Facilities Maintenance Solutions

1/1/2013
True to Size Apparel Gene
I had the opportunity to present this material twice in Mexico City, Mexico in
a two-day simultaneous translated seminar.
True to Size Apparel is in the business of providing clothing and uniforms for
businesses worldwide. The purpose of sharing this book is to earn your
business. Your facility or manufacturing business could improve productivity
and increase profits from any or all of the topics explored in this book. If you
found this TPM book to be of help, then perhaps you will consider True to
Size Apparel the next time your company is looking for a supplier of pants,
shirts, hats, bags, or towels for a trade show, event or facility, embroidered,
screen printed or undecorated.

Facilities Maintenance & Manufacturing Solutions for the21st

century
To stay competitive in today's adverse business climate requires a keen understanding of the intricate
dynamics in your production facility. The successful manager must know how to use Total Productive
Maintenance to develop employee involvement in every step of the manufacturing process and facilities
maintenance to optimize production flow, increase product quality, and reduce operating costs.
Significant issues addressed in this book that you need to learn to increase productivity are:
➢ How to increase product quality through tailoring your operating procedures. ➢ Why planning
equipment utilization decreases your life-cycle cost. ➢ How to plan equipment downtime to maximize
production capability. ➢ Why employee involvement decreases unplanned equipment downtime.
This timely book will describe contemporary TPM methods to increase productivity and product
quality while streamlining production to improve your overall profit margin.
All rights reserved, including the right of reproduction in whole or in part in any form.
Copyright®1996 by Gene Constant, MBA, CPM
Contents
Chapter I
BENEFITS OF IMPLEMENTING TPM
TPM achieves lower operating costs through ongoing changes in behavior,
work procedures and attitudes. Manufacturing improvement results with
TPM include a substantial (i) increase in Labor productivity through
controlled maintenance, (ii) reduction in maintenance costs, (iii) and reduced
setup and downtimes. TPM production streamlining will improve profits.
Chapter II
HOW TO FOCUS MANAGEMENT & LABOR ON TPM BENEFITS
Now that you have sold your plan to senior management, we will discuss
how to prepare management to support your plan. This involves the creation
of steering committees, learning how to overcome barriers in the work place,
allocation of resources, and developing crossfunctional teams. Also discussed
is the issue of equipment ownership and daily maintenance & housekeeping.
Chapter III
GETTING THE TPM PROCESS STARTED
To facilitate the introduction of TPM into your organization, this chapter
defines responsibilities, creating progress through innovation, and
performance & compensation. To prepare your firm, we explore how to
overcome resistance to change and how fast to introduce that change.
Tailoring operating procedures, operator motivation & involvement, as well
as obtaining upper management's participation, will also be probed.
Chapter IV
IMPLEMENTING THE TPM PROGRAM
Developing time lines for implementation, as well as short-term & long-term
goals are starting points in order to determine the best approach for your firm.
User training in equipment maintenance includes the concept of making
maintenance a part of production and the need and utility of visual aids to
help understand the problem. Group training in TPM concepts to both
establish responsibilities & develop teamwork are covered, as well as how to
implement a pilot program(s).
Chapter V
EQUIPMENT LIFE-CYCLE COST
Planned equipment utilization. How to develop equipment histories, establish
a performance baseline, improve procurement decisions, and to reduce
liability. To enhance failure analysis, this chapter covers data collection to
track downtime, accurate reporting, determining the "root cause" of the
problem, and defining corrective actions. A computer software/hardware user
survey & several common-sense computer actions are talked over. Regarding
plant engineering, process reliability, efficiency improvements through better
asset utilization, and engineering specification changes are traversed.
Chapter VI
Planned Downtime and Predictive Maintenance
- Getting Control
Reactive versus Proactive Maintenance, schedule driven and preventative
maintenance. Downtime control charts, reliability growth curves, daily &
weekly checklists, and replacement parts supply control are explored.
Chapter VII
VENDOR MAINTENANCE AND PARTS PROCUREMENT ,
WHAT TO LOOK FOR
Last but definitely not least, this chapter explores contracted parts cost
controls, penalty clauses and performance guarantees, as well as time &
materials versus a service contract for goods and services.
Bibliography
Total Productive Maintenance
To stay competitive in today's adverse business climate requires a keen
understanding of the intricate dynamics in your production facility. The
successful manager must know how to use Total Productive Maintenance to
develop employee involvement in every step of the manufacturing process
and facilities maintenance to optimize production flow, increase product
quality, and reduce operating costs. Significant issues addressed in this book
that you need to learn to increase productivity are:
- How to increase product quality through tailoring your operating procedures
- Why planning equipment utilization decreases your life-cycle cost
- How to plan equipment downtime to maximize production capability
- Why employee involvement decreases unplanned equipment downtime
This timely book will describe contemporary TPM methods to increase
productivity and product quality while streamlining production to improve
your overall profit margin.
Total Productive Maintenance - I have given seminars to manufacturing
organizations on the means of reducing the cost of operating capital
equipment and facilities. By practicing predictive and preventive
maintenance, and by obtaining the cooperation of operators, maintenance,
finance, and purchasing; firms can be better positioned to implement JIT and
TQM. Total Productive Maintenance leads to: higher levels of productivity,
improved customer service, higher morale, fewer defects, and increased
profits.
Chapter I
Benefits of Implementing TPM
The True Cost of Equipment Failure is Between 2 to 15 Times The Cost
of Repair
Chapter I
Benefits of Implementing TPM
☐ Most manufacturing experts recommend that TPM precede
implementation of JIT. ☐ TPM must be thought of as a continuous
improvement process.
☐ TPM must result in the integration of Maintenance and Operations.
☐ Almost no up front costs, other than training are required.
Productive success in today's manufacturing climate depends upon the
implementation of multiple complimentary & proven strategies. While Just-
In-Time and Total Quality Control programs have been around for awhile,
industries are only recently aware of the necessity of Total Productive
Maintenance. As many have discovered, it will be difficult for a firm to
achieve any lasting success with JIT or TQC programs if they cannot rely
upon their equipment. TPM provides that reliance.
TPM is a continuous improvement process in which a firm eliminates a
hostile environment, where that environment is in control of the firm. Within
this hostile plant, production is uncertain and costs are unpredictable, when
the health of production assets are unknown and where both maintenance and
operations staff are running around like chickens with their heads cut off as
they toil in a "fire drill" climate.
With almost no up front costs, other than training, TPM integrates
Maintenance and Operations, by coordinating their efforts to perform
predictive and preventive maintenance in a proactive team effort.
Operators, who work with their equipment every day, are more likely to
know when maintenance is needed. Operators who depend upon their
equipment to produce quality product, are able and willing to correct any
minor equipment defect immediately, thereby preventing small repairs from
turning into unnecessarily expensive overhauls. By better understanding how
their equipment works, Operators turn out product with fewer defects, using
equipment that is more reliable, resulting in fewer interruptions.
Maintenance, working smarter, similar to the Finance and Operations
Departments, is able to:
1. plan when to perform overhauls,
2. provide training to Operators,
3. reduce parts, labor, overtime, and
4. contract labor costs by scheduling necessary maintenance,
instead of reacting to emergency work orders,
☐ provide enough lead time to allow Purchasing to combine orders to lower
cost and to obtain optimum freight and payment terms, and
1. provide Engineering with repair history information from which to
improve capital equipment.
Manufacturing Improvement Results
Reliability of Assets: The goal of TPM is to obtain maximum capacity of
capital equipment at the most economical cost to operate.
Results
Productivity
100% to 140% increase in labor effectiveness
50% to 100% increase in rates of operation
95% to 99% decrease in breakdowns
Cost
50% decrease in labor cost
30% decrease in maintenance cost
30% decrease in energy cost
80% decrease in waste
Quality
50% decrease in client claims
Defect rate decreased from 2.5% to 0.7%
Inventory
100% increase in turns
50% decrease in stock levels
Safety Elimination of environmental & safety violations
Morale 200% increase in suggestions offered
Significant increase in participation of staff
50% of all quality problems are maintenance related
Reduced Setup and Downtime:
Firms have regularly achieved at least a 75% reduction of setup time, in less
than two months, as a result of a successful implementation of TPM.
Results:
"Setup times are down to a matter of minutes, not hours."
United Technologies Automotive, Norman Bodine, President
"Breakdowns & quality defects can be reduced by 90%."
American National Can Co., Robert K. Hall, Manager of Time- Based Strategy, Chicago Illinois.
TPM Production Streamlining to Improve Profits
Results:
"Since 1986, Tennessee Eastman Co.'s (TEC's) Kingsport facility has
accumulated over $24 Million in savings, as a result of successful
implementation of TPM."
"Plant-wide productivity is up 121%, and total inventory is down 67%,
despite an eightfold increase in production, since 1985."
Wilson sporting Goods, Humboldt, Tennessee

=
The successful implementation of TPM will result in a dramatic reduction of
waste. When you consider that maintenance costs are between 15% to 40% of
the total cost of production, and that one-third of all maintenance costs are
either wasted or unnecessary, it is easy to see how the profit picture can be
improved.
