Mec 05

2
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 machinerelated problems.

3
PROLOGUE
Does your production have bottlenecks

that you are not aware of?
Does
your
equipment
capacity that could

inexpensively tapped?
have
be
excess
easily
and
Could one machine be dragging down

the entire facility?
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.
5
MAINTENANCE
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.
8
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
9
MAINTENANCE
10
11
12
GROWING EXPECTATIONS OF
MAINTENANCE
Third
Third Generation:
Generation:
Higher
Higher plant
plant
availability
availability
Greater
Greater safety
safety
Better
Better product
product quality
quality
No
No damage
damage to
to the
the
First
First Generation:
Generation:
Fix
Fix it
it when
when it
it
broke
broke
1940
Second
Second Generation:
Generation:
Higher
Higher plant
plant availability
availability
Longer
Longer equipment
equipment life
life
Lower
Lower costs
costs
1950
1960
1970
environment
environment
Longer
Longer equipment
equipment life
life
Greater
Greater cost
cost
effectiveness
effectiveness
1980
1990
2000
13
14
CHANGING MAINTENANCE
TECHNIQUES
Third
Third Generation:
Generation:
Condition
Condition monitoring
monitoring
Design
Design for
for reliability
reliability
and
and maintainability
maintainability
Hazard
Hazard studies
studies
Small,
Small, fast
fast computers
computers
Second
Second Generation:
Generation:
Scheduled
Scheduled overhauls
overhauls
First
First Generation:
Generation:
Fix
Fix it
it when
when it
it
broke
broke
1940
Systems
Systems for
for planning
planning
and
and controlling
controlling work
work
Big,
Big, slow
slow computers
computers
1950
1960
1970
Failure
Failure modes
modes and
and
effects
effects analyses
analyses
Expert
Expert systems
systems
Multiskilling
Multiskilling and
and
teamwork
teamwork
1980
1990
2000
15
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)
16
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
serviceable condition.
17
OBJECTIVES OF MAINTENANCE
Elimination of
future defects
Prevent
breakdown
during operation
Forestall
rapid wear of
components
Enhance
performance
level
Productivity Improvement
through maximum
availability at
optimum cost
Reduce
maintenance cost
Ensure safety
during
operation
Maximize
operational
efficiency
Reduce idle hours
due to component
malfunctioning
18
1950
1960
1970
1980
Breakdown Maintenance
1990
Evolution of TPM
1951
Preventive Maintenance
1957
Corrective Maintenance
1960
Productive Maintenance
1971 TPM
Total Productive Maintenance

Time-based era
QC
C
I
R
C
L
E
(1962)
Z D
G
R
O
U
P
(1965)
Condition-based era
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)
719
Category
Purpose
TQC AND TPM
TQC
TPM
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-
Education focusing mainly on the

Cultivation
management technique
and education
(QC technique)
of employees
Small group
activities
Target
Voluntary circle activities
Quality for PPM order
Education centering on the

equipment / maintenance
technologies
Integrate the activities based
on job description and by small
group circles
Through elimination of losses
and wastes (Aiming at
achievement of zero loss) 20
TPM IS NOT ABOUT

TRADITIONAL MAINTENANCE
Traditional Maintenance
Functional organization
Demarcation
Reactive to
breakdowns
Equipment is the
Maintenance
Departments
responsibility
Necessary evil
Total Productive
Maintenance
Productive team
Multi-skilled and
operator-based
Preventive
maintenance
Operator ownership
and pride in
equipment by
everyone
Vitally important
21
TPM GOALS
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.
22
OPERATIONAL AIMS OF TPM

Reducing the size of the cause of the
fault.
Reducing
the
frequency
appearance of the cause.
of
the
Reducing the growth speed of the stress.

Learning how to recognize and eliminate
the cause BEFORE the fault shows itself.
Reducing the total
(Maintainability).
intervention
costs
Increasing the strength of the component

(Robust Design).
23
WHAT DOES THE APPLICATION

OF TPM MEAN?
TPM is production maintenance to be
performed with the involvement and total
participation of all of the personnel.
To create TPM means:
To maximize the efficiency of the plant

and machinery.
To
develop
complete
maintenance system.
production
24
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.
25
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).
26
WHAT DOES TPM MEAN?
Productive maintenance is therefore the

group
of
maximize
activities
the
which
exploitation
tend
of
to
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.
27
WHAT DOES TPM MEAN?
In this way, maintenance is no longer a

task entrusted to a few specialists, it
becomes an activity which involves the
entire
office,
company
structure,
production
and
the
design
administrative
support offices etc.
28
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.
29
The following considerations are typical:

It is useless to stop the running
machinery.
All installations always have some
breakdowns etc.
30
In Japanese, the
(Kosho) means:
word
for
breakdown
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
31
DEFINITION OF TPM
JIPM VERSION
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:
32
DEFINITION OF TPM
Maximize overall equipment effectiveness
Establish a comprehensive PM system

covering the life of the equipment
Involve all departments that plan, use, and

maintain equipment.
Involve
all
employees
from
management to frontline workers.
Promote
TPM
through
motivation
management i.e. autonomous small group
activities.
33
top
DEFINITION OF TPM
JIPM introduced a new definition of TPM in

1989
with
components:
the
following
strategic
Build a corporate constitution that will

maximize
the
effectiveness
of
a
production system
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.
34
DEFINITION OF TPM
Involve all departments in implementing

TPM including development, sales and
administration.
Involve everyone from top management

to shop-floor workers
Conduct
zero-loss
activity
through
overlapping small group activities.
35
OBJECTIVES OF TPM
TPM aims at the improvement of
enterprise through radical reforms
equipment and personnel.
(1)
an
in
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:
36
OBJECTIVES OF TPM
Operator should possess ability

perform Self Initiated Maintenance
to
Maintenance
man
should
posses
ability to do maintenance of all types
of equipments
Production Engineering man should

acquire the ability to design such
equipments which shall not require
any maintenance.
37
OBJECTIVES OF TPM
(2)
Improvement of Equipment
Aim at improvement in overall

efficiency through improvement
of equipment in use at present.
Plan for LCC (Life Cycle Cost).
38
THE OVERALL GOALS OF TPM

1.
Cleaning becomes checking
4.
2.
Checking becomes discovery

of abnormalities
Restoration and improvement

become positive effects
5.
3.
Positive effects become pride

in the workplace
Abnormalities become things

to be restored or improved
Programme of Activities
Motivation
Department
leaders
Pride in
ones work
Changing
the
equipment
Effects
Reduction of
defects and
breakdowns
Changing
the
people
Continued in next slide

