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

Background of Lean
companies
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

mass production

Improve efficiency and reduce costs

by elimination of waste

Less variety

More variety

Production Volume

Determine production volume

according to production capacity

Produce the quantity customer

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

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

Overview
Product Variety

Relation with Suppliers

K. Nakano, JIPM Solutions

Basic Principles and TPS

common
keywords in TPS and TPM
& TPM

Production technology
contribution

Basic Principles

Thoroughly
Eliminate Wastes

Profitable IE
Waste of Overproduction
Waste of Waiting
Waste in Conveyance
Waste in Processing
Waste of Inventory
Waste of Motion
Waste of Defects

Poka-yoke
Prevention Practice

Prevention rather than cure

Kanban

Hands-on, shop-floor
approach
Participative
Management and
Respect for Labor

Visual Mgt.Andon
Multi-Process Handling

Participation in production system

establishment.
Rewarding job

Profitable TPM
Change equipment, people
Breakdown Loss
Changeover & Adjustment Loss
Cutting-tool Replacement Loss
Startup Loss
Minor stops & Idling Loss
Speed Loss
Quality Defect & Rework Loss

Preventive Maintenance
Corrective Maintenance
Maintenance Prevention
Pursuit of optimal conditions
Visual controlF-Tag
TPM Activity Board
Autonomous Maintenance
Zero Losses
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

eavbeilitly3to seartipseftuy al
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JIPMS
JIPMS

Trend of TPM Awards (1)

Total

Overseas

200

120

WC
180
160
140

Advanced
Special
Special

100

Cons' TPM 1st

80

120

Cons' TPM 2nd

1st category

100

60

2nd category
80
40

60
40
20

20
0
19
71
19
72
19
73
19
74
19
75
19
76
19
77
19
78
19
79
19
80
19
81
19
82
19
83
19
84
19
85
19
86
19
87
19
88
19
89
19
90
19
91
19
92
19
93
19
94
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06

JIPM,2002

Trend of TPM Awards (2)

200
185

Domestic/

180

177

172

168

163

Overseas/

160

177

155

152 151

Total

140

54
106 94

50
80

120
101

100

110
130

84

80

46

118

109

121

72

60

100

114

95

51
41 42

40

96

79
79

71

29

51

22

20
3

26

22 2

10 8 12 8 1 4
12
10
8

14 16 16
22
16

39

83

91

54
42

41

29

16

83

105

14

22
9

19
71
19
72
19
73
19
74
19
75
19
76
19
77
19
78
19
79
19
80
19
81
19
82
19
83
19
84
19
85
19
86
19
87
19
88
19
89
19
90
19
91
19
92
19
93
19
94
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07

137

81

135

JIPMS

TPM Award-Winning factories in India

95 96 97 98 99

00 01 02

03 04 05 06

World
Class
Advanced
Special

Special
Consistency
TPM
Excellence

Total factories

14

17 19 16 12

110
JIPMS,2007

2.

Worldwide TPM

Number of TPM Awardees by Location

EU
272
Asia
272

ME
4

JP
1585

USA
69
MA
4

Af
16
2006

Os
5
1996
Asia
Asia
EU
EU

SA
SA

11
11
15
15
22

X25

Asia
Asia
ME
ME
EU
EU
USA
USA
MA
MA
SA
SA
Af
Af
Os
Os

272
272
44
272
272
69
69
44
58
58
16
16
55

SA
58

SEIICHI NAKAJIMA
Why does TPM give Significant Results?

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
Amount invested in TPM

Plastic
Products

Chemicals

Semiconductors

Automobile
Components

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

for satisfying our desire for selfactualization.
People and work are in a cyclic
relationship; people grow and develop
through their work, bringing prosperity
to their companies, and that prosperity
leads to further individual development.
When people find a purpose in life
through their work, they become ever
more passionate about it.
(Based on AH Maslows writings on self-actualizing
management)

Human behavior factors A H Maslows 5stage hierarchy of human needs

Self-fulfillment needs
(using ones talent)

Ego or esteem needs

(self-respect)

Social needs
(a sense of belonging)

Safety needs
(job and income security)

Physiological needs
(sleep, food, etc.)

The Theoretical Background to Team Activities (QC

Circles, ZD Groups, Jishu Kanri, etc.)

SEIICHI NAKAJIMA
New Management Pattern Linking Pin Function

TPM

Linking Pin Function

Factory General Manger

Factory TPM Steering

Committee

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

Team Leaders

General Employees

(ew Patterns of Management by Rensis Likert, 1964)

ShopShop-Floor Teams
(PM Circles)

The Origin of TPM

(Preventive Maintenance)

Prevention
Zero Breakdown

Eupsychian Management
by A.H. Maslow

The Human Side of Enterprise

(Productive Maintenance)

by Douglas McGregor

Productivity
Cost Down

New Patterns of Management

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

+
Improving the
Equipment

1) Raise OEE by improving the equipment currently in use

2) Design new equipment for minimum life-cycle cost and
vertical startup

Improve The Company

SEIICHI NAKAJIMA

Definition & Basic Concepts of TPM

Basic Concepts of TPM
1. Aiming to create corporate culture that optimizes
efficiency of production systems (Overall
effectiveness)
2. Structure with an actual scene/actual thing a
system that takes preventive action against loss
such as Zero accidents, zero defects, zero
failures targeting the overall lifecycle of the
production system
3. In all departments including production, HR,
Sales and Administration Departments
4. Participation of by all members of the company,
from top management to frontline staff
5. Achieve zero loss with overlapping small-group
activities