Maintenance waste causes include the non-productive activities of
maintenance personnel, who spend almost 75% of their time looking for
parts, drawings, instructions, or in obtaining approvals. Another contributor
to wasteful practices within the maintenance function is that of inventory
expense, because funds are tied up in too many spares, costs to store-count-
handletheft-spoilage and obsolescence.
The following quote from the Harvard Business Review should provide
additional unbiased insight and complement the aforementioned.
"The emphasis on direct costs, which attends the productivity focus, leads a
company to use management controls that focus on the wrong targets.
Inevitably, these controls key on direct labor, overhead is allocated by direct
labor, variances from standards are calculated from direct labor.
Performance in customer service delivery, lead times, quality, and asset turns
are secondary.
The reward system based upon such controls drives behavior towards
simplistic goals that represent only a small fraction of total costs, while the
real costs lie in overhead and purchased materials."
The Productivity Paradox 1986 Harvard Business Review, Wickham Skinner
Maintenance costs are between 15% to 40% of the total cost of
production
Chapter II
How to Focus Management and Labor on TPM Benefits
TPM is not just another fad, in fact it will save jobs that may otherwise be
lost.
Chapter II
HOW TO FOCUS MANAGEMENT AND LABOR ON TPM BENEFITS
Now that you have the macro view of the value of implementing TPM, you
will need to present a business plan to help prepare senior management to
listen to, and eventually support, your vision of team-spirited behavior.
Just as the Finance Department prepares financial statements and monthly
reports on the firm's financial health, you must prepare:
1. A report on the health of the firm's capital assets, also known as Measuring
Reliability Performance.
2. A cost justification, showing savings & costs.
3. An outline showing how the plan will benefit the firm in the long run.
1. Measuring Reliability Performance of the organization's assets
FORMULAS Desired GOALS
Availability = scheduled run time - planned downtime = 90%
scheduled run time Capacity = actual output = 95%
planned or optimum output
Quality Rate = total output - below quality defects = 99%
total output
Availability X Capacity X Quality Rate = 85%
Present U.S. Industry Average is 50%
After you have determined the percentile of the three performance factors,
you will multiply each of them:
Availability % X Capacity % X Quality Rate % = 85%
To provide a baseline from which firms can relate to the difference between
actual performance and desired goals, it should be noted that the present
United States industry average is only 50%. The goals offered were taken
from Japanese industrial goals.
2. 4-part Cost/Benefit Justification
Equipment Downtime Expense
A. Annual production labor cost $_____
B. Percentage downtime
capacity loss ____%
(planned availability minus actual availability)(divided by planned availability)
capacity reduction ____%
(hours in operation x output per hour)(divided by planned/optimum output)
C. Add capacity loss & capacity reduction in line B _____%
D. Subtract 10 from line C (C% - 10) _____%
E. Total Production Labor Savings,
multiply line A times line D $_____
Maintenance Non-Productive Labor Expense
1. 50% if you have no work order system
2. 25% if you have a manual work order system
3. 10% if you have an ineffective automated work order system
F. Select one of the above: 1, 2, or 3 ____%
G. Annual maintenance labor cost $_____
H. Multiply line F times line G (F x G) $_____
Inventory and Stores Expense
I. Annual Inventory and Stores Cost $_____
iv. 40% if you have no inventory system
v. 25% if your inventory system is not integrated with
an automated work order system
vi. 10% if Purchasing is not proactive by standardizing
parts and/or is not reducing the number of vendors.
J. Select one of the above: iv, v, or vi _____%
K. Annual Inventory and Stores Expense,
multiply line I times line J $_____
Capital Equipment Expense
L. Annual Capital Equipment Depreciation $_____
vii. if 80% or more repairs are unplanned......25%
viii. if 50% - 79% of repairs are unplanned....15%
ix. if 20% - 49% of repairs are unplanned.... 7%
M. Select one of the above: vii, viii, or ix _____%
N. Multiply line L times line M (L X M) $_____
O. Annual average of the last three years fines for safety and
environmental violations $_____
P. Total Estimated Cost Reduction if TPM is successfully implemented
(add lines E,H,K,N, & O)
$________
You will have to subtract a few expenses from line "P", which will be
required to implement this plan. Be careful to use conservative, realistic
figures. Overly optimistic numbers can result in scrapping the plan before it
is completely implemented, when peers realize that you have not met the
agreed upon goal. These expenses include:
1. Policy & Procedures - salary costs for staff meetings to create and
implement
2. Maintenance Training - whether they admit it or not, most maintenance
and operations personnel do not know all that they should know. You are
asking for unnecessary grief if you allow these employees to save face and
not address this issue.
3. Equipment Maintenance - oftentimes the equipment is in poor condition at
the outset of TPM. These assets will need to be brought up to design
specifications at the beginning.
4. Automated Data Collection Systems - what gets measured gets done. As
we will discuss in greater detail, you will need to purchase or better utilize
software and computer hardware. Of course, these implementation costs will
be easily offset by future reductions in overtime, capital equipment
purchases, energy savings, and increased sales; none of which were included
in our Cost/Benefit Justification numbers. Remember, use conservative
figures!
Savings in Relation to Profits
For far too long, support departments have been given little attention, relative
to the sales department. Typically, management has acted as if maintenance,
accounting and other support departments were necessary evils, and
impediments to desired profitability. By utilizing this relationship report, you
can now focus senior management's attention to the value of a well run
support department, and obtain the respect you deserve.
There are two ways to increase a firm's profits. You can either increase sales
or reduce costs. A percentage increase of cost savings offers a percentage
increase in profit, in inverse proportion of the multiple factor that the cost of
sales bears to profit. In the following example, you will see that: if the cost of
sales is 10 times profit, and cost is reduced 1%, an increase in profit of 10%
is realized.
Original Environment Changed Environment
Sales = $11 Sales = $11
C.O.S. = $10 C.O.S. = $ 9.90 ( a 1%
cost reduction)
Profit = $ 1 Profit = $ 1.10
$1 / $10 = 10% profit $1.10 / $1 = 10% increase in profit
Profit in Relation to Sales
Using your firm's annual report, if:
Sales = $1,000,000
Cost of Sales (C.O.S.) = $ 900,000
Profit = $ 100,000 or 10%
using the total from your TPM Cost/Benefit Justification, if you estimated
that a $20,000 net cost savings could be realized, your TPM solution would
be the equivalent of a risk free $200,000 sales increase.
Profit = $ 120,000 or 10% ($100,000 + your $20,000)
Sales equivalent = $1,200,000 (sales = 10 times profits)
Profit / Sales Equivalent
Profit Equivalent
Profit

$$500,000 $1,000,000 $1,500,000 Gross

Steering Committees to Develop the TPM Attitude
In the majority of organizations, the implementation process of TPM should
be managed by both a Project Leader and a Steering Committee. The
following attributes must be adhered to if proper leadership is to be
established.
Serving as a liaison between the Steering Committee and line management,
the attributes of a Project Leader are as follows:
• must be an enthusiastic project champion,
• must be a senior manager used to taking on and managing additional
responsibilities beyond his / her regular duties,
• if the environment is not one of cooperation, the leader must be from the
department that is to be a part of the pilot program * must be flexible,
perceived as competent, and accustomed to change,
• must be willing to see the project through to its successful conclusion,
whether it is for six or twelve months, and to guarantee that all activities will
conclude when the pilot is proven to be implemented,
• have a participative style of management.
If such a person does not exist, the CEO must hire such an individual.
Regarding the Steering Committee, it should:
• consist of department heads,
• terminate upon successful implementation of TPM or be terminated in
twelve months, whichever is less,
• not re-invent itself to attain immortality,
• establish policies and procedures which will define its goals and method of
operation.
Policy and procedures should include the periodic review of their efforts by
the project leader, the frequency of meetings, how to document their efforts
and results, and a termination date. Lastly, the department heads should elect
one of the group to head the committee.
Overcoming Barriers in the Work Place
Starting from the top, the CEO must communicate a vision of the future for
everyone associated with TPM. That vision must be expressed in terms that
are meaningful to each and every level of the firm.
"Do as I say - not as I do" is a motto that can lead to failure. Management
must behave in a manner that is consistent with their philosophical goals of
Trust, Openness, and Ethical Behavior.
Union leaders should be included very early in the discussions, to
demonstrate that there is no hidden agenda and that TPM involves both
unskilled employees and skilled trades. It is likely that union leaders will be
concerned that the result of productivity enhancement will merely increase
the member's tasks while reducing labor. You must illustrate the benefits
gained, which include better allocation of resources as well as the
preservation or increase in the number of jobs. Yes, people will be working
smarter, and to some extent in the early phases of the program, they will be
working a little harder. Job descriptions will change but the work
environment of all concerned will be improved as a result of everyone's
participation.