39
Changing attitudes
Breakdowns and
defects should be
seen as an
embarrassment
Effects
Achievement
of Zero
breakdown
Changing attitudes
goals
Changing
(invigorating)
the work
place
Breakdowns and
defects should be
seen as lost profit
40
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.
41
TRADITIONAL
MANUFACTURING
Breakdown
Defects
Setting
Breakdown
Adjustment
Misc.
stoppage
8 hrs.
42
MANUFACTURING WITH TPM
Operators
meet
10 Mins.
Full output of defect free products

7 hrs. 40 min.
8 hrs.
Equipment
cleaning/checkin
g
10 Mins.
43
TPM AND IMPROVEMENT

Kaizen
Gradual and constant
improvements of the
machine systems
TPM acts in
the
improvement
area through
three
approaches
Kairyo
Innovation in the
systems and
machines as a feed
back effect towards
design
Kai Fuku
Restoring design
normality (speed,
pressure etc. )
44
45
FROM PRODUCTION-DEPARTMENT
TPM TO COMPANYWIDE TPM
TOP MANAGEMENT
Planning
Finance
Personnel
General
Affairs
Administration
Development
Production
Plant
Plant
Plant
Sales
Plant
TPM Stage 1
TPM Stage 1: Production-department TPM
TPM Stage 2
TPM Stage 2: Companywide TPM embracing production,

development, sales, and administration
46
WHY IS TPM SO POPULAR?

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.
47
SIGNIFICANT TANGIBLE
RESULTS
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.
48
EXAMPLES OF TPM RESULTS

Tangible Benefits
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
Process defect rate down 90%

Customer claims down 75%
Production costs down 30%
Product and work-in-process inventories halved
Shutdown accidents 0
Pollution incidents 0
Improvement suggestions up by 5 10x
49
EXAMPLES OF TPM RESULTS
Intangible Benefits
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.
50
TRANSFORMING THE PLANT

ENVIRONMENT
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.
51
TRANSFORMING THE PLANT

WORKERS
As TPM
results
activities
improving
begin to yield concrete

the working environment,
minimizing breakdowns, improving quality,

reducing change over times and so on,
workers become motivated,
increases and improvement
involvement
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.
52
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:
53
THE ELIMINATION OF EIGHT BIG LOSSES
FAMILY OF
LOSS
Loss from
Breakdown
OBJECTIVE
To
reduce
stoppages
breakdown to a minimum
due
to
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
To reduce them to zero
Stoppage Loss
54
THE ELIMINATION OF EIGHT BIG LOSSES
FAMILY OF
LOSS
Defect Loss
Start up Loss
OBJECTIVE
To make acceptability
tight, 0.1 percent to 0.
limits
very
To minimize it so that it does not

account for more than 0.1 percent of
the lot.
Reprocessing Reduce non-conforming products to

Loss
almost zero
Process
Failure Loss
Shut down time due to external

factors such as defective materials,
operating errors etc. to be reduced to
55
56
1. ESTABLISHING BASIC TPM

POLICY AND GOALS
57
EXAMPLE OF BASIC TPM POLICY

AND GOALS (KANSAI NEC)
BASIC TPM POLICY
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.
58
EXAMPLE OF BASIC TPM POLICY

AND GOALS (KANSAI NEC)
Annual Policy and Companywide TPM Goals
FY 1986 Policy
FY 1987 Policy
FY
FY 1988
1988 Policy
Policy
1.
1. Establish
Establish a
a
profitable
profitable
corporate
corporate
constitution.
constitution.
2.
2. Promote
Promote a
a
Cut
Cut Total
Total
Cost
Cost by
by Half
Half
campaign
campaign
3.
3. Promote
Promote TPM
TPM
September
September 1988
1988 Target
Target
(relative
(relative to
to April
April 1986
1986 baseline)
baseline)
Number
Number of
of failure:
failure:
1/100
1/100 or
or less
less
Number
Number of
of minor
minor
stops:
stops:
1/20
1/20 or
or less
less
(Mean
(Mean time
time between
between
minor
minor stops):
stops):
(4
(4 h
h or
or more)
more)
Processing
Processing Productivity:
Productivity:
at
at least
least 50%
50% higher
higher
Materials
Materials wastage
wastage rate:
rate:
1/3
1/3 or
or less
less
Total
Total cost:
cost:
60%
60% or
or less
less
Number
Number of
of shutdown
shutdown
Accidents:
Accidents:
0
0
59
Safety & Environmental

Management
A&S Dept Activities
Early Management
Education & Training
Quality Maintenance
Planned Maintenance
Autonomous Maintenance
Focused Improvement
2. CORE TPM ACTIVITIES
PILLARS OF TPM
5S
60
Other important activities include:
Diagnostics & predictive maintenance
Equipment management
Product development and equipment

design & construction
61
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
62
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.
63
Planned Maintenance
Planned
or
scheduled
maintenance
embraces three forms of maintenance
Breakdown
Preventive
Predictive
64
Quality Maintenance
Quality
characteristics
are
mainly
influenced by the four production inputs
Equipment
Peoples actions (Skills)
Materials
Methods used
65
Education and Training
66
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,
construction
Test operation
Start up management
fabrication
and
67
In planning such a project, the project team

determines
The plant and equipments required

technical
levels
(functions
and
performance)
Its
availability
levels
maintainability etc.)
Establish budgets
achieve them
and
(reliability,
schedule
to
68
TPM in Administrative & Support

Departments
Autonomous maintenance in administrative
support departments aims for efficient, trouble
free work execution from two angles:
Administrative
Functions
Implemented
this function
and boasts
improving
process
Administrativ
e Environment
Activities
here
remove
obstacles to effective work
hidden
in
the
physical
69
environment.
step-by-step
reduces costs
efficiency by
administrative
TPM in Administrative & Support Departments
Focussed improvement of administrative

tasks aims to improve their efficiency and
speed and reduce the number of staff
required.
70
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.
71
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.
72
73
EXAMPLE OF TPM
EFFECTIVENESS
- Breakdowns per month

Number
500
Good
400
300
Year 1
200
Year 2
Year 3
100
1
9 11
9 11
9 11
Months
Note: TPM is not a quick fix!
74
THE EFFECTIVENESS OF TPM

Results from
Tangible Effect ( 3 to 4 years)
successful TPM
Companies
Reduction in Number of 1/50 of current level
Breakdown Failures
( P ) Productivity
Overall Equipment
1.5 to 2 times
Efficiency
Reduction in Process
( Q ) Quality
1/10 of current level
Defects
( C ) Cost
Manufacturing costs
Reduced by 30%
( D ) Delivery
Inventory
Reduced by 30% to
50%
( S ) Safety
( M ) Morale
Time off work for
accidents
Implemented employee
suggestion
Reduced to zero
5 to 8 per month per
75
employee
OVERALL TPM EFFECTIVENESS

Customer, Quality
defects
Overall equipment
effectiveness
Productivity
Program Chart
(Progress Chart of
number of
breakdowns
76
MEASURING WORLD CLASS

