TPM – Relevance and Application Independent Study – Part A

Ranjan R Rao (PGDM)

TPM – Relevance and Application – Independent Study

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Table of contents

Introduction ............................................................................................................................................... 3

TPM and its popularity ............................................................................................................................. 3

Standard Definition of TPM (as per JIPM) .............................................................................................. 4

Similarities and differences between TQM and TPM .............................................................................. 4

Types of maintenance in a typical Process industries .............................................................................. 5

TPM in Process Industries ........................................................................................................................ 6

Equipment Management in Process Industries ......................................................................................... 7

Six Big Losses in production in a process industry .................................................................................. 7

Overall Equipment Effectiveness (OEE) .................................................................................................. 9

Calculating OEE ....................................................................................................................................... 9

Eight Pillars of TPM ............................................................................................................................... 11

Conclusion .............................................................................................................................................. 13

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Introduction

Total Productive Maintenance or TPM is a unique Japanese System, which has been developed from

the Preventive Maintenance concept. The concept of TPM originated in Japan‘s manufacturing

industries; initially with the aim of eliminating production losses due to limitations in the JIT process

for production operations1. Nakajima

2 is credited with defining the fundamental concepts of TPM and

seeing the procedure implemented in hundreds of plants in Japan. TPM is a major departure from the

‗‗you operate, I maintain‘‘ philosophy3. It can be considered as the medical science of machines.

Total Productive Maintenance (TPM) is a maintenance program, which involves a newly defined

concept for maintaining plants and equipment. The goal of the TPM program is to markedly increase

production while, at the same time, increasing employee morale and job satisfaction. TPM brings

maintenance into focus as a necessary and vitally important part of the business. It is no longer

regarded as a non-profit activity.

In a TPM implemented company, organization is so built up that there is overlapping at several levels

from small group of senior executives down to small group of Shop floor workmen. Competitive

pressures and changing production-management paradigms have increased the importance of reliable

and consistent production equipment and have led to the popularity of TPM.

The Indian Industry is facing a severe global competition and hence many companies are finding it

very difficult to meet the bottom line. TPM approach best serves such industries where costs are

increasing and onus is on optimizing production cost; it helps in increasing the overall plant efficiency

and productivity.

TPM and its popularity

TPM which first took root in automobile industry rapidly soon became part of the corporate culture in

companies across the world. Today we can see TPM adopted in consumer appliances,

microelectronics, machine tools and many others. Initially the TPM activities were limited to

departments directly involved with production however later on TPM diversified across various

support departments as well.

There are three main reasons why TPM has spread so rapidly,

i) It guarantees dramatic results

ii) Visibly transforms the workplace, and

iii) Raise the level of knowledge and skill in production and maintenance workers

1 Tsang AHC. Strategic dimensions of maintenance management. J Quality Main ten Eng 2002; 80(1): 7–39. Industrial

press, New York.1990. 2 Nakajima S. Introduction to TPM. Cambridge, MA: Productivity Press; 1988.

3 Robert J. Total productive maintenance (TPM). 2002. Available from: JackRobert@TAMU_Commerce.edu

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Standard Definition of TPM (as per JIPM)

The development of TPM was closely related to production and hence the initial definition as defined

by the Japan Institute of Plant Maintenance (JIPM)4 was to include the following five strategies:

i) Maximize overall equipment effectiveness

ii) Establish a comprehensive PM system covering the life of the equipment

iii) Involve all departments that plan, use, and maintain equipment

iv) Involve all employees from top management to front line workers

v) Promote PM through motivation management. i.e., autonomous small group activities

With the new developments notwithstanding, JIPM in 1989 introduced a new definition of TPM, with

the following strategic components:

i) Build a corporate constitution that will maximize the effectiveness of production

systems

ii) Using shop floor approach, build an organisation that prevents every loss (by ensuring

zero accidents, zero defects, and zero failures) for the life of the production system.

iii) Involve all departments in implementing TPM, including development, sales and

administration.

iv) Involve everyone – from top management to shop floor workers

v) Conduct zero loss activity through overlapping small group activities

Similarities and differences between TQM and TPM

The TPM program closely resembles the popular Total Quality Management (TQM) program. Many of

the tools such as employee empowerment, benchmarking, documentation, etc. used in TQM are used

to implement and optimize TPM. Following are the similarities between the two.

