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This master's thesis has been conducted at AstraZeneca's production site in Snackviken. It covers 30 credit points and is performed at the division of production economics At Linkoping University. The project has given us the opportunity to practise the expertise gained during the education.
This master's thesis has been conducted at AstraZeneca's production site in Snackviken. It covers 30 credit points and is performed at the division of production economics At Linkoping University. The project has given us the opportunity to practise the expertise gained during the education.
This master's thesis has been conducted at AstraZeneca's production site in Snackviken. It covers 30 credit points and is performed at the division of production economics At Linkoping University. The project has given us the opportunity to practise the expertise gained during the education.
Masters thesis Department of Management and Engineering LIU-IEI-TEK-A--10/00781SE
Improving maintenance efficiency at AstraZeneca through increased use of TPM
Jonas Bergsman Anders Hll
Supervisors: Linkping University: Johan Johansson AstraZeneca: Andreas Jaensson
Masters thesis Department of Management and Engineering LIU-IEI-TEK-A--10/00781SE
Foreword This masters thesis has been conducted at AstraZenecas production site in Snckviken. It covers 30 credit points and is performed at the division of production economics at Linkping University. The project is the last phase of our masters degree in Science of Mechanical Engineering and it has given us the opportunity to practise the expertise gained during the education. At Linkping University we have had an excellent support from our supervisor Johan Johansson. And have had the honour to participate in a bigger academia-business project called the PIC-LI. This masters thesis would not have been possible to perform without the help and support from the employees at API and especially the maintenance engineers which have given us important input to the project. We want to express special thanks to our two supervisors at AstraZeneca, Andreas Jaensson and Johan Gester; who has showed great commitment and helped us during this period.
AstraZeneca. May 2010
__________________ Anders Hll
__________________ Jonas Bergsman
Abstract This is the report from the masters thesis, performed at AstraZeneca, Sweden Operations at the Snckviken Active Pharmaceutical Ingredient (API) plant. AstraZeneca is a multinational pharmaceutical enterprise with operations all over the world and our scope is the API plant in Sdertlje, Sweden. The site is a chemical agent mixing plant, with large size batches containing expensive agents and solutions. This means that the value in each batch is high thus putting pressure on the maintenance department keeping the uptime high. The areas of interest in this masters thesis are the maintenance strategy, the use of performance indicators, the use of computerized maintenance systems, integrated production and maintenance and motivational aspects. These topics were chosen in collaboration with the maintenance manager at API. The report examines and provides improvement proposals on the maintenance function at the Active Pharmaceutical Ingredient production plant at AstraZeneca, Sweden Operations. The purpose of this masters thesis is to examine how AstraZeneca can improve maintenance management and work with motivational aspects in order to ameliorate the completion of the TPM pyramid and thus increase the maintenance efficiency. The purpose is fulfilled by providing solution proposals that improves the overall maintenance results which in turn improves the maintenance efficiency. It was found that the TPM work had stalled and that the TPM was not fully understood by the employees. A perception of a stalled TPM work put the focus on the TPM and its components and the awareness arose that the commitment from the maintenance technicians as well as the productions operators could be better. The features of the current maintenance systems were not fully utilized. This affected the use of the performance indicators. It was difficult to determine how efficient the maintenance work and planning was, regarding the performance indicators. The maintenance engineers at API are highly experienced and the API planning department works with the current competence but it was perceived that the planning procedure was shifting between individual planners, and that the process was based, not on a common policy, but on the experience and expertise the engineers possessed. When investigating how the motivational work at API was managed it was found there was a too long-sighted goal setting with respect to the employees and that the incitements for reaching a particular goal could be revised on a shorter termed basis. What we propose is that API should look at aspects such as performance indicators but also put an equal focus on less obvious points such as motivating the staff through competitions etc. We urge them to look at goal setting, have TPM and goal setting be intertwined and effectively communicated throughout the organization and managing cultural change in an active way thus making each maintenance staff member take a self interest in the TPM program. In increasing the TPM pyramid completion we propose that API focus on extending the use of the current maintenance system and to introduce performance indicators that can be used for mapping performance. This will also help motivating the staff and the performance indicators can be used in the goal setting program. As a guide on how to work with these issues, a number of improvement proposals have been generated addressed to API; that covers this masters thesis areas of interests.
Contents Table of figures ...................................................................................................................... I List of abbreviations .............................................................................................................. II 1 Introduction .................................................................................................................... 1 1.1 Background............................................................................................................. 1 1.2 Problem definition ................................................................................................... 2 1.3 Purpose .................................................................................................................. 3 1.4 Delimitations ........................................................................................................... 3 2 Methodology .................................................................................................................. 4 2.1 The work process.................................................................................................... 4 2.2 Ensuring validity and reliability ................................................................................ 5 3 Company description ..................................................................................................... 7 3.1 AstraZeneca ........................................................................................................... 7 3.2 History .................................................................................................................... 7 3.3 Active pharmaceutical ingredient production at Snckviken .................................... 7 4 Theory ........................................................................................................................... 8 4.1 Total productive maintenance ................................................................................. 8 4.2 Maintenance planning ........................................................................................... 10 4.2.1 The scheduling problem ................................................................................. 13 4.3 Integrated production and maintenance planning .................................................. 13 4.4 Maintenance performance indicators .................................................................... 14 4.5 Computerized maintenance management system................................................. 15 4.6 Motivational Theory ............................................................................................... 16 4.6.1 The theory of X and Y .................................................................................... 17 4.6.2 Maslows theory of motivation ......................................................................... 18 4.6.3 McClellands motivational theory .................................................................... 19 4.6.4 Expectancy Theory ........................................................................................ 20 5 Present situation .......................................................................................................... 21 5.1 Active pharmaceutical ingredient production site .................................................. 21 5.2 Maintenance strategy ............................................................................................ 22 5.3 Standard operation procedures ............................................................................. 23 5.4 Planning coordination ........................................................................................... 25 5.5 Production planning .............................................................................................. 25 5.6 Maintenance planning ........................................................................................... 26 5.6.1 Preventive maintenance ................................................................................ 27