PERFORMANCE
Performance
Measure
Quality rejects per
million parts
Setup time
World
Class
2nd Class
3rd Class
< 500
1000
2000
< 10 min
< 20 min
< 30 min
90%
75%
55%
Breakdown losses
1%
5%
19%
On schedule
production
Engineering
change process
response time
Annual training
days per employee
100%
90%
80%
1 Day
5 Days
10 Days
20
10
<5
Utilized capacity
77
78
79
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 CNCControl etc. These breakdowns are
infrequent.
80
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.
81
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.
82
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.
83
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.
84
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.
85
6. Start Up / Reduced Equipment

Yield Losses
Start
up
defects
operating
losses
result
associated
from
with
conditions
quality
stabilizing
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.
86
87
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
88
THE SIX BIG LOSSES
Loss Categories
Down Time
(Lost availability)
Speed Losses
(Lost performance)
Defect Losses
(Lost quality, sometimes
also called Yield Losses)
The Big Losses

Equipment failures set
up and adjustments
Idling and minor
stoppages reduced
speed operation
Scrap and rework
start up / yield losses
89
90
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.
91
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.
92
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.
93
94
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

95
OEE METRIC
Availability Rate =
The availability rate is the time the

equipment is really running, versus
the time it could have been running.
A low availability
downtime losses:
rate
reflects
Equipment failures
Setup and adjustments
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 Performance Rate =
time versus the potential quantity,
given the designed speed of the
Total output
equipment.
A low performance rate reflects Potential output at rated speed
speed losses:
Idling and minor stoppages
96
OEE METRIC
Performance Rate (Contd)
There are, however,
where only few parts are
per day or per week or
month or year.
situations
produced
even per
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.
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.
The quality rate is the amount of
Quality Rate = Good Output
good products versus the total
Total output
amount of products produced.
A low quality rate reflects defect
losses:
Scrap and Rework
Start up losses
Quality Rate =
Amount Produced Amount
Defectives Amounts
reprocessed
97
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.
98
DIAGRAM OF OVERALL EQUIPMENT

EFFECTIVENESS
Availability
TOTAL OPERATING TIME

No
Scheduled
Production
A Net Operating Time

Failures
Setup
Quality
Performance
B Running Time
C
Target Output
Actual Output
Actual Output
Minor stoppage
Reduced speed
Lost Effectiveness
Scrap rework
Startup losses
OEE =
B/A
x
D/C
x
Availability Rate Performance Rate
Good
F
Output
F/E
Quality Rate
99
100
OBJECTIVES OF OEE
OEE
is
(machine
used
or
to
identify
equipment)
stream
process
related
purpose
of
improving
a
and
single
/
or
losses
asset
single
for
total
the
asset
performance and reliability.
OEE is used to identify and categorize major

losses or reasons for poor performance.
101
OBJECTIVES OF OEE
OEE
provides
improvement
the
basis
priorities
for
and
setting
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.
102
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
reduce)
identify
the
major
and
eliminate
causes
of
(or
poor
performance since Maintenance alone

cannot improve OEE.
103
104
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.
105
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
equipment.
operator
about
the
Focus the
losses.
Grow a feeling of ownership of the

equipment.
operators attention on
106
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.
107
Allow the leader to keep management

informed about equipment status and
improvement results.
108
Example 1
OEE EXAMPLES
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
Number of Reject Components
= 8
Percentage Quality
= Produced Units Defectives

Produced Units
OEE
= Availability x Performance x Quality 109
Actual Output
Potential Output
x 100
x 100
x 100
OEE EXAMPLES
Example 2
Planned Time to Run

Breaks and Scheduled Maintenance
= 120 Hours / week (7200 Minutes)

= 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
Number of Reject Units
= 2050
Percentage Quality
= Produced Units Defectives

Produced Units
OEE
= Availability x Performance x Quality
Actual Output
Potential Output
x 100
x 100
x 100
110
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
accurate and meaningful figures.
with
111
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.
112
113
COLLECTIVE MEASURES OEE,

LOE AND OPE
One
traditional
together
the
facilitys
physical
performance
Equipment
referred
measure
Efficiency
to
Effectiveness)
as
aspects
is
pulls
of
Operating
(OEE),
Overall
which
that
also
Equipment
gauges
how
efficiently a piece of equipment or line

is producing quality goods.
114
OEE, LOE and OPE
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).
115
OEE, LOE and OPE
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).
116
OEE, LOE and OPE
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)
117
OEE, LOE and OPE
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.
118
OEE, LOE and OPE
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.
119
OEE, LOE and OPE
MPIs Measuring Overall Plant

Efficiency (OPE)
Operating Equipment Efficiency
(OEE)
PerforMachine
Quality
mance
Availability x Yield x
Rate
%
%
%
Labour Operating Efficiency

(LOE)
Capacity
Usage
Annual
Non
Capacity
EmpoLabour
x
x
x Absenteeism x
Usage
wered %
Retention
%
%
%
120
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:-
121
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%
122
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.
123
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%
labour
based
turnover,
absenteeism
and
on
8%
10%
33%
empowerment, of which most

is management.
Would find that this facility has a poor
OPE of 11%.
124
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.
125
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.
126
127
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
128
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:
129
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.
130
HAND ASSEMBLY
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.
131
HAND ASSEMBLY
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.
132
HAND ASSEMBLY
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.
133
HAND ASSEMBLY
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.
134
HAND ASSEMBLY
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.
135
HAND ASSEMBLY
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.
136
HAND ASSEMBLY
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.
137
HAND ASSEMBLY
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.
138
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.
139
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.
140
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.
141
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.
142
HAND ASSEMBLY
If we now add up all of the losses we find:

Availability losses =
Total
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)
3380 mins during the
assembly
Performance losses =
Total
10 mins x 5 x 8 (No. 3) +
15 mins x 10 (No. 13)
550 minutes during the
assembly
143
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
144
EXAMPLE 2.
SEMI-AUTOMATED
ASSEMBLY
In this example we look at a semiautomated

assembles
assembly
machine
which
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:
145
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 reprocessed they are scrapped. This is also a
quality loss.
146
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.
147
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
breakdown during which
machine
cannot
be
causes a
time the
operated,
an
availability loss is incurred.
148
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
inconsistent
quality
of
resulting in the rejection of
of units. Therefore, this is
loss.
causes
products
a number
a quality
149
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.
150
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.
151
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.
152
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.
153

Availability losses
Total
Performance losses
Total
Quality losses
Total
=
=
=
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)
600 minutes per week
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)
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)
510 units per week
154
EXAMPLE 3. PROCESSING SYSTEM