1. Total commitment to the program by upper level management is required in both programmes

2. Employees must be empowered to initiate corrective action, and

3. A long-range outlook must be accepted as TPM may take a year or more to implement and is

an on-going process. Changes in employee mind-set toward their job responsibilities must take

place as well.

The differences between TQM and TPM are summarized below.

4 The Japan Institute of Plant Maintenance is a nonprofit research, consulting, and educational organization that help

companies increase organizational efficiency and profitability through improved maintenance of manufacturing equipment,

processes, and facilities. The JIPM is the sponsoring organization for the PM Prize, awarded annually to recognize

excellence in companywide maintenance systems. Based in Japan, JIPM is the innovator of methodologies that have been

implemented around the world

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Category TQM TPM

Object Quality (Output and effects) Equipment (Input and cause)

Mains of attaining goal Systematize the management. It is

software oriented

Employees participation and it

is hardware oriented

Target Quality for PPM Elimination of losses and

wastes.

Source: http://www.plant-maintenance.com/articles/tpm_intro.shtml

Types of maintenance in a typical Process industries

Maintenance activities evolved over the years and today we can largely classify them under four major

heads

1. Breakdown maintenance: It means that people wait until equipment fails and repair it. Such a thing

could be used when the equipment failure does not significantly affect the operation or production or

generate any significant loss other than repair cost.

2. Preventive maintenance (1951): It is a daily maintenance (cleaning, inspection, oiling and re-

tightening), design to retain the healthy condition of equipment and prevent failure through the

prevention of deterioration, periodic inspection or equipment condition diagnosis, to measure

deterioration. It is further divided into periodic maintenance and predictive maintenance. Just like

human life is extended by preventive medicine, doing preventive maintenance can prolong the

equipment service life.

2a. Periodic maintenance (Time based maintenance - TBM): Time based maintenance

consists of periodically inspecting, servicing and cleaning equipment and replacing

parts to prevent sudden failure and process problems.

2b. Predictive maintenance: This is a method in which the service life of important part

is predicted based on inspection or diagnosis, in order to use the parts to the limit of

their service life. Compared to periodic maintenance, predictive maintenance is

condition-based maintenance. It manages trend values, by measuring and analyzing

data about deterioration and employs a surveillance system, designed to monitor

conditions through an on-line system.

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3. Corrective maintenance (1957): It improves equipment and its components so that preventive

maintenance can be carried out reliably. Equipment with design weakness must be redesigned to

improve reliability or improving maintainability

4. Maintenance prevention (1960): It indicates the design of new equipment. Weaknesses of current

machines are sufficiently studied (on site information leading to failure prevention, easier maintenance

and prevents of defects, safety and ease of manufacturing) and are incorporated before commissioning

new equipment.

TPM in Process Industries

Process industries have a particularly urgent need for collaborative equipment management systems

like TPM that can absolutely guarantee safe, stable operation. Process industry plants must operate

continuously for long periods to be cost-effective. Accidents and breakdowns involving even one piece

of equipment can shut down an entire plant and endanger life and the environment. The resulting

financial losses can be devastating.

Japan‘s process industries introduced preventive maintenance (PM) relatively early because production

output and rate, quality, safety and the environment depend almost entirely on the state of plant and

equipment. While the process industries focused on preventive and productive maintenance, the

fabrication and assembly industries invested heavily in new equipment in an effort to become less

labor intensive. However the trend towards automation stimulated the interest in improving

maintenance management and hence evolved TPM.

