TPM - TOTAL PRODUCTIVE MAINTENANCE

History and Basic Implementation Process

by Jack Roberts, Ph.D.
Department of Industrial and Engineering Technology
Texas A&M University-Commerce

ABSTRACT:

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

newly defined concept for maintaining plants and equipment. The goal of the TPM program is to markedly
increase production while, at the same time, increasing employee morale and job satisfaction. The TPM
program closely resembles the popular Total Quality Management (TQM) program. Many of the same tools
such as employee empowerment, benchmarking, documentation, etc. are used to implement and optimize
TPM. This paper will define TPM in some detail, evaluate its strengths and weaknesses as a maintenance
philosophy, and discuss implementation procedures. Examples of successfully implemented programs will
be presented.

What is Total Productive Maintenance?

Total Productive Maintenance (TPM) is a maintenance program concept.

Philosophically, TPM resembles Total Quality Management (TQM) in several aspects, such as (1)total
commitment to the program by upper level management is required, (2) employees must be empowered to
initiate corrective action, and (3) a long range outlook must be accepted as TPM may take a year or more to
implement and is an on-going process. Changes in employee mind-set toward their job responsibilities must
take place as well.

TPM brings maintenance into focus as a necessary and vitally important part of the
business. It is no longer regarded as a non-profit activity. Down time for maintenance is scheduled as a part
of the manufacturing day and, in some cases, as an integral part of the manufacturing process. It is no
longer simply squeezed in whenever there is a break in material flow. The goal is to hold emergency and
unscheduled maintenance to a minimum.

When and where did TPM originate?

TPM evolved from TQM, which evolved as a direct result of Dr. W. Edwards
Deming's influence on Japanese industry. Dr. Deming began his work in Japan shortly after World War II. As
a statistician, Dr. Deming initially began to show the Japanese how to use statistical analysis in
manufacturing and how to use the resulting data to control quality during manufacturing. The initial
statistical procedures and the resulting quality control concepts fueled by the Japanese work ethic soon
became a way of life for Japanese industry. This new manufacturing concept eventually became knows as
Total Quality Management or TQM.
 When the problems of plant maintenance were examined as a part of the TQM
program, some of the general concepts did not seem to fit or work well in the maintenance environment.
Preventative maintenance (PM) procedures had been in place for some time and PM was practiced in most
plants. Using PM techniques, maintenance schedules designed to keep machines operational were
developed. However, this technique often resulted in machines being over-serviced in an attempt to
improve production. The thought was often "if a little oil is good, a lot should be better." Manufacturer's
maintenance schedules had to be followed to the letter with little thought as to the realistic requirements of
the machine. There was little or no involvement of the machine operator in the maintenance program and
maintenance personnel had little training beyond what was contained in often inadequate maintenance
manuals.

The need to go further than just scheduling maintenance in accordance with

manufacturer's recommendations as a method of improving productivity and product quality was quickly
recognized by those companies who were committed to the TQM programs. To solve this problem and still
adhere to the TQM concepts, modifications were made to the original TQM concepts. These modifications
elevated maintenance to the status of being an integral part of the overall quality program.

The origin of the term "Total Productive Maintenance" is disputed. Some say that it
was first coined by American manufacturers over forty years ago. Others contribute its origin to a
maintenance program used in the late 1960's by Nippondenso, a Japanese manufacturer of automotive
electrical parts. Seiichi Nakajima, an officer with the Institute of Plant Maintenance in Japan is credited with
defining the concepts of TPM and seeing it implemented in hundreds of plants in Japan.

Books and articles on TPM by Mr. Nakajima and other Japanese as well as
American authors began appearing in the late 1980's. The first widely attended TPM conference held in the
United States occurred in 1990. Today, several consulting companies routinely offer TPM conferences as
well as provide consulting and coordination services for companies wishing to start a TPM program in their
plants.

Implementation of TPM

To begin applying TPM concepts to plant maintenance activities, the entire work
force must first be convinced that upper level management is committed to the program. The first step in
this effort is to either hire or appoint a TPM coordinator. It is the responsibility of the coordinator to sell the
TPM concepts to the work force through an educational program. To do a thorough job of educating and
convincing the work force that TPM is just not another "program of the month," will take time, perhaps a
year or more.

Once the coordinator is convinced that the work force is sold on the TPM program
and that they understand it and its implications, the first study and action teams are formed. These teams
are usually made up of people who directly have an impact on the problem being addressed. Operators,
maintenance personnel, shift supervisors, schedulers, and upper management might all be included on a
team. Each person becomes a "stakeholder" in the process and is encouraged to do his or her best to
contribute to the success of the team effort. Usually, the TPM coordinator heads the teams until others
become familiar with the process and natural team leaders emerge.
 The action teams are charged with the responsibility of pinpointing problem areas,
detailing a course of corrective action, and initiating the corrective process. Recognizing problems and
initiating solutions may not come easily for some team members. They will not have had experiences in
other plants where they had opportunities to see how things could be done differently. In well run TPM
programs, team members often visit cooperating plants to observe and compare TPM methods, techniques,
and to observe work in progress. This comparative process is part of an overall measurement technique
called "benchmarking" and is one of the greatest assets of the TPM program.

The teams are encouraged to start on small problems and keep meticulous records
of their progress. Successful completion of the team's initial work is always recognized by management.
Publicity of the program and its results are one of the secrets of making the program a success. Once the
teams are familiar with the TPM process and have experienced success with a small problem, problems of
ever-increasing importance and complexities are addressed.

As an example, in one manufacturing plant, one punch press was selected as a

problem area. The machine was studied and evaluated in extreme detail by the team. Production over an
extended period of time was used to establish a record of productive time versus nonproductive time. Some
team members visited a plant several states away which had a similar press but which was operating much
more efficiently. This visit gave them ideas on how their situation could be improved. A course of action to
bring the machine into a "world class" manufacturing condition was soon designed and work was initiated.
The work involved taking the machine out of service for cleaning, painting, adjustment, and replacement of
worn parts, belts, hoses, etc. As a part of this process, training in operation and maintenance of the
machine was reviewed. A daily check list of maintenance duties to be performed by the operator was
developed. A factory representative was called in to assist in some phases of the process.

After success has been demonstrated on one machine and records began to show
how much the process had improved production, another machine was selected, then another, until the
entire production area had been brought into a "world class" condition and is producing at a significantly
higher rate.

Note that in the example above, the operator was required to take an active part in
the maintenance of the machine. This is one of the basic innovations of TPM. The attitude of "I just operate
it!" is no longer acceptable. Routine daily maintenance checks, minor adjustments, lubrication, and minor
part change out become the responsibility of the operator. Extensive overhauls and major breakdowns are
handled by plant maintenance personnel with the operator assisting. Even if outside maintenance or factory
experts have to be called in, the equipment operator must play a significant part in the repair process.

Training for TPM coordinators is available from several sources. Most of the major
professional organizations associated with manufacturing as well as private consulting and educational
groups have information available on TPM implementation. The Society of Manufacturing Engineers (SME)
and Productivity Press are two examples. Both offer tapes, books, and other educational material that tell
the story of TPM. Productivity Press conducts frequent seminars in most major cities around the United
States. They also sponsor plant tours for benchmarking and training purposes.
The Results of TPM

Ford, Eastman Kodak, Dana Corp., Allen Bradley, Harley Davidson; these are just
a few of the companies that have implemented TPM successfully. All report an increase in productivity using
TPM. Kodak reported that a $5 million investment resulted in a $16 million increase in profits which could be
traced and directly contributed to implementing a TPM program. One appliance manufacturer reported the
time required for die changes on a forming press went from several hours down to twenty minutes! This is
the same as having two or three additional million dollar machines available for use on a daily basis without
having to buy or lease them. Texas Instruments reported increased production figures of up to 80% in some
areas. Almost all the above named companies reported 50% or greater reduction in
down time, reduced spare parts inventory, and increased on-time deliveries. The need for out-sourcing part
or all of a product line was greatly reduced in many cases.

