime
Loading Time
- Output = 400 Components
- Theoretical Cycle Time = 0.5 Minutes / Component
- Percentage Performance = Actual Output
Potential Output
- Number of Reject Components = 8
- Percentage Quality = Produced Units Defectives
Produced Units
- OEE = Availability x Performance x Quality
x 100
x 100
x 100
110
OEE EXAMPLES
Example 2
- Planned Time to Run = 120 Hours / week (7200 Minutes)
- Breaks and Scheduled Maintenance = 0 Minutes (continuous production)
- Loading Time = 7200 0 = 7200 Minutes
- Downtime Encountered = 120 minutes breakdowns and 460
minutes changeover and adjustment
- Percentage Availability = Loading Time Downtime
Loading Time
- Output = 2,20,000 units
- Theoretical Output = 2250 Components / Hour
- Percentage Performance = Actual Output
Potential Output
- Number of Reject Units = 2050
- Percentage Quality = Produced Units Defectives
Produced Units
- OEE = Availability x Performance x Quality
x 100
x 100
x 100
111
These examples vividly bring out the fact
that with conventional production
management concepts, it used to be
impossible to ascertain totally the
effectiveness of equipment, a process, or
an entire plant.
By introducing the concept of overall
equipment effectiveness, productivity at
each level is clearly defined with
accurate and meaningful figures.
BENEFITS OF OEE MEASUREMENT
112
This concept, for the first time, makes it
possible to compare the trend of
productivity from past to present, and
from production line to production line in
the same plant or plant by plant.
Comparisons also may be made among
various products manufactured by
different companies. Additionally, the
hidden loses, which have never been
recognized as losses, are plainly and
surprisingly exposed.
BENEFITS OF OEE MEASUREMENT
113
114
One traditional measure that pulls
together the physical aspects of a
facilitys performance is Operating
Equipment Efficiency (OEE), also
referred to as Overall Equipment
Effectiveness) which gauges how
efficiently a piece of equipment or line
is producing quality goods.
COLLECTIVE MEASURES OEE,
LOE AND OPE
115
OEE has been viewed by many as a sort
of silver bullet in that it can quickly
capture a number of problems in the
plant from equipment breakdowns to
sloppy quality practices.
On the softer side of the plant, the
Manufacturing Performance Institute
(MPI) has developed a measure called
Labor Operating Efficiency (LOE), which
pulls together the availability of
workforce (non absentism rate).
OEE, LOE and OPE
116
The accumulated knowledge depth of
the workforce (annual labor retention
rate, which is the percentage still in place
after voluntary and involuntary exits), and
the quality of the workforce as defined by
managements ability to empower the
workforce to supervise itself and
autonomously improve production (this
measure can be expressed either as a
percentage of workforce in empowered
teams or a general level of empowerment
within the facility).
OEE, LOE and OPE
117
The multiple of these factors leads to
LOE.
To bring the hard and soft together, MPI
factors OEE, LOE and capacity usage to
get a measure of:
Overall Plant Efficiency (OPE)
OEE, LOE and OPE
118
Based on these three components of
efficiency Equipment, People, and
Capacity executives can assess the
overall efficiency of a plant network as
well as individual sites. Decisions can
then be made on how to allocate
production, to improve a facility, or to
augment a network of facilities.
OEE, LOE and OPE
119
OPE helps to identify and evaluate
where Real capacity might exist in a
corporate network of plants and which
facilities are making the most of their
resources.
OEE, LOE and OPE
120
OEE, LOE and OPE
MPIs Measuring Overall Plant
Efficiency (OPE)
Operating Equipment Efficiency
(OEE)
X
Labour Operating Efficiency
(LOE)
X
Capacity
Usage
Machine
Availability
%
x
Quality
Yield
%
x
Perfor-
mance
Rate
%
x
Empo-
wered %
x
Annual
Labour
Retention
%
x
Non
Absenteeism
%
x
Capacity
Usage
%
121
OEE, LOE and OPE
OPE also indicates how much more
capacity can be squeezed out of a
plant if operational improvements are
made.
For example, the 25 finalists facilities
as identified by Industry Week
Magazine in its best plants competition
in 2003 achieved the following:-
122
OEE, LOE and OPE
OPE of Approximately 48%
OEE 84%
LOE 72%
Empowered / Self Directed Teams 82%
Turnover Rate 10%
Absenteeism 2%
Capacity Usage 79%
123
OEE, LOE and OPE
How can executives use OPE? If, for
instance, a COO is trying to find a modest
amount of manufacturing capacity for a
new product and is evaluating between
two plants, he might look at available
capacity and see that plant A has 40%
available capacity and plant B has just
30% available capacity. The quick
decision might be to move production
into plant A.
124
OEE, LOE and OPE
But an OPE review of plant A which
takes into account a shaky OEE of 70%
and a troublesome labour environment:
LOE 27% based on 8% labour turnover,
10% absenteeism and 33%
empowerment, of which most
is management.
Would find that this facility has a poor
OPE of 11%.
125
OEE, LOE and OPE
Meanwhile, Plant B with a solid OEE of
85% and a satisfied and involved
workforce.
LOE 85% based on 90% empowerment, 5%
turnover and 1% absenteeism.
Maintains an OPE of 51%. Clearly plant B
has been doing a far better job of optimizing
the equipment, and people it has and
though it does not have as much unused
capacity as plant A, it should be rewarded
the new production.
126
OEE, LOE and OPE
Similarly, the OPE analysis indicates
that there is far more than just 40%
capacity available at plant A, provided
improvements are made to solve the
problems that led to its poor OEE and
disgruntled workforce.
127
128
MEASURES OF EFFECTIVENESS
OF FACILITIES
Let us now look at some examples of
the losses encountered in different
areas of an operating company.
+ Example 1: Hand Assembly
+ Example 2: Semi Automated
Assembly
+ Example 3: Processing System
129
EXAMPLE 1. HAND ASSEMBLY
In this example we look at the
assembly of machinery on the shop floor of a
major machinery supplier's factory. Working
conditions are single shift working, 8 hours
per shift, 5 days per week; planned assembly
loading time for this job is 8 weeks. The
following is a list of losses encountered
during a particular assembly process:
130
HAND ASSEMBLY
1. An alignment fixture was damaged and
had to be fixed prior to use, 8 hours
delay.
The fixture was required in order to
carry on with the assembly process
which could not happen because the
fixture was not available. Therefore,
this is an availability loss.
131
2. An important fixture was being used by
another craftsman, on another assembly.
This happened twice during the
assembly, 3 hours' delay each time.
Similarly, not in this case due to the
fixture being damaged, but because it
was being used elsewhere, the
assembly could not continue as the
fixture was not available and an
availability loss was encountered.
HAND ASSEMBLY
132
3. The hand drill overheats and overloads.
The craftsman had to 'peck drill' and
leave the drill to cool off for 10 minutes.
This happened on average once per day.
The facility being used to perform the
assembly operation, in this case a hand
drill, was not performing correctly and
causing minor stoppages. Therefore, this
is a performance loss.
HAND ASSEMBLY
133
4. The craftsman had to go to the stores
for the correct cutting tool. This
happened once per day and took on
average 12 minutes each time.
Whilst visiting the stores, the craftsman
could not work on the assembly. This
happened because the correct tool was
not available and, therefore, this is an
availability loss. Note that this could
have been classed as a minor stoppage,
i.e. a performance loss depending upon
the criteria applied.
HAND ASSEMBLY
134
5. The shop crane was not available as it
was being used elsewhere. This
happened on average once per day
and caused a delay of 15 minutes each
time.
The shop crane was a key facility
required to carry out the assembly
process and was not available
because it was being used by
someone else. Therefore, this is an
availability loss.
HAND ASSEMBLY
135
6. The assembly drawing was unclear, the
craftsman needed to discuss the
assembly with the designer. This
happened on average twice per week
and took 30 minutes.
The drawing was an item of information
supplied to the craftsman which he
required in order to carry out the
assembly process. As the drawing was
not clear it can be interpreted that it
was defective and thus time was lost
due to the poor quality of information
supplied. Therefore, a quality loss was
incurred.
HAND ASSEMBLY
136
7. The correct spanner was missing and
had to be retrieved. This happened
twice per week and on average took
20 minutes each time.
The correct spanner was required to
carry out the assembly process and
was not available. Therefore, this is
an availability loss.
HAND ASSEMBLY
137
8. A part had been assembled, but due to
incorrect dimensions had to be
removed and re-machined. This
happened 3 times during the assembly
and each time took 5 hours.
Time was lost because this part of the
assembly had to be repeated due to
the poor quality of parts. Therefore, a
quality loss was encountered.
HAND ASSEMBLY
138
9. The test rig, used to carry out final
testing of the machine, was not
feeding parts correctly and had to be
de-bugged and repaired. This
happened once and took 6 hours.
The test rig was a facility required to
complete the assembly process and
due to a fault it was not available. This
is an availability loss.
HAND ASSEMBLY
139
HAND ASSEMBLY
10. The test rig had to be positioned and a
transition chute made and fitted onto
the assembly. This had to be done
once and took 5 hours.
The test rig had to be tooled,
positioned and set up prior to the
assembly process being able to
continue and, therefore, an availability
loss was encountered.
140
HAND ASSEMBLY
11. A part was fitted back to front by
mistake and had to be removed and
reassembled. This happened twice
during the assembly and cost 4 hours
each time.
Time was lost and this part of the
process had to be repeated due to the
error of the craftsman involved. It may
be that the part was not identified
sufficiently or that the drawing was
unclear and, therefore, the loss was due
to poor quality and incurred a quality
loss.
141
HAND ASSEMBLY
12. An important part was not available for
assembly and no other work on the
assembly could be done. This
happened once and cost 8 hours.
Assembly operations are always very
much affected by the shortage of parts
and in this case an important part was
not available for the assembly.
Therefore, an availability loss was
incurred.
142
HAND ASSEMBLY
13. Parts were not available when required
to complete a sub-assembly and so that
had to be left and another sub-assembly
worked on. This happened 10 times and
caused a delay of 15 minutes in
changing over from job to job. On these
occasions the assembly process could
continue, but the shortage of parts
required caused disruption and minor
stoppages resulted. This is a
performance loss.
143
HAND ASSEMBLY
If we now add up all of the losses we find:

Availability losses = 8 x 60 mins (No. 1) +
3 x 60 mins x 2 (No. 2) +
12 mins x 5 x 8 (No. 4) +
15 mins x 5 x 8 (No. 5) +
20 mins x 2 x 8 (No. 7) +
6 x 60 mins (No. 9) +
5 x 60 mins (No. 10) +
8 x 60 mins (No. 12)
Total = 3380 mins during the
assembly

Performance losses = 10 mins x 5 x 8 (No. 3) +
15 mins x 10 (No. 13)
Total = 550 minutes during the
assembly
144
HAND ASSEMBLY
Quality losses = 30 mins x 2 x 8 (No. 6) +
5 x 60 mins x 3 (No. 8) +
4 x 60 mins x 2 (No. 11)
Total = 1860 minutes during the
assembly
145
EXAMPLE 2. SEMI-AUTOMATED
ASSEMBLY
In this example we look at a semi-
automated assembly machine which
assembles and welds automotive
components. Working conditions are single
shift working, 7.5 hours per shift, 5 days
per week; planned throughput is 150
units/hour; actual output = 2875 units per
week. The following is a list of losses
encountered during the assembly process:
146
SEMI-AUTOMATED ASSEMBLY
1. Two parts are not assembled correctly and
do not sit properly in the fixture causing
the machine to stop and they have to be
taken out of the fixture and the machine re-
set. This happens on average 5 times per
hour, I unit is lost and 2 minutes is lost.
Because parts have to be retrieved and the
machine re-set, a minor stoppage occurs
and, therefore, a performance loss is
encountered. Also, because parts are
incorrectly assembled and cannot be re-
processed they are scrapped. This is also a
quality loss.
147
SEMI-AUTOMATED ASSEMBLY
2. Electrodes wear out and have to be
replaced and the current level
readjusted. This happens once per week,
30 units are scrapped and replacement
takes I hour.
While the electrodes are replaced and
set up the machine is not available for
production and, therefore, an availability
loss is incurred. Also, as a result of the
electrodes, wear not being detected
early enough, a number of units are
incorrectly welded and have to be
rejected. Thus a quality loss is also
incurred.
148
SEMI-AUTOMATED ASSEMBLY
3. One of the electrode cooling hoses
bursts, has to be replaced and the
whole machine dried out. This happens
once per month and takes 5 hours.
Because the hose burst causes a
breakdown during which time the
machine cannot be operated, an
availability loss is incurred.
149
SEMI-AUTOMATED ASSEMBLY
4. One of the fixtures is slightly
misaligned and can sometimes cause
one of the welds to be out of position,
220 units per week are lost.
The misaligned fixture causes
inconsistent quality of products
resulting in the rejection of a number
of units. Therefore, this is a quality
loss.
150
SEMI-AUTOMATED ASSEMBLY
5. Fixtures have to be removed and
replaced and electrode positions
adjusted when changing to different size
parts. This happens 3 times per week
and takes 2.25 hours, 24 units are
scrapped each time.
Production time is lost whilst the
machine is changed over and set up for
a different product and, therefore, it is
not available and this is an availability
loss. Also, at start-up, units are lost and
this represents a quality loss.
151
SEMI-AUTOMATED ASSEMBLY
6. Sometimes the stamp (on the final
station) actuating cylinder sticks and
causes a delay which doubles the
cycle time. This happens 15 minutes
per day.
When the cylinder sticks it reduces the
output of the machine and, therefore, a
performance loss is encountered.
152
SEMI-AUTOMATED ASSEMBLY
7. In order to stop rusting of the machine
parts (due to water leaks) the operator
has to apply a protective spray at the
start and end of each day. This takes 5
minutes each time.
Because the operator cannot start
production until he has applied the
spray, a minor stoppage occurs which
is a performance loss.
153
SEMI-AUTOMATED ASSEMBLY
8. Limit switches on the indexing table
sometimes corrode and stop the machine
from operating. They have to be replaced.
This happens once every 6 weeks and
takes 6 hours.
While the switches are being replaced,
the machine is not available for
production and, therefore, an availability
loss is incurred. It is also likely that the
switches could have caused some minor
stoppages prior to breaking down which
would represent a performance loss.
154
SEMI-AUTOMATED ASSEMBLY
If we now add up all of the losses we find:

Availability losses = 1 x 60 mins (No. 2) +
5 x 60/4 mins (Av.No.3) +
2.25 x 3 x 60 mins (No.5) +
6 x 60/6 mins (Av. No. 8)
Total = 600 minutes per week
Performance losses = 2 mins x 5 x 7.5 x 5 (No.1) +
15 mins x 5 (No. 6) +
5 mins x 2 x 5 (No. 7)
Total = 500 minutes per week
Quality losses = 1 unit x 5 x 7.5 x 5 (No.1) +
30 units (No. 2) +
220 units (No. 4) +
24 units x 3 (No. 5)
Total = 510 units per week
155
EXAMPLE 3. PROCESSING SYSTEM
In this example we take a food
processing system which consists of a
mixing vessel, hoppers holding raw
materials, water tank valves and
interconnecting pipe work. Working
conditions are three shift working, 24 hours
a day, 7 days per week; throughput capacity
= 300 kg/hour (batches of 75 kg); actual
output = 43 000 kg. The following is a list of
losses encountered during production:
156
PROCESSING SYSTEM
1. A blockage occurs in the output pipe
from one of the raw material hoppers.
The blending process is delayed whilst
the cover is taken off and blockage
cleared. This happens on average 10
times per week and takes 8 minutes to
clear.
Whilst the blockage is being cleared,
the process is delayed and a minor
stoppage occurs. This is a performance
loss.
157
2. Blended materials leak from a flange
in the main output pipe from the
mixing vessel. Around 3 kg of
material is lost every shift and has to
be cleared from the floor.
The material which leaks from the
defective flange joint has to be
disposed of and, therefore,
represents a quality loss.
PROCESSING SYSTEM
158
3. The water inlet valve seizes and will not
open. It has to be stripped down, cleaned
and then re-fitted. This takes 4 hours to
complete during which time the process
cannot continue. Also, the material
already in the mixing vessel has to be
removed and disposed of. This happens on
average once per week and 50 kg of
material is wasted.
The process cannot be performed whilst
the repair is taking place as the system is
not available and, therefore, this is an
availability loss. Also, the waste material
represents a quality loss.
PROCESSING SYSTEM
159
4. The mixer paddle switch is faulty and
often the mixing sequence stops until
the switch is nudged by the operator.
This happens around 12 times every
shift and delays the processing of the
batch by 3 minutes each time.
The paddle switch fault causes a minor
stoppage to occur during the process
cycle. Therefore, a performance loss
has been incurred.
PROCESSING SYSTEM
160
5. A seal on the mixing vessel outlet
ruptures and blended material spills onto
the floor. The seal has to be replaced
which takes 8 hours and approximately
half of the batch is wasted and has to be
disposed of. This happens once every 2
weeks.
The seal rupture represents a breakdown
and has to be repaired before the process
can recommence. This is an availability
loss. Also the wasted material means that
a quality loss has been incurred.
PROCESSING SYSTEM
161
6. One of the hopper feeders malfunctions
and causes too much material to be
added to the mix. Some of the mix has
to be removed from the vessel and the
remaining mix re-processed to attain
the correct consistency. The mix that
has been removed is later put back into
the mixing vessel and reprocessed.
This happens to 4 batches per week
and it takes twice as long to re-process
the batch as usual.
PROCESSING SYSTEM
162
The amount of material that is re-
processed is treated as if it were waste
because the process has been
undertaken twice and, therefore, a
quality loss is incurred. Also, because
the re-processing takes twice as long
as a normal batch, it represents a
reduced speed loss which is a
performance loss.
PROCESSING SYSTEM
163
7. Occasionally the main mixer drive
overheats and causes the thermal
overload to trip out. This requires a
pause of 10 minutes before
recommencing the process and
occurs on average 6 times per week.
The motor overload causes a minor
stoppage which is a performance
loss.
PROCESSING SYSTEM
164
PROCESSING SYSTEM
If we now add up all of the losses we find:

Availability losses = 4 x 60 mins (No. 3) +
8 x 60 mins/2 (No. 5)
Total = 480 minutes per week
Quality losses = 3 kg x 3 x 7 (No. 2) +
50 kg (No. 3) +
37.5 kg/2 (No. 5) +
75 kg x 4 (No. 6)
Total = 431.75 kg per week
Performance losses = 8 mins x 10 (No. 1) +
3 mins x 12 x 3 x 7 (No. 4) +
15 mins x 4 (No. 6) +
10 mins x 6 (No. 7)
Total = 956 minutes per week
165
It is quite usual for different people to
have different interpretations of the kind of
loss which has been incurred. In particular,
there is often a debate concerning what
should be regarded as availability losses and
what should be regarded as performance
losses. I tend to think of minor stoppages as
frequently occurring events which result in a
production stoppage of 10 minutes or less,
although this is not a hard and fast rule.
PROCESSING SYSTEM
166
It is necessary, therefore, to devise
some criteria for each area where losses
are to be measured so that everyone can
record them under the same category and
confusion is eliminated. The important
principle is that all losses should be
identified, and this is much more
important than being able to place them
in exactly the right category.
PROCESSING SYSTEM
167
Similarly, types of losses can be
identified which are associated with the
facilities used to carry out a process in all
areas of the business. Figure shows the
effects of the six big losses and how they
reduce the productivity and, hence, the
earning capacity of facilities. I have called the
diagram an effectogram as it provides a
means of showing the six big losses and
overall effectiveness using a histogram
format. It is now an appropriate point to
introduce the concept of overall effectiveness.
PROCESSING SYSTEM
168
actual
losses
earning
capacity
overall
effectiveness
quality performance availability
A
v
e
r
a
g
e

h
o
u
r
s

/

y
e
a
r

-

h





Earnings





Effective
operation




Good
Quality
Output




Output




Available
for
operation


Total
Losses
Lost
Earnings
Lost
Output
Lost
Output
Lost
Availability
Rs Rs
Rs Rs
0
10
20
30
40
50
60
70
80
90
100
EFFECTOGRAM SHOWING THE
EFFECTS OF THE SIX BIG LOSSES
P
e
r
c
e
n
t
a
g
e