In
this
example
we
take
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:
155
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.
156
PROCESSING SYSTEM
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,
157
PROCESSING SYSTEM
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
158
PROCESSING SYSTEM
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.
159
PROCESSING SYSTEM
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.
160
PROCESSING SYSTEM
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.
161
PROCESSING SYSTEM
The amount of material that is reprocessed 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.
162
PROCESSING SYSTEM
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.
163
PROCESSING SYSTEM
Availability losses
Total
Performance losses
Total
Quality losses
Total
=
=
=
=
=
4 x 60 mins (No. 3) +
8 x 60 mins/2 (No. 5)
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)
3 kg x 3 x 7 (No. 2) +
50 kg (No. 3) +
37.5 kg/2 (No. 5) +
75 kg x 4 (No. 6)
431.75 kg per week
164
PROCESSING SYSTEM
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.
165
PROCESSING SYSTEM
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.
166
PROCESSING SYSTEM
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.
167
EFFECTOGRAM SHOWING THE

EFFECTS OF THE SIX BIG LOSSES
Lost
Output
Lost
Output
90
Total
Losses
80
Lost
Earnings
Rs
Percentage
70
60
50
40
Available
for
operation
Output
Good
Quality
Output
Effective
operation
Rs
Average hours / year - h
100
Lost
Availability
Earnings
30
20
10
0
Rs
availability
performance
quality
overall
effectiveness
earning
capacity
Rs
actual
losses
168
PROCESSING SYSTEM
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.
169
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
of losses, thus percentage availability
group
is the
ratio of how long you actually used the

machinery over how long you wanted to use
the machinery, and is calculated as:
170
% availability = loading time - breakdown and set up time loss

loading time
X 100
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 =
8 (1 + 1)
8
X 100 =
6
8
= 75%
171
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
172
availability is based upon those few hours.
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
173
A simple example is where the quantity

produced = 500 parts; the time run 6 hours
and the capacity = 100 parts per hour.
% performance =
500
6 X 100
X 100 =
500
600
X 100 = 83%
174
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:
175
Time run minor stoppages reduced

speed
X 100
% performance =
time run
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 =
6-
6
X 100 =
5
6
X 100 = 83%
176
Note that the percentage performance

figure can be calculated in either way, but it
is usually simpler
when reasonable
to use the first formula

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:
177
% 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 =
500 50 50
500
X 100 =
400
500
X 100 = 80%
178
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:
179
% 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 =
6-
6
X 100 =
5
6
X 100 = 83%
180
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
percentage terms and is calculated as:
in
overall effectiveness = % availability x % performance x

% quality
181
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%
182
If we now take the examples used to

illustrate the six big losses, we can
calculate an overall effectiveness figure for
each example.
183
EXAMPLE 1. HAND ASSEMBLY

loading time = 8 X 5 X 8 = 320 hours = 19 200 mins
availability losses
% availability =
(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
19200 3380
Performance losses
19200
=
=
X 100 =
15820
19200
X 100 = 82%
(10 X 5 X 8) + (15 X 10) = 400 + 150

550 mins/assembly
184
HAND ASSEMBLY
% performance =
Quality losses
% Quality
15820 550
15820
X 100 =
15270
15820
X 100 = 97%
= (30 X 2 X 8) + (5 X 60 X 3) + (4 X 60 X 2)
= 480 + 900 + 480 = 1860 mins/assembly
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%
185
HAND ASSEMBLY
If we now plot these figures

effectogram, the magnitude of the
on an
losses
and loss of earning capacity can be easily

seen. The effectogram for example 1 is
shown in next slide.
186
EFFECTOGRAM FOR EXAMPLE 1

Lost
Output
100
90
Lost
Output
Loss
Availability
Total
Losses
Lost
Earnings
Good
Quality
Output
Effective
operation
Earnings
quality
overall
effectiveness
earning
capacity
80
Percentage
70
60
50
40
30
Available
for
operation
Output
20
10
0
availability
performance
actual
losses
187
EXAMPLE 2. SEMI-AUTOMATED
ASSEMBLY
loading time = 7.5 X 5 = 37.5 hours/wk = 2250 mins/wk
availability losses
=
=
% availability =
Performance losses
% performance =
(1 X 60) + (5 X 60/4) + (2.25 X 3 X 60) +

(6 X 60/6)
60 + 75 + 405 + 60 = 600 mins/wk
2250 600
2250
=
=
X 100 =
1650
2250
X 100 = 73%
(2 X 5 X 7.5 X 5) + (15 X 5) + (5 X 2 X 5)
375 + 75 + 50 = 500 mins/wk
1650 500
1650
X 100 =
1150
1650
X 100 = 70%
188
HAND ASSEMBLY
% performance =
Quality losses
% quality =
2875
(1650/60 X 150)
X 100 =
2875
4125
X 100 = 70%
= (1 X 5 X 7,5 X 5) + (30 X 1) + (220 X 1) + (24 X 3)

= 188 + 30 + 220 + 72 = 510 units/wk
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%
189
HAND ASSEMBLY
The effectogram for this example is shown

in next slide.
190

100
90
80
Lost
Availability
Lost
Output
Lost
Output
Percentage
70
Total
Losses
Lost
Earnings
Effective
operation
Earnings
overall
effectiveness
earning
capacity
60
50
40
30
Available
for
operation
Output
Good
Quality
Output
20
10
0
availability
performance
quality
actual
losses
191
Example 3. PROCESSING SYSTEM

loading time = 24 X 7 = 168 hours/wk 10080 mins/wk
availability losses
% availability =
Performance losses
% performance =
=
=
(4 X 60) + (8 X 60/2) = 240 + 240

480 mins/wk
10080 480
10080
X 100 =
9600
10080
X 100 = 95%
=
(8 X 10) + (3 X 12 X 3 X 7) + (15 X 4) + (10
X 6)
=
80 + 756 + 60 + 60 = 956 mins/wk
9600 956
9600
X 100 =
8644
9600
X 100 = 90%
192
HAND ASSEMBLY
% performance =
Quality losses
% quality =
43000
(9600/60 X 300)
X 100 =
43000
48000
X 100 = 90%
= (3 X 3 X 7) + (50 X 1) + (37.5/2) + (75 X 4)

= 63 + 50 + 18.75 + 300 = 431.75 kg/wk
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%
193
HAND ASSEMBLY
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.
194

100
Lost
Availability
Lost
Output
Lost
Output
90
Total
Losses
Lost
Earnings
Effective
operation
Earnings
overall
effectiveness
earning
capacity
80
Percentage
70
60
50
Available
for
operation
Output
Good
Quality
Output
availability
performance
quality
40
30
20
10
0
actual
losses
195
HAND ASSEMBLY
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.
196
HAND ASSEMBLY
Overall effectiveness
used just as a means of
should not be
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.
197
198
THE FINANCIAL BENEFITS OF

IMPLEMENTING TPM
The concept of the six big losses
overall effectiveness was introduced
the
the
and
and
effectograms illustrated the effects of