Conclusion

Today, with competition in industry at an all time high, TPM may be the only thing
that stands between success and total failure for some companies. It has been proven to be a program that
works. It can be adapted to work not only in industrial plants, but in construction, building maintenance,
transportation, and in a variety of other situations. Employees must be educated and convinced that TPM is
not just another "program of the month" and that management is totally committed to the program and the
extended time frame necessary for full implementation. If everyone involved in a TPM program does his or
her part, an unusually high rate of return compared to resources invested may be expected.

References:
1. Productivity Press, Inc., P.O. Box 13390, Portland, OR 97213-0390

2. Robinson, Charles J., Ginder, Andrew P., "Implementing TPM", Productivity Press, Portland Oregon,
1995.

3. Society of Manufacturing Engineers, P.O. Box 6028, Dearborn, MI 48121

4. Steinbacher, Herbert R., Steinbacher, Norma L., "TPM for America", Productivity Press, Portland,
Oregon, 1995.

5. Takahashi, Yoshikazu, and Osada, Takashi, "TPM", Asian Productivity Organization, Tokyo, 1990
 Best Practices in Maintenance

A 13 Step Program in Establishing a World Class

Maintenance Organization.
By Bruce C. Hiatt
Facilities Engineer, Anesta Corp.

For years, industrial and other organizations concentrated most of their attention
upon product production, generally ignoring the maintenance function, viewing it as a necessary evil. During
the last 6 or so years there has been a gradual attitude change in how general corporate managers view
the maintenance function. One of the most important factors forcing this change was that maintenance
departments became major cost centers within those organizations.

Today with general operating costs rising at the rate of 10% +/- each year, there is
the potential for the realization of significant savings in the maintenance department that deserves serious
scrutiny. By implementing certain of the advanced management practices outlined here savings can be very
significant.

By integrating the listed programs the Maintenance Department, will produce

dividends in the immediate, as well as for the long term value enhancement. Through the application of
Good Management Practices (GMaP), and with the use of sound technical expertise, cost reductions in the
range of 20% to 35% are within the realm of possibility. Industrial Maintenance Managers who integrate all
of the listed programs will experience profound affects, gain increased control over the performance of their
organizations, and thus achieve real successes. How much success will be dependent upon how well each
specific function and each specific activity are integrated into the plant maintenance and production work
routine. There are thirteen basic facets to Best Practices in Maintenance, as they will have an impact on the
organization when integrated, they are:

Philosophical and Theroretical Shifts

To achieve Best Practices, within the maintenance and production organizations,

there must be both a technological and an organizational philosophical shift in the way that departments
conduct their daily business. Unless both the technical and organizational shifts occur at the same time, the
cycle of change can not be sustained. The organization will slip back to its old ways, failing to achieve these
Best Practices in Maintenance.
Understanding Change

Most people fear changes therefore are resistant to it. It is important that everyone
realize the importance of making the necessary changes. Only those willing to make the changes
necessary can expect to achieve real success. As the maintenance and production organizations make the
decision to become a World Class Organization, they must be willing to develop within themselves a highly
disciplined and committed plan of action. Once the plan of action is developed, it must be reviewed and
agreed upon by top management. When approval has been received, maintenance and production
managers must move boldly and swiftly to make the changes as necessary and implement the plan as
rapidly as possible.

Teamwork

All plant operation and support personnel need to be informed of the plan and its
affect upon each individual in a timely fashion. They need to participate in the re-engineering processes so
they can gain ownership. Personnel who understand and agree with a process are more willing to
cooperate with it, and will be less likely to create difficulties later on. Teamwork throughout the organization
realignment process is critical to achieve success.

Training

A specific training program must be developed covering all aspects of the proposed
changes being made. Training sessions and progress meetings will be necessary to introduce the new
ideas. Basic methods must be presented so that personnel will understand them. Training sessions should
be limited to one hour each day and cover all aspects of the new plan. Workshops can be used to focus on
the current and day-to-day problems as they arise.

Use practical training methods to assist in the development of solutions as

problems arise. Training must be ongoing until the newly established standards are fully established, so that
they can be maintained.

Plant personnel need to be trained in Problem Solving Skills using a formal

methodology. People need this type of training so they can learn how to constructively analyze information.
Using a single common approach methodology, everyone involved will bring a common approach or
perspective to how they will access performance problems and develop recommendations. Anytime
problems arise and the indicators' trend in a negative direction, the company as a whole can pull together
quickly using the multilevel, cross-functional team that is equipped to analyze the opportunity.

Once trained in problem-solving methodology, groups may need the support of a

qualified facilitator. An individual within the organization (generally a Personnel Trainer) needs to be
assigned to receive specialized training to meet those needs. Having a facilitator present is beneficial while
the groups are small and new to the process. As time passes, they will naturally be able to work more and
more without the aid of the facilitator. The facilitator should be able to provide support in the development of
positive group dynamics by honing those skills they learn. Groups as they are established need to be and
should be made up of personnel from the various departments within the company.
 Asset Management

Realign the plant into major plant equipment configurations or asset centers. An
asset center can be a group of equipment designed to produce a single product, or component of a product.
Each of the newly established asset centers will constitute the newly devised individual cost centers. By
associating all costs, equipment, personnel and material associated to the operation of the group costs can
be assigned. Once established, each cost center must be tracked and monitored for the important trending
factors to provide management personnel with accurate and viable information as to where money is being
spent. Establish a unique but specific center identity classification for each asset center. In this manner total
operation and maintenance costs, with relevant work orders and their associated costs are charged to the
specific cost center. Equipment descriptions, personnel assigned and other specific identification systems
are then standardized to facilitate easy data retrieval. With a sound and effective asset management plan,
the computerized maintenance tracking system will function at its full potential.

Warehouse/Inventory Control

The re-organization of the warehouse function is one of the more critical function
changes. Most existing store rooms are improperly stocked, because the nature of maintenance personnel
is to hoard critical individual parts and supplies until it is necessary to overhaul the entire system. It is
essential that the parts on hand be adequate to meet the needs of all work in progress and emergencies, so
that each maintenance function be fully served: not too many, not too few. The warehouse must be audited
and inventoried in its entirety including the hoarded parts and supplies. Parts and supplies must be tagged
and be easily located within the store-room. Once tagged and placed into the store room, the part must be
entered into an automated control system by identification number, location and cost center(s) that use the
part. Parts and equipment must be cross-referenced by application to multiple cost centers. This will allow
maintenance personnel to locate any specific item and/or part each time they make a search.

Create an equipment history analysis, identify dormant or excess stock items.

Once identified, excesses are tagged for salvage or scrap keeping your inventory viable. The creation of
optimum warehouse inventory levels is essential, on the basis of real time usage that is justifiable.
Procedures for spare part receipt, issue, audit, salvage and scrap must be formulated. A written directive to
produce a clear understanding by all personnel is essential.

Warehouse and maintenance personnel must be trained in all aspects of data entry
relevant to their job duties. Access into or entry into the warehouse must be restricted to only warehouse-
men and be strictly enforced.

Corrective Maintenance (CM)

With assets and parts identified, corrective and preventive maintenance can be
carried out in a more meaningful fashion. Personnel can be assigned to meet the needs of the newly
created asset centers. Their costs directly associated to the individual asset center. Work orders must be
written directly to the asset number in question so that costs associated with the work order for parts,
materials and labor are effectively accumulated then used for accurate cost analysis, and to enhance
performance forecasting.
 Everyone associated with production and maintenance should know what is being
done, by whom, where, when and why. Develop written procedures for the work order system as whole,
detailed responsibilities are assigned to specific personnel for the completion and reporting of work. The
use of operators to do routine maintenance tasks such as lubrication, minor adjustment is essential.

Planning is the critical stage in the work order system. It is the Planner who sets
the expected labor, material and time line requirements. The planner must be charged and empowered to
make the determination of how much work can be accomplished in a given time period for each asset
center to facilitate both production requirements and maintenance needs, and how much production and
maintenance backlog there will be. Backlog must be effectively managed so that it does not grow to an
unmanageable size. The planner must be answerable to the production manager and the maintenance
manager to do his job effectively, and meet both maintenance and production requirements.