169
We have, in the past, been encouraged to
strive for efficiency and efficient
manufacturing operations to produce goods at
the highest volume for the least cost.
Efficiency can be defined as 'doing things
right', whereas effectiveness is 'doing the
right things right'. In the context of an
operating company this means producing
what the customer wants, when he wants it,
in the quantity he desires and at the
appropriate quality and providing the required
profit to the business: in essence, working in
a smarter way.
PROCESSING SYSTEM
170
OVERALL EFFECTIVENESS
The effectiveness of facilities has a
direct bearing upon the competitiveness and
profitability of a business and maximizing
their effectiveness means that the best
possible return is generated by each capital
asset owned by the business. It is possible to
calculate a percentage figure for each group
of losses, thus percentage availability is the
ratio of how long you actually used the
machinery over how long you wanted to use
the machinery, and is calculated as:
171
where loading time is the time that the
machinery was planned to be in
operation. A simple example is where loading
time = 8 hours, breakdowns
1 hour and changeovers/set ups = 1 hour, thus:
% availability = loading time - breakdown and set up time loss

loading time
X 100
% availability =
8 (1 + 1)
8
X 100 =
6
8
= 75%
OVERALL EFFECTIVENESS
172
There is often some debate concerning the
definition of loading time and whether certain
factors should or should not be included. It is
important to remember that we are not trying to
measure machinery or operator utilization, but
rather the availability of the machinery for
production when it is required. My experience is
that if people factors are included in the
calculation then it is perceived as a measure of
performance on the operator and not just the
machinery, and as such can cause some
resistance. Loading time may only be for a few
hours a week, but if the machinery is required to
be available for those few hours and is
scheduled as such, then its percentage
availability is based upon those few hours.
OVERALL EFFECTIVENESS
173
A better definition of loading time is:
loading time = planned production time breaks
planned maintenance time
Percentage performance is the ratio of what was
actually produced in a given time over what you
would have expected to be produced in a given
time, and can be calculated in two ways. The first
method is:
% performance =
quantity produced
time run x capacity/given time
X 100
OVERALL EFFECTIVENESS
174
OVERALL EFFECTIVENESS
A simple example is where the quantity
produced = 500 parts; the time run 6 hours
and the capacity = 100 parts per hour.
% performance =
X 100 =
500
6 X 100
500
600
X 100 = 83%
175
OVERALL EFFECTIVENESS
This is the most straightforward means
of calculating percentage performance and
is preferable where many products or bulk
quantities are produced in a relatively short
time. There are, however, situations where
only few parts are produced per day or per
week or even per month or year. In these
cases standard production times are rarely
used or accurate enough and, therefore, it is
necessary to measure minor stoppages and
reduced speed losses directly. In this case:
176
OVERALL EFFECTIVENESS
% performance =
Time run minor stoppages reduced
speed
time run
X 100
A simple example is where time run = 6 hours;
minor stoppages total = 1/2 hour lost and the
reduced speed equivalent = 1/2 hour lost.
% performance = X 100 =
6 -
6
5
6
X 100 = 83%
177
OVERALL EFFECTIVENESS
Note that the percentage performance
figure can be calculated in either way, but it
is usually simpler to use the first formula
when reasonable quantities and standard
throughput rates are available.
Percentage quality is the ratio of the
number of good products over total products
produced during a given period of time and,
again, can be calculated in two ways. The
first method is:
178
OVERALL EFFECTIVENESS
% quality =
amount produced amount defects
amount re-processed

amount produced
X 100
A simple example is where the quantity
produced = 500 products; the amount
defective = 50 and the amount re-processed
= 50.
% quality = X 100 =
500 50 50
500
400
500
X 100 = 80%
179
OVERALL EFFECTIVENESS
As with the percentage performance
calculation, this is the most
straightforward way of calculating
percentage quality where many products
or bulk quantities are produced. Where
this is not the case, it may be necessary to
record the amount of time spent producing
reject parts or work and the amount of
time spent re-processing parts. In this
case the calculation is:
180
OVERALL EFFECTIVENESS
% quality =
Time run defect time re-processing time

Time run
X 100
A simple example is where the time run = 6 hours;
the time spent producing defects = 1/2 hour and the
time spent re-processing = 1/2 hour.
% quality = X 100 =
6 -
6
5
6
X 100 = 83%
181
OVERALL EFFECTIVENESS
Note that the percentage quality figure can be
calculated in either way, but it is usually much
easier to use the first formula when the
situation allows.
Overall effectiveness is a measure of all three
of these factors and, although it is not strictly a
percentage, it is usually represented in
percentage terms and is calculated as:
overall effectiveness = % availability x % performance x
% quality
182
OVERALL EFFECTIVENESS
In order to finish up with a percentage figure it is
necessary to divide each individual percentage
figure by 100 and then multiply the resulting
overall effectiveness figure by 100. A simple
example is:
% availability = 75%
% performance = 83%
% quality = 80%
overall effectiveness = 0.75 x 0.83 x 0.8 x
100 = 50%
183
OVERALL EFFECTIVENESS
If we now take the examples used to
illustrate the six big losses, we can
calculate an overall effectiveness figure for
each example.
184
loading time = 8 X 5 X 8 = 320 hours = 19 200 mins

availability losses = (8 x 60) + (3 x 60 x 2) + (12 x 5 x 8) +
(15 x 5 x 8) + (20 x 2 x 8) + (6 x 60) +
(5 x 60) + (8 x 60)
= 480 + 360 + 480 + 600 + 320 + 360 + 300 +
480
= 3380 mins/assembly
EXAMPLE 1. HAND ASSEMBLY
% availability =
19200 3380

19200
X 100 =
15820

19200
X 100 = 82%
Performance losses = (10 X 5 X 8) + (15 X 10) = 400 + 150
= 550 mins/assembly
185
HAND ASSEMBLY
% performance =
15820 550

15820
X 100 =
15270

15820
X 100 = 97%
Quality losses = (30 X 2 X 8) + (5 X 60 X 3) + (4 X 60 X 2)
= 480 + 900 + 480 = 1860 mins/assembly
% Quality =
15820 1860

15820
X 100 =
13960

15820
X 100 = 88%
Overall assembly effectiveness = 0.82 X 0.97 X 0.88 X 100
OAE = 70%
186
HAND ASSEMBLY
If we now plot these figures on an
effectogram, the magnitude of the losses
and loss of earning capacity can be easily
seen. The effectogram for example 1 is
shown in next slide.
187
EFFECTOGRAM FOR EXAMPLE 1
actual
losses
earning
capacity
overall
effectiveness
quality performance availability









Effective
operation





Good
Quality
Output






Output




Available
for
operation


Total
Losses
Lost
Earnings
Lost
Output
0
10
20
30
40
50
60
70
80
90
100
Lost
Output
P
e
r
c
e
n
t
a
g
e


Earnings
Loss
Availability
188
loading time = 7.5 X 5 = 37.5 hours/wk = 2250 mins/wk

availability losses = (1 X 60) + (5 X 60/4) + (2.25 X 3 X 60) +
(6 X 60/6)
= 60 + 75 + 405 + 60 = 600 mins/wk
EXAMPLE 2. SEMI-AUTOMATED
ASSEMBLY
% availability =
2250 600

2250
X 100 =
1650

2250
X 100 = 73%
Performance losses = (2 X 5 X 7.5 X 5) + (15 X 5) + (5 X 2 X 5)
= 375 + 75 + 50 = 500 mins/wk
% performance =
1650 500

1650
X 100 =
1150

1650
X 100 = 70%
189
HAND ASSEMBLY
% performance =
2875

(1650/60 X 150)
X 100 =
2875

4125
X 100 = 70%
Quality losses = (1 X 5 X 7,5 X 5) + (30 X 1) + (220 X 1) + (24 X 3)
= 188 + 30 + 220 + 72 = 510 units/wk
% quality =
2875 510

2875
X 100 =
2365

2875
X 100 = 82%
Overall machine effectiveness = 0.73 X 0.70 X 0.82 X 100
OME = 42%
190
HAND ASSEMBLY
The effectogram for this example is shown
in next slide.
191
EFFECTOGRAM FOR EXAMPLE 2
actual
losses
earning
capacity
overall
effectiveness
quality performance availability






Effective
operation





Good
Quality
Output






Output




Available
for
operation


Total
Losses
Lost
Earnings
Lost
Output
Lost
Availability
0
10
20
30
40
50
60
70
80
90
100
Lost
Output
P
e
r
c
e
n
t
a
g
e


Earnings
192
loading time = 24 X 7 = 168 hours/wk 10080 mins/wk

availability losses = (4 X 60) + (8 X 60/2) = 240 + 240
= 480 mins/wk
Example 3. PROCESSING SYSTEM
% availability =
10080 480

10080
X 100 =
9600

10080
X 100 = 95%
Performance losses = (8 X 10) + (3 X 12 X 3 X 7) + (15 X 4) + (10 X 6)
= 80 + 756 + 60 + 60 = 956 mins/wk
% performance =
9600 956

9600
X 100 =
8644

9600
X 100 = 90%
193
HAND ASSEMBLY
% performance =
43000

(9600/60 X 300)
X 100 =
43000

48000
X 100 = 90%
Quality losses = (3 X 3 X 7) + (50 X 1) + (37.5/2) + (75 X 4)
= 63 + 50 + 18.75 + 300 = 431.75 kg/wk
% quality =
43000 413.75

43000
X 100 =
42586.25

43000
X 100 = 99%
Overall machine effectiveness = 0.95 X 0.90 X 0.99 X 100
OPE = 85%
194
The figures are plotted on the
effectogram in figure shown. It should
note that the percentage figures have
been rounded up to the nearest whole
number in all of the examples.
HAND ASSEMBLY
195
EFFECTOGRAM FOR EXAMPLE 3
actual
losses
earning
capacity
overall
effectiveness
quality performance availability








