JIPMS

JIPMS

Optimizing TPM from the

Shop Floor to the Boardroom
- TPM Trends -
Nov. 29, 2007
Chicago

Kinjiro akano
Executive Vice President
JIPM Solutions Co., Ltd.
 Lean Manufacturing
and TPM

What is Lean Manufacturing ?

1980s Severe Competition with Japanese automobile
companies Background of Lean
1985 Start Research and study: IMVP (International
Motor Vehicle Program) by MIT
1990 The Machine that Changed the World report
1991 Focus Study: Toyota Production System (TPS)
TPS defines Seven Muda (wastes) and works to reduce
them thoroughly.
Muda was analogous to the fat of a company and
Toyota tried to establish a production system that would
trim the fat. That literally meant lean.

Lean Manufacturing is the leaner and meaner production

system accomplished by eliminating Muda

K. Nakano, JIPM Solutions

To obtain lean conditions, how you trim the fat is
critical.
In other words, the practical activity and approach for lean
is essential.

TPM is the effective theory for establishing a lean

manufacturing system, as it has step-by-step programs to
eliminate and prevent losses.


M
Plant

TPM is the Japanese management methodology that puts

high value on practicing waste elimination and kaizen
activity, which originated in Japanese automobile industry.

K. Nakano, JIPM Solutions

 Differences Between Mass Production and Lean Production
Mass Production Versus Lean Production
Mass Production Lean Production
Minimize production costs by Improve efficiency and reduce costs
Overview
mass production by elimination of waste
Product Variety Less variety More variety

Determine production volume Produce the quantity customer

Production Volume
according to production capacity ordered

Production Line Flow in Large numbers Flow in needed numbers

Product Defects Handling Hard to stop the line Stop the line and identify the root
causes of the issues
Relation with Suppliers
Short-term and remotely related Long-term and closely related

Worker
Workers Position Variable cost type Fixed cost type

Work Simple work most people can do Works needed skill training

Education of Worker Few skill training Planned & systematic training

K. Nakano, JIPM Solutions

 Basic Principles and TPS & TPM
common keywords in TPS and TPM

Profitable TPM
Production technology Profitable IE
contribution Change equipment, people
Waste of Overproduction Breakdown Loss
Waste of Waiting Changeover & Adjustment Loss
Waste in Conveyance Cutting-tool Replacement Loss
Basic Principles

Thoroughly Waste in Processing Startup Loss

Eliminate Wastes Waste of Inventory Minor stops & Idling Loss
Waste of Motion Speed Loss
Waste of Defects Quality Defect & Rework Loss

Poka-yoke Preventive Maintenance

Prevention Practice Corrective Maintenance
Prevention rather than cure
Maintenance Prevention
Kanban Pursuit of optimal conditions
Hands-on, shop-floor Visual controlF-Tag
approach Visual Mgt.Andon
TPM Activity Board
Participative Multi-Process Handling Autonomous Maintenance
Management and Participation in production system
establishment. Zero Losses
Respect for Labor
Rewarding job Involve everyone

K. Nakano, JIPM Solutions

 Essence of TPM
Developing People Leads to Good Manufacturing
 History of TPM
TPM & JIPM / JIPM-S

1954 Preventive Maintenance Research in JMA

1961 Maintenance Management Group
1969 JIPE (Japan Institute of Plant Engineering)
1971 TPM
1972 JIPM(Japan Institute of Plant Maintenance)
2005 JIPM-S (TPM Consulting Firm Outside Japan)
 2-1 TPM of the 21st Century (Level 1,2,3)
A Conceptual View of the TPM Levels

Creative TPM

Ground-Breaking TPM

P M L eavbeilitly3to seartipseftuy al
Tevelop thements for p
D uire erity
the reoqrate prosp
c o rp

TPtaM Leevaebillit2
y to e new
th
blish th ctively in etition
Es ond effe comp
resp a of business
aren

a ge ment)
evel 1 elf-ma
n
TPdMa sLtrong factory emen t ( s
Buil nment
enviro - da y manag
Day-to
 JIPMS
JIPMS
Trend of TPM Awards (1)
Total
Overseas
200 120

WC
180
Advanced
100
160 Special
Special

140 Cons' TPM 1st

80

Cons' TPM 2nd

120
1st category
100 60
2nd category
80
40
60

40
20

20

0 0
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
00
01
02
03
04
05
06
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
20
20
20
20
20
20
20
JIPM,2002
 Trend of TPM Awards (2)