Preventive Maintenance (PM)

The PM program must also undergo a total re-evaluation to determine its adequacy
and effectiveness. Too much unscheduled downtime and frequent equipment breakdowns indicate that
PM's are not working as they should. The real objective of the PM Program is to reduce downtime and
breakdowns to a level that is acceptable and manageable by the specific departments. The effective PM
program must be set to work hand-in-glove with a corrective and a predictive maintenance program if it is to
be successful in the reduction of unnecessary equipment downtime.

It is essential that there be good coordination and cooperation between operations

and maintenance managers as a standard practice. Use written directives to establish who is in the lead
and who is in the lag position in various operating scenarios. It is critical to success to realize that
operations not always be allowed the lead. The leads should always relate to equipment reliability and be
the dictating factor in establishing lead and lag positions. At the same time, maintenance needs to realize
that without the cost center effectively producing products the outcome in all areas is adversely affected.

Predictive Maintenance (PdM)

The effective use of good forecasting tools are essential, if it is the desire of
managers, to prolong the useful operational life of the given equipment configuration. Through proper
application of the many and varied predictive maintenance tools available to maintenance personnel, failure
patterns can easily identify and used to effectively predict eventual failure with some degree of accuracy
over time. The more common predictive tools available to maintenance departments without great cost are:
vibration analysis, lubrication analysis, thermography, and ultrasonic.
 All machines give early warning signs predicting their impending failure. The
correct application and early uses of those predictive tools will greatly aid in the identification of impending
problems before they become catastrophic. With the use of early detection and effective alert mechanisms
by the maintenance department, failure pat-terns can be identified providing managers with information
necessary for planning. Effective use of failure trending, will over time, indicate an adverse effect in
performance for any equipment assigned to the trending analysis and its ultimate effect upon production.
When trends are ignored, failures do occur, the lesson to learn is how soon or when to make the necessary
repairs. To capture a pending fail-ure just prior to adverse action in performance, rather than just prior to the
equipment failure event is the key. Effective failure analysis data becomes a tool to judge the trade off,
down time versus loss of productivity due to failure. PdM must therefore become a routine part of any
regular Production and PM program if it is to be effective.

Purchasing

Purchasing also plays an important role in the modern integrated maintenance

organization. The use of an automated system to trigger purchase orders that are designed to facilitate
stocking levels as they are established is essential. Adequate planning and proper establishment of
workable stock levels, (controlled by supply lead-time and usage) can prevent stock-outages and
overstocking. This action will be very effective in controlling stock purchasing activities.

The trick here is to have on-hand only the items required for genuine emergencies.
By letting a supplier be the main stock point, your in-house stock levels will be only sufficient to meet the
needs of a bonafide emergency. One method is to find a supplier who will be willing to guarantee an
adequate supply of your stock items on his shelf to meet all the needs of your operation. This can be
accomplished by selective purchasing. Selective purchasing can be done by agreeing to purchase all your
supplies from a single supplier. To remain competitive, commit to purchase from the supplier on an annual
basis, but re-bid purchases on that basis and spot check competitors frequently. A written contract can be
very helpful, specifying the need to remain competitive.

The first ten activities were designed to assist managers in regaining control of
their maintenance function. As they are put into practice, they can be refined and tuned to meet the
individual plant's requirement.

Pro-Active Maintenance (PAM)

Pro-active maintenance is a term to identify the enhancement of both the

preventive and predictive maintenance technologies. It is absolutely necessary that managers identify and
document data gained from both the PM and PdM programs so that they can develop the PAM portion of
the equation. The PAM becomes the history that is viable to each cost center.
 To make this happen, establish and effectively use a documented history for each
cost center. Start charting each center's uptime versus downtime, determine the cause and effect factors as
they become apparent. Make changes in the operation and maintenance functions as they affect the overall
uptime. Equipment histories must be accurate for them to be useful and effective in the PAM program. The
effective PAM program will ultimately lead to a timely and accurate implementation plan of action. The PAM
will provide managers a vehicle to effectively create a reduction in total maintenance down time while
maximizing equipment production reliability and useful life.

Accountability

Accountability is required and must be built into the system. Individuals and groups
assigned need to be specifically challenged so that the drive is in the proper direction. Activities need to be
charted along with the development of detailed plans and how they have impact on the key measures. The
indicators are then used to highlight the success of the plan and serve to reinforce those actions taken.

Too often personnel perceive accountability in the negative. They are often called
to account for poor performance. It is critical that a reward's mechanism be built into the measurement
system. With positive results, visible recognition will have positive impact on the key measures. The use of
indicators to highlight the success of the plan will serve as a factor for reinforcement.

Overview Indicators:

These indicators are normally valuable for upper management, and are generally
broad based. To be more effective, each is broken down into sub-indicators for a true analysis. The sub-
indicators need to be shared with all employees. Some of the viable sub-indicators are:

Budget Compliance (Actual versus Forecast).

Plant-wide Overall Equipment Effectiveness (OEE).

Costs as a Percent of Sales or Operating Costs.

Maintenance Costs as a Percent of Replacement Asset Value.

Maintenance Dollars per Unit Produced.

Percent Absenteeism.

Safety, Environmental and Regulatory Performance / Compliance.

Training Hours or Dollars as a Percent of Overall Hours or Dollars Expended.

Employee Turnover
Organizational Structure Indicators:

Of lesser importance are the organizational structure indicators, however they do

reflect ratios of different positions or functions. They do show if the organization is moving more or less in
empowerment. Some of the indicators are:

Ratio of Salaried Employees to Hourly Employees.

Ratio of Company Employees to Contractors.

Ratio of Production Employees to Maintenance Employees.

Maintenance Employees per First Line Supervisor.

Maintenance Employees per Planner.

Maintenance First Line Supervisors per Planner.

Stores/Maintenance Parts Management Indicators.

The use of indicators to reflect the storeroom's ability to provide high availability of
parts as required at the optimal cost is essential. The following indicators can be used:

Inventory Accuracy and Frequency.

Percentage of Stockouts.

Inventory Turnovers,

Percentage of Inactive Inventory.

Materials versus Labor Ratio.

Percentage of Growth of Line Items.

Percentage of Growth in Number of Suppliers.

MRO Value as a Percentage of Plant Replacement Values.

Routine Maintenance Indicators.

The following indicators can be used to evaluate the consistency in performance of

maintenance activities. To adhere to good maintenance practices as reflected by these indicators, expect
positive results financially and in equipment performances. Examples are:

Work Input Level (By Craft, Priority and Type).

Backlog Level (By Craft, Priority and Type).

Standing Work Orders as Percentage of Total Hours.

 Man Hours per Work Order.

Daily Schedule Completion.

PM Completion.

PM Expense as a Percentage of Total Maintenance Expense.

Work Generated Per PM/PdM Task.

Percentage of Maintenance Rework.

Percentage of Overtime and Total Callouts.

Percentage of Emergency Work.

Equipment Performance Indicators

The Equipment Performance Indicators are the most valuable of all the indicators,
as they alone will reflect the "actual value of the plan" and employee activity successes or failures. These
measures specifically focus upon reliability, cost of critical equipment or the cost of manufacturing lines.

Overall Equipment Effectiveness (OEE)

Equipment Downtime

Equipment Capacity, Utilization, Running Speed or Performance Efficiency.

Mean Time Between Failure (MTBF) for Pumps, Motors, Compressors, etc.

List of Worst Performing Equipment.

Set-up or Change-over Times.

Start-up and Shut-Down Times.

Monthly Costs for Each Type of Equipment (Pumps, Motors, Compressors, etc.)

Monthly Costs for Each Asset Center.

Summary

The measurement of performance is critical to the organization's plan for success.

It has been often said: "What you measure, is what you get." In all reality the use of measurement is much
more complex, not being simply what is measured, what is more important is: How it is measured. To
achieve success, integrate these measures into the overall company vision and strategy. Create a process
to insure the indicators are acted upon in an intelligent and expeditious manner.

With the use of a cross-functional review team charged to review and evaluate the
maintenance and the manufacturing reliability indicators should include those in the organization most
affected by that action, or those who can have real impact upon the indicators. Teams will consist of a
company wide equipment operators, craft personnel, first line supervisors and engineers. Create and use a
dialog with a free exchange of ideas, real communication is most important to remove inhibitions. Then
move forward to achieve real successes.