Special features of Process Industries

Certain unique features and concerns of process industries are5

i) Diverse production systems

ii) Diverse equipment

iii) Use of static equipment

iv) Centralized control and few operators

v) Diverse equipment-related problems

vi) High energy consumption

vii) Standby units and bypasses commonly used

viii) High accident and pollution risk

ix) Poor working environment

x) Shutdown maintenance

5 from the book Tokutaro Suzuki,‖TPM in Process Industries‖, published by Productivity Press

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Equipment Management in Process Industries

Equipment Management in Process Industries has three aspects. The first involves planning for the

entire lifecycle of equipment. The technology cost tradeoff must be pursued throughout the

engineering and maintenance phases – from the time a piece of equipment is first planned until it is

finally replaced. The second aspect concerns the type of maintenance to be performed, that is, the

approach (preventive, corrective, predictive and so on) and its frequency (whether scheduled or

unscheduled). To eliminate failures, companies must skillfully combine these different maintenance

approached. The third aspect involves allocating responsibility for maintenance, that is, deciding

whether tasks will be performed autonomously by production operations or by maintenance specialists.

As the equipment becomes increasingly automated and with lesser human intervention, the boundary

between tasks dependent purely on operations or maintenance specialists alone will reduce. The

strategies adopted to achieve zero breakdowns, zero defects, and zero accidents will vary depending on

the particular category of equipment, such as columns, tanks, heat exchangers, piping, rotating

machinery, electrical systems, instrumentation, and furnaces.

Six Big Losses in production in a process industry

The difference between the ideal and the actual situation in operational effectiveness of a plant is due

to losses. Equipment operators face the results of these losses on a daily basis. TPM gives them the

tools to identify the losses and make improvements. A key strategy in TPM is identifying and reducing

what we call the six big losses.

Looking at machine 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:

i) Downtime,

ii) Speed losses, and

iii) Defect losses

Source: http://www.oeetoolkit.nl/community/OEEAlgemeen/what_is_oee.htm

Loss Categories The Six Big Losses

Downtime (Lost availability)

Equipment failures

Setup and adjustments

Speed losses (Lost performance)

Idling and minor stoppages

Reduced speed operation

Defect losses (Lost quality)

Scrap and rework

Startup losses

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Downtime refers to time when the machine should be running, but it stands still. Downtime includes

two main types of loss: equipment failures, and setup and adjustments.

Equipment Failures: Sudden and unexpected equipment failures, or breakdowns, are an obvious

cause of loss, since equipment failure means that the machine is not producing any output.

Setup and Adjustments: Most machine changeovers require some period of shutdown so that

internal tools can be exchanged. The time between the end of production of the last good part

and the end of production of the next good part is downtime. This downtime loss often includes

substantial time spent making adjustments until the machine gives acceptable quality on the

new part.

Speed Losses means that the equipment is running, but it is not running at its maximum designed

speed. Speed losses include two main types of loss: idling and minor stoppages, and reduced speed

operation.

Idling and Minor Stoppages: When a machine is not running smoothly and at a stable speed, it

will lose speed and obstruct a smooth flow. The idling and stoppages in this case are caused not

by technical failures, but by small problems such as parts that block sensors or get caught in

chutes. Although the operator can easily correct such problems when they occur, the frequent

halts can dramatically reduce the effectiveness of the equipment.

Reduced Speed Operation: Reduced speed operation refers to the difference between the actual

operating speed and the equipment‘s designed speed (also referred to as nameplate capacity).

There is often a gap between what people believe is the "maximum" speed and the actual

designed maximum speed. The goal is to eliminate the gap between the actual speed and the

designed speed. Significant losses from reduced speed operation are often neglected or

underestimated.

Defect Losses means that the equipment is producing products that do not fully meet the specified

quality characteristics. Defect losses include two major types of loss: scrap and rework, and startup

losses.

Scrap and Rework: Loss occurs when products do not meet quality specifications, even if they

can be reworked to correct the problem. The goal should be zero defects —to make the product

right the first time and every time.

Startup Losses: Startup losses are yield losses that occur when production is not immediately

stable at equipment startup, so the first products do not meet specifications. This is a latent loss,

often accepted as inevitable, and it can be surprisingly large.

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Overall Equipment Effectiveness (OEE)

In an ideal factory, equipment would operate 100 percent of the time at 100 percent capacity, with an

output of 100 percent good quality. In real life, however, this situation is rare.