Effective
operation




Good
Quality
Output





Output




Available
for
operation


Total
Losses
Lost
Earnings
Lost
Output
Lost
Availability
0
10
20
30
40
50
60
70
80
90
100
Lost
Output
P
e
r
c
e
n
t
a
g
e


Earnings
196
Overall effectiveness is a key, factory floor
level measure of performance which can be
directly related to the turnover and profit
generated by each facility. It provides a means
of measuring the main operational losses and,
more importantly, monitoring progress in
reducing these losses and improving machinery
effectiveness. TPM considers overall
effectiveness as one of the most significant
measures of performance and improvement and
the process of monitoring and plotting this alone
can provide benefits.
HAND ASSEMBLY
197
Overall effectiveness should not be
used just as a means of comparing one
operating company with another or of
comparing one area of a business with
another. It is natural that this comparison
will be made and an element of
competitiveness will creep in, but the real
use of overall effectiveness is as a measure
of progress and an indicator to direct
improvement activity.
HAND ASSEMBLY
198
199
The concept of the six big losses and
overall effectiveness was introduced and
the effectograms illustrated the effects of
the losses on the earning capacity of the
particular machinery or process. Overall
effectiveness is a direct measure of the
earning capacity of facilities within the
company and can be used to measure the
financial benefits arising from the
application of TPM.
THE FINANCIAL BENEFITS OF
IMPLEMENTING TPM
200
The processes which are employed
within an operating company are designed
to add value to the materials or parts which
they are processing. For example, if a press
is used to press out motor car body panels
from a sheet of steel, the value of the
processed panel will be greater than that of
the blank sheet. The difference between the
two is termed added value and is
calculated as follows:
THE FINANCIAL BENEFITS OF IMPLEMENTING TPM
201
Cost of blank sheet =
Rs. 5000
Value of pressed panel =
Rs. 7000
Added value = 7000 - 5000 =
Rs. 2000
Thus, the process has earned Rs. 2000 for
the company. If the expected throughput is
50 panels every hour then the added value
per hour can be calculated as:
added value/hour = Rs. 2000 X 50
= Rs. 100,000/hour
THE FINANCIAL BENEFITS OF IMPLEMENTING TPM
202
The expected throughput will probably be based
upon the theoretical cycle time for the process and
will not take into account the six major losses. If
these losses are recorded and a figure for the
overall effectiveness of the press calculated as, say,
70 percent then the actual added value per hour can
be calculated as:
and therefore the major losses represent a loss of
added value equal to Rs. 30,000/hour.
actual added value/hour
= Rs. 100,000 x 70
100
= Rs. 70,000/hour
THE FINANCIAL BENEFITS OF IMPLEMENTING TPM
203
An annual loss figure can be determined by
estimating the average loading of the press during
the year. For instance, if the press was used on a
single shift basis and operated on average 35 hours
per week and for 48 weeks per year then the
average annual loading can be calculated as:
average loading = 35hrs x 48 wks = 1680 hrs/year
therefore, the annual loss figure is the product of
the loading hours and loss per hour:
annual loss = Rs.30,000 x 1680 hours
= Rs. 50,400,000/year (50.4 m)
THE FINANCIAL BENEFITS OF IMPLEMENTING TPM
204
This means that the press could have
earned an additional Rs. 50.4m for the
company if it operated at 100 per cent
effectiveness rather than 70 per cent
effectiveness. By taking this figure, which
represents the lost earning capacity of the
machinery, and dividing it by the overall
effectiveness loss, a figure for the additional
earning capacity gained for each 1 percent
improvement in overall effectiveness can be
calculated, thus,
THE FINANCIAL BENEFITS OF IMPLEMENTING TPM
205
100% - 70% = 30% loss in effectiveness =
Rs. 50.4m loss in earning capacity, therefore
1% improvement =
Rs. 50.4m
30%
= Rs. 1.68m/percent
For this example, every 1 percent improvement
in overall effectiveness will provide an
additional earning capacity of Rs. 1.68m per
year.
THE FINANCIAL BENEFITS OF IMPLEMENTING TPM
206
The introduction of autonomous
maintenance activities which are all
production-led activities, will lead to a
rapid improvement in overall effectiveness
of at least 5 percent, but more usually of
the order of 10 percent. Therefore, for the
example of the press, autonomous
maintenance activities would be expected
to increase its earning capacity by at least
Rs 8.4m and most likely the figure would be
Rs 16.8m.
THE FINANCIAL BENEFITS OF IMPLEMENTING TPM
207
Example 1. HAND ASSEMBLY
Planned loading time = 8 hours/day x
5 days/week for
8 weeks

= 320 hours in total
If each man hour is sold at Rs 2500 (assembly
processes are often priced on the man hours
required to complete the assembly) then the
estimated cost of the assembly can be
calculated as follows:
208
cost = 320 hours x Rs 2500/hour = Rs 800,000
overall effectiveness = 70%
therefore, the actual number of hours required to
complete the assembly =
320 hours

0.7
= 457 hours
A loss of 30 percent in effectiveness has caused an
overrun of 137 man hours which can be calculated
as follows:
cost of losses = 137 hours x Rs 2500/hour
= Rs 3,42,500 for the assembly
HAND ASSEMBLY
209
If say, 10 such assemblies are carried out every
year then the losses = Rs 3,42,500 x 10/year = Rs
3.425m/year. The savings which would be achieved
for each 1 percent improvement in overall
effectiveness can be calculated thus:
1% improvement =
Rs 3.425m
30%
= Rs 1,14,166 /year
Figure shows the effectogram for this example,
complete with the financial figures.
HAND ASSEMBLY
210
COMPLETED EFFECTOGRAM
FOR EXAMPLE 1
actual
losses
earning
capacity
overall
effectiveness
quality performance availability








Effective
operation




Good
Quality
Output





Output




Available
for
operation

Total
Losses
Addl
Cost
Lost
Output
Lost
availability
0
10
20
30
40
50
60
70
80
90
100
Lost
Output
P
e
r
c
e
n
t
a
g
e


Earnings
R
s

1
,
1
4
,
1
6
6
/
y
r
/
1
%




R
s

8
0
0
,
0
0
0

R
s
.
1
.
1
4
2
5

m

1
0
/
y
r











3
2
0









4
5
7

R
s

2
5
0
0

211
Example 2. SEMI-AUTOMATED
ASSEMBLY
Loading = 7.5 hours/day x 5 days x 48 weeks =
1800 hours/year
Planned throughput = 150 units/hour
Value added to each unit = Rs 15
Therefore, the theoretical earning capacity for
the machinery can be calculated thus:
Earning capacity = 1800 hrs x 150 units/hr x Rs
15/unit = Rs 40,50,000/year (Rs
4.05m)
overall effectiveness = 42%
212
SEMI-AUTOMATED ASSEMBLY
therefore, the cost of the six major losses can be
calculated thus:
losses = Rs 4.05m x
58
100
= Rs 2.349m/year
and 1% improvement =
Rs 2.349m
58%
= Rs 40,500
213
SEMI-AUTOMATED ASSEMBLY
In this case, the machinery has a
very low overall effectiveness and
autonomous maintenance activities would
improve this by at least 15 percent quite
quickly. Figure shows the effectogram
for this example, complete with the
financial figures.
214
actual
losses
earning
capacity
overall
effectiveness
quality performance availability








Effective
operation




Good
Quality
Output





Output




Available
for
operation


Total
Losses
Lost
Earnings
Lost
Output
Lost
availability
0
10
20
30
40
50
60
70
80
90
100
COMPLETED EFFECTOGRAM
FOR EXAMPLE 2
Lost
Output
P
e
r
c
e
n
t
a
g
e


Earnings
R
s

4
0
,
5
0
0
/
y
r
/
1
%





R
s

1
.
7
0
1

m

R
s

4
.
0
5
m

1
8
0
0

R
s

9
4
5







R
s

2
2
5
0


215
Example 3. PROCESSING SYSTEM
Loading = 24 hours/day x 7 days/week x 50
weeks/year = 8400 hours/year
Planned throughput = 300 kg/hour

Value added to each kg = Rs 30/kg
The theoretical earning capacity for the processing
system can be calculated thus:
Earning capacity = 8400 hrs/yr x 300 kg/yr x
Rs 30/kg
= Rs 7,56,00,000/year
(Rs 75.6m)
overall effectiveness = 85%
216
therefore, the losses can be calculated thus:
losses = Rs 75.6m x
15
100
= Rs 11.34m/year
and 1% improvement =
in overall effectiveness
Rs 11.34m
15%
= Rs 7,56,000/year
PROCESSING SYSTEM
217
PROCESSING SYSTEM
An improvement in overall
effectiveness of around 5 percent should
be achieved very easily. Figure shows the
effectogram for this example complete
with the financial figures.
218
COMPLETED EFFECTOGRAM FOR
EXAMPLE 3
actual
losses
earning
capacity
overall
effectiveness
quality performance availability










Effective
operation







Good
Quality
Output







Output







Available
for
operation


Total
Losses
Lost
Earnings
Lost
Output
Lost
availability
0
10
20
30
40
50
60
70
80
90
100
Lost
Output
P
e
r
c
e
n
t
a
g
e