Reliability Centered Maintenance (RCM).

RCM is the final stage of maintenance realignment program. RCM totally integrates
PM, PdM and PAM with accountability in each major manufacturing configuration. The total function of that
configuration and how well it is centered in reliability maintenance is the real measure of success. Each of
the assigned equipment components' within an asset center can be operated with a higher degree of
confidence, resulting in better production forecasting, greater employee satisfaction and higher profit
margins.

Once RCM has been accomplished, the result will be a Totally Integrated
Maintenance (TIM) approach to problem solving and providing for equipment reliability improvement. PM,
Pdm and PAM must be working together with each established facet in place and fully functional if RCM is
to become successful. When TIM is achieved the Maintenance Department will become a RCM
Department. Personnel equipped to meet the demands of the World Class Manufacturing Organization.

Long range benefits for the Totally Integrated Maintenance department can be far
reaching, included in the benefits are:

1. The overall reduction of equipment emergencies by as much as 75%.

2. Reduction in maintenance purchasing by as much as 25%.

3. Improvement of warehouse activities and warehouse accuracy to as much as 95%.

4. Increasing PM effectiveness by as much as 200%.

Industrial Maintenance Technology (IMT)

It is fast becoming an advanced science, where and whenever

implemented/integrated, the RCM Management Plan will work. The plan does require hard work and
dedication. It will be upsetting at first, ultimately it will aid in the establishment of or in the enhancement of a
World Class Organization in your plant.

About the author:

TPM online acknowledges Bruce C. Hiatt for this excellent work. Here is his profile in his own words:
Name: Bruce C. Hiatt
 LEAN MANUFACTURING

People involved in business today are convinced this is a different arena than it
was a decade ago. If you want to succeed at keeping participation in the market, it is mandatory to be ready
to follow the current trend. Lean Manufacturing is a set of strategies that brings your business to a
competitive level and higher profits.

You have heard about Lean Manufacturing and are aware of the way in which your
business should start leaning towards this proven concept.

Some companies have chosen to wait until their competitors phase in these
changes to see if they should too. The competition has reached such a fast pace that just a few months
later could be a little too late to make the decision to go Lean.

Going lean does not mean switching an operation 180 overnight. It can, and
actually should be, done at a rather low pace. All successful implementations of Lean Manufacturing have
taken years. This gradual implementation takes place through a process of Continuous Improvement (C.I.).
This is a strategy that the Japanese have mastered for some decades now.

There is a Japanese word for C.I.: Kaizen.

Most leading companies have been establishing C.I. or Kaizen managements as a

way to survive the daily growing competition. Some companies had to receive a very close call from
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The strategies are really very simple. They are focused on:

Lowering inventories

Avoiding wastes of resources

Improving the value stream

Reducing costs in general

Increasing the quality of the process and the product

Improving the safety and the morale of your personnel

Increasing the reliability of your equipment

And many other logical issues

 Whatever your industry or field, competition is likely to become fierce in the years
to come if it has not yet started to. If you can acknowledge that fact, you are probably thinking of becoming
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We have been doing this for many years and 100% of our customers have
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 W. EDWARDS DEMING,
HIS 14 RECOMMENDATIONS CHANGED
THE HISTORY OF JAPAN AND THE WORLD!
By Enrique Mora

W. Edwards Deming conducted a thriving worldwide consulting practice for more

than forty years. His clients included manufacturing companies, telephone companies, railways, carriers of
motor freight, consumer researchers, census methodologists, hospitals, legal firms, government agencies,
and research organizations in universities and in industry.

The impact of Dr. Deming's teachings on American manufacturing and service

organizations has been profound. He led a sweeping quality revolution that is improving the competitive
position of the United States.

President Reagan awarded the National Medal of Technology to Dr. Deming in

1987. He received in 1988 the Distinguished Career in Science award from the National Academy of
Sciences.

Dr. Deming received many other awards, including the Shewhart Medal from the
American Society for Quality Control in 1956 and the Samuel S. Wilks Award from the American Statistical
Association in 1983.

The Metropolitan section of the American Statistical Association established in

1980 the annual Deming Prize for improvement of quality and productivity. Dr. Deming was a member of the
International Statistical Institute. He was elected in 1983 to the National Academy of Engineering, and in
1986 to the Science and Technology Hall of Fame in Dayton. He was inducted into the Automotive Hall of
Fame in 1991.

Dr. Deming is perhaps best known for his work in Japan, where from 1950 and
onward he taught top management and engineers methods for management of quality. This teaching
dramatically altered the economy of Japan. In recognition of his contributions, the Union of Japanese
Science and Engineering (JUSE) instituted the annual Deming Prizes for achievements in quality and
dependability of product. The Emperor of Japan awarded to Dr. Deming in 1960 the Second Order Medal of
the Sacred Treasure.

Dr. Deming received his doctorate in mathematical physics from Yale University in
1928. A number of universities have awarded to him the degrees LL.D. and Sc.D. honoris causa: the
University of Wyoming, Rivier College, the University of Maryland, Ohio State University, Clarkson College
of Technology, Miami University, George Washington University, the
University of Colorado, Fordham University, the University of Alabama, Oregon State University, the
American University, the University of South Carolina, Yale University, Harvard University, Cleary College,
and Shenandoah University. Yale University awarded to him also the Wilbur
Lucius Cross Medal. Rivier College awarded to him the Madeleine of Jesus
Award.
 Dr. Deming is the author of several books and about 200 papers. His books, "Out
of the Crisis" (MIT/CAES, 1986) and "The New Economics" (MIT/CAES, 1994) have been translated into
several foreign languages. Hundreds, perhaps thousands of books, films, and videotapes profile his life, his
philosophy, and the successful application of his teachings worldwide. Dr. Deming's four-day seminars
reached 10,000 people per year for over ten years.

CONSIDER THE IMPLEMENTATION OF

DEMING'S
14 POINTS FOR MANAGEMENT

In his book: "Out of the Crisis", Dr. W. Edwards Deming shows these 14 steps
toward an improved management. It is not easy in the American Culture to establish such changes.
Perhaps that barrier is keeping the American Industry from achieving as impressive results as the ones
reached by the Japanese.

Create constancy of purpose for improvement of product and service with the aim to become competitive
and to stay in business, and to keep providing jobs.

Adopt the new philosophy. We are in a new economic age. Western management must awaken to the
challenge, must learn their responsibilities, and take on leadership for change.

Cease dependence on inspection to achieve quality. Eliminate the need for inspection on a mass basis by
building quality into the product in the first place.

End the practice of awarding business on the basis of price tag. Instead, minimize total cost. Move toward a
single supplier for any one item, on a long-term relationship of loyalty and trust.

Improve constantly and forever every process for planning, production and service. Improve quality and
productivity, and thus constantly decrease costs.

Institute training on the job. This should be a part of everybody's everyday's activities.

Adopt and institute leadership. The aim of supervision should be to help people and machines and gadgets
to do a better job. Supervision of management is in need of overhaul as well as supervision of production
workers.

Drive out fear so that everyone may work effectively for the company because they want it to succeed.

Break down barriers between staff areas or departments. People in research, design, sales, and production
must work as a team, to foresee problems of production and in use that may be encountered with the
product or service.
Eliminate slogans, exhortations and targets for the workforce asking for zero defects and new levels of
productivity. Such exhortations only create adversarial relationships, as the bulk of the causes of low quality
and low productivity belong to the system and thus lie beyond the power of the work force.

Eliminate numerical quotas for the workforce and numerical goals for management

a. Eliminate work standards (quotas) on the factory floor. Substitute leadership.

b. b. Eliminate the obsolete concept of "management by objective". Eliminate management by
numbers, numerical goals. Substitute leadership

Remove barriers that rob people of pride of workmanship--eliminate the annual rating or merit system.

a. Remove barriers that rob the hourly worker of his right to pride of workmanship. The responsibility
of supervisors must be changed from sheer numbers to quality.
b. Remove barriers that rob people in management and in engineering of their right to pride of
workmanship. This means, inter alia, abolishment of the annual merit rating and of management by
objectives.