5.6.2 Corrective maintenance ................................................................................. 28 5.7 Calibration planning .............................................................................................. 29 5.8 Key measurements ............................................................................................... 31 5.9 Computerized maintenance management system................................................. 33 5.10 Mechanical workshop and operative maintenance ................................................ 34 5.11 Motivation ............................................................................................................. 35 5.12 Strengths and improvement potentials .................................................................. 36 6 Analysis ....................................................................................................................... 38 6.1 Total productive maintenance ............................................................................... 38 6.2 Maintenance management .................................................................................... 40 6.3 Integration between maintenance and production planning ................................... 41 6.4 Performance indicators ......................................................................................... 42 6.5 Motivation ............................................................................................................. 45 6.5.1 Extrinsic motivation ........................................................................................ 46 6.5.2 Intrinsic motivation ......................................................................................... 47 6.5.3 Leadership and cultural change at API .......................................................... 48 6.6 Performance indicators related to motivational theory ........................................... 48 7 Improvement proposals ................................................................................................ 50 7.1 Total productive maintenance ............................................................................... 50 7.1.1 TPM-pyramid related to responsibility and mandate....................................... 50 7.1.2 TPM-pyramid, goal setting and measurement ................................................ 50 7.1.3 TPM-zoomed in charts and step by step guide to World Class Maintenance . 51 7.1.4 TPM-pyramid and personal commitment and competition .............................. 51 7.2 Planning Process .................................................................................................. 53 7.2.1 Improve the planning process ........................................................................ 53 7.2.2 Define safety time that maintenance and production needs. .......................... 54 7.3 System use ........................................................................................................... 55 7.3.1 Introduce more comprehensive classification of work orders ......................... 55 7.3.2 Review of the maintenance policies for equipment ........................................ 56 7.3.3 Increase the length of visualized plans........................................................... 56 7.3.4 Document time needed for preventive maintenance ...................................... 57 7.3.5 Introduce time data in SAK ............................................................................ 58 7.4 Performance indicators ......................................................................................... 58 7.4.1 Introduce more useful performance indicators ............................................... 58 7.5 Motivation ............................................................................................................. 59 7.5.1 Intrinsic motivation results .............................................................................. 59
Table of figures | I Table of figures Figure 1:1 The areas of interest in this masters thesis .......................................................... 3 Figure 2:1 Work process, (Lekvall & Wahlbin, 2007 modified) ............................................... 4 Figure 4:1 Pillars of TPM ....................................................................................................... 8 Figure 4:2 The maintenance total cost picture, (Pintelon & Gelders, 1992, modified) .......... 10 Figure 4:3 Categories of maintenance ................................................................................ 11 Figure 4:4 Maintenance policy decision model (Waeyenberg & Pintelon, 2002) .................. 12 Figure 4:5 The Motivation Quadrant (Pagan, 2006) Hybrid with (Robbins, 1991) ................ 16 Figure 4:6 The Behaviour Model (Abrahamsson & Andersen, 2005) ................................... 17 Figure 4:7 Maslow's pyramid (Abrahamsson & Andersen, 2005) ........................................ 18 Figure 4:8 Motivation Loop .................................................................................................. 18 Figure 4:9 Victor Vrooms Expectancy Theory (Abrahamsson & Andersen, 2005) .............. 20 Figure 5:2 TPM Pyramid (AstraZeneca, TPM pyrmid, 2009d) ............................................. 22 Figure 5:1 Schematic view of the active ingredient substance production process .............. 22 Figure 5:3 Hierarchical structure of the SOPs associated with maintenance ...................... 24 Figure 5:4 The SOP staircase ............................................................................................. 24 Figure 5:5 The coordinators organizational function ............................................................ 25 Figure 5:6 The production planning process ....................................................................... 26 Figure 5:7 The maintenance organization structure. (Jaensson, A. 2010) ........................... 27 Figure 5:8 The preventive maintenance process ................................................................. 28 Figure 5:9 The corrective maintenance process (AstraZeneca, 2009b) ............................... 28 Figure 5:10 Calibration work process (AstraZeneca, 2009b) ............................................... 30 Figure 5:11 History of TA at API 2009 ................................................................................. 31 Figure 5:12 History of unfinished work orders 2009 ............................................................ 32 Figure 5:13 The history of urgent work orders ..................................................................... 32 Figure 5:14 Schematic view of the maintenance information system (Based on AstraZeneca, (2009e) ............................................................................................................................... 33 Figure 5:15 Principle view of the hierarchical system structure. .......................................... 34 Figure 6:1 TPM Implementation and cultural change pyramid anchorage schematics ........ 38 Figure 6:2 The relation between critical and non-critical work orders .................................. 40 Figure 6:3 Total cost curve of maintenance (Johansson, 1993) .......................................... 43 Figure 6:4 Victor Vrooms Expectancy Theory ..................................................................... 45 Figure 6:5 Intrinsic and extrinsic vs. Maslov's pyrmid .......................................................... 46 Figure 6:6 The bonus (incentive) made out of percentage of base salary............................ 46 Figure 6:7 The Maslow Pyramid intrinsic higher order need compared to lower order need of hygiene factors.................................................................................................................... 48 Figure 7:1 TPM Zoomed chart with the what, why and hows shows the whole chain. ........ 52 Figure 7:2 The Planning Process visualization .................................................................... 53 Figure 7:3 Safety time ......................................................................................................... 54 Figure 7:4 Capacity/ utilization diagram............................................................................... 57 Figure 9:1 Effect/ Effort diagram of the 10 important improvement proposals ..................... 67 Figure 9:2 Execution order when using priority option no. 1 ................................................ 67 Figure 9:3 Execution order when using priority option no. 2 ................................................ 68 Figure 9:4 Execution order when using priority option no. 3 ................................................ 68 List of abbreviations | II List of abbreviations ANL ........... Plant registry AOH .......... Work order manager API ............ Active pharmaceutical ingredient CBM .......... Condition based maintenance CM ............ Corrective maintenance CMX .......... Calibration management software CP ............. Calibration point DOM ......... Design-out maintenance EFA ........... Replacement factory/ Ersttningsfabrik ERP .......... Enterprise resource planning FBM .......... Failure based maintenance FDA .......... Food and Drug administration FUH .......... Preventive maintenance manager GMP ......... Good manufacturing practice KPI ............ Key performance indicator MRP .......... Material resource planning MTBF ........ Mean time between failure MTTR ........ Mean time to repair MWT ......... Mean wait time OMA ......... Operations maintenance API/R&D PI .............. Performance indicator PM ............ Preventive maintenance RAM .......... Random access memory SAK .......... Systemet fr anlggningskontroll SHE ......... Safety, Health, Environment SOP .......... Standard operation procedure SYFA ........ Synthesis factory/ Syntet fabrik TA ............. Technical availability TGS .......... Technical governance and support TPM .......... Total productive maintenance UBM .......... Use based maintenance VMI ........... Vendor managed inventory
Introduction | 1 1 Introduction This chapter will present an introduction to this masters thesis. It includes a background of the problem that initiated the project. It also presents the purpose for this masters thesis which is broken down to a set of research fields. At last the delimitations of the work are presented. 1.1 Background AstraZeneca is a global player on the pharmaceutical market. Their yearly sales exceeds $ 32 Billion and the company has nearly 63 000 employees all over the world. AstraZeneca is active in over 100 countries with a growing presence in emerging markets. The research and development headquarter is sited in Sweden and there is a total of five production sites, located in Sdertlje, Lund, Mlndal and Ume. (AstraZeneca, Annual Report, 2009a) A large part of the production is located in Sweden and some of the most important factories are located in Sdertlje. The production is always aiming at maximizing the efficiency in the supply chain (through continuous improvements). The Lean philosophy has been adapted in order to reduce waste and to use the capacity in an efficient way. In pharmaceutical production there are strict regulations and policies that need to be considered in order to ensure that the product quality is high. In the first manufacturing steps of a product the production is managed as a chemical plant were different ingredients get mixed in several chemical processes. This production has a high level of automation which places high demands on the equipments functionality. The processes need to be properly operated, equipment needs to be calibrated and the machines need to be well maintained. Since the value of a batch is very high, the production needs to be processed without interruptions. The maintenance work is therefore an important issue to handle in the active pharmaceutical ingredient (API) production. The API unit in Sdertlje is now facing a future shutdown and some products have already been outsourced to other manufactures. Although there will still be work for some years, due to a forecasted increase in orders. AstraZeneca is also undergoing a rationalization process, reducing cost and number of employees. This has affected the maintenance department which has reduced its work force which had resulted in a need for more effective work. Due to the situation, the maintenance work is now needed to be handled with less capacity. In order to get a more efficient maintenance, AstraZeneca works with the Total productive maintenance (TPM) concept but due to high utilization of the employees, the improvement work within TPM has been constrained. The fact that API is also facing a shutdown makes it important to work with motivating the personnel, since the motivation can suffer during these kinds of circumstances. The maintenance engineers and the manager are highly utilized and have therefore no time to identify improvement opportunities to make the maintenance work more efficient or finding ways in how to motivate the employees. Due to the high utilization of the maintenance engineers and manager this masters thesis has been initiated to investigate these issues.