Earnings
R
s

7
,
5
6
,
0
0
0
/
y
r
/
1
%







R
s

7
5
.
6
m


R
s

6
4
.
2
6
m



8
4
0
0

R
s

9
0
0
0

R
s

7
,
6
5
0







219
The examples have shown how overall
effectiveness can be used to financially
justify TPM implementation, and this does
not just apply to the production-led,
autonomous maintenance activities but the
other components of TPM which we have
discussed in the course of our study.
PROCESSING SYSTEM
220
221
TPM is an approach which provides
benefits to the whole business in the form
of:
w Improved effectiveness of machinery
and equipment which directly affects
key business ratios and
competitiveness.
w Improved quality of products, less
scrap and re-work which not only
reduces manufacturing costs but
increases customer satisfaction.
222
w Enhanced factory floor personnel,
improved motivation and morale, arising
from a much improved working
environment, greater participation and
training.
w A more controlled and well-organized
manufacturing operation with less
pressure and fire fighting and more time
for continuous improvement and
development.
w A much better working environment for
everyone.
223
Some examples of the overall business
improvements achieved as a result of TPM
implementation are given below:
w Breakdowns in factory reduced from 150
to 10 a month.
w Throughput increased by 40 percent.
w Defects reduced by 30 percent.
w Overall equipment effectiveness of 86
percent achieved.
Company A: Glass Manufacturer
224
w Breakdowns in factory reduced from
800 to 5 a month.
w Defects reduced by 60 percent.
w Overall equipment effectiveness of 80
percent achieved.
Company B: Automotive Supplier
225
w Breakdowns in factory reduced from
1800 to 170 a month.
w Defects reduced by 90 percent.
w Throughput increased by 30 percent.
w Energy costs reduced by 25 percent.
Company C: Automotive Manufacturer
226
w Breakdowns in process area reduced
from 300 to 100 a month.
w Throughput increased by 25 percent.
w Overall effectiveness of packaging
machinery increased from 62 percent to
80 percent.
Company D: Food Manufacturer
227
These benefits were not achieved
overnight; in some cases TPM had been
running for several years but from the early
stages of applying TPM, improvements were
achieved and continued to provide
substantial benefits to the businesses. Any
company which applies TPM in a thorough
and committed manner can expect to
achieve the benefits, especially when allied
to the effective application of other
maintenance tools and techniques.
228
WORLD CLASS OEE
OEE Factor World Class
Availability 90.0%
Performance 95.0%
Quality 99.9%
Overall OEE 85.0%
229
230
231
You may recall that the eight core activities
of TPM are
Focused Improvement
Autonomous Maintenance
Planned Maintenance
Quality Maintenance
Education & Training
Early Management
Administrative & Support Department
Activities
Safety & Environmental Management
232
FOCUSED IMPROVEMENT
As a result of autonomous maintenance
activities, the TPM team discover
inherent faults in either design and
construction of machinery and / or in the
methods of operation which support the
process.
Quite often, they will not be able to
rectify these faults as part of everyday
TPM activities as these faults require a
great deal of effort and resources.
233
FOCUSED IMPROVEMENT
Typically, such inherent faults will be
limiting the overall effectiveness of the
machinery and, although the TPM team
will try to reduce their effect wherever
possible, a major problem may still
exist. This is the point at which the
team will propose that a project be set
up which will focus on the inherent
fault.
234
FOCUSED IMPROVEMENT
A small project team, comprising
personnel with the appropriate skills to
analyse and fix the fault, needs to be
set up and the project justified in
financial terms using the estimated
improvement in overall effectiveness.
Figure shows the types of focussed
projects which may be required and how
they will influence overall effectiveness.
235
OVERALL EQUIPMENT
EFFECTIVENESS
Availability X Performance X Quality

Changeover /
setup time
reduced. Study
& improve
Reliability
improvement
Redesign for
maintainability

Chronic loss
analysis and
improvement
Process
improvement
Study and
improve
method of
operation