200

185
180 Domestic/
177 177
172
168
Overseas/ 163
160
152 151 155

140 Total 54
135 81 137
106 94 50
80
120
118 46
109
100 101
110

130
84
80
121
72

60 100
114
95 105
51 96
79 91
40 41 42 79
83 83
71

29 54
51
20 22 39 42 41
14 16 16 29
10 8 12 8 1 4 16
22
16
22
6 7 5 10 8 12 8
14
9
3 3 2 26 3 3 2 2 7 5 2 22 2 1 1 2 1 5 6
0
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
00
01
02
03
04
05
06
07
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
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20
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20
20
 JIPMS
TPM Award-Winning factories in India
95 96 97 98 99 00 01 02 03 04 05 06
World
Class
Advanced
Special

Special
1

Consistency 1 3 1 7 14 2

TPM 1 1 1 3 6 5 17 19 16 12
Excellence

Total factories
110

JIPMS,2007
2. Worldwide TPM
Number of TPM Awardees by Location

EU
272 USA
Asia 69
ME 272 JP
4 1585
MA
Af 4
16
2006 SA
Os Asia 272 58
Asia 272
5 ME
ME 44
EU
EU 272
272
USA
USA 69
69
1996 MA 44
MA
SA
SA 58
58
Asia
Asia 11
11 X25 Af 16
Af 16
EU
EU 15
15 Os 55
Os
SA
SA 22
 Why does TPM give Significant Results?
SEIICHI NAKAJIMA

TPM is being deployed globally, reaching beyond differences

in race, manners, custom, culture, etc.

All companies introducing TPM have achieved good results.

Products are made by people

Manufacture well-selling products
Innovative manufacturing facilities, technology, and
systems are achieved by autonomous individuals with
good morale and skills.

It is certain that this is based on the principle common to

human beings, in other words, on behavioral science,
research on why people work
Charging self-implementation requirement/
Total-worker-participation type management (=TPM)
 Cost Benefit of TPM
Average Cost-Benefit of TPM by Industry

Amount saved through TPM

Plastic Amount invested in TPM
Products

Chemicals

Semi-
conductors

Automobile
Components

0 10 20 30 40 50 60 70 80 90 100 110 120 130 140

Units 100M
 SELF-ACTUALIZING MANAGEMENT
Behavioral Science The Theoretical Background of TPM

Work is a type of psychological therapy Human behavior factors A H Maslows 5-

for satisfying our desire for self- stage hierarchy of human needs
actualization.
People and work are in a cyclic Self-fulfillment needs
(using ones talent)
relationship; people grow and develop
through their work, bringing prosperity Ego or esteem needs
(self-respect)
to their companies, and that prosperity
Social needs
leads to further individual development. (a sense of belonging)
When people find a purpose in life
Safety needs
through their work, they become ever (job and income security)
more passionate about it.
Physiological needs
(Based on AH Maslows writings on self-actualizing (sleep, food, etc.)
management)

The Theoretical Background to Team Activities (QC

Circles, ZD Groups, Jishu Kanri, etc.)
New Management Pattern Linking Pin Function
SEIICHI NAKAJIMA

Linking Pin Function TPM

Factory General Manger Factory TPM Steering

Committee

Department Manger
Department TPM
Meetings
Area Manger
Area TPM
Meetings
Line Manger

Team Leaders

Shop-
Shop-Floor Teams
(PM Circles)
General Employees

(ew Patterns of Management by Rensis Likert, 1964)


The Origin of TPM

Eupsychian Management
by A.H. Maslow
(Preventive Maintenance) The Human Side of Enterprise
(Productive Maintenance)
Prevention by Douglas McGregor
Zero Breakdown Productivity New Patterns of Management
Cost Down by Rensis Likert

etc

Small Group
Activity Zero Defect

QC Circle etc. Do it right the first time

Behavioral Science
 The Aim of TPM
Improve the company by improving its people and its equipment

---- Develop people with the skills required for

todays highly-automated factories----
Improving the
People 1. Operators: Do Jishu-Hozen (AM)
2. Maintenance staff: Do advanced, specialised maintenance
3. Production engineers: Plan maintenance-free equipment

+
1) Raise OEE by improving the equipment currently in use
Improving the
2) Design new equipment for minimum life-cycle cost and
Equipment
vertical startup

Improve The Company

 SEIICHI NAKAJIMA

Definition & Basic Concepts of TPM

Basic Concepts of TPM
1. Create a profit-making
1. Aiming to create corporate culture that optimizes corporate culture
efficiency of production systems (Overall Pursuit of economy,
zero accidents, zero
effectiveness) defects, zero failures