In almost every environment, work or home, people establish mental barriers
and seldom cross them to understand how others think and feel. In the retail
environment, sales clerks differentiate themselves from warehouse pickers &
packers; while management stands in physical isolation from non-
management. Over time, each group creates legend and myths that are passed
by story and song, disparaging the supposed wrongs perpetuated by the
others while extolling the virtues of their own group. To end class warfare,
improve communication, and to enhance understanding, cross training or the
loan of staff to other departments is the surest method utilized to overcome
negative biases caused by previous experiences and training.
I would also strongly suggest that Maintenance be included in all equipment
design and purchase decisions. As the saying goes, two heads are better than
one. And, since they have to support any decision implemented, they should
be encouraged to offer constructive input in this process.
You must include assurances during the learning process that power has not
been lost, but in fact, power will grow through increased skills. In most
instances, there is an inborn reluctance by most people to change, regardless
of the apparent necessity to do so. Known by IBM as "tree huggers," people
will embrace the "known" over the "unknown." Known by me as the
"bogeyman", I realize from first hand experience that supervisors have a
greater reluctance to change than their subordinates, primarily because the re-
education process places them at the same level of knowledge as those
subordinates, which oftentimes increases their insecurity. That is why the
aforementioned assurances are so critical at this stage of implementation.
Historically, it usually takes a catastrophic event to cause others to accept the
necessary changes and to abandon the status quo. In the not to distant past,
change occurred once every generation. Today, we are expected to change
every two to five years, and many are having trouble with the transition. One
less painful solution to these reluctant types of employees is to point out the
alternatives to the organization if change is not implemented. Given the entire
picture in an unbiased way, most will support that which benefits them.
From the very beginning, the Maintenance Manager should be very involved
in the selling of the plan to both line management and the departments.
Together, you must help everyone to understand that TPM is not just another
fad, not just another cost-cutting idea. Make it clear that TPM will save jobs
that may otherwise be lost, because your firm is not currently competitive,
because of your utilization of outmoded procedures.
Emphasize that operators are not being turned into maintenance experts.
After all, that idea would be way beyond the goal or purpose of TPM.
When properly implemented, it should be understood that TPM will:
• provide a more stable and certain work environment, because the firm will
be more cost competitive,
• result in a more valuable employee, because of the increased level of
training received and because of higher productivity, and
• provide a safer work place, which will reduce stress and promote greater
health.
Part of the problem is with management
What may surprise many is that management is as much a barrier to
implementation as either unions or laborers, due to actual or perceived policy,
training, and the lack of the proper tools, fear of autocratic management style
and practices; which may contradict a necessary participative environment.
Managers must consider the entire environment, and build bridges of
communication to share the various department's point of view. To champion
an isolated approach, territorial management, is both divisive and
unproductive.
Maintenance Controls and the Personal Commitment
The pre-TPM Maintenance Departmental Organization should establish both
short term and long term goals and objectives. These goals and objectives
must be doable with specific time lines and detail. A primary goal, for
example, is that craft workers and support staff should allow a total backlog
to age by no more than four weeks.
Regarding information management and control, a work order system must
be in place which ensures (i) complete cost effective results, (ii) type of work
(iii) date of work, (iv) crafts involved, (v) monetary value of task, and (vi)
detailed instructions.
The recommended staffing should equal approximately 20% of the plant
population, with ratios consisting of: one planner per twenty craft workers,
one supervisor per twelve craft workers, no clerks, and one manager.
Instead of the equipment controlling maintenance, under the umbrella of
TPM, maintenance gains control of your equipment by the elimination of
"fire drill" work orders. Over time, TPM will eventually allow maintenance
to plan equipment downtime, all of the time.
Maintenance will then be able to assist:
PURCHASING, by planning ahead, making it more certain to have the right
parts available, at the right price.
E NGINEERING, by providing accurate information that will lead to (i) more
durable replacement parts, (ii) easier to maintain assets through improved
design specifications to vendors, and (iii) operator-friendly control changes.
OPERATIONS, by the scheduling of frequent quality training time with
operators.
Teamwork and the allocation of your resources will be dramatically improved
by TPM. For example:
O PERATIONS will perform basic inspection and maintenance, working with
Maintenance to reduce set-up time, provide timely notice of equipment
malfunctions, provide slow-down and stop data, while operating the
equipment in a manner that will reduce defects and increase the life of the
asset.
M AINTENANCE will plan preventative maintenance and overhauls, while
working with Operations to maximize productivity by assuring asset
reliability. Working with Purchasing, requisitions for parts and supplies will
be written with adequate lead time, most of the time, to assure realization of
economic benefits of grouped requisitions and standardization.
P URCHASING will assure the availability of parts and supplies when needed, at
the most economical cost of procurement, and will standardize parts and
assist in the standardization of capital assets during procurement planning,
working with Finance, Operations, and Maintenance.
F INANCE will work with both Maintenance and Purchasing to standardize
capital asset purchases, to assist in asset analysis to determine when it is most
economical and doable for the firm to replace existing assets utilizing newly
determined Engineering ergonomic specifications, and to incorporate TPM
results into the monthly and annual reports.
E NGINEERING will evaluate input received from both Operations and
Maintenance to devise "operator friendly" controls and maintenance points,
to improve specifications of replacement parts and supplies to increase
reliability, and to work with Purchasing and Finance to enhance repair-or-
replace decisions.
Developing Your Cross-Functional Teams
Synergy is the action of two or more substances, organs, or organisms (i.e.
people) to achieve an effect of which each is individually incapable.

113
Pre-TPM environments are such that departments work in relative isolation.
In fact, most firms suffer from the inverse effect of synergy, whereby it costs
the firms much more to support these isolated departments than is either
desired or necessary. The sure way to create an environment that encourages
synergy is through team building. Here is where the newly appointed Project
leader and Steering Committee gets involved. As a result of their
deliberations, the single most critical asset will be identified. They will then
define goals that are to be achieved within the next twelve months, and of
course, maintain records of each meeting and chart everyone's efforts and
results.
During the team's meetings, problems should be discussed and resolved
within the groups that are affected by the particular problem. This act will
guarantee "ownership" and will facilitate acceptance and compliance of and
with the solution. It should be obvious by now that problems should never be
solved in secret, and that secret solution should never be forced upon others.
Lastly, meetings should be facilitated, but not controlled by management.
Staff should be encouraged to express their feelings, in order to better
understand each other's needs.
Job Personalization
"Equipment Ownership"
the Micro-view
It is important for operators to learn to accept responsibility for the success of
their portion of the TPM puzzle. Operators are to be encouraged to
continuously review the maintenance process, to give input, and to innovate
whenever feasible.
Opposite of feeling more like an unautomated accessory to their equipment,
operator ownership requires that they participate fully in the health,
productivity, and output quality. To attain that goal, management must focus
upon issues that include compensation, training, delegation of authority,
participation in record keeping, and inclusion in regular meetings to better
understand how the operator's contribution relates to the entire process.
Upon acceptance of responsibility, the operator will assume a number of
housekeeping and daily maintenance activities. The operator should clean
and inspect for abnormalities, usually ten or more are found during the initial
cleaning. The operator should restore or improve the equipment through
understanding of the cause of the abnormality. A part of the delegation of
authority process should include the ability of operators to request work
orders as a result of their inspections, and to be able to record the results of
their equipment operation, as well as when and the cause of its down time or
slow time.
To facilitate their efforts, the proper tools and supplies should be available at
the user's point of operation, and not locked away at a parts crib or stores.
The operator's maintenance efforts will free up the Maintenance staff, who
can then concentrate on planned downtime maintenance.
Job Personalization
"Equipment Ownership" Macro-view

Maintenance personnel's ownership role should be seen in a global view,

allowing them to visualize the entire plant as "theirs," unlike the Operators,
who focus on individual units. One obvious solution lies in the area of
primary responsibility known as departmental budget. Typically, less than
one-third of all maintenance managers are responsible for their own
department's budget. Usually controlled by the Plant Manager or the Plant
Engineer, ownership cannot begin unless the department which is responsible
for results is also responsible for both planning and reporting.
Once TPM has begun, the elimination of the chaos caused by constantly
being in an emergency mode of operation (reactive), and the creation of a
positive contribution mode of operation (proactive), will inspire creativity
and a sense of belonging. Knowing that they are the "Doctors" of the firm
and that it is their role to maintain and to improve the "Patient's" health, will
significantly improve their sense of ownership.
Chapter III
Getting the TPM Process Started
More than 50% of lost maintenance productivity is caused by inventory &
purchasing practices, which result in stock lost, stock outs, and overages.
Chapter III
Getting the TPM Process Started
When introducing TPM into your organization, keep several objectives in
mind. First, show everyone the Big Picture, and spell out what was discussed
while selling the concept to senior management & labor leaders. Disclose
everything, even if some employees do not fully understand some portions of
the concepts.
Explain that TPM is an approach that emphasizes teamwork, and constant
improvement in operations. State that TPM is not a quick fix, but is a
commitment to major, long-term organizational change. Illustrate how the
organization benefits from TPM, how the assets will be in better condition,
and that stoppages will be reduced. Show them how the improved reliability
of the firm's assets will generate a higher percentile of profit.