Introduction | 2 1.2 Problem definition The high utilization of the staff has increased the importance for the maintenance workers to perform their maintenance and calibration work more efficiently so that the time needed for maintenance is reduced. This also places high demands on the maintenance engineers, to plan the maintenance and calibration work in an efficient manner, so that there will be less need for maintenance resources. All maintenance performed at API is based on the underlying maintenance strategy of AstraZeneca which is the Total productive maintenance. This intends to achieve a sense of joint responsibility between the management, the operators and the maintenance workers to run the machines as efficiently as possible and also to optimize their overall performance. Since TPM is an important issue in the maintenance management at API, this concept will be explored in depth in this masters thesis. In meetings with the maintenance manager the current situation was briefed to us and he pinpointed the fields of interest that he thought could be important to examine. A known problem was the use of the maintenance system. For several years API have worked to get an extended system use, but there is still some work to be done before one can consider it as excellent. This has resulted in an insufficient amount of historical data that could be used for analyzing and improving the maintenance performance. Related to this, there have been several attempts to introduce new maintenance performance indicators to better measure the maintenance work and efficiency. Due to the unavailability of adequate data this has been hindered, An important issue in the use of performance indicators is their interconnection to the motivational aspect. The current set of performance indicators, are supposed to be used in an efficient way with respect to key targets and motivation. This is not the case today. An overview of the set of performance indicators may help solve this problem. We will dive deeper into performance indicators and how they relate to motivation in later chapters. In cooperation with the maintenance manager the following areas have been deemed important to examine in this masters thesis. The maintenance strategy, Total productive maintenance The maintenance management and planning issues The use of the current maintenance systems The use of maintenance performance indicators Motivating the employees Within each of the topics there will be thorough research and a breakdown of the problems posed. We will have a look at the current performance, highlighting weaknesses and put down a proposal on how these could be improved. To give the big picture and to verify that the proposals lead to improvements, the results from the different topics will be connected to the TPM pyramid (a framework for measuring TPM completion). The areas of interest in this masters thesis are showed in Figure 1:1 and this will be used to visualize the report. Introduction | 3
Figure 1:1 The areas of interest in this masters thesis 1.3 Purpose The purpose of this masters thesis is to examine how AstraZeneca can improve maintenance management and work with motivational aspects in order to ameliorate the completion of the TPM pyramid and thus increase the maintenance efficiency. 1.4 Delimitations This masters thesis corresponds to approximately 20 weeks of work. It is focused on the active pharmaceutical ingredient department at AstraZeneca in Snckviken, Sdertlje. Due to the limited timeframe and the aim of the research, some parts in the study will be delimited from this masters thesis. AstraZenecas global organisation has launched an implementation of an ERP (Enterprise resource planning) system. This implementation is planned to begin in Q3 (for the Swedish part of AstraZeneca). Due to insufficient information this will not be examined further. During the masters thesis other departments at Sdertlje will be visited. The information from these visits will only be used as inspirational source to collect ideas and inputs on the problems API is facing. Thus they are not going to be analysed in depth in this masters thesis. Since the managerial aspects are in focus, details in the operational (hands on) maintenance work will not be revised. An important issue to consider in maintenance work is the handling and coordination of spare parts. Due to an ongoing project, aiming to centralizing the spare part inventory, this management issue will not be covered in this masters thesis.
Increase maintenance efficiency Maintenance management TPM Performance indicators Use of the current maintenance system Integration of maintenance, calibration and production planning Motivation Methodology | 4 2 Methodology This chapter will present the methodology addressed in this masters thesis. The phases will be described and the chapter will end with an evaluation of the sources of errors that can occur in this masters thesis and how these have been managed. 2.1 The work process The work in this masters thesis is performed with the following methodology, Figure 2:1. The methodology is based on the work of Lekvall & Wahlbin (2007), but has been modified in order to better fit this masters thesis. This method will provide guidance during the masters thesis and ensure that the work will be well structured. The work will be carried out with the focus on a specific object which is defined as a case study according to Lekvall & Wahlbin (2007).
Figure 2:1 Work process, (Lekvall & Wahlbin, 2007 modified) Basic Study To get an overview of the subject, the work starts with a brief study of related literature in maintenance planning, production planning and information about chemical industry. Commonly used nomenclature and maintenance procedures and techniques were examined. Problem identification When a basic knowledge of the subject is obtained a problem identification can take place. In this masters thesis the problem is specified in some basic research areas and in this phase the purpose of this masters thesis will be specified. It is important in an early phase of the project to clearly define and formulate the purpose; this is to ensure that there are no misunderstandings and differences in interpretation of the objectives (Lekvall & Wahlbin, 2007). Because the project is limited to 20 weeks naturally there must be a limited scope to have the chance to investigate at the kind of depth that a masters thesis requires.
