Optimizing TPM from the

Optimizing TPM from the

Shop Floor to the Boardroom
Shop Floor to the Boardroom
-
-
TPM Trends
TPM Trends
-
-
Kinjiro akano
Kinjiro akano
Executive Vice President Executive Vice President
JIPM Solutions Co., Ltd. JIPM Solutions Co., Ltd.
Nov. 29, 2007
Chicago
JIPMS
JIPMS JIPMS
Lean Manufacturing
and TPM
What is Lean Manufacturing ?
1980s Severe Competition with Japanese automobile
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
Background of Lean
M
Plant

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.
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
Mass Production Lean Production
Overvlew Overvlew Overvlew Overvlew
Minimize production costs by
mass production
Improve efficiency and reduce costs
by elimination of waste
ProducLVarleLy ProducLVarleLy ProducLVarleLy ProducLVarleLy
Less variety More variety
ProducLlooVolume ProducLlooVolume ProducLlooVolume ProducLlooVolume
Determine production volume
according to production capacity
Produce the quantity customer
ordered
ProducLlooLloe ProducLlooLloe ProducLlooLloe ProducLlooLloe
Flow in Large numbers Flow in needed numbers
ProducL0efecLcHaodllog ProducL0efecLcHaodllog ProducL0efecLcHaodllog ProducL0efecLcHaodllog
Hard to stop the line
Stop the line and identify the root
causes of the issues
PelaLloowlLH6uppllerc PelaLloowlLH6uppllerc PelaLloowlLH6uppllerc PelaLloowlLH6uppllerc
Short-term and remotely related Long-term and closely related
worker worker worker worker cPoclLloo cPoclLloo cPoclLloo cPoclLloo Variable cost type Fixed cost type
work work work work
Simple work most people can do Works needed skill training
LducaLlooofworker LducaLlooofworker LducaLlooofworker LducaLlooofworker
Few skill training
Planned & systematic training
Differences Between Mass Production and Lean Production
K. Nakano, JIPM Solutions
Mass Production Versus Lean Production
Basic Principles and common keywords in TPS and TPM
B
a
s
i
c

P
r
i
n
c
i
p
l
e
s
Production technology
contribution
Thoroughly
Eliminate Wastes
Prevention Practice
Hands-on, shop-floor
approach
Participative
Management and
Respect for Labor

Profitable IE
Profitable TPM
Waste of Overproduction
Waste of Waiting
Waste in Conveyance
Waste in Processing
Waste of Inventory
Waste of Motion
Waste of Defects
Breakdown Loss
Changeover & Adjustment Loss
Cutting-tool Replacement Loss
Startup Loss
Minor stops & Idling Loss
Speed Loss
Quality Defect & Rework Loss
Poka-yoke
Prevention rather than cure
Preventive Maintenance
Corrective Maintenance
Maintenance Prevention
Kanban
Visual Mgt.Andon
Multi-Process Handling
Participation in production system
establishment.
Rewarding job
Pursuit of optimal conditions
Visual controlF-Tag
TPM Activity Board
Autonomous Maintenance
Zero Losses
Involve everyone
Change equipment, people
K. Nakano, JIPM Solutions
TPS & TPM
Essence
Essence
of TPM
of TPM
Developing People Leads to Good Manufacturing Developing People Leads to Good Manufacturing
History of TPM
1964PreveoLlveValoLeoaocePecearcHloJVA
1961ValoLeoaoceVaoagemeoLCroup
1969JlPLJapaolocLlLuLeofPlaoLLogloeerlog)
19711PV
1972JlPVJapao locLlLuLeofPlaoLValoLeoaoce)
2OO6JlPV-6 1PVCooculLlogFlrmOuLcldeJapao)
TPM & JIPM / JIPM-S
T
P
M
L
e
v
e
l 3
D
evelop the ability to satisfy
the requirem
ents for perpetual
corporate prosperity
Ground-Breaking TPM
Creative TPM
T
P
M
L
e
v
e
l 2
Establish the ability to
respond effectively in the new