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
application of TPM.
arising
from
the
199
THE FINANCIAL BENEFITS OF IMPLEMENTING TPM
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
calculated as follows:
value
and
is
200
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
201
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:
actual added value/hour
= Rs. 100,000 x
70
100
= Rs. 70,000/hour
and therefore the major losses represent a loss of
added value equal to Rs. 30,000/hour.
202
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)
203
This means that the press could have

earned an additional Rs. 50.4m for the
company if it operated at
effectiveness rather than
100
70
per
per
cent
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,
204
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.
205
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.
206
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
calculated as follows:
assembly
can
be
207
HAND ASSEMBLY
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
208
HAND ASSEMBLY
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.
209
COMPLETED EFFECTOGRAM
FOR EXAMPLE 1
Percentage
70
60
50
40
Available
for
operation
Output
Good
Quality
Output
Earnings
Effective
operation
30
20
Rs 2500
457
320
Addl
Cost
10/yr
80
Total
Losses
Rs 800,000
Rs.1.1425 m
90
Lost
Output
Lost
availability
Rs 1,14,166/yr/1%
100
Lost
Output
10
0
availability
performance
quality
overall
effectiveness
earning
capacity
actual
losses
210
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%
211
therefore, the cost of the six major losses can be

calculated thus:
losses = Rs 4.05m x
and 1% improvement =
58
100
= Rs 2.349m/year
Rs 2.349m
58%
= Rs 40,500
212
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.
213
Percentage
60
40
30
Available
for
operation
Good
Quality
Output
Output
Earnings
20
Effective
operation
10
0
availability
performance
quality
overall
effectiveness
earning
capacity
Rs 2250
Total
Losses
70
50
Lost
Earnings
Rs 945
80
Lost
Output
Lost
Output
1800
90
Lost
availability
Rs 40,500/yr/1%
100
Rs 1.701 m Rs
4.05m
COMPLETED EFFECTOGRAM
FOR EXAMPLE 2
actual
losses
214
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
overall effectiveness =
8400 hrs/yr x 300 kg/yr x

Rs 30/kg
= Rs 7,56,00,000/year
(Rs 75.6m)
85%
215
PROCESSING SYSTEM
therefore, the losses can be calculated thus:
losses = Rs 75.6m x
15
100
= Rs 11.34m/year
Rs 11.34m
= Rs 7,56,000/year
and 1% improvement =
15%
in overall effectiveness
216
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.
217
Lost
Output
100
Total
Losses
Lost
Earnings
90
80
Percentage
70
60
50
40
Available
for
operation
Output
Good
Quality
Output
availability
performance
quality
Effective
operation
Earnings
overall
effectiveness
earning
capacity
30
20
Rs 9000
Rs 7,650
Lost
Output
8400
Lost
availability
Rs 7,56,000/yr/1%
Rs 75.6m
Rs 64.26m
COMPLETED EFFECTOGRAM FOR

EXAMPLE 3
10
0
actual
losses
218
PROCESSING SYSTEM
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.
219
220
TPM is an approach which provides

benefits to the whole business in the form
of:
Improved effectiveness of machinery

and equipment which directly affects
key
business
ratios
and
competitiveness.
Improved quality of products, less

scrap and re-work which not only
reduces manufacturing costs but
increases customer satisfaction.
221
Enhanced
factory
floor
personnel,
improved motivation and morale, arising
from
a
much
improved
working
environment, greater participation and
training.
A more controlled and well-organized

manufacturing
operation
with
less
pressure and fire fighting and more time
for
continuous
improvement
and
development.
A much better working environment for

everyone.
222
Some examples of the overall business

improvements achieved as a result of TPM
implementation are given below:
Company A: Glass Manufacturer
Breakdowns in factory reduced from 150

to 10 a month.
Throughput increased by 40 percent.
Defects reduced by 30 percent.
Overall equipment effectiveness of 86

percent achieved.
223
Company B: Automotive Supplier
Breakdowns in factory reduced from

800 to 5 a month.
Overall equipment effectiveness of 80

percent achieved.
224
Company C: Automotive Manufacturer
Breakdowns in factory reduced from

1800 to 170 a month.
Energy costs reduced by 25 percent.
225
Company D: Food Manufacturer
Breakdowns in process area
reduced
from 300 to 100 a month.

Overall
effectiveness
of
packaging
machinery increased from 62 percent to

80 percent.
226
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.
227
WORLD CLASS OEE

OEE Factor
World Class
Availability
90.0%
Performance
95.0%
Quality
99.9%
Overall OEE
85.0%
228
229
230
You may recall that the eight core activities

of TPM are
Focused Improvement
Planned Maintenance
Quality Maintenance
Early Management
Administrative & Support Department
Activities
Safety & Environmental Management
231
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.
232
FOCUSED IMPROVEMENT
Typically, such inherent faults will be

limiting the overall effectiveness of the
machinery
will try to
and, although the TPM team

reduce their effect wherever
possible, a major problem may still

exist. This is the point
team will propose that a
at which
project be
the
set
up which will focus on the inherent fault.
233
FOCUSED IMPROVEMENT
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.
234
OVERALL EQUIPMENT
EFFECTIVENESS
Availability
Changeover /
setup time
reduced. Study
& improve
Reliability
improvement
Redesign for
maintainability
Performance
Chronic loss
analysis and
Quality
improvement
Process
improvement
Study and
improve
method of
operation
Process
capability
study and
improvement
POKA YOKE
design
Redesign for
operational
stability
235
FOCUSED IMPROVEMENT
Carrying Out Focused Improvement Projects
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:
236
AVAILABILITY IMPROVEMENT
PROJECTS
Changeover Time Reduction:
There are three major aspects of
changeover from part to part which need to be
considered in this kind of project:
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.
237
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.
238
Reliability Improvement:
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.
239
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.
240
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.
241
PERFORMANCE IMPROVEMENT
PROJECTS
Reducing Cycle Time:
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:
List each activity that takes place

during the operating cycle. This
should
include
all
machinery
actuations,
processing,
operator
activities and delays.
242
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.
243
Establish their root cause using one

of the structured problem- solving
techniques.
Plan and implement improvement.
244
QUALITY IMPROVEMENT PROJECTS

MISTAKE PROOFING PROCESSES
The prevention of defects at source is central

to the philosophy of many world class
manufacturing business, and
mistake proofing is a proven
elimination
problems.
POKA
YOKE
of
is
many
POKA YOKE or
approach to the
process
particularly
quality
relevant
to
production processes which involve a fair

amount of operator interaction and its aim is
to ensure that things cannot go wrong.
245
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?
246
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.
247
QUALITY IMPROVEMENT
They may require the fixture to be redesigned.