Basic study Problem identification Field study Specify problem Recommendation Analysis Conclusion Theory P r e - s t u d y
Empirical study A n a l y s i s
Methodology | 5 Field Study This phase includes the information retrieval process. The process will include both open and semi-structured interviews, studies of internal documents, exploration of AstraZenecas computer based systems and also to investigate working procedures and processes. The open interviews will be carried out through conversation, based on maintenance related problems (Befring, 1994). The semi-structured interviews will be carried out with questions that are prepared in advance. The order of answering the questions or the correct answer in the semi-structured interviews will be unbound (Dahmstrm, 2005) (Lekvall & Wahlbin, 2007). Open style format of the questions are aimed at letting people express their views and ideas to the highest extent possible, because we dont want to influence their answers by putting to narrow or specified questions in these interviews. This will result in a description of the current situation at API including identified strengths and weaknesses Specify problem Based on the problem and the purpose presented in this masters thesis the field study will provide input to and result in a more specific and more concrete problem formulation. The level of detail will be higher which will contribute to a more focused and specific information gathering process, in the theory phase (Lekvall & Wahlbin, 2007). In this phase both primary and secondary data will be considered (Dahmstrm, 2005). Primary data are information that is generated or gathered specifically for this masters thesis while secondary data are information that not have been produced for this study (Lekvall & Wahlbin, 2007). Theory When the problems are identified and the areas of interest are defined, a phase of collecting theories and information will be initiated. Scientific literature such as research reports and books written on the subject will be read in the search for relevant information. The methodology will be to search and try to use as up to date books and reports as possible, which is the main principle when searching literature according to Befring (1994). The relevant theories found will be presented in chapter 4. Given that the data is inconclusive it renders it impossible to conduct a sound analysis, thus more field study will be carried out in order to gather more information to support and validate the analysis and the results. (Lekvall & Wahlbin, 2007) Analysis The analysis phase includes an analysis of the current situation by applying relevant theories. This phase also includes the conclusions that can be made and how the situation can be improved. At last the authors recommendations will be presented on how AstraZeneca should tackle the weak points and transform the ideas to tangible solutions. 2.2 Ensuring validity and reliability In all studies there are sources of error. According to Lekvall & Wahlbin (2007) and Dahmstrm (2005), two commonly used terms for analysing errors are validity and reliability. Validity is defined as the level that the measurement actually measures what it is supposed to measure. Reliability is the accuracy of the measurement and how resistant it is against factors of randomness. It is important that both the reliability and the validity are high to make sure that the result is accurate and trustworthy. Methodology | 6 In this masters thesis the field study is largely based on interviews with employees at API. When gathering information from personnel it is always a risk that it is affected by the interviewees own opinion, standpoint and interest. To avoid the risk that subjective information affects the result, at least, two employees have been asked the same questions when crucial or key information have been gathered. We have collected information from several sources so that when building the analysis and the results the reliability and validity of the study will be high. The questions in the interviews have been formulated not to influence the interviewee in any particular direction. All information gathered during interviews has also been carefully probed to avoid being too much influenced by personal opinions. During the literature study the theories have been interpreted by the authors of this masters thesis expertise which can lead to a deviation from the original meaning. To reduce that this affects the results the original article, to a large extent, has been used to avoid another interpretation. To increase credibility in the theories old sources have been de-prioritized and the information has been inquired with respect to this. The majority of the theories presented are supported by several authors independent of each other which increase the validity. The study can also be considered as objective to the extent that the authors of this masters thesis dont have any self-interest in the outcome of this work. Since this masters thesis has been conducted by two individuals the results can be affected by the experience and expertise possessed. This risk has been avoided by building the analysis and results on theories which also increases the reliability of this masters thesis.
Company description | 7 3 Company description This chapter aims to give the reader a brief overview of AstraZeneca. First a description of the company and its business is presented followed by the companys history. Next the API at Snckviken will be presented. 3.1 AstraZeneca AstraZeneca is a world class manufacturer of medicine with well-known products such as Losec, Nexium and Seloken. It is a multinational corporation, active in over 100 countries, employing approximately 63 000 people. The employees are distributed with 51% in Europe and 32% in Americas and 17% in Asia. Sales in 2008 equalled $32 billion and had a net income of $6.1 billion. With 12 000 people employed in research and development it invests roughly $5 billion annually (2008) in R&D. (AstraZeneca, Annual Report, 2009a) After 2007 it has conducted a major downsizing programme, reducing costs and focusing on core business to become more competitive as a response to the changing market environment. The focal point is changing from manufacturing to research and development as well as employing a forward integration strategy and thus outsourcing the manufacturing to external contractors. As a public company it is noted both on the London Stock Exchange, the New York Stock exchange and the Stockholm OMX exchange. 3.2 History AstraZeneca is a merger of the two big pharmaceutical companies Astra AB and Zeneca Group plc. The merger took place in 1999 as the two companies shared many goals and were similar in their structure. Astra AB was formed in 1913 as 400 doctors and apothecaries joined together to form the company. In 1949 the company had a big success when they launched the local anaesthetic Xylocain. Another big success was the 1994 marketing cooperation with Merck in launching Losec, an ulcer treatment drug. (AstraZeneca, intranet) The Zeneca Group PLC was formed in 1993 when the company ICI, released three of its divisions to form the Zeneca Group. Zeneca was focused on the cancer, cardiovascular, central nervous system, respiratory and anaesthesia domain. The similarity in sales, profit and also in research and focal diversification made the two companies complement each other well. 3.3 Active pharmaceutical ingredient production at Snckviken The operations at the Snckviken plant is divided into the sub divisions; API (Active Pharmaceutical Ingredient), Turbuhaler, Liquids and TGS (Technical Governance & Support, as the combined maintenance support). API manufactures the active substance and it is chemical process industry. They account for all active pharmaceutical ingredients for internal and external demand. The finished goods are refined to tablets, liquids used in injection and powder for inhalation. The produced products at API are then delivered to internal customers in Sdertlje and to international manufacturers of medicine. Theory | 8 4 Theory This chapter contains the theories relevant for this masters thesis. It aims at giving the reader a theoretical viewpoint of the problem and these theories will later be applied in the analysis. The theories presented are; Total productive maintenance, Maintenance planning, Integrated production and maintenance planning, Maintenance performance indicators, Maintenance system use followed by Motivational theory. 4.1 Total productive maintenance Total Productive Maintenance (TPM) was introduced in the 1950s and laid the foundations for the modern production philosophies. It was condensed from the North American preventive maintenance ideas and refined by the Japanese to form TPM. (Wireman, 2004). TPM is the foundation for the Lean concept and is the first step to be mastered if one has an ambition to successfully incorporate the Lean production methods. The employment of TPM is to be taken as a long term strategic journey rather than a quick menu. The idea is to gain competitive advantage by eliminating all disruptions in the process by employing preventive maintenance, trying to foresee possible breakdowns, logging them and involving both the operators and the maintenance staff in preventive maintenance work. The concept might sound simple but the difficulty lies in being disciplined following the teaching and changing the culture of the company to implement it successfully. To be effective, all related departments are to be involved in the new mindset. The idea of continual improvements and involvement of all the personnel must be emphasized. When it comes to the management support, in this way of thinking, it is no longer accepted for the manager to just dismiss an employee having amelioration ideas. The manager needs to explain why an idea wont work. The importance is that one wants the culture of improvement and ideas of people, in all levels of the organisation, to gain momentum (Wireman, 2004). Total productive maintenance has a multitude of pillars seen in Figure 4:1 which provides an overview of the TPM pillars.