Process
capability
study and
improvement
POKA YOKE
design
Redesign for
operational
stability
236
FOCUSED IMPROVEMENT
+ The key to the successful
implementation of focused projects is
that they should be approached in a
structured way, i.e. undertaken in a
logical sequence, step by step. Some
guidelines to the implementation of
different kinds of focused projects are
as follows:
Carrying Out Focused Improvement Projects
237
AVAILABILITY IMPROVEMENT
PROJECTS
There are three major aspects of
changeover from part to part which need to be
considered in this kind of project:
Changeover Time Reduction:
- The methods that are used to carry
out the changeover, including all the
facilities used.
- The design of tooling and how it is
assembled to the machinery.
- How the changes from part to part
are scheduled.
238
AVAILABILITY IMPROVEMENT
+ It is quite usual to halve the changeover
time mostly as a result of improved
methods and some small hardware
improvements. The project will bring
about a substantial improvement in
change time and thus the availability of
the machinery.
+ Further continuous improvement activity
should there after be used to keep
gradually reducing change over times
and improving flexibility.
239
Where machinery is frequently
breaking down due to a clearly defined
cause, then the reliability improvement
project team can begin to brainstorm
solutions immediately, assess them
and decide upon the most cost-
effective solution.
Reliability Improvement:
AVAILABILITY IMPROVEMENT
240
On many occasions, however, the
situation is not so straight forward and
the source of poor reliability is not
evident.
Under these circumstances a more
detailed study including collection of
historical data and use of problem
solving tools is resorted to.
AVAILABILITY IMPROVEMENT
241
It is quite usual to find that there are
just a few areas and / or recurring faults
which cause the majority of
breakdowns and, by addressing these
first, quite rapid benefits are achieved.
AVAILABILITY IMPROVEMENT
242
PERFORMANCE IMPROVEMENT
PROJECTS
Where the throughput of the process is
significantly below what is expected, the
project team will initially need to establish the
possible causes of the problem. To accomplish
this the early stages are:
Reducing Cycle Time:
- List each activity that takes place
during the operating cycle. This
should include all machinery
actuations, processing, operator
activities and delays.
243
PERFORMANCE IMPROVEMENT
- Analyse the activities and their
times, looking for trends and
variations.
- Identify activities which take up the
most significant amount of cycle
time.
- Based on this analysis, the
particularly significant problems
which are besetting the operation of
the machinery can be identified.
244
PERFORMANCE IMPROVEMENT
- Establish their root cause using one
of the structured problem- solving
techniques.
- Plan and implement improvement.
245
QUALITY IMPROVEMENT PROJECTS
MISTAKE PROOFING PROCESSES
The prevention of defects at source is central
to the philosophy of many world class
manufacturing business, and POKA YOKE or
mistake proofing is a proven approach to the
elimination of many process quality
problems.
POKA YOKE is particularly relevant to
production processes which involve a fair
amount of operator interaction and its aim is
to ensure that things cannot go wrong.
246
QUALITY IMPROVEMENT
The improvement project team starts by
identifying the work stations or stages
of the process where problems most
often occur, alongwith the type of
problems encountered.
They then ask the question:
How can we ensure that the
problem cannot happen?
247
QUALITY IMPROVEMENT
An example is where two parts can be
placed into a fixture the wrong way
round. This sometimes happens and
results in defects.
In this case; the team would investigate
ways of making sure that the parts
cannot physically be located in the
fixture the wrong way round.
248
QUALITY IMPROVEMENT
They may require the fixture to be re-
designed.
If no solution of this type can be
found, then the team asks the
question:
If the error occurs then what can we
do to ensure that it is detected
straightaway, before a defect is
produced?
249
QUALITY IMPROVEMENT
In this example, if it was not possible
or not viable to re-design the fixture
then perhaps sensors could be fitted
around the fixture which would indicate
whether assembly was good or bad
before the process continued.
250
QUALITY IMPROVEMENT
There are many types of POKA YOKE
devices with three main actions:
- Physical prevention of an error from
happening such as restraints on a
fixture which prevent the parts
being incorrectly loaded (the pin
configuration on many electrical
plugs serves this same purpose).
251
QUALITY IMPROVEMENT
- Detection that an error has occurred
and indication that it has happened
such as sensors that check the
orientation of parts and cause an
audible or visual alarm to be
actuated.
252
QUALITY IMPROVEMENT
- Detection that an error has occurred
and prevention of the process from
proceeding such as sensors that
check the orientation of parts and
send a signal to the machinery
control system which inhibits its
operation.
- A well executed Focussed
Improvement programme should
deliver the following six major
results:
253
SIX MAJOR RESULTS
P (Production)
1. Increased labour productivity
2. Increased equipment
productivity
3. Increased value-added
productivity
4. Increased product yield
5. Increased plant operating rate
6. Reduced number of workers
Q (Quality)
1. Reduced process defect
rate
2. Reduced customer
complaints
3. Reduced scrap rate
4. Reduced cost of quality-
defect countermeasures
5. Reduced reprocessing costs
C (Cost)
1. Reduced maintenance labour
hours
2. Reduced maintenance costs
3. Reduced resource costs
(decreased unit consumption)
4. Energy saving (decreased unit
consumption)
D (Delivery)
1. Reduced late deliveries
2. Reduced product inventories
3. Increased inventory
turnover rate
4. Reduced spare-parts
inventories
254
SIX MAJOR RESULTS
S (Safety)
1. Reduced number of shutdown
accidents
2. Reduced number of other
accidents
3. Elimination of pollution
incidents
4. Degree of improvement on
statutory environmental
requirements
M (Morale)
1. Increased number of
improvement suggestions
2. Increased frequency of
small-group activities
3. Increased number of one-
point lesson sheets
4. Increased number of
irregularities detected
255
256
RECONSIDERING THE OPERATORS
ROLE
Autonomous Maintenance is geared
towards developing operators to be able
to take care of small maintenance
tasks, thus freeing up the skilled
maintenance people to spend time on
more value added activity and technical
repairs. The operators are responsible
for upkeep of their equipment to prevent
it from deteriorating.
257
OPERATORS ROLE
- Uninterrupted operation of
equipments.
- Flexible operators to operate and
maintain other equipments.
- Eliminating the defects at source
through active employee
participation.
- Step-wise implementation of
Autonomous Maintenance.
Policy
258
OPERATORS ROLE
- Prevent the occurrence of IA / IB.
- Reduce oil consumption by 50
percent.
- Reduce process time by 50 percent.
- Increase use of AM by 50 percent.
Targets
259
OPERATORS ROLE
Assembly industry is constantly
accelerating the automation of repetitive
manual work based on recent progress in
computer and micro-electronic
technologies.
Automation, technology is one of the
most important resources for
manufacturers survival.
260
OPERATORS ROLE
Although various kinds of repetitive
work are still found on the shop floor, the
trend of the times is definitely towards
automation.
The easy approach of depending only on
cheap labour is likely to fail. The
products may be competitive in price,
but they are not in quality. Automation
not only reduces production cost, but
also improves the quality and yield of
products by eliminating errors caused by
manual work.
261
OPERATORS ROLE
The modern mass production industry, is
based on technologies such as
standardization of parts, division of labour
in the assembly line and simplification of
human work.
In this environment, most workers have
been required to repeat simple work all
the time without any knowledge about the
structure and function of either the
equipment they are operating or the
product they are manufacturing.
262
OPERATORS ROLE
In doing so, they are not expected to
consider or judge anything during their
routine work.
Top management and factory leadership
are likely to make mistakes in
understanding following areas:-
They do not tackle seriously the
kinetic operating conditions of the
equipment.
263
OPERATORS ROLE
They do not know the importance of
the operators role and potential.
They pay too much attention to
computer, robotic and other high-tech
procedures, and neglect the basic low-
tech procedures.
They believe that by eliminating a
number of operators, production costs
can be reduced correspondingly.
264
OPERATORS ROLE
Unfortunately, traditional and
conservative ideas regarding operators
still exist within the leadership of many
companies, even though the relationship
between human beings and machinery
is changing daily.
Some managers may think it
unnecessary to educate the shop floor
personnel because production in a fully
automated plant can be conducted
simply by following the computers
instructions.
265
OPERATORS ROLE
In other words, they continuously
attempt to achieve maximum output
of production-related departments
with minimum input.
To examine the manufacturers
business as a whole requires that all
personnel concerned with
manufacturing go beyond
understanding the roles of the
production and maintenance
departments.
266
OPERATORS ROLE
They must now take into account all
departments which directly or indirectly
impact on routine production; not only
the production and maintenance
departments, but also the quality
assurance, material handling, plant
engineering, product design,
administration and any other supporting
departments.
267
OPERATORS ROLE
Success will be evasive unless, by
careful consideration, these same
personnel provide for and achieve the
optimal and most flexible integration of
function and roles among all these
departments.
268
OPERATORS ROLE
TPM, with the participation of all
employees, means reviewing the
function and roles of all the personnel
and analyzing the interfaces of the
various departments.
One outcome of this process is the
realization that the operators role
should be revised.
269
THE KNOWLEDGEABLE OPERATOR
The term Knowledgeable Operator
does not mean an operator who can
fix equipment as well as be a
maintenance technician. Rather, it
emphasizes that an important aspect
of an operators skill is to detect
signs of losses.
270
THE KNOWLEDGEABLE OPERATOR
This means the operator should be
able to sense that something Funny
is going on whenever some unusual
conditions exist during the operation
of equipment and prior to the
occurrence of breakdowns or quality
defects.
271
THE KNOWLEDGEABLE OPERATOR
Almost all losses, either breakdowns or
quality defects, are preceded by some
signs.
Not only do minor defects occur, but so
do certain other aberrations, such as
unusual vibration, noise, odour, or
overheating. Before TPM implementation,
it used to be impossible, to detect such
minute signs on a shop floor flooded with
excessive losses and abnormalities.
272
THE KNOWLEDGEABLE OPERATOR
Operators may, therefore, be expected to
master the very early discovery of
indications of abnormalities so as to
prevent the occurrence of losses.
Management needs to train operators
who will be able either to report such
situations to the maintenance
department quickly and accurately, or to
handle the problems by themselves
immediately.
273
THE KNOWLEDGEABLE OPERATOR
To make this possible, operators must
be, from the beginning of the
autonomous maintenance programme,
educated about the basic structure and
function of equipment, and later
trained through practice on actual
equipment.
274
THE KNOWLEDGEABLE OPERATOR
This is not an easy task and requires a
certain amount of time and money. It
is nevertheless, absolutely necessary
in order to implement the TPM system
across the entire work place, and,
therefore, to achieve remarkable
benefits.
275
TRAINING OPERATORS TOWARD A NEW
TYPE OF ENGINEERING STATUS
O In petroleum and chemical industries,
which have a long history of automated
process control, to prepare for
emergencies operators are allocated to
control room in numbers that exceed the
minimum needed for normal operations.
276
O In some advanced plants, operators are
developing their skills by studying
automated plant operations and
emergency shut-down procedures
using computer technologies to the
exclusion of human intervention.
TRAINING OPERATORS
277
TRAINING OPERATORS
O In assembly industries, the aims are a
little different, but some extra operators
still need to be allocated to even highly
automated processes so as to maintain
a certain redundancy of human
intervention.
O As reliance on equipment is increasing
annually, risk and cost in plant
investment also become higher.
278
TRAINING OPERATORS
O There is no one other than the operators
who can understand kinetic operating
conditions and accurately answer the
questions posed by maintenance, plant
engineering and product design
engineers, because operators are
working around the equipment all the
time.
O Generally speaking, leadership tends to
under estimate operators hidden
capability and potential.
279
TRAINING OPERATORS
O If, however, suitable motivation, training
and opportunities are provided for
operators, they attain remarkable ability
which leads to highly desirable results.
O Autonomous maintenance aims at
fostering the development of these
knowledgeable operators.
O In moving ahead, a company must train
operators toward a new status of
production engineers.
280
281
PLANNED MAINTENANCE
It is aimed to have trouble free
machines and equipments producing defect
free products for total customer
satisfaction.
282
CM
Approach to
Maintenance
TYPES OF MAINTENANCE
PLANNED
UNPLANNED
PM
BM
TBM
Daily checks
Periodic checks
Periodic Inspection
Periodic servicing
CBM
Rotating machinery
diagnostics
Static equipment diagnostics
PM: Preventive Maintenance
TBM: Time-Based Maintenance