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?
248
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.
249
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
configuration on
loaded (the pin

many electrical
plugs serves this same purpose).
250
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.
251
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:
252
SIX MAJOR RESULTS

P (Production)
Q (Quality)
1.
Increased labour productivity
1.
Reduced process defect rate
2.
Increased equipment
productivity
2.
Reduced customer
complaints
3.
Increased value-added
productivity
3.
Reduced scrap rate
4.
Reduced cost of qualitydefect countermeasures
5.
Reduced reprocessing costs
4.
Increased product yield
5.
Increased plant operating rate
6. Reduced number of workers

C (Cost)
1.
D (Delivery)
Reduced maintenance labour

hours
1.
Reduced late deliveries
2.
Reduced maintenance costs
2.
Reduced product inventories
3.
Reduced resource costs

(decreased unit consumption)
3.
Increased inventory
turnover rate
4.
Reduced spare-parts
inventories
4.
Energy saving (decreased unit
253
SIX MAJOR RESULTS
S (Safety)
M (Morale)
1.
Reduced number of shutdown

accidents
1.
Increased number of
improvement suggestions
2.
Reduced number of other

accidents
2.
Increased frequency of
small-group activities
3.
Elimination of pollution
incidents
3.
Increased number of onepoint lesson sheets
4.
Degree of improvement on
statutory environmental
requirements
4.
Increased number of
irregularities detected
254
255
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.
256
OPERATORS ROLE
Policy
Uninterrupted
equipments.
operation
of
Flexible operators to operate and

maintain other equipments.
Eliminating the defects at source

through
active
employee
participation.
Step-wise
implementation
Autonomous Maintenance.
of
257
OPERATORS ROLE
Targets
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.
258
OPERATORS ROLE
Assembly
industry
is
constantly
accelerating the automation of repetitive

manual work based on recent progress in
computer
technologies.
and
micro-electronic
Automation, technology is one of the

most
important
resources
for
manufacturers survival.
259
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.
260
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.
261
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
understanding following areas:-
in
They do not tackle seriously the

kinetic operating conditions of the
equipment.
262
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 lowtech procedures.
They believe that by eliminating a
number of operators, production costs
can be reduced correspondingly.
263
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.
264
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.
265
OPERATORS ROLE
They must now take into

departments which directly
account all
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.
266
OPERATORS ROLE
Success
will
be
evasive
careful
consideration,
unless,
these
by
same
personnel provide for and achieve the

optimal and most flexible integration of
function
and
roles
among
all
these
departments.
267
OPERATORS ROLE
TPM,
with
the
participation
of
all
employees,
means
reviewing
the
function and roles of all the personnel
and analyzing the interfaces of
various departments.
the
One outcome of this process is the

realization that the operators role
should be revised.
268
THE KNOWLEDGEABLE OPERATOR

The term Knowledgeable Operator
does not mean an operator who can
fix
equipment
as
well
as
be
maintenance technician. Rather, it

emphasizes that an important aspect
of an operators skill is to detect
signs of losses.
269
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.
270
Almost all losses, either breakdowns or

quality defects, are preceded by some
signs.
Not only do minor
do certain other
defects occur, but

aberrations, such
so
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.
271
Operators may, therefore, be expected to

master the very early discovery
indications of abnormalities so as
of
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.
272
To make this possible, operators must

be,
from
the
beginning
of
the
autonomous maintenance programme,

educated about the basic structure and
function
trained
of
equipment,
through
practice
and
on
later
actual
equipment.
273
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.
274
TRAINING OPERATORS TOWARD A NEW

TYPE OF ENGINEERING STATUS
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.
275
TRAINING OPERATORS
In some advanced plants, operators are

developing
automated
emergency
their
plant
skills
by
studying
operations
shut-down
and
procedures
using computer technologies to the

exclusion of human intervention.
276
TRAINING OPERATORS
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.
As reliance on equipment is increasing

annually,
risk
and
cost
in
plant
investment also become higher.

277
TRAINING OPERATORS
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.
Generally speaking, leadership tends to

under
estimate
operators
hidden
capability and potential.
278
TRAINING OPERATORS
If, however, suitable motivation, training

and opportunities are provided for
operators, they attain remarkable ability
which leads to highly desirable results.
Autonomous
maintenance
fostering the development
knowledgeable operators.
In moving ahead, a company must train

operators toward a new status of
production engineers.
aims
at
of these
279
280
PLANNED MAINTENANCE
It
is
aimed
to
have trouble
free
machines and equipments producing defect

free
products
for
total
customer
satisfaction.
281
TYPES OF MAINTENANCE
Daily checks
Periodic checks
TBM
Periodic Inspection
Periodic servicing
PM
CBM
Rotating machinery
diagnostics
Static equipment diagnostics
PLANNED
BM
Approach to
Maintenance
CM
PM:
Preventive Maintenance
TBM: Time-Based Maintenance

CBM: Condition-Based Maintenance
UNPLANNED
BM:
Breakdown Maintenance
CM:
Corrective Maintenance
282
PLANNED MAINTENANCE
In TPM planned maintenance is based
on the twin foundations of
Autonomous
maintenance
by
the
by
the
Production Department.
Specialized
maintenance
Maintenance Department.
283
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.

284
THE TWIN ACTIVITIES OF

SPECIALIZED MAINTENANCE
SPECIALIZED
SPECIALIZED MAINTENANCE
MAINTENANCE ACTIVITIES
ACTIVITIES
Improving Maintenance
Technology and Skills
Specialized maintenance skills
Equipment repair skills
Inspection and measurement

skills
Equipment diagnostic techniques
and skills
Improving equipment
Autonomous maintenance
support
Planned maintenance (6 steps)
Corrective maintenance
Maintenance prevention
Predictive maintenance
New maintenance technology
285
EQUIPMENT FAILURE AND

PROCESS PROBLEMS
Equipment
failures
and
process
problems (losses) in process industries can

be classified into few broad categories:
Equipment failures or process problems

that cause shutdown
Quality abnormalities
Unit consumption abnormalities
Capacity reductions
Safety and environmental problems
286
Obvious Problems
& Losses
1. Equipment failures
or process
problems causing
shutdown
2. Quality
abnormalities
3. Unit-consumption
abnormalities
Common
Problems
& Their
Causes
Static Equipment
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)
Equipment
Disorders
& Hidden
Defects
4. Capacity reductions
5. Safety and
environmental
problems
Rotating Machinery
Changes in machine interiors and

exteriors (deformation due to
corrosion, vibration, loose or
fallen-off parts, etc.,
contamination, blocks, leaks,
erosion, degradation of materials)
287
POLICY
Achieve
and
sustain
availability
of
machines.
Optimum maintenance cost.
Reduce spares inventory.
Improvement
in
reliability
and
maintainability of machines.
288
TARGET
Zero equipment failure and breakdown.
Improve reliability and maintainability

by 50%.
Reduce maintenance costs by 20%.
Ensure availability of spares all the

time.
289
SIX STEPS IN
PLANNED MAINTENANCE
290
STEP-BY-STEP IMPLEMENTATION OF
PLANNED MAINTENANCE
Step 1:
Evaluate equipment and understand

current conditions.
Step
2:
Restore deterioration
weaknesses.
and
Step
3:
Build an
system.
management
information
correct
Step 4:
Build a periodic maintenance system.
Step 5:
Build a predictive maintenance system.
Step 6:
Evaluate the planned maintenance

291
system.
292
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.
293
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.
294
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.
295
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.
296
QUALITY MAINTENANCE
This is accomplished by identifying

checkpoints for process and equipment
conditions that affect quality, measuring
these periodically, and taking appropriate
actions.
297
PRECONDITIONS FOR SUCCESSFUL

QUALITY MAINTENANCE
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.
298
QUALITY MAINTENANCE
ABOLISH ACCELERATED
DETERIORATION
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.