Figure 4:1 Pillars of TPM
Improving equipment effectiveness
Improving maintenance efficiency and effectiveness
Early equipment management and maintenance prevention
Training to improve the skills of all people involved
Involving operators (occupants) in routine maintenance Terry Wireman - TPM House Theory | 9 Wireman (2004) chooses to focus on his five most important pillars. 1. Improving equipment effectiveness 2. Improving maintenance efficiency and effectiveness 3. Early equipment management and maintenance prevention 4. Training to improve the skills of all people involved 5. Involving operators in routine maintenance There is not one single TPM strategy that fits every company (Wireman, 2004). Experts from around the world agree that it is difficult to implement a cookbook-style of TPM in any company. Factors such as the skill, age and complexity of the workforce, age of equipment, company culture, the current status of the maintenance program, benchmarking and measurements affect the TPM programme. In implementing TPM, Wireman (2004) outline a procedure to go about to analyze an implementation in practice. What are good and sound maintenance practices? There are guidelines on the way to perform a good maintenance job and some key components are outlined beneath. 1. Preventive Maintenance Program Development Preventive maintenance is the most important aspect of any equipment maintenance process improvement strategy. The equipment must be preventively maintained to avoid consequence cost that surpasses the maintenance cost. 2. Evaluate the Preventive Maintenance Program Evaluating the preventive maintenance program insures proper coverage of the critical equipment of the plant or facility. The program should include a good cross section of the following: Inspections Adjustments Lubrication Proactive replacements of worn components The program should support the goal of no unplanned equipment downtime. 1. Have a continual review if it is effective. 2. Review the maintenance stores Inventory and purchasing must be analyzed; the equipment spares should be identified and documented in a purchasing system. The purchasing system should be able to track the maintenance schedules. Also the data of cost and usage of all spare parts must be complete and accurate. 3. Are the stores effective? The service level measures the percent of time that a part is available when requested. The spare parts must be on hand at least 95% of the time for the stores and purchasing systems to support equipment maintenance activities. Unless the maintenance activities are proactive, the stores and the purchasing groups cannot be cost effective in meeting equipment maintenance spare part demand. 4. Review the work order systems The work order system must be designed to track all equipment maintenance activities. The activities can be anything from inspections and adjustments to major overhauls. Theory | 10 4.2 Maintenance planning A modern industrial company contains a large number of technical equipment which all interacts to achieve the business objectives. Maintenance contributes more than ever to the achievement of these objectives. (Waeyenberg & Pintelon, 2002) The manufacturing process demands a high level of performance, availability and reliability from the machinery installed. This appears even more important in the chemical batch process industry where the process time from inception to completion could last several days. (Rajan & Roylance, 2000) The value of a batch is also very high and increases during the production cycle. A break-down during a production cycle may cause high monetary losses. The production may need to be stopped which can lead to quality problems and in some cases it is necessary to discard the whole batch which is very expensive since a batch value can amount to millions of SEK. This type of production also has a high level of automation, which leads to a plant with more maintenance workers than production workers (Noemi & William, 1994). The total cost of maintenance could be visualized by an iceberg, Figure 4:2, where the direct maintenance costs are the ones that are recognized by everyone and therefore taken into account. Managers however, often forget the indirect maintenance costs, the underwater part of the iceberg. These costs may be even larger than the maintenance cost. (Pintelon & Gelders, 1992).
The maintenance cost differs for different kind of maintenance tasks. If a machine breaks down the indirect costs in terms of idle production time can be very large. In planned maintenance task this cost may be very small as it can be conducted during nights but the Direct maintenance costs Manpower Materials Tools Overhead Indirect maintenance costs
Equipment Accelerated wear because of poor maintenance Excessive spare parts inventory Unnecessary equipment redundancy Production Rework because of badly aligned equipment Excessive scrap and material losses Idle workers due to breakdowns Late shipment because of unplanned down-time Products Quality and reliability issues Lost sales because of long down-time periods Warranty claims from dissatisfied customers Figure 4:2 The maintenance total cost picture, (Pintelon & Gelders, 1992, modified) Theory | 11 direct cost still exits. Maintenance activities can be divided into the two broad categories; preventive and corrective maintenance (Vassiliadis & Pistikopoulos, 2001), see Figure 4:3. Preventive maintenance To prevent equipment from break-down one utilize preventive maintenance. It comprises maintenance activities such as periodic inspection, prevention of deterioration and equipment diagnosis. Preventive maintenance can further be divided into periodic maintenance and predictive maintenance (Vassiliadis & Pistikopoulos, 2001). Periodic maintenance may include activities such as lubrication, cleaning, parts replacement, tightening and adjustment which are repeated in a predefined time period or amount of machine use. Compared to periodic maintenance, predictive maintenance is condition based. It manages trend values by measuring and analyzing data gathered from the equipment. For instance one could measure the vibrations in a machine and when the value falls outside an accepted value, a maintenance work order is initiated. Corrective maintenance Corrective maintenance is maintenance that is carried out after equipment has failed or an error has been detected. Some equipment is critical for the production process and these failures need to be fixed immediately. Since the process is affected by this kind of error the initiated work order must have the highest priority in order to get the production stop as short as possible. Some corrective maintenance, that dont cause stop in production or that should be performed on non-critical equipment, can be planned for future execution. Depending on the importance, the planned work order could be assigned with different priorities and is then to be scheduled with the preventive maintenance work.