The difference between the ideal and the actual situation is due to losses. Calculating the overall

equipment effectiveness (OEE) rate is a crucial element of any serious commitment to reduce

equipment- and process-related wastes through total productive maintenance (TPM).

Most industries have some kind of gauge system on their equipment that measures quantities such as

uptime, units produced, and sometimes even the production speed. These are appropriate things to look

at if the focus is on what‘s coming out of the machine. TPM takes a slightly different approach.

Besides what‘s 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.

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. Overall equipment effectiveness is not the

only indicator to assess a production system, but it is certainly very important if our goal is

improvement.

Today the World Class benchmark for OEE is 85%. Most companies are shocked at how low their

OEE truly is. As one strives for World Class productivity the simple OEE formula will make an

excellent benchmarking tool. The derived OEE percentage is easy to understand and displaying this

single number where all facility personnel can view it, makes for a great motivational technique. By

giving your employees an easy way to see how they are doing in overall equipment utilization,

production speed, and quality, they will strive for a higher number

Calculating OEE

The three main categories of equipment-related losses—downtime, speed loss, and defect or quality

loss—are also the main ingredients for determining the overall equipment effectiveness. Overall

equipment effectiveness is calculated by combining three factors that reflect these losses: the

availability rate, the performance rate, and the quality rate.

OEE = Availability x Performance x Quality

The inverted stair-step diagram below shows graphically how the losses in availability, performance,

and quality work together to reduce the overall effectiveness of a machine. The top bar, total operating

time, shows the total time a machine is available to make a product. This is usually considered to be

480 minutes per 8-hour shift.

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Bars A and B show availability. Bar A

represents the net operating time, which is

the time available for production after

subtracting planned downtime (no scheduled

production) such as a holiday, no orders, or

no personnel.

Bar B shows the actual running time after

subtracting downtime losses such as

equipment failures and setup and

adjustments.

Bars C and D show performance. Bar C

represents the Target Output of the machine

during the running time, calculated at the

designed speed of the machine. Below it, a

shorter fourth bar, D, represents the actual

output, reflecting speed losses such as minor

stoppages and reduced operating speed.

Bars E and F show quality. As you can see,

the actual output (E) is reduced by defect

losses such as scrap and startup losses,

shown as the shaded portion of bar F.

As this diagram shows, the bottom-line good output is only a fraction of what it could be if losses in

availability, performance, and quality were reduced. The diagram also suggests that to maximize

effectiveness—to grow the good output on the bottom line—you must reduce not only quality losses,

but also availability and performance losses. The three factors work together, and the lowest

percentage is usually the constraint that most needs addressing.

The goal of measuring OEE is to improve the effectiveness of equipment as indicated earlier. 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.

There are some major benefits of OEE measurement for operators and shift leaders or line managers.

Collecting this data will

i) Teach the operator about the equipment

ii) Focus the operator‘s attention on the losses

iii) Grow a feeling of ownership of the equipment

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Eight Pillars of TPM

TPM starts with 5S6. Problems cannot be clearly seen when the work place is unorganized. Cleaning

and organizing the workplace helps the team to uncover problems. Making problems visible is the first

step of improvement.

The second pillar is the Jishu Hozen or also known as Autonomous maintenance. This pillar 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.

The third pillar is the Kaizen or also known as continuous improvement. "Kai" means change, and

"Zen" means good (for the better). Basically kaizen is for small improvements, but carried out on a

continual basis and involve all people in the organization. Kaizen is opposite to big spectacular

innovations. Kaizen requires no or little investment. The principle behind is that "a very large number

of small improvements are move effective in an organizational environment than a few improvements

of large value. This pillar is aimed at reducing losses in the workplace that affect our efficiencies. By

using a detailed and thorough procedure we eliminate losses in a systematic method using various

Kaizen tools. These activities are not limited to production areas and can be implemented in

administrative areas as well.

6 for more details on 5S refer http://www.plant-maintenance.com/articles/tpm_intro.shtml or refer to ―5 Pillars of Visual

work place‖ – the sourcebook for 5S implementation by Hiroyuki Hirano

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The fourth pillar is the planned maintenance. It is aimed to have trouble free machines and equipments

producing defect free products for total customer satisfaction. This breaks maintenance down into 4

"families" or groups, which was defined earlier.