arena of business com
petition
D
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T
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L
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B
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a stro
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en
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2-1 TPM of the 21st Century (Level 1,2,3)
A Conceptual View of the TPM Levels
Total
Overseas
JIPMS
JIPMS JIPMS
Trend of TPM Awards (1)
Trend of TPM Awards (1)
0
20
40
60
80
100
120
140
160
180
200
1
9
7
1
1
9
7
2
1
9
7
3
1
9
7
4
1
9
7
5
1
9
7
6
1
9
7
7
1
9
7
8
1
9
7
9
1
9
8
0
1
9
8
1
1
9
8
2
1
9
8
3
1
9
8
4
1
9
8
5
1
9
8
6
1
9
8
7
1
9
8
8
1
9
8
9
1
9
9
0
1
9
9
1
1
9
9
2
1
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9
3
1
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4
1
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5
1
9
9
6
1
9
9
7
1
9
9
8
1
9
9
9
2
0
0
0
2
0
0
1
2
0
0
2
2
0
0
3
2
0
0
4
2
0
0
5
2
0
0
6
0
20
40
60
80
100
120
WC
Advanced
Special
Special
Cons' TPM 1st
Cons' TPM 2nd
1st category
2nd category
JIPM,2002

2 22 2 1 11 1
6 66 6 6 66 6
14 14 14 14
9 99 9
22 22 22 22
41 41 41 41
64 64 64 64
79 79 79 79
8J 8J 8J 8J 8J 8J 8J 8J
96 96 96 96
114 114 114 114
91 91 91 91
1O6 1O6 1O6 1O6
J JJ J 2 22 2
6 66 6
J JJ J 2 22 2
7 77 7
6 66 6
2 22 2 2 22 2 1 11 1
1O 1O 1O 1O
8 88 8
12 12 12 12
8 88 8
14 14 14 14
16 16 16 16 16 16 16 16
22 22 22 22
61 61 61 61
29 29 29 29
J9 J9 J9 J9 42 42 42 42
71 71 71 71
79 79 79 79
96 96 96 96
121 121 121 121
1OO 1OO 1OO 1OO
1JO 1JO 1JO 1JO
11O 11O 11O 11O
118 118 118 118
1O6 1O6 1O6 1O6
94 94 94 94
8O 8O 8O 8O
81 81 81 81
64 64 64 64
46 46 46 46
6O 6O 6O 6O
J JJ J
2 22 2
6 66 6
J JJ J
2 22 2
7 77 7
6 66 6
2 22 2 2 22 2
1 11 1
1O 1O 1O 1O
8 88 8
12 12 12 12
8 88 8
14 14 14 14
16 16 16 16 16 16 16 16
22 22 22 22
61 61 61 61
29 29 29 29
41 41 41 41
42 42 42 42
72 72 72 72
84 84 84 84
1O1 1O1 1O1 1O1
1J6 1J6 1J6 1J6
1O9 1O9 1O9 1O9
162 162 162 162
161 161 161 161
172 172 172 172
186 186 186 186
177 177 177 177
16J 16J 16J 16J
177 177 177 177
168 168 168 168
1J7 1J7 1J7 1J7
166 166 166 166
0
20
40
60
80
100
120
140
160
180
200
1
9
7
1
1
9
7
2
1
9
7
3
1
9
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4
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5
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2
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2
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3
2
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0
4
2
0
0
5
2
0
0
6
2
0
0
7
Domestic/
Overseas/
Total
Trend of TPM Awards (2)
JIPMS
JIPMS JIPMS
TPM Award
TPM Award
-
-
Winning factories in India
Winning factories in India
JIPMS,2007
95 95 96 96 97 97 98 98 99 99 00 00 01 01 02 02 03 03 04 04 05 05 06 06
1 1
1 1 3 3 1 1 7 7 14 14 2 2
1 1 1 1 1 1 3 3 6 6 5 5 17 17 19 19 16 16 12 12
Total factories 110
World World
Class Class
Advanced Advanced
Special Special
Special Special
Consistency Consistency
TPM TPM
Excellence Excellence
2.
Worldwide TPM
ME
4
EU
272 U6A
69
MA
4
6A
58
Af
16
Oc
5
Asia
272
Asia 272
ME 4
EU 272
USA 69
MA 4
SA 58
Af 16
Os 5
Asia 272
ME 4
EU 272
USA 69
MA 4
SA 58
Af 16
Os 5
JP
1585
2006
Numberof1PVAwardeecbyLocaLloo
Asia 11
EU 15 15 15 15
SA 2 22 2
Asia 11
EU 15 15 15 15
SA 2 22 2
1996
X25
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)
Automobile
Components
Semi-
conductors
Chemicals
Plastic
Products
0 10 20 30 40 50 60 70 80 90 100 110 120 130 140
Average Cost-Benefit of TPM by Industry
Units 100M
Amount saved through TPM
Amount invested in TPM
Cost Benefit of TPM
Human behavior factors A H Maslows 5-
stage hierarchy of human needs
Work is a type of psychological therapy
for satisfying our desire for self-
actualization.
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.
The Theoretical Background to Team Activities (QC
Circles, ZD Groups, Jishu Kanri, etc.)
Behavioral Behavioral Science Science The Theoretical Background of TPM The Theoretical Background of TPM
SELF
SELF
-
-
ACTUALIZING MANAGEMENT
ACTUALIZING MANAGEMENT
Safety needs
(job and income security)
Self-fulfillment needs
(using ones talent)
Social needs
(a sense of belonging)
Ego or esteem needs
(self-respect)
Physiological needs
(sleep, food, etc.)
(Based on AH Maslows writings on self-actualizing
management)
TPM
SEIICHI NAKAJIMA
(ew Patterns of Management by Rensis Likert, 1964)
Linking Pin Function
New Management Pattern
New Management Pattern