299
QUALITY MAINTENANCE
ABOLISH ACCELERATED DETERIORATION
Before quality maintenance can work,

accelerated
abolished
deterioration
and
unexpected
must
be
failures
minimized through the activities in TPM

implementation Focused Improvement,
Autonomous
Maintenance,
Maintenance,
and
Planned
Operation
and
Maintenance Skills Training.
300
QUALITY MAINTENANCE
ELIMINATE PROCESS PROBLEMS
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
operator-initiated
Maintenance
Improvements.
or
Autonomous
Only
then
can quality maintenance be effective.

301
QUALITY MAINTENANCE
DEVELOP COMPETENT OPERATORS
We
have
discussed
training
of
competent operators earlier and will

again
discuss
Operating
and
the
issue
Maintenance
under
Skills
Training.
Operators must be trained to promptly

spot and correct any defect presaging
abnormalities in the system.
302
303
CAUSES OF QUALITY
DEFECTS
304
RELATIONSHIP BETWEEN
EQUIPMENT & QUALITY
305
EQUIPMENT CONTROL
CONDITIONS
306
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.

307
QUALITY MAINTENANCE
Prevent
defects
from
occurring
by
maintaining such components in their

specified condition. This is the basis of
Quality Maintenance.
308
WHAT ARE QUALITY

COMPONENTS AND
CONDITIONS
309
WHO IS RESPONSIBLE FOR

QUALITY MAINTENANCE
The quality control department must
be
responsible
for
promoting
Quality
Maintenance throughout your company or

plant.
310
311
OPERATING & MAINTENANCE

SKILLS TRAINING
TPM
aims
to
create
corporate
environments able to respond positively

to
the
changing
technological
sophistication
business
advances,
and
climate,
equipment
management
innovation.
312

SKILLS TRAINING
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.
Meanwhile,
maintenance
personnel
must acquire the requisite technology

and skills to act as its professional
custodian.
313

SKILLS TRAINING
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.
314

SKILLS TRAINING
Meanwhile, the equipment design and

production
struggle
engineering
desperately
departments
to
commission
equipment that is ill-suited to work

place
conditions,
awkward
to
difficult
maintain
and
to
use,
regularly
breaks down or spews out defectives.

All this demonstrates a low level of
technology, skill and managerial ability
in every department.
315
316
EDUCATION AND TRAINING IN

TPM
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.
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.
317
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.
318
WHAT ARE SKILLS?
Noticing
Noticingaa
certain
certain
phenomenon
phenomenon
Assessing
Assessingthe
the
phenomenon
phenomenonaccurately
accurately
(cause
(cause
action)
action)
Perception
Judgment
Five senses
Intellect
Training,
experience
and
information
Function of Time
Acting
Acting
reflexively
reflexively
Action
Body
319
WHAT IS SKILL?
Systematically accumulating training,

experience,
and
information
enables
person to exercise good judgment and act

appropriately. The more swiftly a person
can deal with an abnormality, the higher the
skill level.
320
FOUR SKILL LEVELS

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.
321
FOUR SKILL LEVELS
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)
322
EQUIPMENT-COMPETENT
OPERATORS
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:
323
EQUIPMENT-COMPETENT OPERATORS
1.
Equipment-competent operators
detect equipment abnormalities
effect improvements.
can
and
They must be able to:
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
324
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
325
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
326
Know the criteria for recognizing

abnormalities
Understand
abnormalities
Judge correctly when to shut down

equipment
Diagnose
extent
the
failures
causes
to
of
certain
327
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
328
Understand and check properly

static and dynamic equipment
precision tolerances
Understand the causes of defects
329
4.
Equipment-competent operators can

understand and repair equipment.
Replace components
Know component lifetimes
Postulate failure causes
Take emergency action
Assist in equipment overhauls

330
EQUIPMENT-COMPETENT
MAINTENANCE PERSONNEL
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.
331
EQUIPMENT-COMPETENT MAINTENANCE PERSONNEL
Maintenance professionals must be able to:
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.
332
Improve
reliability,
equipment
lengthen
and
component
equipment
life
times, and curb abnormal failures.
Understand equipment diagnostics and

use and standardize them.
333
AS
equipment
sophisticated
becomes
and
more
automated,
the
need for safe and environmentally

friendly
operation,
low
energy
consumption, and completely assured

quality increases.
334
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.
335
336
SIX STEPS TO BOOST OPERATING

AND MAINTENANCE SKILLS
Evaluate the current training program

and set policy and priority strategies.
Design
program
for
improving
operating and maintenance skills.
Implement
operating
and
maintenance skills training.
337
SIX STEPS TO BOOST OPERATING AND

MAINTENANCE SKILLS
Design
and
develop
skill-
environment
that
development system.
Foster
an
encourages self-development.
Evaluate the activities and plan for

the future.
338
339
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).
340
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.
341
THE NEED FOR EARLY MANAGEMENT
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.
342
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.
343
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.
344
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:
345
LIFE-CYCLE COSTING DEFINED
The
sum
recurring,
of
the
direct,
non-recurring,
indirect,
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
development,
during
production,
the
design,
operation,
maintenance, and support processes.
346
In Japan it is defined as:

A
systematic
technique
that
decision-making
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:
347
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.
348
EARLY PRODUCT MANAGEMENT
As
user
competition
needs
on
diversify
quality,
and
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.
349
EARLY PRODUCT MANAGEMENT
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
reduced
is
major
profitability,
cause
of
impaired
production efficiency, and low overall

equipment effectiveness.
350
351
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.
352
TPM IN ADMINISTRATIVE AND

SUPPORT DEPARTMENTS
TPM activities in administrative and

support
departments
do
not
production
equipment.
Rather,
involve
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.
353
THE ROLE OF ADMINISTRATIVE

AND SUPPORT DEPARTMENTS
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.
354
THE ROLE OF ADMINISTRATIVE AND

SUPPORT DEPARTMENTS
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
developments
accomplish
that
senior
the
strategic
management
envision.
355

SUPPORT DEPARTMENTS
Their
third
preceding,
task,
is
based
to
win
on
the
customer
confidence and create an outstanding

corporate image.
To pursue these goals through TPM,
administrative and support departments
must define their mission by answering
the following questions:
356