Institute a vigorous program of education and self-improvement for everyone. Let them participate to
choose the areas of development.

Put everybody in the company to work to accomplish the transformation . The transformation is everybody's
job.
 DEFINITION...
MAINTENANCE...

The maintenance function has historically been thought of as a necessary cost of

doing business. However, new technologies and innovative practices have positioned the maintenance
function to be an integral part of the overall profitability of many businesses. Solid, modern maintenance
techniques and practical approaches have the potential for significantly increasing competitive advantages
in the global market.

Just as the finely meshed gears of machinery must work together for the machine
to perform its function, Production, Safety, Design Engineering, other team members, and Maintenance
must work together to achieve true excellence.

The challenge for today's maintenance managers and reliability professionals, and
all those involved in the maintenance profession, is to capture these opportunities. This requires
establishing standards for maintenance and reliability practices, creating an appropriate information system
to collect facts and build enthusiasm, and initiating enabling action plans.

Maintenance in History

Since the beginning of time, men have always felt the need for the maintenance of
their equipment, even his most rudimentary tools. Most of the failures experienced have been a result of
abuse, as it sometimes still happens. First, they would only do maintenance when it was no longer possible
to run it. That was called Breakdown or Reactive Maintenance.

It was until 1950 that some groups of Japanese engineers started a new concept in
maintenance that consisted on following the manufacturers recommendations about the care that should
be taken in the operation and maintenance of the machines and devices. That new trend was called
Preventive Maintenance. As a result, plant managers were encouraged to have their supervisors,
mechanics, electricians and other specialists, develop programs for lubricating and making key
observations to prevent damages of the equipment. Although it helped reduce down-time, it was an
expensive alternative. The reason: Many parts were replaced on a time basis, while they could've lasted
longer. Also many unnecessary man-hours were put into it.

The times and needs changed, in 1960 new concepts were established,
Productive Maintenance was the name for the new trend which determined a more professional
approach. The assignment of a higher responsibility to all the people related to maintenance consisted of a
series of considerations about the reliability and design of the equipment and the plant itself. The change
was so profound that the term Maintenance was changed to Plant Engineering and the tasks to be
performed, included a higher understanding of the reliability of each element of the machines and
installations in general.
 Just a decade later, the globalization of the marketplace created new, stronger
needs for excellence in all activities. The World-Class standards In terms of equipment maintenance were
understood, a dynamic system was created. TPM, is a continuous improvement concept that has proven to
be effective, first in Japan and now back in America (where the concept was first created). It is about the
involvement and participation of each and everyone of the members in the organization towards optimizing
the outcome of each piece of equipment.

This is a completely new philosophy, a different approach that will keep updated by
itself. It implies a continuous improvement in all aspects and is called TPM.

As we stated in the Definition, TPM stands for Total Productive Maintenance and
may also for Total Participation Maintenance.

The purpose is to transform the attitude of all the members of the industrial
community, all kinds and levels of workers, operators, supervisors, engineers, administrators are included in
this major responsibility. TPM implementation is a goal that we all share. It also generates benefits for all
of us. Through this effort, we all are responsible for the up-keeping of the equipment. It becomes more
productive, safer and easier to operate and even looks nicer. The participation of people who are not
familiar with the equipment and its operation, enriches the results because their observations are in many
cases more objective than those of the people who live with the equipment in a daily basis.

TPM PROCEDURE

Process description:

At a pace to be chosen according to the particular conditions, the implementation

process will go, at least, through 60% of the most important machines at the most critical areas or
departments. Also "spontaneous implementation" is expected in some areas. For those, the TPM
coordination will supply all the technical support required.

The general foremen and other key people of each shop department or production
area will reach a decision about what is the next machine and what the most feasible schedule. They will
also assign the people to the team for that particular project. Teams are normally comprised of four to eight
people. Machine operators have a very important participation in this process.

They will lead the team to solve the most important concerns that they have in the
day to day dealing with the machine. They know how the machine could be improved to become safer and
more comfortable to work with. They become customers and co-providers of the TPM effort. By
participating, they develop "ownership" on their machines.

At the beginning, teams will be comprised of one or two operators and one
supervisor from the production area and one mechanic, one electrician from the Maintenance Dept. and the
coordinator. As the program evolves, the production departments will be more involved all the time, to a
point when they will build the teams with three to six production people and only one coordinator from
maintenance. They will be supported eventually, but momentarily, by maintenance technicians that may be
required for each task. The training will be given to those small teams, one each time. Each team meets for
a total of five to six one hour sessions, some of them before starting the "hands on experience" of the TPM
implementation.

As a result of the training, the team develops an implementation plan that consists
of cleaning, reconditioning, lubricating and also making any modifications that may be convenient for the
equipment to be more accessible to the daily operator's routine and any maintenance service that may be
needed in the future. (See Autonomous Maintenance).

Such modifications may also be made to prevent the equipment from getting dirty
or damaged by external agents, such as rain, dust, spills and all kinds of contamination. When those
modifications imply any structural or engineering changes, experienced people from other departments or
even external resources, such as contractors, will be involved.

Autonomous Maintenance Enrique Mora

A very important aspect of TPM is the establishment of autonomous maintenance.

According to Kunio Shirose:

The purpose of autonomous maintenance is to teach operators how to maintain their equipment by
performing:

Daily checks

Lubrication

Replacement of parts

Repairs

Precision checks

Early detection of abnormal conditions

As most of the Lean Manufacturing techniques and tools, autonomous

maintenance is based on education and training. It is about raising awareness of the operators on the
knowledge and understanding the operation principles of their machines.

To that purpose we will help them develop three skills:

1.- Ability to determine and judge if operating conditions become abnormal

2.- Ability to preserve normal conditions

3.- Respond quickly to abnormalities by repairing the machine or having some technician take care of it

when he (she) does not have enough knowledge, skill or resources.

 THE 7 STEPS OF AUTONOMOUS
MAINTENANCE

1.- Initial cleaning Development of the skill to spot

2.- Eliminate sources of
contamination and inaccessible
areas
3.- Creation of a checklist for
cleaning and lubrication standards
* Ability to determine machine
abnormalities
* Ability to design and make
improvements
abnormalities and opportunities
and to make the improvements
and solve the abnormalities
Operators determine by
themselves what they have to do

More skilled operators and

Understanding operation principles
4.- General inspection maintenance techs. teach the
of machine and its systems
least experienced

5.- Autonomous Inspection

6.- Organization and Understanding of the relationship Data organization to describe

housekeeping between equipment conditions and optimal conditions and how to
product quality maintain them

7.- Full Implementation

Continuity!

Implementing Total Productive Maintenance is not a difficult task. However, it

requires some customized training in order to succeed. The results of implementing an effective program in
terms of increased plant efficiency and productivity are outstanding.

We have put together the knowledge and experience necessary to get YOUR
people trained in YOUR plant to get YOUR particular program UP and RUNNING in less than one month.
(In most cases).

Day # 1

We will begin with a managerial meeting. Since TPM implies a set of new values in
terms of authority and hierarchical organization, it is needed that top management supports the effort and
all the people be aware of that support. In this 4-6 hr. session we will make sure that everyone in the top
levels understands the essence of TPM. It is an interactive session where we all learn about the plant and
the benefits of TPM implementation.
Day # 1 Part 2

The group above will meet for a plant tour with the key "operative" people: included
here will be production and maintenance supervisors, if possible some people from manufacturing, a
minimum of three operators and three maintenance technicians, to take a tour in your plant and have YOUR
TPM Coordinator develop the foundations for the program based on very simple realistic guidelines. A new
way of walking through the plant will start as of that day. After the tour, the managerial group is done.

Day # 2.-

The operative group meets to learn about the basics of TPM, what it will do for
them and what they can do for it.

Day # 3

We meet again with the operative group for one day and train them in the TPM
philosophy basics. We also review the program and help them polish and refine it. The strategies for
implementation are then established. The machine that will be the focus of the pilot effort is selected. A
preliminary assessment is made to prepare the parts, operation and maintenance manuals, and a profile of
the team to begin the project. The initial inspection takes place and the hands on experience begin.