2. Structure with an actual scene/actual thing a 2. Preventive philosophy

system that takes preventive action against loss (preventive action)
MP-
MP-PM-
PM-CM
such as Zero accidents, zero defects, zero
failures targeting the overall lifecycle of the 3. Participation of all
production system members (Management
participation/Respecting
people)
3. In all departments including production, HR, Overlapping small
group, Jishu Hozen by
Sales and Administration Departments operators

4. Principle of actual scene

4. Participation of by all members of the company, and actual thing
from top management to frontline staff What should bebe for
facilities and work,
visual management,
clean workplaces
5. Achieve zero loss with overlapping small-group
activities 5. Renewing common sense
Continued evolution
and growth of views
and thinking
 SEIICHI NAKAJIMA
Plant Preventive MedicinePreventive Maintenance
Preventive Medicine

Daily Physical Early

Prevention Check up Treatment

Prevent Measure Recover

( degradation ) ( )
degradation ( )
degradation

Daily maintenance Inspection Preventive repair

Clean, Lubricate,
( Tighten, Check, Adjust ) (Diagnosis) (Early exchange)

Preventive Maintenance

The Basic Approach to Zero Failure
 Equipment does not go wrong by itself: people
make it go wrong;
 By changing the way people think and act,
equipment can be made completely failure-
free;
 People must stop thinking about equipment
beign the problem, and start thinking about
themselves as agents who can stop equipment
from going wrong, and eventually get rid of
failure for good.
The Principles Behind Zero Failure
Bring hidden equipment defects to light and nip them in the bud!
( Preventing Breakdowns )
Breakdowns are only the tip of the iceberg

Failure

- Dust, dirt, contamination by

product or materials
- Wear, looseness, slackness, leaks
- Rust, deformation, scratches,
cracks
- Excess heat, excess vibration,
abnormal noise and other
abnormalities
Hidden equipment defects
F-Tagging
 Initial
Cleaning
and
Inspection
TPM Award Onsite Assessement

Kubota Corporation ADEKA Corporation

Okajima Plant (old Asahi Denka Co., Ltd)
Akashi Factory
 JIPMS
TPM Core Values

KAIZEN

PARTICIPATION
MAINTENANCE
&
Growth

JIPMS,2006
 JIPMS
JIPMS
TPM Parts,, Concept Picture

JIPM,2002
 JIPMS
JIPMS
Part (Level 1) Concept

TargetReduction of manufacturing costs

Build up basic strength of the manufacturing site

to contribute to the company management

Reinforcement of QCD (Quality, Cost, Delivery)

Improvement of product quality and equipment

development

Create safe and cheerful working environment

JIPM,2002
 JIPMS
JIPMS
Scope of Part (Level 1)
Activity to maximize profit by eliminating and preventing constrains
and losses that impede reduction of manufacturing costs.
TPM Part
Product flow TPM Part
TPM Part

Shipment
Order (sales)
Manufacturing site
Sales,Research Logistics
Production process
Development,Design Sourcing,
Production control Business process
Resource management
Production Engineering Cost control
Production Maintenance QA
Constrains of reducing
manufacturing cost

Present

TPM -

Inventory loss Organization loss Change over loss Defect loss Break down loss

JIPM,2002
 JIPMS
JIPMS
Part (Level 2) New Concepts & Challengers
Target : Reduction of Product Costs
Establish a system to reinforce and improve the foundation of the
manufacturing site
Establish QCD in development, production and sales
Activity of focused improvement to expand added value
Activity of Environmental management

Activity to reduce product costs (total costs) by eliminating and preventing of

constrains and losses.

Product costs = Manufacturing expense + Energy expense +

Logistic expense + Development expense + Sales
expense + General Management expense etc.
Total Cash Outflow

Innovative
Innovative TPM
TPM approaches
approaches to
to make
make ourselves
ourselves stand
stand out
out from
from competitors
competitors

JIPM,2002
 JIPMS
JIPMS
Scope of Part (Level 2)
Activity to reduce product costs (total costs) by eliminating and
preventing of constrains and losses.
TPM Part
Product flow
TPM Part
TPM Part

Shipment
Order (sales)
Manufacturing site
Sales,Research Logistics
Production process
Development,Design Sourcing,
Production control Business process
Resource management
Production Engineering Cost control
Production Maintenance QA
Product of
manufacturing cost

TPM

TPM

Opportunity Additional Inventory Sourcing Organization Change-over Indirect loss

lost loss construction loss loss loss loss loss

JIPM,2002
 JIPMS
JIPMS
Requirements for Part (Level 2)
Part (Production costs) Part (Product costs)