If not presently implemented, demonstrate definite plans to implement a
participative style of management. Expound upon the idea that the new
environment will encourage and develop teamwork solutions, as a means of
improving relationships between departments, as well as between
management and labor. Continue to explain that various Human Resource
problems, such as lack of teamwork, shared vision, business ethics, standards,
knowledge, or caring about what other departments do, will be addressed.
Unveil a time line, during which a survey of staff will be taken to better
understand both perceived and actual causes of cultural and operational
problems. It should be clear at this point, and of no surprise to anyone that the
path of successful implementation of TPM leads to a successful transition to
total quality management (TQM).
Traditional Management New Approach
Quality defined
Products meet specifications Products fit for consumers
Focus on post-production Focus on building quality
inspection into work processes
Customers
Ambiguous understanding of Systematic approach to seek, customer
requirements understand, and satisfy internal
and external customer requirements
Errors
A certain margin of error, No tolerance for errors, do it right
Waste and rework is tolerable the first time.
Improvement
emphasis
Technological breakthroughs Gradual but continuous improve
such as automation ment of every function
Problem
solving
Problem solving and decisionParticipative and disciplined problem making by
individual managers solving and decision making based
or specialists on hard data
Source: Coopers & Lebrand
A word of caution, preventive maintenance has proven to be ineffective in
almost 80% of all firms who have tried it. The primary reason for it's
ineffectiveness was the lack of serious, long term commitment on the part of
management. Employees simply did not trust them.
Steps for Starting TPM
1. Determine the single most critical department or unit.
2. Classify equipment into components (electrical, hydraulic).
3. Develop procedures and detailed job plans, using vendor and operator
recommendations and equipment history. When writing these procedures and
plans, be very detailed and very specific with regard to craft, skill level of
craft, the tools required, parts needed, work instructions, and estimated time
to complete.
4. Determine a realistic, yet aggressive schedule, including the time to: get
tools and equipment, travel to the job site, and perform the job specified on
the work order. Also include any restrictions and hazards.
Regarding detailed instructions, studies have found that typically,
maintenance instructions are lacking in detail. After all, instructions such as
"CHECK THE CHAIN DRIVE" does not tell the user anything specific.
Details means the inclusion of a list of specific parameters, including
tolerances. Another benefit to the inclusion of detailed maintenance / repair
instructions which can be followed by either the operator or maintenance
staff, is that this list promotes completeness, safety, and serves as a training
tool. After all, Maintenance is responsible for operator's training in both
safety instructions and standards.
While implementing TPM, a few other procedures to remember are that:
A. All departments must be involved in this process, from the very beginning.
B. Maintenance should establish a pyramiding PM procedure to prevent
scheduling- related equipment problems.
C. Do not attempt to overwhelm the equipment operators with preventive
maintenance tasks.
D. Operators and Maintenance should jointly
• determine which maintenance tasks are to be transferred from Maintenance
to Operations, • establish training of Operators for transferred tasks, and
• establish a program to monitor progress.
E. Operators should expect an inspection / cleaning schedule that would not
exceed ten minutes per shift, Fix & Alert tasks & a thirty minute clean-lube-
inspect-setup-adjustment project per week.
Predictive Maintenance
At the very beginning of introducing TPM, focus upon predictive
maintenance as the foundation to your entire program. Less expensive than
fixed preventive maintenance, it should be utilized at each occasion where a
physical parameter can be found, which could trend the equipment's chance
of failure.
Performing maintenance "when needed," a Just-In-Time method of repair,
you will discover that equipment will not need to be repaired as often and
that you will not be stuck with a stock of used-but-good parts.
Various types of predictive maintenance activities include vibration & oil
analysis, shock-pulse, temperature, resistance, acoustic, ferrography, and
non-destructive examination. As assets are replaced, I recommend that the
installation of predictive maintenance measuring devices, such as sensors, be
performed directly upon that asset. This inclusion is known as Condition
Based maintenance, and is a part of reliability engineering.
According to the 1991 National Maintenance Excellence Award Program,
TPM's applications, as a percent of companies are as follows:
1. Ultrasonic testing - 88%,
2. Temperature Monitoring - 88%,
3. Vibration Monitoring - 83%
4. Lube Oil Analysis - 81%,
5. Infrared/Heat Monitoring - 78%,
6. Sound Monitoring - 75%
7. Motor Testing - 72%,
8. Equipment Repair History Analysis - 64%,
9. SPC Charting - 58%
10. Insulation - 37%
The best uses of TPM, the activities, by area, by category, that should be
transferred from maintenance responsibility to manufacturing responsibility,
in ascending degrees of skills are: Cleaning, Lubrication, Inspection,
Adjustments, Replace, Overhaul.
To facilitate acceptance and understanding, total productive maintenance can
also be thought of as total productive manufacturing. Regardless of the label,
the "big picture" goals that you are seeking support for are to:
• Identify and eliminate all forms of waste • Improve overall equipment
effectiveness • Prevent deterioration of assets
• Enhance the skill level of all employees • Promote teamwork through small
group activities • Eliminate barriers between groups
Defining Responsibilities
Job roles must be negotiated, defined, and supported at all levels. Of course,
all employees must be encouraged to participate, with little regard for job
categories. When defining
responsibilities and causes to problems, do not confine your focus to
Operations and
Maintenance exclusively. After all, more than 50% of lost maintenance
productivity is caused by inventory and purchasing practices, which result in
stock lost. stock outs, and overages. All four departments, Finance,
Engineering, Purchasing, and Maintenance should work together to
standardize plant equipment and supplies, salvage obsolete parts, reduce the
number of vendors (look towards sole source vendor solutions), and to
establish multiple staging or stockroom areas.
Management's challenge is that, the symptoms are oftentimes different than
the causes of the problem, visible physical problems (outmoded floor layouts)
and/or visible technical problems (misapplied technology, inadequate
performance standards) oftentimes signal leadership and other managerial
problems within a firm.
When establishing responsibilities, progress through innovation can be
achieved when staff are allowed to personalize the procedures that are to be
created. Staff should be encouraged to experiment and to offer changes in
operating procedures. Those who do try and participate as desired should be
rewarded, as a means of encouraging others who are too hesitant.
Performance and Compensation
Speaking of rewards, there may be a severe reluctance to change, if there is
no clear and immediate incentive offered. This reluctance is based upon fact
and perception. Obviously your staff knows that acceptance of the required
changes will result in greater responsibility and effort to learn, that they will
be held accountable for results, and that this effort will lead to the breaking of
time tested work and personal habits. The employees of your firm will
perceive that change will result in more work and stress, layoffs, loss of
power, and that change will require greater interpersonal skills.
It will be paramount to the successful introduction of TPM that management
establish a reward system to promote change in attitudes and behavior.
Regardless of whether you offer a onetime bonus, or pay for skills, be certain
that the reward system chosen rewards what is valued. From strictly a
financial perspective, each incremental improvement in productivity has a
quantifiable dollar value. Before a reward system can be created, you must
first determine the economic gain (profit - cost) that will be achieved for each
bit of productivity achieved. I am of the opinion that one must structure a
reward system that is more generous at the very beginning. Once you have
planted and nurtured the seed of success, other productivity increases will be
easier to implement. When creating a reward/compensation system,
remember that just as people are different, rewards will be more effective
when they are structured to the needs and interests of the individual. Consider
a "menu" of choices.
Structured to support mutually agreed upon, short term and long term goals
of both the individual's and the team's performance, compensation should
include a number of options to ensure continued motivation, even if or when
a particular goal is not achieved. An all-or-nothing compensation plan can be
perceived as impossible, and typically leads to failure of staff to participate.
After all, we are seeking gradual but continuous improvement, and a pass-or-
fail incentive plan will result in failure.
Compensation plans can include time off with pay, formal education,
education at work using the firm's resources - such as installing typing
tutorial programs on the personal computers for use after hours, paid
vacations, housing assistance, additional dental and medical benefits, and
consumer products.
Compensation should not include scheduled cost-of-living increases. Wage
increases should be honestly and directly tied to productivity. The scheduled
COLA increases are usually perceived as "deserved" and do absolutely
nothing to promote creativity or productivity. Staff must understand that
productivity pays. Productivity must be seen as the only true method of both
compensation and job security.
Let us not leave the compensation of managers out of this discussion. For too
long, managers have actually or are perceived to be above the law or rules
that all others must follow within the work place. This elitist attitude and
behavior, fostered by increasingly wide differences in compensation, has
oftentimes resulted in isolation from the environment where production is
taking place.
If production staff are to focus upon quality, it must begin at the top. A recent
survey of the percentage of firms in four industries that consider the
following criteria in compensating senior managers should prove
enlightening.
Compensation Criteria
Banking
Computer
Autos
Hospitals
Quality
Performance
Profit
0% 10% 20% 30% 40% 50%
Type of firm Profit Individual Performance Quality
Hospitals 37% 39% 17%
Automobile 38% 28% 20%
Computer 46% 30% 18%
Banking 42% 27% 13%
Regardless of which forms of compensation are implemented, it is also a
good idea to hold aside funds to reward excellence on an informal - surprise
basis. This gives managers an additional tool to use in-between formal
recognition events.