Days # 4 & 5

We continue the launching process. For one or two days, we get the pilot effort
started, coach YOUR coordinator throughout the training of the first team (4-6 people) and we participate
with them in the "Hands-On" experience.
EXAMINING THE PROCESSES OF RCM AND TPM
Author : Ross Kennedy
President, The Centre for TPM (Australasia)

The Background of Reliability Centred Maintenance (RCM)

RCM evolved during the 1950s in the aircraft industry as a result of a number of major
reliability studies concerning complex equipment. In particular, the 1960 FAA / Airline Industry Reliability
Program Study was initiated to respond to rapidly increasing maintenance costs, poor availability, and
concern over the effectiveness of traditional time-based preventive maintenance. This, like several other
initial studies, centred around challenging the traditional approach to scheduled maintenance programs
which were based on the concept that every item on a piece of complex equipment has a right age at
which complete overhaul is necessary to ensure safety and operating reliability. Through these reliability
programs it was discovered that many types of failures could not be prevented or effectively reduced by
such right age overhauls no matter how intensively they were performed.

Two notable and surprising findings from the 1960 FAA / Airline Industry Reliability Program were that:
Scheduled overhauls had little effect on the overall reliability of a complex item unless the item had
a dominant failure mode; and that
There were many items found for which there was no effective form of scheduled maintenance.

A New Perspective on Failure

 As the results of these various aircraft reliability studies unfolded, the traditional views of
equipment failure as depicted by the First Generation (pre World War II), and the Second Generation (post
World War II) curves were challenged. Finally, a new series of Third Generation failure curves were
developed relating to specific types of equipment on aircraft (see Figure 2). Various studies have since
been carried out to relate these curves to other industries.

It became evident from the Third Generation failure patterns that views of equipment failure
needed to change, as did what should be done to prevent failure. Imposed age limits and Time-Based
Maintenance schedules often do little or nothing to improve the reliability of complex equipment. As shown
in Figure 3, traditional maintenance can actually increase failure rates by introducing infant mortality into
otherwise stable systems.
To address these issues, maintenance was faced with four challenges:
To deal effectively with each type of failure process with appropriate maintenance tactics;
To improve maintenance productivity by moving towards a more pro-active and planned approach;
To extend run length between scheduled shutdowns; and
To ensure the active support and cooperation of people from the maintenance, material, operations
and technical functions.

Reliability Centred Maintenance provides a maintenance oriented framework to

meet these challenges. RCM can be defined as: a structured, logical process for developing or optimising
the maintenance requirements of a physical resource in its operating context to realise its inherent
reliability" where inherent reliability is the level of reliability which can be achieved with an effective
maintenance program. This level of reliability is a function of the equipments design and cannot be
improved without redesign.

RCM is basically a methodology to balance the resources being used with the
required inherent reliability based on the following precepts:

A failure is an unsatisfactory condition and maintenance attempts to prevent such conditions from
arising;
The consequences of failure determine the priority of the maintenance effort;
Equipment redundancy should be eliminated, where appropriate;
Condition-based or predictive maintenance tactics are favoured over traditional time-based
methods; and
Run-to-failure is acceptable, where warranted.

RCM Seven Step Implementation Process

 RCM has seven logical review steps as shown above which are structured in an
iterative process usually based on risk analysis and which depend on a clear understanding of the business
objectives and requirements.

Two key tools are used in RCM: the Decision or Logic Diagram, which is called
MSG-3 (Maintenance Steering Group - model 3) in the aircraft industry where it evolved; and FMECA
(Failure Mode, Effect and Criticality Analysis).

The Decision Diagram is used to select maintenance tactics that are technically
feasible and worth doing. Figure 4 shows a simple example of a Decision Diagram; however, in practice, a
more comprehensive logic analysis is performed using more sophisticated diagrams.
 Reliability Centred Maintenance has been renamed a number of times to distance
it from its hi-tech origins and occasionally indicate a fresh approach - these names include RAM, RMA,
R&M, MTA, MSG-3, RCM I and RCM II.

Fortunately, although the names have changed, the underlying principles of RCM
have not! RCM was developed as a strategic methodology for developing a cost effective maintenance plan
by identifying:
What you want out of your equipment;
What your equipment can do;
The way in which it may fail to meet your requirements; and
What you can do to ensure your equipment meets your expectations in a safe and cost-effective
manner.

This is achieved using a progressive logical approach based on identifying all

significant maintainable items:
a. Function
b. Functional Failure
c. Failure Effects
d. Failure Cause

Then applying a logic model to each item so as to identify tasks and maintenance
inspection intervals. It should be noted however; this approach is severely hampered if the issues of Basic
Equipment Condition, Operating Standards and Accelerated Deterioration are not addressed first.

The Background to TPM

Unlike RCM that emerged from the American aircraft industry, TPM had its genesis
in the Japanese car industry in the 1970s. It evolved at Nippon Denso, a major supplier of the Toyota Car
Company, as a necessary element of the newly developed Toyota Production System which was originally
thought to only incorporate Total Quality Control (TQC), Just in Time (JIT), and Total Employee Involvement
(TEI). It was not until 1988, with the publication in English of the first of two authoritative texts on the subject
by Seiichi Nakajima, that the western world recognized and started to understand the importance of TPM.

Suddenly it became obvious that TPM was a critical missing link in successfully
achieving not only world class equipment performance to support TQC (variation reduction) and JIT (lead
time reduction), but was a powerful new means to improving overall company performance. Hence it has
only been since the early 90s that TPM has started to rapidly spread throughout the western world,
significantly improving the performance of manufacturing, processing, and mining companies.

TPM is now having a major impact on bottom-line results by revitalizing and

enhancing the quality management approach to substantially improve capacity while significantly reducing
not only maintenance costs but also overall operational costs. Its successful implementation has also
resulted in the creation of much safer and more environmentally sound workplaces.
The Evolution of TPM

Traditionally high buffer stocks were allowed to develop between major pieces of
the plant & equipment to ensure that if there were a problem with one piece of the plant or equipment then it
would not affect production from the rest of the plant. Hence the role of maintenance was to cost effectively
ensure major pieces of plant & equipment were available for an agreed period of scheduled time, for
example 90%.

Because of the accepted practice of retaining high buffer stocks, most items of
equipment could be considered independent. If the equipment in a process was maintained such that it
achieved 90% availability, the availability of the process was 90%. If the equipment started to cause quality
problems, these would probably be noticed in final quality inspection and the cause traced back to the
offending piece of equipment and corrected by maintenance.

At Nippon Denso in 1970 with the introduction of the Toyota Production System, the
buffer stocks were substantially reduced in their quest for shorter lead times and improved quality.
Statistical Process Control (SPC) supported by "Quality at Source" was introduced to ensure quality right
first time so to provide maximum customer value through the highest quality at the lowest cost supported by
quick responsiveness and superior customer service. Hence in this quest for maximum customer value,
buffer stocks were reduced to both reduce lead times and force the identification of cost consuming
problems. This resulted in individual equipment problems affecting the whole process.

If one piece of equipment stopped then shortly afterwards the whole process
stopped. This made the equipment interdependent. Under these circumstances, the availability of the
process became the product of the individual availabilities of each piece of equipment. Thus, a process
involving four pieces of equipment maintained at 90% no longer had an overall process availability of 90%,
but an availability of 90% X 90% X 90% X 90%, or 66%!

Furthermore, as the quality approach changed to "Prevention at Source" by

controlling process variables, equipment performance problems were identified much earlier. Conformance
and reliability became much more important.

As buffer stocks reduced substantial pressure was placed on the maintenance

department to improve process performance. From a maintenance perspective, the maintenance
department's performance had not deteriorated, yet demand for the substantial improvement in equipment
availability was overwhelming.

This caused friction between the production and maintenance departments.

Production departments demanded former levels of process availability and quicker response times from
maintenance, who were often unable to comply due to traditional organization structures which keep
maintenance as a separate function. After much conflict between maintenance and production, engineering
were called in to find a solution. They soon realized that mathematically for the four pieces of equipment to
achieve their original goal of 90% availability, their individual availabilities needed to increase from 90% to
97.5%.