Linking Pin Function

Linking Pin Function

FacLoryCeoeralVaoger FacLoryCeoeralVaoger FacLoryCeoeralVaoger FacLoryCeoeralVaoger

0eparLmeoLVaoger 0eparLmeoLVaoger 0eparLmeoLVaoger 0eparLmeoLVaoger
AreaVaoger AreaVaoger AreaVaoger AreaVaoger
LloeVaoger LloeVaoger LloeVaoger LloeVaoger
1eamLeaderc 1eamLeaderc 1eamLeaderc 1eamLeaderc
CeoeralLmployeec CeoeralLmployeec CeoeralLmployeec CeoeralLmployeec
FacLory1PV6Leerlog FacLory1PV6Leerlog FacLory1PV6Leerlog FacLory1PV6Leerlog
CommlLLee CommlLLee CommlLLee CommlLLee
0eparLmeoL1PV 0eparLmeoL1PV 0eparLmeoL1PV 0eparLmeoL1PV
VeeLlogc VeeLlogc VeeLlogc VeeLlogc
Area1PV Area1PV Area1PV Area1PV
VeeLlogc VeeLlogc VeeLlogc VeeLlogc
6Hop 6Hop 6Hop 6Hop- -- -Floor1eamc Floor1eamc Floor1eamc Floor1eamc
PVClrclec) PVClrclec) PVClrclec) PVClrclec)

Behavioral Science


(Preventive Maintenance)
(Productive Maintenance)
Prevention
Zero Breakdown
Productivity
Cost Down

Zero Defect
Do it right the first time
QC Circle etc.
Eupsychian Management
by A.H. Maslow
The Human Side of Enterprise
by Douglas McGregor
New Patterns of Management
by Rensis Likert
etc

Small Group
Activity
The Origin of TPM
The Origin of TPM
The Aim of TPM
Improve the company by improving its people and its equipment
+
Improve The Company
---- Develop people with the skills required for
todays highly-automated factories----
1. Operators: Do Jishu-Hozen (AM)
2. Maintenance staff: Do advanced, specialised maintenance
3. Production engineers: Plan maintenance-free equipment
Improving the
People
1) Raise OEE by improving the equipment currently in use
2) Design new equipment for minimum life-cycle cost and
vertical startup
Improving the
Equipment
SEIICHI NAKAJIMA
Definition & Basic Concepts of TPM
Basic Concepts of TPM Basic Concepts of TPM
2. 2. Preventive philosophy Preventive philosophy
(preventive action) (preventive action)
MP MP- -PM PM- -CM CM
3. 3. Participation of all Participation of all
members members (Management (Management
participation/Respecting participation/Respecting
people) people)
Overlapping small Overlapping small
group, group, Jishu Jishu Hozen by Hozen by
operators operators
4. 4. Principle of actual scene Principle of actual scene
and actual thing and actual thing
What should be What should be for for
facilities and work, facilities and work,
visual management, visual management,
clean workplaces clean workplaces
5. 5. Renewing common sense Renewing common sense
Continued evolution Continued evolution
and growth of views and growth of views
and thinking and thinking
1. 1. Create a profit Create a profit- -making making
corporate culture corporate culture
Pursuit of economy, Pursuit of economy,
zero accidents, zero zero accidents, zero
defects, zero failures defects, zero failures
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