One example of compensation is gain sharing. Typically, the percentage of
the pool of money available to share with all workers is determined by the
quality of their output, as measured by the number of rejected parts. Workers
divide the pool evenly. The company's share ends up being divided between
the shareholders and consumers, that is, by balancing profits and prices. One
of the downside issues with gain sharing is that unproductive or less
productive workers will be viewed as leeches, that they will be getting
compensation that they did not deserve. You will have to deal with that if
peer pressure does not cause conformance. Using gain sharing as a means of
compensation while implementing TPM, since 1988: (i) productivity has
increased by 19% to 110.6 parts manufactured per hour from 92.9, and (ii)
the number of parts rejected has sunk to 10 per million from 837 per million.
How to Prepare Your Organization
While attempting to implement TPM, remember that attitude and leadership
problems must be resolved first, if TPM changes are to last. Senior
management must:
1. Create a supportive climate that encourages change in behavior.
2. Become aware of what works, and what does not work in today's
manufacturing environment.
4. Improve inter-departmental communication to reduce and remove barriers
for effective communication.
In the business environment of the 1990's, mistakes are more often fatal.
It is imperative that CEO's must not repeat past mistakes, as global
competition and increasingly sophisticated customers are far less forgiving
than before. Whereas in the past, management was very good at getting
people to use their hands, today's management must get people to use their
heads. After all, working smarter is equally important to working harder.
The biggest problem today is that everyone is doing the wrong jobs. Rather
than repairing equipment, manufacturing engineers should be using reliability
growth curves to design equipment and processes that meet productivity
numbers yet minimize operating costs.
Overcoming Resistance to Change
Problem
It is human nature to fear change and to seek it. While people do change, over
time, most people resist being changed. In the recent past, change occurred at
a rate of once per generation. Today, change is required at an annual rate.
“Resistance is futile.”
The Borg, JAN. 11, 2254
Resistance to change is found at both the senior and middle management
levels. This resistance from "stake holders" exists because:
• they feel a need to use their power,
• because they can and/or,
• because they lack self-confidence in their ability to implement the agreed
upon changes.
Solution
Change must start at the very top of an organization. Once employees see the
benefits and share your conviction, they become messengers. The key to
successful attitude and behavioral changes include:
• understanding why change is necessary,
• assurance of reward for their efforts,
• confidence that adequate training will be provided,
• a belief that mistakes made during good faith participation in the change
process will not
result in hardship or penalty.
As the vision is discussed and the benefits understood, support and
enthusiasm will build. You must enroll them one at a time, then encourage
them to accept a shared vision of the firm's future.
How Fast Should You Introduce Change?
Let's face it, a vast reservoir of untapped and unsuspected capacity remains
concealed in the work force. A recent survey of hundreds of management
teams indicated that their organizations have the potential to improve results
by 25 to 50 percent and more! To tap this concealed reserve, managers must
motivate their people to achieve significant results quickly, within weeks.
For example, at Manufacturer's Life Insurance, after investing several months
of man-hours to reduce the cycle time for issuing new policies, they could not
make so much as a dent in the seven weeks required from application to
delivery of a policy. Only when senior managers challenged the team to
take two weeks out of the cycle AND to do it within the following two
months, was the five week goal achieved.
Whether the goal is speed of delivery, increase in yields, or a reduction of
inventory, management can begin by asking staff to make specific and
measurable improvement in two or three months.
While it will be a never ending, evolutionary improvement process, change
should be introduced immediately. Starting with an evaluation of the
condition of your capital assets and your cost justification results, benefits
will accrue rather quickly. Operators would begin with lower level
maintenance duties, their responsibilities would include routine preventive
maintenance, diagnostics, and somewhat limited trouble-shooting.
Be wary of consultants and other interests who have a great deal to gain by
prolonging the implementation process. Those self-serving individuals and
firms may try to suggest that it would take months and even years before
improvement is begun.
Tailoring Your Operating Procedures to Incorporate TPM
1. Everyday policies and procedures must be evaluated and implemented by
senior management before anything else can proceed. During this process, it
is critical for senior managers to realize that operations and maintenance
cannot be dictated to.
2. A task group consisting of both departments and the vendor of the
equipment should evaluate operating and maintenance procedures.
3. Maintenance organization and scheduling procedures should be evaluated
by a task group consisting of maintenance, operations, engineering, and
finance.
4. Management information systems should be evaluated by a task group
consisting of all departments.
5. MRO supplies should be evaluated, looking at availability-standards-cost),
by a task group consisting of maintenance, purchasing, and operations.
It takes more than higher pay and training to change staff behavior. To
motivate and encourage operator involvement, basic physical and emotional
needs must be addressed. Training must be utilized to cause individual
recognition of the need to embrace TPM, if they are going to perform as
expected.
Operators must be:
• empowered and given authority to influence how and when the work is to
be done,
• encouraged to develop solutions to problems, to challenge the "its always
been done that way" excuse,
• continuously be involved during the planning and implementation process,
and
• encouraged to develop a sense of ownership, so that they feel it is "their
machine."
It should be explained that TPM's implementation is vital to the production
improvement process, and that TPM is a positive method of reducing product
cost. TPM should be seen as a contributor to the future of both the employee
and the firm. Once implemented, TPM usually makes the employee's jobs
easier, and their performance better.
Establishing line supervision maintenance goals, working with already
organized operations/maintenance teams, a series of difficult, yet attainable
goals should be established. Supervisors must then support these doable,
mutually agreed upon goals, by providing training, the proper tools, as well
as emotional support. As managers, it is imperative that they do not confuse
quality activities with quality results. After all, success is not measured by the
numbers of people trained, the teams they have empowered, nor the new
reward systems they have launched.
Introducing Upper Management Participation
The CEO must evaluate his/her own strengths and weaknesses as a manager.
He must then fill key senior management positions with people who's
strengths are able to compensate for those weaknesses.
Management must coach, and allow operators and maintenance to learn
problem solving. Delegation of decisions should be planned incrementally,
leading to autonomous groups. Most importantly, management must inspire
others to change, by visible and consistent deeds, as well as words.
Implementation of both the measurement and recording of individual & team
accountability should include public ceremony when recognizing achievers.
Public recognition will re-enforce the belief that TPM is important, that TPM
is being supported by management, and shows the persons being rewarded
that their efforts are appreciated.
Chapter IV
Implementing the TPM Program
A trade-off, such as the carrying of large inventory, to ensure user and
customer satisfaction, are no longer possible or desirable.
Chapter IV
IMPLEMENTING THE TPM PROGRAM
Steps for implementation: Operators
1. Equipment familiarization of features and controls
2. Safety features
3. Operating procedures
4. Service and appearance, cleaning and inspection
5. Calculate overall equipment effectiveness (OEE)
6. Predictive and preventive maintenance procedures
7. Progressive training schedule, trouble shooting, improve assets
Similar to walking on a tightrope, firms must balance the goals of providing
low operations expense and high levels of both training and retraining.
Steps for implementation: Maintenance 1. Develop a preventive/predictive
maintenance system
2. Develop a corrective work order system
3. Develop controls and systems for spare parts
Developing Time Lines for Implementation.
Determining the Best Approach for Your Company
Once TPM has been accepted by management, the first step is to implement
any personnel changes needed, placing the managers with the right skills
within the right role.
Begin to create policies and procedures as outlined in chapters II and III,
setting the foundation from which to obtain commitment from labor. The first
five of seven steps for operators could be completed relatively soon, perhaps
within eight weeks. The PM procedures outlined in steps six and seven, while
dynamic and always in a state of change, should be substantially completed
within four weeks, following the completion of the previous five steps.
Short term goals, when established, should be challenging yet attainable.
They must be measurable and be work and time specific. Everyone should
realize that maintenance costs will increase during implementation, if you are
to bring equipment up to specifications, to eliminate reduced capacity loss.
For example, a 30% - 60% reduction in spoilage or downtime could be a
reasonable four month goal.
For firms who are just starting down the quality improvement road, and are
lower performers, establish employee teams to help identify and then solve
small problems. Higher performing firms should establish benchmarks by
studying similar businesses.
FOCUS FOCUS FOCUS FOCUS
Establish training programs on narrow topics. Broad training programs do not
work. In general, quality efforts work best when companies stay with a few
highly focused practices, and adding more sophisticated ones later. Constant
improvement is the overall goal during implementation, not perfection, as
people strive to learn new skills and to overcome previous work and
communication habits.
Establish mutually agreed upon short term goals that will lead to:
➢ operators who understand their equipment, ➢ operators who can care for
their equipment, and ➢ improved record/data keeping.
Establish mutually agreed upon long term goals that will lead to:
➢ zero defects and zero failures,
➢ more reliable equipment which is easier to maintain and run, ➢ stable
production,
➢ more cost effective and efficient operations, and ➢ Just-In-Time
production.