A facility may use all of the above mentioned policies at once. The different maintenance policies are used depending on the characteristic of the equipment. Waeyenberg and Pintelon, (2002) proposes a maintenance policy decision model to identify the correct maintenance policy for a particular component, Figure 4:4. Maintenance Preventive maintenance Corrective maintenance Periodic maintenance Predictive maintenance Figure 4:3 Categories of maintenance Theory | 12
In each step of the decision model there is a technical question concerning the technical possibility. If the answer is yes, the economic implications have to be regarded. In the first step the criticality of the equipment or component is considered and the possibility of the run to failure policy. In the case of a critical component, first the technical issue has to be considered. Even though equipment is critical, a failure may be easy to repair. Secondary damage is also taken into account in the judgement. For non-critical and technical feasibility of FBM (Failure based maintenance) the economic implication is evaluated. The run to failure policy may be appropriate for noncritical or easily repaired machines (Noemi & William, 1994). If FBM is not justified the question of the possibility of DOM (Design-out maintenance) will be considered. The focus of DOM is to improve the component or design to make maintenance easier or even eliminate it. This can be achieved by for instance changing to more durable parts If DOM is not appropriate the decision process look further for hidden failures. Many failures are not age related and can occur randomly (Waeyenberg & Pintelon, 2002). However, most of these failures tend to have given some kind of warning before they occur. The follow-up of this phenomenon is called condition monitoring. In many cases the operators will be able to detect some irregularities through looking, hearing, feeling and smelling, detective based maintenance. This also plays an important role in TPM where the operators are more involved in the maintenance work. If the cases where the symptoms are undetectable by human senses there are high-tech monitoring devices to use. These are represented in the next step of the decision model, CBM (Condition based maintenance). Here, one must consider the possibility of measuring the needed data to predict a failure. Measurements can be costly which may make this policy too expensive. This technique is gaining popularity due to the fact that it is becoming Failure based maintenance Design-out maintenance Detective based maintenance Condition based maintenance Further investigation
CBM? Use based maintenance Condition predictable? UBM? Technical Economic Yes No (Corrective) (Predictive) (Periodic) (Prevention) Figure 4:4 Maintenance policy decision model (Waeyenberg & Pintelon, 2002) Theory | 13 more widely available and the price for measurement equipment is decreasing. The last option is UBM (Use based maintenance) or periodic maintenance. Here maintenance is carried out after a predefined period of time or working hours. UBM assumes that failures behaviour is predictable. If this option is not proper there is a need for further investigation or reviewing the decision criteria. 4.2.1 The scheduling problem Maintenance can be seen as a job shop scheduling problem. The complexity of maintenance planning is though higher because of some characteristic that distinguish from other types of scheduling (Noemi & William, 1994). Preventive and corrective maintenance work is non-repetitive Even if it occurs to be the same job it could differ from one execution to the next. During a routine maintenance task, it will not be known which parts that need to be replaced or repaired until it have been examined. Preventive maintenance is ever-changing A schedule cannot be assumed to remain current. The production process requires that maintenance is responsive to the current need of production. Preventive maintenance policies need to guard against over maintenance. Under maintenance will become known if errors and breakdowns increase. Over maintenance can occur if maintenance improvements have been made but the maintenance frequency hasnt been modified to take the changes into account. Preventive maintenance tasks have an implementation window. Maintenance tasks dont have a rigged due date. The due dates are often specified as a preferred time interval or preventive maintenance cycle. Preventive maintenance tasks may be rescheduled Maintenance task that are planned may be rescheduled early if a breakdown has occurred making it convenient to schedule the task now instead of forcing another downtime later. This is called opportunistic maintenance. Preventive maintenance policies can make use of idle time in the production schedule. The maintenance planner will ideally schedule maintenance during the idle times in the production schedule. However, this time may not be long enough or resources such as maintenance worker may not be available at the correct time. 4.3 Integrated production and maintenance planning Manufacturing, and the maintenance of manufacturing plant, is far more complex today than a few years ago and will be even more complex in the future (Sherwin & Jonsson, 1995). Manufacturing will be more focused on cost reduction and this will therefore require a maintenance system that works. Author Sherwin and Jonsson (1995) state that the battles between production and maintenance have to stop by broadening the perspective of maintenance and integrating the two systems into a complete market-oriented system. Theory | 14 The integration with production is important and crucial because the production and the maintenance have a direct intertwined relationship. A break-down in a machine results in disruption of production and thus leads to cost due to downtime, loss of production, decrease in productivity and quality. It also leads to inefficient use of employees, equipment and facilities (Budai et al. 2006). A good maintenance plan that is integrated with the production plan can result in considerable cost savings (Levrat et al. 2008). In litterateur the integration between production and maintenance planning is reviewed by different mathematical optimization models that aim at for instance minimizing cost like the one presented by Aghezzad et al. (2007). This model however is based on a number of known parameters like cost for carry out corrective maintenance, cost for each preventive maintenance task and costs associated with production. In order to implement an optimization model and be able to use these parameters must thus be known. 4.4 Maintenance performance indicators The efficiency and effectiveness of a system plays an important role in an organizations success. Therefore performance needs to be measured using performance measurements. (Parida & Kumar, 2006). Neely et al (1995) defines performance measurements as the process of quantifying the efficiency and effectiveness of action. However measuring and improving a feature that the customer does not value is a waste of time and resources. (Anupindi et al. 2008) Maintenance in discrete units factoring industry differs from maintenance in the process industry. The differences cause a need for other performance indicators. This industry is often a very capital intensive which makes the availability of the production unit very important. (Arts et al. 1998) Measurements can be divided into external and internal measurements. External measurements are related to the external effectiveness of a process. External effectiveness could be measurements such as customer satisfaction and fulfilment of the competitive priorities. Service level and quality measures are often used for measuring the external effectiveness of a company (Jonsson & Lesshammar, 1999). A manager can not directly control customer satisfaction or financial performance. In order to meet customer expectations and improve financial performance, a manager requires internal operational measurers that can be controlled. These must be detailed and ultimately correlate with product and financial performance (Anupindi et al. 2008). When knowing the external measures expected by customers the process manager must translate them into appropriate internal measures that affect the externals. Anupindi et al. (2008) highlights two conditions that need to be met in order to be effective. 1. They must be linked to external measures that customers deem important. 2. They must be directly controllable by the process manager. The performance indicators can be classified as lead or lag. A lead indicator acts as a warning system. At the operational level it could be indicators such as vibrations and particles in oil. These would help analyzing the condition of equipment and take early action before failure. A lead indicator is of the statistical and non-financial type. Lagging indicators are measures that provide the basis for studying deviations after completion. Cost of maintenance and mean time between failures (MTBF) can be used as lagging indicators. The performance of maintenance depends on decisions at different levels e.g. strategic, Theory | 15 tactical and operational. The strategic level (level 1), handles decisions in centralised or decentralised maintenance, organisational structure and level of outsourcing. Maintenance budget for plants, skills, inventories and decision on preventive or condition based maintenance are taken at the tactical level (level 2). The operational level (level 3) determines maintenance intervals, inspections, repairs etcetera. A lagging performance indicator at level 3 could relate to a leading indicator at level 1. For example; the lagging indicator, maintenance cost per ton at operational level can be used for monitoring maintenance cost and budget at level 2. This could control the future provision for investment in plant maintenance, a leading indicator at level 1. (Parida & Chattopadhyay, 2007) Criteria for measurement can be qualitative and quantitative. Quantitative measurements are for instance downtime, number of stops etcetera. Qualitative measures include e.g. employee satisfaction and environmental aspects. Without any formal measures of maintenance performance the maintenance work is difficult to plan, execute and improve. The effectiveness of maintenance and its performance needs to be measured also for the justification of investment in maintenance. That is why a proper maintenance performance measurement (MPM) framework is important (Parida & Chattopadhyay, 2007). Arts et al. (1998) proposes a number of maintenance performance indicators among them the ratio of PM which is calculated like:
This monitors the relative amount of PM done by the unit. A benchmark of the chemical industries in Louisiana showed that 85% was an appropriate value. (Arts et al. 1998) 4.5 Computerized maintenance management system In a modern process and manufacturing plant most of the companies use a computerized maintenance management system to help manage the maintenance performed in the plant. It is vital that these systems have the ability to document history events that have occurred within the maintenance work. It is therefore necessary to have a documented work process for gathering data that ensures that the data are collected properly. (Latino, 2004) In order to obtain world-class maintenance, a system for data collection is required, that can handle data related to breakdown frequency, duration of maintenance and so on. It is advantageous to have a system that can record data in real-time which continually updates the information in the system. (Labib, 1998). Using a Computerised Maintenance Management System (CMMS) does not guarantee results (Palmer, 2006), as it is only 50% of the CMMS implementations that are successful. It is important to view the CMMS tool not only as a maintenance staff tool, but a tool for the entire company. The CMMS is usually called an asset management system because of the fact that the system helps with information for more than just the maintenance staff. It is important to view the system as an information system or a tool, as it should not dictate the maintenance strategy. Furthermore it should be a quick CMMS system (Palmer, 2006). It should not take more than a few milliseconds to retrieve information; because all the search time due to faulty programming of the program adds up to high costs if it stops productivity during an extended period of time. If needed to wait for a quarter of a second or more to retrieve information from the CMMS it might be worth it to get a faster more efficient CMMS software suit. Theory | 16 4.6 Motivational Theory The motivational theory is important because it can help understand the mechanisms of motivation. It tries to explain the route from wanting to do something all the way to tangible action. If managed correctly motivational management can exercise tremendous leverage on individual and organizational performance. This translates to a more productive output which in turn saves both valuable time and money. Motivational theory is connected to organizational theory and human resources strategy. These concepts are intertwined and affect each other. The motivational theory is a key concept to grasp if one wants to have a profound impact on organizational behaviour. Intrinsic motivation is the motivation that comes from inside an individual rather than from an outside reward (Deci E. , 1971). An intrinsically motivated individual will play the guitar or solve a math problem simply because it provides enjoyment not because he or she is looking to have a reward in conjunction with the activity. The activity performed is the reward itself. Extrinsic motivation is a motivation that comes from outside an individual (Deci & Ryan, 1985). An individual will work with an activity even though they have little interest in it, because of an anticipated reward for performing the activity. There are different ways in motivating people; some of them are Towards goal motivation also known as pleasure motivation (Robbins, 1991). Away from is referred to as pain motivation, go with the stream motivation and go against the stream motivation. Different people are appealed by different motivational strategies, see Figure 4:5. (Robbins, 1991) state that the majority of people are away from (or pain) motivated.
The Towards goal motivation is the if you do this thing you will have a reward type of strategy. And the opposite is the so called Away from motivation strategy if you dont do this there will be a punishment strategy. The two others are self explicatory; Go with the stream, is following the law of least resistance, as with the Go against the stream needs to argue with everyone and everything. In TPM the focus is based on the Towards goal strategy. Different people are influenced by different strategies. The reason why a person is more towards one square of the block can be the temperament that one is born with, but to greater extent the way one is has been rasied. There is almost always resistance to change and to translate this to a TPM programme the TPM responsible has two objectives; step one is to convince the top management and the second step is to quickly employ a secondary anchorage to the shop floor. The secondary anchorage can be anything from information charts to a foreman that drives in the culture Towards goal motivation (Pleasure motivation) Away from motivation (Pain motivation) Go with the stream Go against the stream Figure 4:5 The Motivation Quadrant (Pagan, 2006) Hybrid with (Robbins, 1991) Theory | 17 and when somebody might say it is not my problem the rest of the group replies it is their problem and resolves it directly without bureaucracy. An organization that gives their employees a feeling of participation will in return augment workers commitment to the task if the organization shares its goals and also the information on how the organization is doing relative their goals (Bowen & Lawler, 1992). The idea is to share information and create participation and let the employees have the skills and the power to go outside their traditional role (Bowen & Lawler, 1992). An example of this is involving operators in routine maintenance. The secondary anchorage is to make sure that the new idea is absorbed at the shop floor and give a feeling of commitment to the path and strategy chosen. But also from the top to understand the importance of sharing information for commitment and motivation and not withholding information as means of power in the organization (Wilson, 2004). The motivational theory is about why peoples behaviours emerge, maintains and ends (McClelland, 1955). Motivation theory states or explains why people act the way they do. He states that a behaviour theory must contain both personal variables and external variables. The personal variables are divided into (1) motivational variables, (2) abilities or character based aspects and (3) cognitive variables (beliefs, values or comprehension). Opportunities represents external variables. Both motives and values affects the behaviour. It is possible to think that there are general human motives and that these are expressed in different ways. McClelland (1995) differentiate between values and motives and what energizes their behaviour.
The behaviour model, Figure 4:6, is a tool to visualize how the cognitive factors, the habits, skills and the possibilities affects the chain from motivation to tangible action. Further Abrahamsson and Andersen (2005) states that groups cannot be motivated, only individuals can be motivated. 4.6.1 The theory of X and Y The theory of X and Y was has its origins in the 1960s (McGregor, 2006). He argued that companies employ two different types of strategies in their workforce motivation programme. The X theory states that people are lazy by nature and needs to be yelled at by a supervisor for things to be done. The X strategy takes an authoritarian viewpoint and comes as a natural instinct to many people given the cause and effect nature between yell at someone and see the results of temporary improvement (McGregor, 2006). If the manager continues with the X strategy the moral might dry up to become bad. Even the ones that were optimistic from the start are now ambivalent and seem to want to go nowhere. As the moral decreases and people get sucked down into the spiral, the boss is really setting an example and screams more at the employees. The boss can say that it was not his or her fault because at least he did something. Motives Actions
Cognitive Factors (Values) Habits and skills Possibilities Actions Figure 4:6 The Behaviour Model (Abrahamsson & Andersen, 2005) Theory | 18 The Y concept states that people are happy to work by nature and take pleasure in the process. It is a strategy of the patient one but there are rewards to be reaped. It is a so called towards goal theory and takes an optimistic outlook that people, given the right support and motivation, finds their ways of fulfilling their own goals (aligned to the organizations) or many times superseding them. The patience to let a cultural change process has its turn, requires non-instant gratification thinking and it puts leadership skills as well as character to the test. It is necessary for a leader to avoid to be controlling and/or to be afraid if the process is out of control. A leader that is controlling and/or micro managerial is effectively taking away the mandate from the employees below. A leader should be in control but avoid being controlling. 4.6.2 Maslows theory of motivation Maslows theory of need explains the needs of one person and it is not a theory to predict a specific behaviour in a specific situation. Maslow divided his theory into five groups (1) physiological needs, (2) safety needs, (3) social needs, (4) need for status and prestige and (5) need for self actualisation into a pyramid structure of hierarchy. (Abrahamsson & Andersen, 2005)