The traditional view of maintenance was to balance maintenance cost with an

acceptable level of availability and reliability often influenced by the level of buffer stocks, which hid the
immediate impact of equipment problems. In traditional companies, maintenance is seen as an expense
that can easily be reduced in relation to the overall business, particularly in the short term. Conversely,
maintenance managers have always argued that to increase the level of availability and reliability of the
equipment, more expenditure needs to be committed to the maintenance budget. With the on set of
substantial availability problems caused by the new way of running the plant, management soon realized
that just giving more resources to the maintenance department was not going to produce a cost effective
solution.
This conflict between maintenance cost and availability is similar to the old quality mind-set before the advent of
Total Quality Control (TQC): that higher quality required more resources, and hence cost, for final inspection and
rework. TQC emphasised "prevention at source" of the problem rather than by inspection at the end of the
process. Instead of enlarging the inspection department, all employees were trained and motivated to be
responsible for identifying problems at the earliest possible point in the process so as to minimise rectification
costs. This did not mean disbanding the quality control department but having it now concentrate on more
specialist quality activities such as variation reduction through process improvement. This new approach to quality
demonstrated that getting quality right first time does not cost money but actually reduces the total cost of
operating the business.
This new Quality approach of "prevention at source" was translated to the maintenance environment through the
concept of TPM resulting in not only superior availability, reliability and maintainability of equipment but also
significant improvements in capacity with a substantial reduction in both maintenance costs and total operational
costs. TPM is based on "prevention at source" and is focused on identifying and eliminating the source of
equipment deterioration rather than the more traditional approach of either letting equipment fail before repairing
it, or applying preventive / predictive strategies to identify and repair equipment after the deterioration has taken
hold and caused the need for expensive repairs.
TPM has developed over the years since its first introduction in 1970. Originally there were 5 Activities of TPM
that is now referred to as 1st Generation TPM (Total Productive Maintenance). It focused on improving equipment
performance or effectiveness only. Late in the 80's it was realised that even if the shopfloor were committed fully
to TPM and the elimination or minimisation of the "six big losses" there were still opportunities being lost because
of poor production scheduling practices resulting in line imbalances or schedule interruptions. Hence the
development of 2nd Generation TPM (Total Process Management) which focused on the whole production
process.
Finally, in more recent times it has been recognised that the whole company must be involved if the full potential
of the capacity gains and cost reductions are to be realised. Hence 3rd Generation TPM (Total Productive
Manufacturing / Mining) has evolved which now encompasses the 8 Pillars of TPM with the focus on the 16 Major
Losses incorporating the 4Ms Man, Machine, Methods, Materials. At the CTPM we have expanded the
Japanese 8 Pillars to 10 Pillars of Australasian 3rd Generation TPM to better suit our needs in Australia and new
Zealand based on our extensive research of the past two and a half years.
1. Safety & Environmental Management
2. Focused Equipment & Process Improvement
3. Work Area Management
4. Operator Equipment Management
5. Maintenance Excellence for TPM
6. Education & Training
7. Human Resource Management
8. Administration & Support Systems Improvement
9. New Equipment Management
 10. Process Quality Management

An important outcome of this new approach to equipment management which is now supported by many success
stories throughout the world in a variety of operational industries, has been that senior management have realised
that TPM is both strategically important for a world competitive business, and that TPM cannot be implemented by
the maintenance department alone. TPM is a company wide improvement initiative involving all employees.
Although each enterprise may approach TPM in its own unique way, most approaches recognise the importance
of measuring and improving overall equipment effectiveness along with the need to reduce both operational and
maintenance costs in an environment that promotes continuous improvement.

Understanding the Importance of Overall Equipment Effectiveness

Many companies who recognise the important roll equipment and process performance have on bottom-line
results are turning to the measure which drives TPM called Overall Equipment Effectiveness (OEE) which
incorporates not only Availability but also Performance Rate and Quality Rate. In other words, OEE addresses all
losses caused by the equipment: not being available when needed due to breakdowns or set-up and adjustment
losses; not running at the optimum rate due to reduced speed or idling and minor stoppage losses; and not
producing first pass A1 quality output due to defects and rework or start-up losses. A key objective of TPM is to
cost effectively maximise Overall Equipment Effectiveness through the elimination or minimisation of all losses. A
simple model outlining these losses is shown in Figure 5.

When many organisations first measure Overall Equipment Effectiveness it is not uncommon to find they are only
achieving around 40% - 60% (batch) or 50% - 75% (continuous process) whereas the international best practice
figure is recognised to be +85% (batch) and +95% (continuous process) for Overall Equipment Effectiveness. In
effect, this means there exists in most companies the opportunity to increase capacity / productivity by 25% -
100%.

Understanding the Cost Impact of Failure

TPM significantly reduces operational and maintenance costs by focusing on the Root Cause of Failure through
the creation of a sense of ownership by the plant & equipment operators, maintainers and support staff to
encourage "prevention at source". To help understand the thinking behind TPM we need to investigate what
causes failure.
Most of us have heard of the concept of the Root Cause of Failure and the tool most commonly used to assist in
the search for the root cause the 5-Whys. The 5-Whys is a simple technique of asking why 5 times recognising
that statistically it has been shown that after 5 whys you are most likely to be at the root cause. In the work place
we rarely get to the root cause because we are too busy reacting to the symptoms of our problems. However,
unless we get to the root cause we will always have problems reappearing.
What is the root cause of failure? Often, before failure we can have poor performance, prior to poor performance
we may get moans and groans coming from our equipment, and before the moans and groans we will have
accelerated deterioration (see Figure 6).
What do we mean by Accelerated Deterioration? This is where a piece of equipment or part of a piece of
equipment wears out quicker than is expected. That is, its life is shortened because its natural deterioration is
accelerated.
Let us look at the failure mechanisms of the parts that make up our plant & equipment. Most pieces of equipment
in our plants can be broken up into 3 broad categories:

From above we can see the different failure mechanisms for the three different categories of items. It is worth
noting how TPM will actually reduce the life of your wear items due to the increase in throughput as your OEE
increases some 50% or more.
Our main interest however, is with the Working Items. These by far make up the majority of items that need
maintenance attention and contribute most to our overall maintenance spend. So let us understand the impact of
the laws of physics on our working parts.
If, for example, I were to rub my hands together for the rest of the day what is going to happen? I will get very
sore hands as they get several layers of skin rubbed off. To stop this from happening I would need to apply some
form of lubrication to act as an interface between my hands.
Hence, proper lubrication provides an interface between moving surfaces, and a key role of lubrication is to be a
sacrificial wear element. That is, the lubrication wears out as the moving surfaces interface with it. This is why it is
recommended that we replace the oil in our cars at say every 10,000 km. This is not because the oil is dirty, even
though it may look dirty it is continuously filtered and clean. The reason for replacement is that the oil has worn
out.
Accelerated deterioration occurs when:
lubrication is not present;
lubrication is incorrect for the application;
lubrication between surfaces is forced out due to overload;
lubrication wears out; or
lubrication becomes contaminated.

Who has ever seen an operator blow down his equipment with compressed air, or hose it down with water?
What is this process doing to the equipment? More than likely the operator is forcing contamination into the
equipment without even realising it or caring about it. This contamination is a primary source of accelerated
deterioration.
Many studies have been conducted to determine the impact of accelerated deterioration. Let us consider the
situation of the working parts of your equipment. If you were to plot say the 30-year history of the actual life of a
part that normally fails after 12-months would you get a straight line? In most studies the result is a normal
distribution where the part fails for the majority of the time at 12-months however on other occasions it may fail
early or later often with a range of some 6-months either side of the 12-month majority. If we were to introduce a
periodic or preventive maintenance plan for this part what would be our strategy. Obviously if we were to replace
the part after 12-months we would still have a significant number of failures. If we were very conservative we
could replace the part every 6-months. This would significantly reduce the failures however we would have very
high maintenance cost. So what is the answer?
This is where TPM becomes so important. TPM is based on the precepts of:
understand what causes the variation;
reduce or minimise the variation; then
look to improvement.