User Training In Equipment Maintenance
Using effective education techniques, all employees must learn to understand
and buy into TPM. All employees must learn problem solving and decision
making. In previously autocratic environments, this will be an especially
difficult task.
Turn the students into teachers. Once an operator team leader has learned a
maintenance task, he should train the other operators until they have
illustrated proficiency.
Operators should:
1. Conduct initial cleaning and inspect for hidden defects
2. Eliminate sources of contamination to increase reliability and to improve
reliability
3. Maintain basic equipment conditions, help set standards
4. Set personal standards which embraces increasingly greater levels of
responsibility
5. Visually inspect equipment and learn to perform simple repairs
6. Learn proper operating methods and signs of abnormalities
7. Organize and manage the work place. Offer solutions to setup and
adjustment time
8. Improve equipment based upon analysis of data.
Regarding visual aids, everyone should learn to apply and use labels and/or
color coding to detect abnormal conditions such as:
➢ placing match marks on critical bolts, ➢ using match marks to indicate
when an area was inspected, ➢ the use of arrows to indicate direction of
flow, and ➢ the use of indicators for both upper and lower level oil limits.
Group training must include problem solving, which should be encouraged at
all levels. Be sure to make it known by both word and deed that failure is ok.
People who have never experienced failure have never tried. Reward those
who try, for they are the innovators. Groups should consist of individuals
from a number of different departments, as this will promote understanding
and improve everyone's social skills.
Your teams should consist of between five to twelve members, and meet at
least once a week, limiting each meeting to between 90 and 120 minutes.
Minutes of each meeting should be kept, and an agenda should be agreed
upon and written for use at next week's meeting.
The goal of your teams is to methodically solve one or more problems that
have been established by the project leader and steering committee. During
their efforts, the following problem resolution guidelines should prove
helpful.
Problem Resolution Guidelines
1. Define the problem, being certain to look past any symptoms
2. List all possible solutions, including solution consequences
3. Allow for consensus choice to select the final solution
4. If a decision is significant, allow for senior management review before the
solution is implemented
Team Planning and Implementation
Staff who feel that they are not allowed to participate, and perceive that they
lack influence, are likely to pretend acceptance while only participating in a
token manner. Their lack of involvement could result in the failure of TPM.
Regarding implementation, a group(s) made up of maintenance, technical and
operator staff could design training aids, including diagrams and cutaway
models to facilitate general inspection and safety skills. Managers and line
supervisors should primarily be responsible for encouraging continuous
improvement of operating procedures and standards.
Successful implementation of TPM requires constant follow-up, as real and
lasting change takes place slowly. Knowing that bad data = bad management,
records should be kept and compared to prior years to facilitate evaluation of
progress. These unbiased measures of progress must be measured frequently
and compared to the original plan. Information gathering could consist of:
➢ periodic audits
- to determine success of the implementation
➢ activity boards ➢ weekly minutes
- to describe team activities in detail
- to inform the project leader and to promote progress
Establish Responsibilities
A good place to begin the assignment and acceptance of responsibilities
would be by creating a thorough Repair Policy, which would:
➢ give detailed, yet simplified instructions
➢ list all required parts
➢ provide estimated labor, by craft
➢ state availability of parts, and any duplicate inventory ➢ agree that all
maintenance work should be scheduled ➢ agree that no work should be
scheduled until everything is ready
The aforementioned obviously indicates a number of responsibilities, or
teamwork required by all departments. Purchasing is responsible for parts
availability, maintenance is responsible for providing a list of parts needs in
advance, and operations is responsible for cooperating in the scheduling of
downtime and in providing reliable input regarding equipment condition.
When implementing pilot programs, the steering committee should decide:
➢ how many pilots to run simultaneously
➢ when to run each pilot
➢ which pilot(s) to run from a list of priority areas
➢ establish training meetings to build communication and task skills of the
users
The goals in a pilot should solve a measurable, quantifiable problem, and
should result in the development of procedures that can be used elsewhere.
Chapter V
Equipment Life-Cycle Cost
Whatever gets measured gets done. Get the complete picture.
Chapter V
EQUIPMENT LIFE-CYCLE COST
Beginning with planned equipment utilization, there are three great truths that
need to be addressed. The first truth is that many firms do not know the
design speed nor the rate of production of their equipment. Secondly,
arbitrary judgements in equipment run/rate operation are set, rather than
correcting the small problems that retard the equipment's operation. Lastly,
over time, output may decline to approximately 60% of the equipment's
designed output.
To overcome this gross mismanagement of a firm's assets, you must develop
equipment histories. To accomplish this effort, you will have to establish a
policy that encourages the complete and accurate reporting of EVERY
stoppage, its cause, and its solution. You will also have to establish a process
that collects the data from operators and maintenance AS EVENTS OCCUR.
A performance baseline should also be established, utilizing equipment
vendor parameters. Do not ignore environmental conditions such as
temperature, humidity, electrical, piping, etc.
Through teamwork, the collective input from operations, engineering,
maintenance, and purchasing will allow both the purchasing and finance
departments to improve procurement decisions. These informed decisions
will allow the firm to focus upon reliability engineering to reduce repair and
downtime, safety, easier maintenance, and ease of operation. Also, liability
arising from failure to meet safety and environmental standards, and liability
originating from avoidable maintenance can be avoided during future capital
equipment procurement decisions.
Failure Analysis
Oftentimes ignored, the task of accurate and timely failure analysis is
important if a firm is to understand why production stops. Oftentimes,
production stoppages have been accepted as a normal operations
characteristic. The purpose of failure analysis is to determine the root cause.
Starting with timely, accurate and complete data collection, the firm must
measure and track idling & minor stoppages, start & restart losses, overloads,
equipment malfunctions and upstream malfunctions.
It all adds up. To determine the expense of equipment halts, use your version
of this hypothetical to add up the expense:
➢ Equipment stops ten minutes per shift,
➢ times two shifts per day,
➢ times five days per week,
➢ times 4.3 weeks per month = 7 HOURS PER MONTH
The aforementioned seven hours per month (or whatever your calculations
determined) are costing most firms thousands of dollars, and this figure does
not include other equipment delay expenses!
The only way you are going to receive accurate reporting of production
problems is through the utility of a reliable work order system.
Concerns of data collection.
Considered a basic information gathering tool, over fifty percent of firms
either do not have or are unhappy with the results of their work order system.
Much of management's unhappiness with the results of their work order
system is due to poor controls, inadequate procedures and education. This
inadequate data cannot and does not lead to information or monitoring
analysis. Data collection is used to monitor failure records, trouble calls, and
to add flexibility to a preventive maintenance plan. Data collection is also
helpful in preventing future breakdowns, for once a breakdown has occurred,
the firm uses the data to learn everything it can about the cause.
I would recommend the use of a report that would utilize the data collected in
a meaningful way. I call this report a MONTHLY MAINTENANCE
RESULTS REPORT.
Downtime _____%
Equipment Reliability _____%
Total Maintenance Cost $____
Mean Time to Repair ______minutes
Cost per Repair $_____
Good data = good management. When defining corrective actions, team
based solutions will result in a more complete analysis, which will, by
definition, result in cost & operationally effective decision making.
Computer Software Solutions to Data Collection
For many firms, the MIS (Management Information Systems) department is
unresponsive, expensive, and does not give the user all of the tools required.
As IBM has recently learned, the use of grouped personal computers in a
LAN (Local Area Network), coupled by a mini-computer or a file server, and
off-the-shelf software, has given firms tremendous gains in productivity.
In today's computer environment, most solutions to your problems will not
include the use of a mainframe and its supporting facility & staff. In fact,
most solutions can be found from suppliers who amortize development costs
amongst a large number of users. When shopping around for solutions, keep
in mind that any desirable software application must be fully integratable and
user friendly.
The Seven Rules of Computer Utility
Rule #1
Computerized preventive maintenance is just a tool. It is only as effective as
the people using it. When properly used, computer applications are meant to
help prevent unplanned downtime.
Rule #2
Computer applications must be integrated, easily accessible, and user friendly
to be truly effective and affordable. Training & retraining costs and resultant
mistakes could far exceed the acquisition cost of any installation.
Rule #3
To minimize maintenance expense, utilize file servers, instead of mini or
mainframe computers, whenever possible.
Rule #4
Your input resources should be as close to the activity that is generating the
data as possible. Avoid paper, as it increases the chance of error, and
increases the cost of data gathering. Use terminals to input and to view
blueprints, etc. whenever possible.
Rule #5
Build-in as many shortcuts to obtain accurate information, such as barcodes
or macro keys, as possible.
Rule #6
Hold everyone accountable for data integrity. All software packages must
have a detailed audit trail report. Insist upon appropriate use of passwords.
Rule #7
Never attempt to automate a manual process without first evaluating it to
determine if the process is still necessary. Before you begin any automation
project, determine your goals and objectives. Utilize the automation
opportunity to re-invent and to innovate, not to merely place on a computer
tasks that are presently on paper.
Ask yourself:
➢ What the department is doing?