CBM: Condition-Based Maintenance
BM: Breakdown Maintenance
CM: Corrective Maintenance
283
PLANNED MAINTENANCE
In TPM planned maintenance is based
on the twin foundations of
+ Autonomous maintenance by the
Production Department.
+ Specialized maintenance by the
Maintenance Department.
284
PLANNED MAINTENANCE
Within the planned maintenance
system, maintenance personnel conduct two
types of activities:
+ Activities that improve equipment.
+ Activities that improve maintenance
technology and skill
These activities should evolve
systematically and organically.
285
SPECIALIZED MAINTENANCE ACTIVITIES
Specialized maintenance skills
Equipment repair skills
Inspection and measurement
skills
Equipment diagnostic techniques
and skills
New maintenance technology
Improving Maintenance
Technology and Skills
Autonomous maintenance
support
Planned maintenance (6 steps)
Corrective maintenance
Maintenance prevention
Predictive maintenance
Improving equipment
THE TWIN ACTIVITIES OF
SPECIALIZED MAINTENANCE
286
Equipment failures and process
problems (losses) in process industries can
be classified into few broad categories:
O Equipment failures or process problems
that cause shutdown
O Quality abnormalities
O Unit consumption abnormalities
O Capacity reductions
O Safety and environmental problems
EQUIPMENT FAILURE AND
PROCESS PROBLEMS
287
1. Equipment failures
or process
problems causing
shutdown
2. Quality
abnormalities
3. Unit-consumption
abnormalities
4. Capacity
reductions
5. Safety and
environmental
problems
Obvious Problems
& Losses
Equipment
Disorders
& Hidden
Defects
Changes in equipment interiors
(deformation due to corrosion,
vibration, loose or fallen-off parts,
etc. contamination, blocks,
erosion, internal leaks,
degradation of materials)
Changes in measuring and
control equipment (broken wires,
short-circuits, contamination,
blockage, degradation of
materials, programming errors,
spurious signals)
Static Equipment
Changes in machine interiors and
exteriors (deformation due to
corrosion, vibration, loose or
fallen-off parts, etc.,
contamination, blocks, leaks,
erosion, degradation of materials)
Rotating Machinery
Common
Problems
& Their
Causes
288
Achieve and sustain availability of
machines.
Optimum maintenance cost.
Reduce spares inventory.
Improvement in reliability and
maintainability of machines.
POLICY
289
Zero equipment failure and breakdown.
Improve reliability and maintainability
by 50%.
Reduce maintenance costs by 20%.
Ensure availability of spares all the
time.
TARGET
290
SIX STEPS IN
PLANNED MAINTENANCE
291
Step 1: Evaluate equipment and understand
current conditions.
Step 2: Restore deterioration and correct
weaknesses.
Step 3: Build an information management
system.
Step 4: Build a periodic maintenance system.
Step 5: Build a predictive maintenance system.
Step 6: Evaluate the planned maintenance
system.
STEP-BY-STEP IMPLEMENTATION OF
PLANNED MAINTENANCE
292
293
QUALITY MAINTENANCE
+ As equipment takes over the work of
production, quality depends increasingly
on the condition of the equipment. Quality
Maintenance evolved as a major TPM
activity in fabrication and assembly
industries that are becoming increasingly
automated.
+ In environments where human
intervention is decreasing, the goal of
Quality Maintenance is to maintain and
constantly improve quality through
effective equipment maintenance.
294
QUALITY MAINTENANCE
+ In process industries, quality has always
been built into the product through the
process. The pace of new product
development, however, is accelerating,
and the greater diversity of raw materials
and products currently necessitates ever
more frequent changeovers.
+ To cope with this, production
departments must review their quality
assurance systems with the aim of
tackling quality through equipment
management.
295
QUALITY MAINTENANCE
+ Quality Maintenance consists of
activities that establish equipment
conditions that do not produce quality
defects, with a goal of maintaining
equipment in perfect condition to
producing perfect products.
+ Quality defects are prevented by
checking and measuring equipment
conditions periodically and verifying that
the measured values lie within the
specified range.
296
QUALITY MAINTENANCE
+ Potential quality defects are predicted by
examining trends in the measured values,
and prevented by taking measures in
advance.
+ Rather than controlling results by
inspecting product and acting against
defects that have already occurred,
Quality Maintenance in TPM aims to
prevent quality defects from occurring
altogether.
297
QUALITY MAINTENANCE
+ This is accomplished by identifying
checkpoints for process and equipment
conditions that affect quality, measuring
these periodically, and taking appropriate
actions.
298
A Quality Maintenance programme builds
upon gains achieved through fundamental
TPM activities such as Autonomous
Maintenance, Focused Improvement,
Planed Maintenance and Operation and
Maintenance Skill Training.
There are several preconditions for a
successful Quality Maintenance
programme, however, abolish
accelerated, deterioration, elimination of
process problems and development of
competent operators.
PRECONDITIONS FOR SUCCESSFUL
QUALITY MAINTENANCE
299
QUALITY MAINTENANCE
When equipment is subject to accelerated
deterioration, its modules and
components have a short life span. The
equipment is unstable and fails
unexpectedly.
Progress towards zero quality defects is
painfully slow when equipment is
continually breaking down.
ABOLISH ACCELERATED
DETERIORATION
300
QUALITY MAINTENANCE
Before quality maintenance can work,
accelerated deterioration must be
abolished and unexpected failures
minimized through the activities in TPM
implementation Focused Improvement,
Autonomous Maintenance, Planned
Maintenance, and Operation and
Maintenance Skills Training.
ABOLISH ACCELERATED DETERIORATION
301
QUALITY MAINTENANCE
Process industries are plagued by
process failures such as blocks, leaks,
spills, composition changes, and other
enemies of stable operation. If any of
these occur frequently, eliminate them
through Focused Improvements or
operator-initiated Autonomous
Maintenance Improvements. Only then
can quality maintenance be effective.
ELIMINATE PROCESS PROBLEMS
302
QUALITY MAINTENANCE
We have discussed training of
competent operators earlier and will
again discuss the issue under
Operating and Maintenance Skills
Training.
Operators must be trained to promptly
spot and correct any defect presaging
abnormalities in the system.
DEVELOP COMPETENT OPERATORS
303
304
CAUSES OF QUALITY
DEFECTS
305
RELATIONSHIP BETWEEN
EQUIPMENT & QUALITY
306
EQUIPMENT CONTROL
CONDITIONS
307
QUALITY MAINTENANCE
The next step in maintaining quality is
to establish the equipment control
conditions. To achieve this, analyze the
causes of past quality problems using
Why-Why Analysis and Cause and Effect
diagrams.
Equipment components that affect a
products quality characteristics are
called Quality Components.
308
QUALITY MAINTENANCE
Prevent defects from occurring by
maintaining such components in their
specified condition. This is the basis of
Quality Maintenance.
309
WHAT ARE QUALITY
COMPONENTS AND
CONDITIONS
310
WHO IS RESPONSIBLE FOR
QUALITY MAINTENANCE
The quality control department must
be responsible for promoting Quality
Maintenance throughout your company or
plant.
311
312
w TPM aims to create corporate
environments able to respond positively
to the changing business climate,
technological advances, equipment
sophistication and management
innovation.
OPERATING & MAINTENANCE
SKILLS TRAINING
313
w Essential in this environment are
competent people who understand their
equipment intimately. Operators closest
to the equipment must be willing and
able to look after it themselves.
w Meanwhile, maintenance personnel
must acquire the requisite technology
and skills to act as its professional
custodian.
OPERATING & MAINTENANCE
SKILLS TRAINING
314
w Companies that neglect maintenance
technology and skills training invite
equipment failures, idling, minor stops,
and equipment-originated quality
defects. Reduced operating rates, poor
productivity, and unsafe conditions are
not far behind.
OPERATING & MAINTENANCE
SKILLS TRAINING
315
w Meanwhile, the equipment design and
production engineering departments
struggle desperately to commission
equipment that is ill-suited to work
place conditions, difficult to use,
awkward to maintain and regularly
breaks down or spews out defectives.
All this demonstrates a low level of
technology, skill and managerial ability
in every department.
OPERATING & MAINTENANCE
SKILLS TRAINING
316
317
w TPM frees companies from this vicious
cycle. It only pays off, however, when
the approach to implementation or
promotion raises the managerial,
technical and practical skills of each
individual involved.
w Infact progressive companies have
responded to the accelerating growth of
technology and skill requirements by
establishing education and training
systems designed to maximize the
potential of every employee.
EDUCATION AND TRAINING IN
TPM
318
WHAT IS SKILL?
Skill is the ability to do ones job,
to apply knowledge and experience
correctly and reflexively in all kinds of
events over an extended period.
319
Noticing a
certain
phenomenon
Assessing the
phenomenon accurately
(cause action)
Acting
reflexively
Perception
Five senses
Judgment
Intellect
Action
Body
Training,
experience
and
information
Function of Time
WHAT ARE SKILLS?
320
Systematically accumulating training,
experience, and information enables a
person to exercise good judgment and act
appropriately. The more swiftly a person
can deal with an abnormality, the higher the
skill level.
WHAT IS SKILL?
321
The first step in any training programme
is to identify the level of knowledge,
technology, skill and competence, people
need to fulfill and progress in each type of
task specialization or position. Existing skill
levels should also be assessed.
FOUR SKILL LEVELS
322
Level 1: Lacks both theoretical
knowledge and practical ability
(needs to be taught)
Level 2: Knows in theory but not in
practice (needs practical
training)
Level 3: Has mastered practice but not
theory (cannot teach to others)
Level 4: Has mastered both theory and
practice (can teach to others)
FOUR SKILL LEVELS
323
+ What abilities can we expect from
equipment-competent people, that is,
from operators coping with automation,
electronic control and other advanced
technologies?
+ Operators work is in transition, from
hands-on-operation toward more
monitoring and supervision.
+ Operators must acquire the four abilities
as listed:
EQUIPMENT-COMPETENT
OPERATORS
324
1. Equipment-competent operators can
detect equipment abnormalities and
effect improvements.
+ Detect equipment irregularities
+ Understand the importance of
lubrication and can lubricate
correctly, and check the results
+ Understand the importance of
cleaning as inspection and can do it
correctly
They must be able to:
EQUIPMENT-COMPETENT OPERATORS
325
+ Understand the importance of
minimizing the scattering of
product, raw materials, and other
contaminants and can develop
improvements to address them
+ Correct or improve irregularities
they detect
EQUIPMENT-COMPETENT OPERATORS
326
2. Equipment-competent operators
understand equipment structure and
functions and are able to discover the
causes of abnormalities.
+ Understand key points of equipment
construction
+ Maintain equipment performance by
inspecting through cleaning
They must be able to:
EQUIPMENT-COMPETENT OPERATORS
327
+ Know the criteria for recognizing
abnormalities
+ Understand the causes of
abnormalities
+ Judge correctly when to shut down
equipment
+ Diagnose failures to a certain
extent
EQUIPMENT-COMPETENT OPERATORS
328
3. Equipment-competent operators
understand the relationship between
equipment and quality and can predict
quality abnormalities and discover
their causes.
+ Analyze phenomena from physical
principles
+ Understand the relationship
between equipment and product
quality characteristics
They must be able to:
EQUIPMENT-COMPETENT OPERATORS
329
+ Understand and check properly
static and dynamic equipment
precision tolerances
+ Understand the causes of defects
EQUIPMENT-COMPETENT OPERATORS
330
4. Equipment-competent operators can
understand and repair equipment.
+ Replace components
+ Know component lifetimes
+ Postulate failure causes
+ Take emergency action
+ Assist in equipment overhauls
They must be able to:
EQUIPMENT-COMPETENT OPERATORS
331
In many industries, equipment quality
significantly affects productivity, product
quality, safety and so on. This is why
excellent maintenance skills are so badly
needed. To meet this demand,
maintenance technicians must acquire a
wide range of abilities.
EQUIPMENT-COMPETENT
MAINTENANCE PERSONNEL
332
Maintenance professionals must be able to:
EQUIPMENT-COMPETENT MAINTENANCE PERSONNEL
+ Instruct operators in correct handling,
operating and daily maintenance.
+ Correctly assess whether equipment is
operating normally or not.
+ Trace the causes of abnormalities and
restore normal operation correctly.
333
EQUIPMENT-COMPETENT MAINTENANCE PERSONNEL
+ Improve equipment and component
reliability, lengthen equipment life
times, and curb abnormal failures.
+ Understand equipment diagnostics and
use and standardize them.
334
AS equipment becomes more
sophisticated and automated, the
need for safe and environmentally
friendly operation, low energy
consumption, and completely assured
quality increases.
EQUIPMENT-COMPETENT MAINTENANCE PERSONNEL
335
It is, therefore, essential to establish
and maintain equipment conditions
that build quality into the product.
Clarify the technology and skills your
company requires to achieve these
goals, then tailor a well-organized,
effective training system to combine
both in-house and outside training to
help meet them.
EQUIPMENT-COMPETENT MAINTENANCE PERSONNEL
336
337
SIX STEPS TO BOOST OPERATING
AND MAINTENANCE SKILLS
O Evaluate the current training
program and set policy and priority
strategies.
O Design a program for improving
operating and maintenance skills.
O Implement operating and
maintenance skills training.
338
SIX STEPS TO BOOST OPERATING AND
MAINTENANCE SKILLS
O Design and develop a skill-
development system.
O Foster an environment that