SUPPORT DEPARTMENTS
How do we support the TPM activities

of the production department and other
departments?
What
issues
must
we
address
to
maximize our own efficiency?
357
IMPROVING THE ORGANIZATION AND

MANAGEMENT OF ADMINISTRATIVE AND
SUPPORT DEPARTMENTS
The function of administrative and support
departments can be improved in two ways:
Improving efficiency so each department

can perform
satisfactorily.
its
particular
function
Developing people able to sustain and

continuously improve the new, more
efficient system.
358
IMPROVING THE ORGANIZATION AND MANAGEMENT OF

ADMINISTRATIVE AND SUPPORT DEPARTMENTS
In general, administrative functions have

three aspects:
Decision Making
Communication
Data Processing
359
IMPLEMENTING TPM IN
ADMINISTRATIVE & SUPPORT
DEPARTMENTS
The
approach
systematizes
the
described
experiences
below
of
many
companies that have implemented TPM in

their
administrative
and
support
departments. The main elements are:
360
IMPLEMENTING TPM IN ADMINISTRATIVE &

SUPPORT DEPARTMENTS
Begin with the concept of

information factories.
creating
Apply the equipment approach

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.
to
361
362
ENVISION OPTIMAL CONDITIONS FOR THE

DEPARTMENT (VISION & MISSION)
The first
step in
breaking down
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.
363

Applying an equipment approach means

establishing
conditions
for
the
administrative
functions
of
department that will clarify
the
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.
364

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)
365
366
ESTABLISHING DEPARTMENTAL
VISION & MISSION
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.
367
VISION & MISSION
Some of the losses are:
Processing loss
Cost losses including in areas such

as
procurement,
accounts,
marketing, sales, leading to higher
inventories
Accuracy loss
Office equipment breakdown
Time
spent
information
on
retrieval
of
368
VISION & MISSION
Non availability of correct online stock

status
Customer complaints due to logistics
Expenses on emergency dispatches /

purchases
Communication channel
telephone and fax lines
breakdown,
369
VISION & MISSION
Every department functions in concert

with others. Thus, no one department
can establish its vision and mission in
isolation
from
departmental
the
visions
rest.
Establish
and
missions
using the following procedure:
370
VISION & MISSION
1.
Invite each department to submit vision

and mission proposals.
2.
Integrate
the
departments
consensus.
3.
Obtain
the
management.
proposals
and
build
approval
of
all
an
of
the
overall
top
371
372
IMPLEMENTING THE
FIVE CORE ACTIVITIES
Develop TPM in Administrative

Support
Departments
through
and
the
following five activities:
Focused Improvement
Education and Training
Flexible Staffing
Performance Measurement
373
374
FOCUSED IMPROVEMENT
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.
375
376
AUTONOMOUS MAINTENANCE
Approach the design of this program

from two angles:
Administrative Function
Administrative Environment
The goal of the first is to reduce costs

and
boost
work
effectiveness
by
improving
the
quality
of
the
administrative system.
377
AUTONOMOUS MAINTENANCE
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.
378
379
EDUCATION AND TRAINING
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.
380
EDUCATION AND TRAINING
Establishment
programme
of
detailed
that
specializations
and
training
covers
all
grades,
set
standards for acquiring the necessary

knowledge
and
skills,
and
devise
effective training curricula.
381
382
383
PERFORMANCE MEASUREMENT
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.
384
PERFORMANCE MEASUREMENT
Adopt and track performance indicators

such as problem reduction rate, cost
reduction rate, lead-time reduction rate
and inventory reduction rate.
385
386
TPM AND SAFETY &

ENVIRONMENT MANAGEMENT
Fully implementing TPM improves safety in
many ways, for example:
Faulty equipment is a common danger

source, so zero-failure, zero-defect
campaigns also improve safety.
Thorough application of 5S principles

(as part of autonomous maintenance)
eliminates leaks and spills and makes
workplaces clean, tidy, and wellorganized.
387
TPM AND SAFETY & ENVIRONMENT MANAGEMENT
Autonomous Maintenance and Focused

Improvements eliminate unsafe areas.
TPM-trained operators look after their

own equipment and are better able to
detect abnormalities early and deal
with them promptly.
Operation of equipment and processes

by unqualified people ceases.
388
TPM AND SAFETY & ENVIRONMENT MANAGEMENT
Operators take responsibility for their

own health and safety.
Standards and regulations developed

in a TPM program are adhered to more
thoroughly.
389
Increase Productivity
(Eliminate Losses)
TPM Activity
Maximize Equipment Capacity
Build Trouble-Free Equipment

Eliminate Problems
Focused Improvement
Maintain Reliability
Develop Competent People
Create Safe, Pleasant Workplace
Make Equipment Safe
Develop Safety-Conscious People
Planned Maintenance
Early Management
Prevent Accidents
Productivity, Safety, and TPM Activities
390
391
392

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2

Equipment operates at a slower speed

Decreased productivity from machinerelated problems.

Does your production have bottlenecks

capacity that could

Could one machine be dragging down

questions is positive, then you and your

THE FIRST GENERATION

functioning or were shut down because

THE FIRST GENERATION

Average Farm Tractor

No. of tractors failing /

The new developments include:

Decision support tools, such as hazard

New maintenance techniques such as

Major shift in organizational thinking

continue to do what their users want

includes all actions

necessary for retaining a system or

Total Productive Maintenance

TQC AND TPM

Systematise the management

Realisation of ideal production

Education focusing mainly on the

Voluntary circle activities

Quality for PPM order

Education centering on the

TPM IS NOT ABOUT

OPERATIONAL AIMS OF TPM

Reducing the growth speed of the stress.

Increasing the strength of the component

WHAT DOES THE APPLICATION

To maximize the efficiency of the plant

WHAT DOES THE APPLICATION OF TPM MEAN?

To involve all those who plan, use or

WHAT DOES TPM MEAN?

Total efficiency: The pursuit of a level of

WHAT DOES TPM MEAN?

Productive maintenance is therefore the

capacities of the plant and machinery by

small work groups and the activation of

WHAT DOES TPM MEAN?

In this way, maintenance is no longer a

support offices etc.

THE ROLE OF OPERATORS

THE ROLE OF OPERATORS

The following considerations are typical:

THE ROLE OF OPERATORS

Damage voluntarily caused by a

The installations must never

Institute of Plant Maintenance (JIPM) to

Maximize overall equipment effectiveness

Establish a comprehensive PM system

Involve all departments that plan, use, and

JIPM introduced a new definition of TPM in

Build a corporate constitution that will

Using a shop-floor approach, build an

Involve all departments in implementing

Involve everyone from top management

Radical Reforms of Personnel

Operator should possess ability

Production Engineering man should

Aim at improvement in overall