Production
Production site
site Manufacturing
Manufacturing Process
Process

manufacturing process
Production
Production

Optimization of total
Losses
Lossesininmachine
machineoperation
operation
Losses
Lossesininorganization
organizationfor
foroperation
operation
Losses
Lossesininmaterials
materialsand
andenergy
energy

In Part ,we continue Cooperation between production

the work we did in Part , division and other divisions
while strengthening functional Sales ,e.g.) Opportunity lost, Product inventory loss
links in order to optimize the Development & Design , e.g.) Losses due to failure
entire manufacturing process to achieve new-product target costs
Sourcing , e.g.) Excess parts & materials, Losses due
to failure to achieve purchasing target costs

JIPM,2002
 JIPMS
JIPMS
Requirements for Part (Level 2)

(Needed
(Needed in
Coping
Coping with
with demand
demand uncertainty
(We

uncertainty
(We can

Production to Order
Forecast Production

in the
(( Only
Only make
make what
what is
is needed,
needed, when
when itit is
is needed
needed ))
can sell

the only
sell whatever

only make
Bottleneck
Bottleneck Direction
Direction of
of solution
solution
whatever we

make what
Find
Find constraints
constraints and
and losses
losses to
to
improve
improve lead
lead time,
time, e.g.
e.g. production
production
Lead
Lead Time
Time
planning,
planning, production,
production, sourcing,
sourcing,

what we
logistics
logistics
we make

Distribute
Distribute order
order information
information toto
make Era)

we can
Too
Too many
many decision
decision
making
production
production site
site by
by improving
improving
making steps
steps

can sell
information
information processing
processing lead
lead time
time
Era)

sell Era)
Establish
Establish production
production system
system to
to
Forecasting
Forecasting of
of
correspondence
correspondence to
to order
order without
without

Era)
uncertain
uncertain demand
demand inventory
inventory demand
demand based
based

JIPM,2002
 JIPMS
JIPMS
Part (Level 3) - New Concepts & Requirements
TargetImprovement of Cash Flow
Continue and maintain the basic strength of manufacturing site (Make it routine)
Establish QCD in R&D and D&PP
Reinforce and improve the company-wide added value creation activities
Activity of environmental and resource management

Activity to eliminate and prevent losses which impede total cash flow.

In part , main objective is how to make profits under the given sales amount (operation
hours). However, the sales gradually go down due to the product life cycle.
In Part establishing speedy system to develop and distribute new products
that increase total sales is a core activity. In addition, it aims at creating and
strengthening profitable business conditions.

Re-focus from manufacturing process innovation to

entire business process innovation

JIPM,2002
 JIPMS
JIPMS
Scope of Part (Level 3)
Activity to eliminate and prevent constraints and losses
which impede total cash flow.
TPM Part
Product Flow
TPM Part
TPM Part

Shipment
Order (sales)
Manufacturing site
Sales,Research Logistics
Production process
Development,Design Sourcing,
Production control Business process
Resource management
Production Engineering Cost control
Production Maintenance QA
Constrains of
total cash flow

TPM

TPM

Utilization Less than Overhead Opportunity Additional Inventory Sourcing Organization Change-over
loss estimated costs loss lost loss construction loss loss loss loss
profit loss loss

JIPM,2002
 JIPMS
JIPMS
Requirements For Part (Level 3)
Part (Production costs) Part (Product costs) Part (Total cash flow)
Production
Production site
site Manufacturing
Manufacturing Process
Process Business
Business Process
Process

Optimization
Losses
Lossesininmachine

Optimization of
machine
operation Productivity
Productivityof
of
operation Productivity
Productivityofof
Losses
Lossesinin Company
Company
Production
Productionsite

Optimize
Optimize total
organization
organizationfor
foroperation,
operation, site management
Losses in materials management
Losses in materials
and
andenergy
energy In Part II, we continue the work we did in
In Part , we continue levels

of total
Part , while strengthening functional
Production
Production site

1&2 while driving to optimize

links in order to optimize the entire

total business
total manufacturing
the entire business process.
manufacturing process

business process
manufacturing process
Cooperation between Company-wide
production division and Collaboration
site

other divisions including suppliers

Sales ,e.g.) Opportunity lost, & customers

process
Product inventory loss
Development & Design , e.g.) Sales ,e.g.)
Utilization loss

process
Achievement loss to target cost
on new product Research , e.g.)
Sourcing, e.g.) Excess parts & Marketing share
material, target cost loss to buy of new products

JIPM,2002