1. Preventive Maintenance

2. Breakdown Maintenance

3. Corrective Maintenance

4. Maintenance Prevention

With Planned Maintenance there is a shift from a reactive to a proactive method and use trained

maintenance staff to help train the operators to better maintain their equipment.

The fifth pillar is the Quality maintenance. It is aimed towards customer delight through highest

quality through defect free manufacturing. Focus is on eliminating non-conformances in a systematic

manner, much like Focused Improvement. Here primarily understanding of what parts of the

equipment affect product quality and begin to eliminate these current quality concerns, and

subsequently move on to potential quality concerns. Transition is from reactive to proactive (Quality

Control to Quality Assurance).

The sixth pillar is aimed at training to have multi-skilled revitalized employees whose morale is high

and who are eager to come to work and perform all required functions effectively and independently.

Education is given to operators to upgrade their skill. It is not sufficient know only "Know-How" but

they should also learn "Know-why". By experience they gain, knowledge to overcome a problem

without knowing the root cause and why they are doing so. Hence it becomes necessary to train them

on knowing "Know-why".

The employees should be trained to achieve the four phases of skill. The goal is to create a factory full

of experts. The different phases of skills are

Phase 1: Do not know.

Phase 2: Know the theory but cannot do.

Phase 3: Can do but cannot teach

Phase 4: Can do and also teach.

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The seventh pillar of TPM is aimed at office. Office TPM should be started after activating four other

pillars of TPM (JH, KK, QM, PM). Office TPM must be followed to improve productivity, efficiency

in the administrative functions and identify and eliminate losses. This includes analyzing processes and

procedures towards increased office automation. Office TPM addresses twelve major losses. They are,

1. Processing loss

2. Cost loss including in areas such as procurement, accounts, marketing, sales leading to

high inventories

3. Communication loss

4. Idle loss

5. Set-up loss

6. Accuracy loss

7. Office equipment breakdown

8. Communication channel breakdown, telephone and fax lines

9. Time spent on retrieval of information

10. Non availability of correct on line stock status

11. Customer complaints due to logistics

12. Expenses on emergency dispatches/purchases

The eighth pillar of TPM is the safety Pillar. One of the main aims of TPM is Zero accidents. Along

with it Zero health damage and Zero fires are related to safety and environment of the plant. In this

area focus is on to create a safe workplace and a surrounding area that is not damaged by our process

or procedures. This pillar will play an active role in each of the other pillars on a regular basis.

Conclusion

TPM is widely established throughout the Japanese industry, where the majority of companies that

practice have had excellent results. Many Indian companies have embraced this management

philosophy and have achieved benefits, which are both tangible and sustainable. TPM makes a lasting

contribution on company objectives and also ensure intangible benefits such as improvement in skills

and attitudes and creation of cheerful & lively employees.

Today, with competition in industry at an all time high, TPM may be the only thing that stands

between success and total failure for some companies. However when people don not understand

exactly how TPM is helping their company then TPM will lose focus and direction. Gauging TPM

effectiveness is essential to keep the efforts on track.

Also Evaluating TPM involves assessing whether the company has achieved the policy and goals set at

the introduction of TPM and realized the intended benefits. It also involves judging how effectively

priority topics, action items, and quantitative targets have been pursued through improvement

activities.

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Lead Books and reference material

Books and Published Papers

1) Tokutaro Suzuki, ―TPM in Process Industries‖.

2) Enhancing Overall Equipment Effectiveness Through TPM, P Sharmaa, Vishwas Bhaveb, Dr. H.B.

Khurasiac, B Shikaria

Websites

1) http://www.plant-maintenance.com/articles/tpm_intro.shtml

2) http://www.tpmonline.com/articles_on_total_productive_maintenance/articlstpm.htm

3) http://www.tpmclubindia.org/tpmbook.htm

4) http://www.oeetoolkit.nl/community/OEEToolkit/oee_and_tpm.htm