➢ Why is the department performing a function or task?
➢ How is the function performed presently, where can steps be eliminated?
➢ Always play the devil's advocate, and ask if the business would be better
off with the
elimination of the function.
Specific Software Advantages
Source: General Motors Trades People Report on MAINSAVER software
1. Provide equipment histories to assist in trouble shooting
2. Schedule materials to start of jobs
3. Schedule proper skills to do the jobs
4. Improved availability of critical spare parts
5. Accountability of management to follow up on neglected work 6. Trouble
log provides quick start for emergency jobs
7. Standardized procedures for routine work
8. Availability of on-line background information to tradepersons
Software Solutions to Data Collection
Work Orders
➢ Automatic creation of preventive maintenance work orders, based upon
calendar or usage criteria.
➢ States the big three–
What,
Where,
When
➢ Includes accurate and complete procedures
➢ States what spare parts are needed to perform the job at hand
➢ Provides information for management's consideration, such as the cause of
failures, work
orders on-hold awaiting parts, and allows the department to perform PM a bit
early, if equipment is already down.
Management Reports
What gets measured gets done. No one can manage a business by relying
upon perception alone. Accuracy, timeliness, and unbiased measures of
readiness and performance are management's incentives to implementing an
integrated software solution. Management MUST be able to:
➢ Evaluate overall performance
➢ Determine workload backlogs
➢ Identify organizational bottlenecks
➢ Determine the steps needed to reduce downtime ➢ Make timely repair or
replace decisions
Daily Control Reports - provides specific review
➢ Deferred Maintenance Summary - work orders that are delayed and why.
➢ Morning Status Report - equipment not operational and why.
➢ PM Exception Report - work orders that are past due
Monthly Management Reports - provides summary review
➢ Condition and status of facilities, equipment, maintenance hours, work
orders processed, planned versus emergency orders percentage.
➢ Outlines delay hours and causes.
➢ Equipment repair cost, frequency failure rates, cost center use, and allows
focus upon highcost problems.
Planning and Scheduling
➢ Scheduling outside support during vital PM's.
➢ Coordinating the arrival of multiple crafts on maintenance jobs
➢ Coordinating parts/supplies needs with Purchasing, through the use of
open back order
reports.
➢ Alerting management to capacity overruns for certain crafts.
➢ Tracking open work orders.
➢ Increasing employee productivity.
➢ Reserving materials needed for planned maintenance.
➢ Leveling workload activities.
Inventory and Purchasing Control - The availability of critical spares is one
of the most critical factors in the completion of on-time repairs.
➢ Know what is in stock, where it may be located, and the quantity available
➢ Automate materials request lists to ensure completeness and use to kit
parts in advance of work
➢ Evaluate inactive inventory for possible salvage
➢ Track item order history, tracking vendor source is very useful in case of
liability - urgency and for price negotiation
TYPICAL USER COMPUTER SURVEY
To determine what software and hardware application will best serve your
firm's unique needs, you will have to conduct a user survey. Listed below is a
typical format which will help you to get an early start and/or to ensure that a
vendor's survey is complete.
1. Main goals and objectives - why do we want to computerize?
2. Do I know what vendors supply me with specific parts? Yes___ No___
3. Do I know what parts a vendor has supplied me with in the past?
Yes___ No___
4. Do we expense inventory? Yes___ No___ OR
5. Do we charge parts to: Work Order Yes___ No___ N/A___
Department Yes___ No___ N/A___
Cost Centers Yes___ No___ N/A___
6. Are justifications and explanations required for each line item that is
purchased? Yes___ No___ N/A___
7. What special reports are required?
8. Do we have a current PM program?
Yes___ No___
If yes, Manual___ Automated___
9. Do we have PM procedures?
Yes ___ No___
If yes, are they in a word processor? Yes___ No___
11. Frequencies of PM's Calendar____ Usage___ Both___
11. Do we want to write multiple PM's against a single item? Yes___
No___ If yes, describe equipment and frequency
12. Are corrective work orders being monitored for PM additions?
Yes___ No___
13. Is there any labor forecasting for PM's? Yes___ No___
14. Is there any material forecasting for PM's? Yes___ No___
15. Are we doing lubrication routes? Yes___ No___
16.Whose lubricants?______________________
17. Current inventory system.
Manual___ Automated___
18. If automated, how? (i.e. use manufacturing system)
19. Is inventory organized?
Yes___ No___
20 Is inventory in a controlled area?
Yes___ No___
21. Is the stock numbered?
Yes___ No___
22. Are the quantities on hand accurate?
Yes___ No___
23. Is there a cycle count method?
Yes___ No___
24. Is there a bin or other location system?
Yes___ No___
25. Are we receiving the following reports:
Reorder point listing Yes___ No___
Inactive inventory Yes___ No___
Costed inventory Yes___ No___
Usage reports Yes___ No___
Costed usage reports Yes ___ No___
Daily inventory requirements Yes___ No___
Materials request lists Yes___ No___
Do we know which parts go on which equipment?
Yes___ No___
26. How to we issue parts? 27. How many purchase orders do we issue in
a year?
28. Current purchasing procedure.
Manual___ Automated___
29. How do we receive parts?
30. Is there a dedicated purchasing department?
Yes___ No___
31. Is there a purchase requisition system?
Yes___ No___
32. Are vendors listed on the computer?
Yes___ No___
33. How does purchasing know what and when to buy?
34. Is there an accurately maintained list of assets and their location?
Yes___ No___
35. Are the assets numbered? Yes___ No___ 36. Is there a spares listing
for each equipment item?
Yes___ No___
37. Is there a master equipment list on the computer?
Yes___ No___
38. Are we tracking equipment life cost?
Now___ Future___
39. Are we tracking downtime? Now ___ Future___
40. Do we have an existing work order system?
Yes___ No___
41. Are we tracking labor and materials with work orders?
Yes___ No___
42. Are we tracking project costs? Yes___ No___ 43. Is there a work
order priority system?
Yes___ No___
44. Are we using fault and action codes?
Yes___ No___
45. Are we using bar coding? Yes___ No___
If yes, how?
46. Is there a planner/scheduler? Yes___ No___
While it is obvious that the answers to these questions will be time
consuming, in the end, you will obtain much clearer insight as to how your
present organization stacks up against other firms who fully utilize computer
systems.
Plant Engineering
The TPM organization is able to utilize real-world histories and make
informed decisions which will positively impact the health of the firm and the
skills and attitudes of those who are employed by that firm. With more
precise information, and with the freedom to run away from fire drills, all
departments can contribute constructive input regarding the redesign and
improvement of equipment and the work environment.
The finish line in this race for excellence is the goal known as Reliability
Engineering.
Reliability engineering is used to:
➢ correct design weaknesses, and thereby extend parts life, wear, and
corrosion resistance, ➢ reduce stress and fatigue of materials,
➢ solve human-machine interface problems, to fool-proof machine operation
and to prevent
mis-operation of equipment,
➢ and to reduce setup time by reducing the number of parts required to
clamp equipment into
place, and to simplify.
Considerations when looking for ways to reduce setup time are:
➢ shape,
➢ weight, and
➢ interchangeability.
Chapter VI
Planned Downtime
and
Predictive Maintenance
Just like going to a fire or the circus, your firm cries and laughs its way
through one unplanned event after another when reactive maintenance is
used.
Chapter VI
Planned Downtime and Predictive Maintenance
Reactive maintenance is an environment where the equipment is in control of
your fate. Similar to any game of chance, the outcome is unpredictable,
uncertain. Also known as run-’til-failure or breakdown maintenance,
problems with this process include:
➢ Status of equipment is unknown
➢ It is impossible to control plant production
➢ Acceptance of unnecessary overtime costs
➢ Unplanned downtime
➢ Damaged machinery, premature capital equipment replacement
Just like going to either a fire or a circus, your firm cries and laughs its way
through one unplanned event after another. Customer dissatisfaction is
accepted as a way of life.
A more sane maintenance process is the use of proactive maintenance.
Proactive maintenance includes Preventive and Predictive forms of
maintenance. Benefits of this procedure include the elimination of reactive
maintenance, component life is increased through engineering solutions, and
substantial improvement in quality, customer service, and profit.
Preventive maintenance, also known as historical maintenance, manages
maintenance on a calendar or output intervals, unless there is a strong
correlation between age and reliability. Preventive maintenance is quite
effective in instances of wear, corrosion, fatigue, or where process material
comes into contact with equipment.
The downside with utilization of machinery is reworked, and that preventive
maintenance is that regardless of condition, problems are oftentimes created
as a result of poor maintenance. In fact, over twenty percent of start up
problems results from poor PM. Preventive maintenance items include:
➢ lubrication routes
➢ gas turbine maintenance
➢ fuel gas analyzer maintenance
➢ HVAC equipment
➢ station vehicle maintenance
➢ gas compressor
➢ water quality analyzers
➢ continuous emission monitoring equipment maintenance.