SEIICHI NAKAJIMA
Plant Preventive MedicinePreventive Maintenance
Preventive Medicine Preventive Medicine
Physical Physical
Check up Check up
Daily maintenance Daily maintenance Inspection Inspection
(Diagnosis) (Diagnosis)
Preventive repair Preventive repair
Preventive Maintenance Preventive Maintenance
Daily Daily
Prevention Prevention
Early Early
Treatment Treatment
(Early exchange) (Early exchange)
Prevent
degradation
Measure
degradation
Recover
degradation ( ) ( ) ( )
)
)
Clean, Lubricate, Clean, Lubricate,
Tighten, Check, Adjust Tighten, Check, Adjust
(
(
The Basic Approach to Zero Failure
Equipment does not go wrong by itself: people
make it go wrong;
By changing the way people think and act,
equipment can be made completely failure-
free;
People must stop thinking about equipment
beign the problem, and start thinking about
themselves as agents who can stop equipment
from going wrong, and eventually get rid of
failure for good.
The Principles Behind Zero Failure
Bring hidden equipment defects to light and nip them in the bud!
Breakdowns are only the tip of the iceberg
Hidden equipment defects
- Dust, dirt, contamination by
product or materials
- Wear, looseness, slackness, leaks
- Rust, deformation, scratches,
cracks
- Excess heat, excess vibration,
abnormal noise and other
abnormalities
Failure
( Preventing Breakdowns )
F-Tagging
Initial
Cleaning
and
Inspection
TPM Award Onsite
TPM Award Onsite
Assessement
Assessement
Kubota Corporation
Okajima Plant
ADEKA Corporation
(old Asahi Denka Co., Ltd)
Akashi Factory
TPM Core Values
TPM Core Values
KAIZEN
PARTICIPATION
&
Growth
MAINTENANCE
JIPMS
JIPMS JIPMS
JIPMS,2006
TPM Parts
TPM Parts

,
,

,
,

Concept Picture
Concept Picture
JIPMS
JIPMS JIPMS
JIPM,2002
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
Part
Part
(Level 1) Concept
(Level 1) Concept
JIPMS
JIPMS JIPMS
JIPM,2002
Activity to maximize profit by eliminating and preventing constrains
and losses that impede reduction of manufacturing costs.
Inventory loss Organization loss Change over loss Defect loss Break down loss
Present
TPM -
C
o
n
s
t
r
a
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n
s

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c
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Scope of Part
Scope of Part
(Level 1)
(Level 1)
Product flow
Order
Shipment
(sales)
Manufacturing site
TPM Part
TPM Part
TPM Part
Logistics
Sourcing,
Resource management
Cost control QA
Maintenance Production
Sales,Research
Production Engineering
Production control
Development,Design
Production process
Business process
JIPMS
JIPMS JIPMS
JIPM,2002
Target : Reduction of Product Costs
JIPMS
JIPMS JIPMS
Part
Part