1. Create a profit-making
corporate culture

Pursuit of economy,
zero accidents, zero
defects, zero failures

2. Preventive philosophy
(preventive action)
MPMP-PMPM-CM

3. Participation of all
members (Management

participation/Respecting
people)
Overlapping small
group, Jishu Hozen by
operators

4. Principle of actual scene

and actual thing
What should be
be for
facilities and work,
visual management,
clean workplaces

5. Renewing common sense

Continued evolution
and growth of views
and thinking

SEIICHI NAKAJIMA

Plant Preventive MedicinePreventive Maintenance

Preventive Medicine

Daily
Prevention

Prevent
degradation

Early
Treatment

Physical
Check up

Measure
degradation

Recover
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 failurefree;

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
Okajima Plant

ADEKA Corporation
(old Asahi Denka Co., Ltd)

Akashi Factory

JIPMS

TPM Core Values

KAIZEN

PARTICIPATION
MAINTENANCE

&
Growth

JIPMS,2006

TPM Parts,, Concept Picture

JIPMS
JIPMS

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
TPM Part
TPM Part

Product flow

Shipment
(sales)

Order
Manufacturing site

Sales,Research
Development,Design
Production control
Production Engineering

Production process
Business process

Production

Maintenance QA

Logistics
Sourcing,
Resource management
Cost control

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
TPM Part
TPM Part

Product flow

Shipment
(sales)

Order
Manufacturing site

Sales,Research
Development,Design
Production control
Production Engineering

Production process
Business process

Production

Maintenance QA

Logistics
Sourcing,
Resource management
Cost control

Product of
manufacturing cost

TPM
TPM
Opportunity
Additional
Inventory
lost loss
construction loss
loss

Sourcing
loss

Organization
loss

Change-over
loss

Indirect loss

JIPM,2002

Requirements for Part

Part

(Production costs)

Production
Production site
site

Part

(Level 2)

(Product costs)

Manufacturing
Manufacturing Process
Process

Cooperation between production

division and other divisions
Sales ,e.g.) Opportunity lost, Product inventory loss
Development & Design , e.g.) Losses due to failure
to achieve new-product target costs
Sourcing , e.g.) Excess parts & materials, Losses due
to failure to achieve purchasing target costs

Optimization of total
manufacturing process

Production
Production
Losses
Lossesininmachine
machineoperation
operation
Losses
Lossesininorganization
organizationfor
foroperation
operation
Losses
Lossesininmaterials
materialsand
andenergy
energy

In Part ,we continue

the work we did in Part ,
while strengthening functional
links in order to optimize the
entire manufacturing process

JIPMS
JIPMS

JIPM,2002

Requirements for Part

(Level 2)

Direction
Direction of
of solution
solution

Lead
Lead Time
Time

Find
Find constraints
constraints and
and losses
losses to
to
improve
improve lead
lead time,
time, e.g.
e.g. production
production

planning,
planning, production,
production, sourcing,
sourcing,
logistics
logistics

Too
Too many
many decision
decision
making
making steps
steps

Distribute
Distribute order
order information
information to
to

production site
site by
by improving
improving
production
information
information processing
processing lead
lead time
time

Forecasting
Forecasting of
of
uncertain
uncertain demand
demand

Establish
Establish production
production system
system to
to
correspondence to
to order
order without
without

correspondence
inventory
inventory demand
demand based
based

Production to Order

(( Only
Only make
make what
what is
is needed,
needed, when
when itit is
is needed
needed ))

(Needed in
in the
the only
only make
make what
what we
we can
can sell
sell Era)
Era)
(Needed

Forecast Production

(We can
can sell
sell whatever
whatever we
we make
make Era)
Era)
(We

Coping
Coping with
with demand
demand uncertainty
uncertainty
Bottleneck
Bottleneck

JIPMS
JIPMS

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
TPM Part
TPM Part

Product Flow

Shipment
(sales)

Order
Manufacturing site

Sales,Research
Development,Design
Production control
Production Engineering

Production process
Business process

Production

Maintenance QA

Logistics
Sourcing,
Resource management
Cost control

Constrains of
total cash flow

TPM
TPM
Utilization
loss

Less than
estimated
profit loss

Overhead
costs loss

Opportunity Additional Inventory Sourcing Organization Change-over

lost loss construction
loss
loss
loss
loss
loss
JIPM,2002

JIPMS
JIPMS

Requirements For Part

Part

Part

(Production costs)

Production
Production site
site

(Level 3)
Part

(Product costs)

Manufacturing
Manufacturing Process
Process

Production site
site
Production

In Part II, we continue the work we did in

Part , while strengthening functional
links in order to optimize the entire
manufacturing process

Cooperation between
production division and
other divisions
Sales ,e.g.) Opportunity lost,
Product inventory loss
Development & Design , e.g.)
Achievement loss to target cost
on new product
Sourcing, e.g.) Excess parts &
material, target cost loss to buy

Productivity
Productivityof
of
Company
Company
management
management
In Part , we continue levels
1&2 while driving to optimize
the entire business process.

Company-wide
Collaboration
including suppliers
& customers
Sales ,e.g.)
Utilization loss
Research , e.g.)
Marketing share
of new products

Optimize total
total business
business process
process
Optimize

Productivity
Productivityof
of
Production
Productionsite
site

Business
Business Process
Process
Optimization of
of total
total manufacturing
manufacturing process
process
Optimization

Losses
Lossesin
inmachine
machine
operation
operation
Losses
Lossesin
in
organization
organizationfor
foroperation,
operation,
Losses
in
materials
Losses in materials
and
andenergy
energy

(Total cash flow)

JIPM,2002