encourages self-development.
O Evaluate the activities and plan for
the future.
339
340
EARLY MANAGEMENT
+ As products diversify and their life cycles
become shorter, finding ways to make
new product development and equipment
investment decisions more efficient
grows in importance.
+ The goal in Early Management is to
reduce dramatically the time from initial
development to full-scale production and
to achieve vertical startup (a startup that
is fast, free of bugs, and right the first
time).
341
THE NEED FOR EARLY
MANAGEMENT
+ It is vital to develop products of readily
assured quality that anticipate users
needs, products that are competitive,
easy to sell, and to produce and to do
this efficiently.
+ At the same time, however, the transition
from development to full-scale production
must be rapid and problem-free.
342
+ To accomplish this, you must identify the
production inputs (equipment, materials,
people and methods) required to bring
products to the market, eliminate the
losses associated with equipment that
produces them, and maximize ROI.
+ In other words, you must ensure that
production equipment is easy to use, easy
to maintain, highly reliable, and well
engineered. With such equipment,
assuring product quality is simple.
THE NEED FOR EARLY MANAGEMENT
343
+ Major equipment items are of often
customized to individual specifications;
they are often designed, fabricated and
installed in rush. Without strict early
management, such equipment enters the
test operation phase with many hidden
defects.
+ The truth of this is borne out by the
frequency with which maintenance and
production personnel discover defects
generated in design, fabrication and
installation during start up.
THE NEED FOR EARLY MANAGEMENT
344
+ TPM gives equal importance to early
product management, early equipment
management, and other TPM activities.
+ The basis of early management is, of
course, economic performance evaluation
(optimizing life cycle costs) and
maintenance prevention (MP) design.
THE NEED FOR EARLY MANAGEMENT
345
LIFE-CYCLE COSTING
DEFINED
The life-cycle cost of a product,
equipment item, or system is its total cost
over the whole of its life. In U.S, it is
defined as:
346
LIFE-CYCLE COSTING DEFINED
The sum of the direct, indirect,
recurring, non-recurring, and other
related costs of a large-scale system
during its period of effectiveness. It is the
total of all costs generated or forecast to
be generated during the design,
development, production, operation,
maintenance, and support processes.
347
LIFE-CYCLE COSTING DEFINED
In Japan it is defined as:
A systematic decision-making
technique that incorporates life-cycle
cost as a parameter at the design stage,
performing all possible trade-offs to
ensure an economic life-cycle cost for
the user's system or design.
A general procedure for life-cycle
costing a given system consists of the
following steps:
348
LIFE-CYCLE COSTING DEFINED
Step 1: Clarify the system's mission.
Step 2: Formulate several alternative
proposals capable of fulfilling
the mission.
Step 3: Identify criteria for evaluating
the system and techniques for
quantifying these.
Step 4: Evaluate the proposals.
Step 5: Document the analytical results
and processes.
349
: As user needs diversify and
competition on quality, price and
delivery intensifies, it is essential to
efficiently plan, schedule, develop,
design and create prototype products
that satisfy customer quality
requirements and that the plant can
make quickly and cheaply.
EARLY PRODUCT MANAGEMENT
350
: One company found that 80 percent of
its product costs were determined at
the design stage and that 80 percent
of losses from manufacturing
problems could be traced back to poor
design as well.
: Poor design is a major cause of
reduced profitability, impaired
production efficiency, and low overall
equipment effectiveness.
EARLY PRODUCT MANAGEMENT
351
352
THE NEED FOR TPM IN
ADMINISTRATIVE AND SUPPORT
DEPARTMENTS
Eighty percent of a product's quality
and cost is already determined at the
development, design, and production
stages. Development, design, and all other
staff departments must cooperate
unstintingly to ensure that the production
department does not produce useless or
wasteful products.
353
TPM IN ADMINISTRATIVE AND
SUPPORT DEPARTMENTS
TPM activities in administrative and
support departments do not involve
production equipment. Rather, these
departments increase their productivity by
documenting administrative systems and
reducing waste and loss. They can help raise
production-system effectiveness by
improving every type of organized activity
that supports production. Their contributions
to the smooth running of the business should
be measurable.
354
As experts in their particular area,
their primary responsibility is to process
information, advise on and assist with the
activities of the production department and
other departments, and help reduce costs.
THE ROLE OF ADMINISTRATIVE
AND SUPPORT DEPARTMENTS
355
Their second task is to enable the
company to respond rapidly to changes
taking place in the social and business
environment and to outperform the
competition. This means improving their
own productivity, cutting costs, and helping
the company accomplish the strategic
developments that senior management
envision.
THE ROLE OF ADMINISTRATIVE AND
SUPPORT DEPARTMENTS
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+ Their third task, based on the
preceding, is to win customer
confidence and create an outstanding
corporate image.
THE ROLE OF ADMINISTRATIVE AND
SUPPORT DEPARTMENTS
+ To pursue these goals through TPM,
administrative and support departments
must define their mission by answering
the following questions:
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O How do we support the TPM activities
of the production department and other
departments?
O What issues must we address to
maximize our own efficiency?
THE ROLE OF ADMINISTRATIVE AND
SUPPORT DEPARTMENTS
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IMPROVING THE ORGANIZATION AND
MANAGEMENT OF ADMINISTRATIVE AND
SUPPORT DEPARTMENTS
The function of administrative and support
departments can be improved in two ways:
w Improving efficiency so each department
can perform its particular function
satisfactorily.
w Developing people able to sustain and
continuously improve the new, more
efficient system.
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IMPROVING THE ORGANIZATION AND MANAGEMENT OF
ADMINISTRATIVE AND SUPPORT DEPARTMENTS
In general, administrative functions have
three aspects:
+ Decision Making
+ Communication
+ Data Processing
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IMPLEMENTING TPM IN
ADMINISTRATIVE & SUPPORT
DEPARTMENTS
The approach described below
systematizes the experiences of many
companies that have implemented TPM in
their administrative and support
departments. The main elements are:
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IMPLEMENTING TPM IN ADMINISTRATIVE &
SUPPORT DEPARTMENTS
Begin with the concept of creating
information factories.
Apply the equipment approach to
administrative and support work.
Create a vision of what each department
should be like (i.e., its optimal
conditions) and strive to realize this
ideal.
Implement TPM through the five core
activities.
Strive to achieve measurable results.
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The first step in breaking down a
departments work into work units is
clarifying the basic function of the
department and its members within the
overall organization.
Each department has an essential
function to fulfill and a specific level to
attain within the total system.
ENVISION OPTIMAL CONDITIONS FOR THE
DEPARTMENT (VISION & MISSION)
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Applying an equipment approach means
establishing conditions for the
administrative functions of the
department that will clarify what
improvement is needed and how to
achieve it.
A departments vision and mission must
articulate these conditions. Its mission
is the work that it must perform in order
to realize its vision.
ENVISION OPTIMAL CONDITIONS FOR THE
DEPARTMENT (VISION & MISSION)
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To formulate a departments vision and
mission, investigate its basic functions in
terms of the following:
The ideal state required at present (to
reliably maintain present functions)
The ideal state required to meet future
changes (as new functions evolve
through innovation)
ENVISION OPTIMAL CONDITIONS FOR THE
DEPARTMENT (VISION & MISSION)
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O If the functions of different
departments do not mesh smoothly
without gaps or discontinuities,
various losses can arise during the
production systems life cycle. These
losses hamper efforts to improve the
system's overall effectiveness.
ESTABLISHING DEPARTMENTAL
VISION & MISSION
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O Some of the losses are:
ESTABLISHING DEPARTMENTAL
VISION & MISSION
- Processing loss
- Cost losses including in areas such
as procurement, accounts,
marketing, sales, leading to higher
inventories
- Accuracy loss
- Office equipment breakdown
- Time spent on retrieval of
information
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ESTABLISHING DEPARTMENTAL
VISION & MISSION
- Non availability of correct online stock
status
- Customer complaints due to logistics
- Expenses on emergency dispatches /
purchases
- Communication channel breakdown,
telephone and fax lines
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O Every department functions in concert
with others. Thus, no one department
can establish its vision and mission in
isolation from the rest. Establish
departmental visions and missions
using the following procedure:
ESTABLISHING DEPARTMENTAL
VISION & MISSION
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1. Invite each department to submit vision
and mission proposals.
2. Integrate the proposals of all the
departments and build an overall
consensus.
3. Obtain the approval of top
management.
ESTABLISHING DEPARTMENTAL
VISION & MISSION
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Develop TPM in Administrative and
Support Departments through the
following five activities:
Focused Improvement
Autonomous Maintenance
Education and Training
Flexible Staffing
Performance Measurement
IMPLEMENTING THE
FIVE CORE ACTIVITIES
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+ After establishing a vision and mission
for the department, eliminate chronic
losses and pursue efficiency in all
aspects of departments existing work.
+ Departmental work rarely takes place
in a vacuum, it usually closely involves
other departments as well. Start by
selecting a task that affects other
departments and appears likely to yield
significant improvement results.
FOCUSED IMPROVEMENT
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Approach the design of this program
from two angles:
+ Administrative Function
+ Administrative Environment
AUTONOMOUS MAINTENANCE
The goal of the first is to reduce costs
and boost work effectiveness by
improving the quality of the
administrative system.
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The aim of the second is to raise
administrative efficiency by eliminating
psychological and physical stress and
alleviating strains on office equipment
and environments. Its ultimate goal is to
create environments in which people can
maintain these higher efficiency levels.
AUTONOMOUS MAINTENANCE
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Developing people with superior
information processing capabilities is a
vital issue for business. Companies that
train their employees unsystematically,
by having them watch others or learning
by trial and error, for example, are
unlikely to grow or even survive.
EDUCATION AND TRAINING
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Establishment of a detailed training
programme that covers all
specializations and grades, set
standards for acquiring the necessary
knowledge and skills, and devise
effective training curricula.
EDUCATION AND TRAINING
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As part of its mission, each department
must achieve certain results, some
quantified, some qualitative. It must
attain tangible, measurable results in
the areas of cost effectiveness,
functional effectiveness, and increased
productivity and creativity.
PERFORMANCE MEASUREMENT
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Adopt and track performance indicators
such as problem reduction rate, cost
reduction rate, lead-time reduction rate
and inventory reduction rate.
PERFORMANCE MEASUREMENT
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TPM AND SAFETY &
ENVIRONMENT MANAGEMENT
w Faulty equipment is a common danger
source, so zero-failure, zero-defect
campaigns also improve safety.
w Thorough application of 5S principles
(as part of autonomous maintenance)
eliminates leaks and spills and makes
workplaces clean, tidy, and well-
organized.
Fully implementing TPM improves safety in
many ways, for example:
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TPM AND SAFETY & ENVIRONMENT MANAGEMENT
w Autonomous Maintenance and
Focused Improvements eliminate
unsafe areas.
w TPM-trained operators look after their
own equipment and are better able to
detect abnormalities early and deal
with them promptly.
w Operation of equipment and processes
by unqualified people ceases.
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TPM AND SAFETY & ENVIRONMENT MANAGEMENT
w Operators take responsibility for their
own health and safety.
w Standards and regulations developed
in a TPM program are adhered to more
thoroughly.
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Increase Productivity
(Eliminate Losses)
Make Equipment Safe
Develop Safety-Conscious People
Prevent Accidents
Autonomous Maintenance
Focused Improvement
Planned Maintenance
Early Management
Education & Training
Build Trouble-Free Equipment
Eliminate Problems
Maintain Reliability
Develop Competent People
Create Safe, Pleasant Workplace
TPM Activity
Productivity, Safety, and TPM Activities
Maximize Equipment Capacity
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