(Level 2) New Concepts & Challengers

(Level 2) New Concepts & Challengers
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 Total Cash Outflow
Innovative TPM approaches to make ourselves stand out from competitors
Innovative TPM approaches to make ourselves stand out from competitors
JIPM,2002
Opportunity
lost loss
Additional
construction loss
Sourcing
loss
Organization
loss
Indirect loss
TPM
TPM
Inventory
loss
Change-over
loss
JIPMS
JIPMS JIPMS
Product flow
Order
Shipment
(sales)
Manufacturing site
TPM Part
TPM Part
TPM Part
Logistics
Sourcing,
Resource management
Cost control QA
Maintenance Production
Sales,Research
Production Engineering
Production control
Development,Design
Production process
Business process
P
r
o
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t

o
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m
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c
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t
Activity to reduce product costs (total costs) by eliminating and
preventing of constrains and losses.
Scope of Part (Level 2) Scope of Part
Scope of Part
(Level 2)
(Level 2)
JIPM,2002
Part(Production costs) Part(Product costs)
Production site
Production site
Manufacturing Process
Manufacturing Process
O
p
t
i
m
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a
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p
r
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s
Production
Losses in machine operation
Losses in organization for operation
Losses in materials and energy
Production
Losses in machine operation
Losses in organization for operation
Losses in materials and energy
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
In Part ,we continue
the work we did in Part ,
while strengthening functional
links in order to optimize the
entire manufacturing process
JIPMS
JIPMS JIPMS
Requirements for Part (Level 2) Requirements for Part
Requirements for Part
(Level 2)
(Level 2)

JIPM,2002
F
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Coping with demand uncertainty
( Only make what is needed, when it is needed )
Coping with demand uncertainty
Coping with demand uncertainty
( Only make what is needed, when it is needed )
Lead Time
Lead Time
Too many decision
making steps
Too many decision
making steps
Forecasting of
uncertain demand
Forecasting of
uncertain demand
Bottleneck
Bottleneck

Find constraints and losses to

improve lead time, e.g. production
planning, production, sourcing,
logistics
Find constraints and losses to
improve lead time, e.g. production
planning, production, sourcing,
logistics
Distribute order information to
production site by improving
information processing lead time
Distribute order information to
production site by improving
information processing lead time
Establish production system to
correspondence to order without
inventory demand based
Establish production system to
correspondence to order without
inventory demand based

JIPMS
JIPMS JIPMS
Direction of solution
Direction of solution
Requirements for Part (Level 2) Requirements for Part
Requirements for Part
(Level 2)
(Level 2)

JIPM,2002
JIPMS
JIPMS JIPMS
Part
Part

(Level 3)
(Level 3)
-
-
New Concepts & Requirements
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.
Re-focus from manufacturing process innovation to
entire business process innovation
Re-focus from manufacturing process innovation to
entire business process innovation
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.
JIPM,2002
JIPMS
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Product Flow
Order
Shipment
(sales)
Manufacturing site
TPM Part
TPM Part
TPM Part
Logistics
Sourcing,
Resource management
Cost control QA
Maintenance Production
Sales,Research
Production Engineering
Production control
Development,Design
Production process
Business process
Scope of Part (Level 3) Scope of Part
Scope of Part
(Level 3)
(Level 3)
Activity to eliminate and prevent constraints and losses
which impede total cash flow.
TPM
TPM
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Opportunity
lost loss
Additional
construction
loss
Sourcing
loss
Organization
loss
Inventory
loss
Change-over
loss
Utilization
loss
Less than
estimated
profit loss
Overhead
costs loss
JIPM,2002
Part(Production costs) Part(Product costs)
Production site
Production site
Manufacturing Process
Manufacturing Process
Losses in machine
operation
Losses in
organization for operation,
Losses in materials
and energy
Losses in machine
operation
Losses in
organization for operation,
Losses in materials
and energy
Cooperation between
production division and
other divisions
Requirements For Part (Level 3) Requirements For Part
Requirements For Part
(Level 3)
(Level 3)
Company-wide
Collaboration
including suppliers
& customers
Sales ,e.g.)
Utilization loss
Research , e.g.)
Marketing share
of new products
Productivity of
Production site
Productivity of
Production site
Business Process
Business Process
Part(Total cash flow)
Productivity of
Company
management
Productivity of
Company
management
In Part In Part, we continue levels , we continue levels
1&2 while driving to optimize 1&2 while driving to optimize
the entire business process. the entire business process.
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JIPM,2002
In Part II, we continue the work we did in In Part II, we continue the work we did in
Part Part , while strengthening functional , while strengthening functional
links in order to optimize the entire links in order to optimize the entire
manufacturing process manufacturing process
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
JIPMS
JIPMS JIPMS