Predictive maintenance is a technology of determining the health of
equipment without disturbing normal operations. This technology requires
collecting and trending various types of data, utilizing many analytical
techniques to predict when to schedule maintenance. The foundation of
predictive maintenance is the concept that most components indicate some
type of warning prior to failure. For example, vibration analysis is a tool to
predict failure within rotating equipment, while thermography analysis is a
tool to predict failure within electrical components.
Predictive Maintenance benefits include,
➢ reduced parts and labor expense, because of the elimination of unplanned
repairs and because predictive maintenance will lead to fewer repairs than
when utilizing preventive maintenance,
➢ elimination of used-but-good parts inventory,
➢ increased quality of product, less scrap,
➢ increased production availability, and
➢ improved safety for operators and maintenance staff.
Predictive maintenance items include:
➢ vibration analysis of rotating equipment, ➢ lubricating oil analysis,
➢ turbine heat rate tracking,
➢ transformer oil analysis,
➢ off-line surge testing of motors,
➢ on-line motor condition monitoring.
Maintenance goes from the putting out of fires (reactive)
to the intelligent use of assets, helping to advance engineering, training, and
other goals
(proactive).
Record Keeping Lists
Operators need to keep score of failures on downtime control charts, utilizing
four week cycles. To prevent failures in the future, these charts should be
reviewed every ninety days. Examples of lists could include the following
daily and weekly checklists.
Maintenance Daily Check List
✓ Actual versus estimated work orders completed ✓ Emergency work
orders, breakdowns, and critical work ✓ Preventive maintenance due /
overdue
✓ Stock replenishment
✓ Work order and time spent, by craft
Maintenance Weekly Check List
✓ Schedule compliance
✓ Supervisor performance - estimated versus actual labor and material
utilized ✓ Planner performance - estimated versus actual number of tasks
completed ✓ Work order cost - planned versus actual
✓ Craft backlog - available versus actually completed
✓ Total labor and total materials used
✓ Total breakdown divided by total downtime hours = %
✓ Preventive maintenance divided by total maintenance = %
Proposed weekly checklist
Staff Availability for Backlog Work
Week of 01/01/93
HOURS
Total Hours Scheduled:
6 staff x 40 hours = 240
Total Overtime Scheduled
8 week avg. (should be less than 5) 20
Total Contractor Hours Scheduled
1 labor x 40 hours = 40
TOTAL HOURS AVAILABLE = 300
Average Emergency Work: 50% for last 8 weeks 150 Absenteeism 5
Vacation 6 Non-backlog work 20
TOTAL = 181
40% available for planned maintenance ( goal should = 90% or greater)
300 Total Hours Available minus 181 Average Emergency
Work hours = 119 hours available for planned maintenance.
Craft Backlog
A craft backlog is the total of estimated labor needs on pending work orders.
Backlog work is work which is ready to schedule. It does not include work
orders which are waiting on approval, spare parts, or engineering.
Typically the lack of planning prevents the preparation of an accurate status
report, which results in poor decision making regarding staffing needs. Of the
two-thirds of all firms who use work orders, only one-third of them actually
USE the data obtained for performance and failure analysis. Also, almost
two-thirds of all hours demanded on craft backlogs DO NOT INDICATE
which craft is required!
Backlog formula: total planned hours ready to schedule / staff availability
Parts Supply Control
As recently as ten years ago, plants accepted the cost of high parts inventory
as a necessary procedure to minimize downtime. This wasteful procedure:
1. increased costs, which led to increased selling prices of the finished
product, or resulted in lower profits, and
2. masked many managerial inadequacies, such as:
❖ slow response times
❖ excess inventory
❖ barriers to communication (class or trades conflicts / warfare) ❖ marginal
customer service
TPM provides a solution to this entire environment. Teamwork, planning and
the strategic use of computers will give your firm complete control over
wasteful parts supply procedures. Chapter VII
Vendor Maintenance and Parts Procurement
Chapter VII
Vendor Maintenance and Parts Procurement
What to look for
Equipment and parts standardization should become a major goal of this
activity. Successful implementation will result in the reduction of spare parts
inventory, lower costs, and reduced startup times.
Work towards the use of single source vendors. The benefits of this effort
include lower transaction and freight costs, volume discounts, a higher level
of efficiency within the Purchasing department, a higher level of participation
by vendors, fewer MRO items needed to be stocked (such as lubricants).
Insist upon just-in-time delivery performance as a vendor criteria, do not just
shop for the best price. To assist the vendor to meet your needs, Purchasing
will have to provide multi-month forecasts, adjusting weekly and/or monthly
for goods and services to meet actual demand. This effort will reduce on-
hand stock levels to several days or, in the worst case scenario, less than
thirty days.
Penalty Clauses for Nonperformance
In typical supply and service contracts, vendors agree to perform to specific
terms, during a specific period of time. A concern that almost every buyer has
is that the vendor will not perform as promised. This is especially a problem
during term leases whereby the buyer is dependent upon the seller for
maintenance or some other service. When victimized, failure of the vendor to
perform can result in reduced morale and increased expense. As the cost to
litigate vendor failure oftentimes exceeds the benefit gained IF successful, the
buyer is faced with a decision to either accept poor service until the term
expires, or to bust the budget by paying a different vendor for the needed
service.
A simple solution to protect your organization from the risk of vendor default
is to include a penalty clause for nonperformance. I like to think of it as a
personalized guarantee, and I call it assurance insurance.
Example: (fill in the blanks)
Addendum A
If vendor does not perform the work as agreed upon, excluding unavoidable
events, such as an earthquake, or other act of God, or some other agreed
upon legitimate reason, vendor will be penalized an amount equal to 50% of
the value of this entire contract, (1/12 of total annual sum) for and during the
month poor service was incurred. This penalty does not excuse vendor from
returning and performing the required task promptly and properly, vendor is
merely compensating buyer for any concern or inconvenience suffered.
Grounds for immediate termination of contract, following the mailing of a
written two week notice to terminate, and the return of all prepaid funds,
shall exist if vendor has earned two penalties during a consecutive twelve
month period. Any and all disputes resulting from termination shall be
resolved through binding arbitration.
Obviously, vendors will be very reluctant to sign or even read an addendum
similar to the aforementioned. They must be told that it is not your intent to
arbitrarily exercise this addendum without cause, and that you do not
consider vendor contracts to be a profit center. You are aware that vendor
contracts are deliberately written to exclusively favor the vendor. Your
addendum merely brings some balance to their boiler plate contract.
Especially in this recessionary environment, it is a buyer's market, and you
are the buyer. In almost any example imaginable, you can find alternative
sources who are more than willing to accept your addendum. After all, you
merely want what was negotiated and agreed upon by the vendor's sales
department. The burden of performance falls to to the vendor's distribution
and/or service departments. Nothing gets the attention of management more
than a debit.
Time and Materials versus a Service Contract
A service contract is an efficient method of establishing rules from which
services are exchanged for money, much like a blanket purchase order is
utilized for goods. Concerns regarding the utilization of a service contract
include:
❖ While promoted as a means of ensuring budget cost, in the long run you
will almost ALWAYS PAY MORE.
❖ Written at the time new equipment is purchased, the value of the
manufacturer's warranty is oftentimes overlooked. This results in lost value to
you.
❖ Usually requiring advance payment, you loose the opportunity-income,
known in financial circles as Opportunity Cost. Had that prepaid cash been
available to you for other purposes, you would have invested it to earn
income, pay down debt, or not borrow.
❖ Should the vendor file bankruptcy, that advance payment could be lost.
A Time and Materials contract is just as efficient as a service contract. The
difference between the two is that you only pay for service when you need it.
Just-In-Time payment! This effect of action is similar in effect as predictive
versus preventive maintenance. Using T&M, you contract for service as
needed, at an agreed upon rate, you pay for services provided and do not pay
in advance, and dispute resolution between vendor and buyer is facilitated by
non-payment, when that recourse is necessary.
Concerns regarding the utilization of time & materials include:
❖ Vendor will threaten to service your firm last, AFTER prepaid accounts.
❖ Vendor will not enter into a T&M agreement.
To answer the question as to which contract is best for YOU, just ask
yourself:
When was the last time you heard a vendor voice an indifference to prepaid
versus T&M service
contracts?
Then tell yourself this:
If you were not overpaying by utilizing a prepaid service contract, then why
do they insist/demand
the prepaid program? The simple truth is that almost all of the funds received
from buyers for service contracts are profit, going right to the bottom line.
In an organization that I served as Director of Purchasing, a micrographics
vendor wanted $36,000 to write a service contract for one year. By going to
T&M, I learned:
1. My actual expense for 40+ month old equipment was only $6,000
2. The actual down time was no greater than when we were under a prepaid
contract
For the timid, there are insurance companies out there that will insure your
product:
➢ for first class repair, by the vendor if desired,
➢ protect those assets against acts of God and disgruntled employees, ➢ and
guarantee a 10% or greater reduction in maintenance cost.
Bibliography
I would like to offer special thanks to John E. Suwara, Vice-President of
Sales and Service at J B SYSTEMS, makers of Mainsaver software for his
extraordinary contribution.
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