Under this approach the first task is to identify what is causing the variation. Studies conducted by the Japanese
Institute of Plant Maintenance and companies like DuPont and Tennessee Eastman Chemical Company have
shown that 3 major physical conditions make up some 80% of the variation.
These physical conditions are:
Looseness
Contamination
Lubrication

The elimination of these three conditions is known as establishing Basic Equipment Conditions. Once basic
equipment conditions have been established we find our normal distribution curve squash up some 80% and
moves to the right thus significantly increasing the life of our parts.
In his book, TPM in Process Industries, Suzuki raises the important issue when he states:

Implementing a periodic / preventive maintenance system before establishing basic conditions -

when equipment is still dirty, nuts and bolts are loose or missing, and lubrication devices are not
working properly - frequently leads to failures before the next major service is due.

To prevent these would require making the service interval unreasonably short, and the whole point of the
preventive maintenance program would be lost.
Rushing into predictive maintenance is equally risky. Many companies purchase diagnostic equipment and
software that monitors conditions, while neglecting basic maintenance activities.
It is impossible, however, to predict optimal service intervals in an environment where accelerated deterioration
and operating errors are unchecked.

Impact of Multi-Skilling on Basic Equipment Conditions

Although multi-skilling has often been successful in creating a more flexible workforce, experience now highlights
that while employees move from equipment to equipment, or area to area, they loose the motivation to seek out
basic equipment problems or defects which if left unchecked, will cause failure in the future (see Figure 6). The
operators often demonstrate a lack of care for the equipment because they know they will soon be moved to
another area or piece of equipment.
An area-based team approach which promotes the development of both base-skills and mastery-skills provides a
means to achieve both flexibility and ownership within the workplace. Correctly formed area-based teams create
an environment where employees can come to recognise the benefits for themselves to learn both the proper way
to operate their equipment as well as how best to care for their equipment by maintaining basic equipment
conditions.
TPM implementation experience has shown that there is a definite relationship between failures and basic
equipment conditions no looseness, no contamination, and correct lubrication. Our experience with multi-
skilling is that it takes away ownership and the motivation for operators to ensure basic equipment conditions.
Without the framework of effective area-based teams where team members can focus on multi-skilled base skills
to ensure team flexibility as well as developing their mastery skills to become the expert at caring for, operating
and detecting any defects that might develop in their equipment, operational and maintenance costs will always
be high.

Equipment Defects - The Hidden Cause of Failure

The key driving objective of TPM is to eliminate or minimise, not just reduce the six big losses. To achieve this,
TPM is an ongoing journey to excellence that challenges our mind-sets. One such important challenge is the
traditional mind-set that focuses on either actual or potential failures or breakdown and largely ignores equipment
defects that can be the hidden cause of failure (see Figure 7).

Equipment defects or imperfections with our equipment are subtle and not always obvious. They "flow" into our
plant & equipment due to various reasons: poor initial design or changes to the initial design requirements of our
plant & equipment due to output requirement changes; the way we operate our plant & equipment and the
environment we operate our plant & equipment in; imperfections in the maintenance materials we use and the
way we carry out our maintenance activities; and last but not least, as a consequence of any failures which occur
to our plant & equipment. They are often difficult to identify and correct because they are traditionally accepted as
the norm. Equipment defects play a major part in causing "losses" in equipment performance.
TPM implementation experience has shown that there is a definite relationship between failures and equipment
defects in that most failures can be traced back to equipment defects. In a TPM environment, the aim is to focus
on equipment defects so as to eliminate the occurrence of failures and early deterioration. This focus on
equipment defects has a large bearing on the way everyone in the company needs to become involved with TPM.
All employees need to ask the question: "are my actions focused on avoiding defects or merely addressing the
issues associated with defect removal". Being able to identify and correct equipment defects and then find their
source so they can be avoided in the future is a major ingredient in the process of implementing TPM.
Using Operator Equipment Management Pillar to Induce Change

Operator Equipment Management is about "caring for equipment at the source" so as to ensure the "basic
equipment conditions" are established and maintained to allow the successful implementation of planned
preventive and predictive maintenance to be successfully administered by the maintenance department.
Ultimately operators become responsible for the overall equipment effectiveness of their plant & equipment
through a "root cause" approach to defect avoidance.
It is not a simple exercise to create an area-based team environment that promotes ownership with base skill
flexibility and mastery skill specialty. Changes take time. A systematic approach, supported by a robust process,
needs to be adopted to allow the changes to be implemented at a rate commensurate with the organisation's
evolving culture.
Although implementation of Operator Equipment Management needs to be specific to the situation and plant
environment, the final goal of achieving mature equipment-competent area-based teams is for the area-based
teams to be responsible for the Overall Equipment Effectiveness (OEE) of their plant & equipment. This does not
mean operators carry out all maintenance activities, but that they are responsible for knowing when they need to
carry out the simple defect avoidance and maintenance service work themselves and when they should call in
maintenance experts to repair problems which they have clearly identified.

The Relationship between RCM and TPM

The original precepts for RCM (refer page 3) were developed for the aircraft industry where basic equipment
conditions (no looseness, contamination or lubrication problems) are mandatory, and where operators (pilots) skill
level, behaviour and training is of a high standard. Unfortunately in most manufacturing and mining operations
these basic equipment conditions and operator skill and behaviour levels do not exist thus undermining the basis
of any RCM application.
For this reason, the application of TPM as a company wide improvement strategy is highly advisable to ensure:
basic equipment conditions are established; and
equipment-competent operators are developed

Before attempting a full blown RCM analysis or a partial RCM approach following the basic RCM process. Failure
to do this in an environment where basic equipment conditions and operator error are causing significant variation
in the life of your equipment parts will block your ability to cost effectively optimise your maintenance tactics and
spares holding strategies.
The other key difference between RCM and TPM is that RCM is promoted as a maintenance improvement
strategy whereas TPM recognises that the maintenance function alone cannot improve reliability. Factors such as
operator lack of care and poor operational practices, poor basic equipment conditions, and adverse equipment
loading due to changes in processing requirements (introduction of different products, raw materials, process
variables etc) all impact on equipment reliability. Unless all employees become actively involved in recognising
the need to eliminate or reduce all losses and to focus on defect avoidance or early defect identification and
elimination failures will never be cost effectively eliminated in a manufacturing or mining environment.

Conclusion

It should be acknowledged that a TPM implementation is not a short-term fix. It is a continuous journey based on
changing the work-area then the equipment so as to achieve a clean, neat, safe workplace through a PULL as
opposed to a PUSH culture change process. Significant improvement should be evident within six months,
however full implementation can take many years to allow for the full benefits of the new culture created by TPM
to be sustaining. This time frame obviously depends upon where a company is in relation to its quality and
maintenance activities and the resources being allocated to introduce this new mind-set of equipment
management.

The Centre for TPM (Australasia)

In January of 1996, the Centre for TPM (Australasia) - a membership based organisation was created with the
mission to "promote and advance the knowledge and practice of TPM and conduct, promote and advance the
public education of TPM throughout Australasia." The Centre which has it's head office in Wollongong with
regional offices in Melbourne, Brisbane and Adelaide, provides networking, information exchange, training and
consulting support and has a strong Research, Development & Innovation Division in co-operation with the
Business School at the University of Wollongong.
For further information please contact the Centre for TPM (Australasia) on (02) 4226 6184.
About the author: Ross Kennedy - President, The Centre for TPM (Australasia)

A fitter and turner by trade, Ross has a Mechanical Engineering degree from the University of New South Wales
and a Management degree from the University of Wollongong. He has more than 25 years of manufacturing and
operational experience covering maintenance, production, operations and executive roles followed by 5 years of
international consulting experience with the Manufacturing and Operations Group of Coopers & Lybrand's
International Management Consulting Practice. In August 1994 Ross established his own consulting practice
specialising in TPM. In January 1996, along with several colleagues, he founded the Centre for TPM
(Australasia). Ross has been actively involved with TPM since 1990 and has delivered publicly over 100 papers
and workshops on the subject both within Australia and overseas. He, along with his colleagues from the CTPM,
is presently assisting a number of companies both in Australia and New Zealand to embark on TPM.

Copyright 2002, The Plant Maintenance Resource Center . All Rights Reserved.
Revised: Wednesday, 18-Sep-2002 03:11:15 CDT
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