Maslow admits that sometimes aggregated needs gets stronger than their under aggregated base so that in special cases for instance, safety needs, might be more important than physiological needs. But the hierarchy of needs is the default norm as viewed in Figure 4:7. Maslow says that the human being never gets satisfied; she always searches for something new. In his theory we are formed less by the environment and more of internal aspects such as personality traits. The continual search for something new is in the need for status and prestige (4) and self actualisation (5) at the top of the box of the pyramid. (Abrahamsson & Andersen, 2005)
Figure 4:7 Maslow's pyramid (Abrahamsson & Andersen, 2005) Physiological needs Safety needs Social needs Need for status & prestige Self actualisation (5) (4) (3) (2) (1) Unsatisfied need Motivation Action Satisfied need Finish Unsatisfied need Motivation Action Satisfied need Lower order needs (Social, Safety and Physiological needs) Higher order needs (Self Actualisation & Need for status and prestige) Figure 4:8 Motivation Loop Theory | 19 4.6.3 McClellands motivational theory The motivational loop describes how Maslows top two The Need For Status and Prestige and the Self Actualization need is in a looping manner and the lower order needs are hygiene factors that can only motivate to action if not present as seen in Figure 4:8. Lighting conditions is an example; if the working place is well lit the need is satisfied but if bad lit it creates a motivation to buy new lamps. When the lighting conditions improve after the action is taken the need is satisfied and we dont think about it anymore. McClelland stated that each individual has a need for achievement, a need for belonging and a need for power. The three needs are mostly learned so it is possible to change them. It is emphasized that the need for achievement, belonging and power are learned and also more or less hidden. The effect of his theory, that the need of a person is learned, implies that they are possible to change for the better. Neither does he claim that these needs are all the needs that exist, but wants to highlight those that are important for his scope. The need for achievement means a positive attitude to performing and mastering something. A person with a strong need for achievements (1) wants to work long to make something good or achieve something special. (2) Do something better than others. (3) Achieve or supersede those requirements put up by what he/she has formulated in terms of quality, performance or results. (4) To do something unique and extraordinary. In his book (McClelland, 1955) state that a persons achievement is not only based in her abilities, genome, skill and knowledge, but to a great extent her achievement need. That said; a person with a big need for achievement almost always translates into great performance. The need for achievements must be nurtured. A person with low achievement need translates to a low effort put in and thus bad performance output as a result. By tackling the psychological aspect of achievement need, the motivational foundation emerges to move from low to high output. McClelland believes that there is a strong connection between the achievement motive and economic growth (Wilson, 2004) implicit motives for achievement needs are developed early before learning to speak and tend to be semi- unconscious.
Theory | 20 4.6.4 Expectancy Theory Victor Vroom published his Expectancy Theory of motivation in 1964 and it constitutes of three parts. (1) Expectation that an effort leads to performance, (2) instrumentality, that a performance leads to results and (3) valence measures the attractiveness of the result to the individual, as depicted in Figure 4:9.
Expectation has to do with a persons perception of the probability that a certain effort will lead to results. A person that does not see the connection between her effort and the results will finally totally disconnect the motivational action chain and have no expectancy. Instrumentality refers to the individuals perception of the probability that an effort boils down to a certain determined result, positive or negative. If a person believes that she will get a higher salary if she makes an effort; she demonstrates instrumentality (Abrahamsson & Andersen, 2005). Valence has to do with a persons perception of the value in the expected result. That would be how much the person likes or dislikes the result that emerges from the effort. The expectations of the relation between effort and results are multiplied with respective valences. The valence is condensed to the question is the outcome I get of any value to me? (Abrahamsson & Andersen, 2005) Figure 4:9 Victor Vrooms Expectancy Theory (Abrahamsson & Andersen, 2005) Expectation That an effort leads to result Instrumentality Expectation that an achievement leads to result Valence What value one credit the results EFFORT ACHIEVEMENT RESULTS What is the probability that if I do a good job that there will be some kind of outcome in it for me? Is the outcome I get of any value to me? Present situation | 21 5 Present situation A review of the current situation at AstraZeneca will be presented in this part of the masters thesis. The text presented is chosen with respect to the areas of interest but with some complementing areas to make it possible to get the whole picture. The information is gathered in interviews with the employees and from studies of internal systems and documents. 5.1 Active pharmaceutical ingredient production site API is the abbreviation for Active Pharmaceutical Ingredient and represents the chemical substance in medicines that affects the human body. Every pill manufactured weights a lot more than its active component due to the fill substance. The weight of the active part is stated on the blister and the wallet, for instance 20 mg when the pill actually weighs two gram. The API production is the first step of the manufacturing process and situated upstream in the supply chain. It is a chemical factory producing large volume batches for further processing or exporting to other of AstraZenecas international organizations. The plant constitutes of two major factories of interest, the SYFA (Syntet fabrik) and the EFA (Ersttningsfabrik) SYFA was built in 1974 and it is a multipurpose chemical mixing plant capable of producing a wide range of substances. It is being used as a back-up plant in case outsourced plants are experiencing difficulties in their operations. The SYFA plant is currently working at about 30 % of its capacity and the spare capacity also works as a buffer for the organizations internal demand. In SYFA there are four sections which are independent of each other. A single section is reported taking one year to master. The EFA is a modern state of the art installation and it is highly automated with little attention required by its operators. The EFA is a multipurpose facility comprised in three sections. Each one of these contains a reactor hall with four reactors. It is an eight story building with the control room placed at the sixth level. The factory is built with a gravitational flow so the raw materials are inserted at the top floor and the finished substance comes out at the bottom floor. To understand the concept of the EFA one has to view the underlying philosophy. EFA is built around a cell philosophy of which they separate the products in separate production facilities, inside the factory. The cell structure is to minimize the risk of cross contamination. The production units can then be interconnected to produce different substances. Also it is easier to perform maintenance in one cell block meanwhile production continues in the others. A benefit with three sections with identical equipment is that the speed of implementation and the learning process is augmented when a new substance is introduced. To connect the different cells a manual operated jack panel is being used. This makes it easy to clean in comparison to a more complex, automated valve. The principles of the production flow are shown in Figure 5:1. In the reaction process substances are mixed with solvents to start a chemical reaction in-between the ingredients. This liquid is then processed to the next manufacturing phase, the separation process. Here the liquid is layered, separating solvents (called mother liquid) from the product. The product is now viscous, like milkshake, which is to be dried out so it will be a dry powder. This is done in the Present situation | 22 drying process. At last the powder is filled to barrels and shipped to the finished goods inventory ready for use. The powder can for instance be used in the tablets production.
It is important not to spread dust and gases from different chemical substances and solvents, thus all chemicals are being handled in separate rooms to ensure integrity and risk of contamination. There are rooms for the dispensing of dry commodities, for batching of dry commodities and for dispensing liquids. Due to the fact that the rooms are dedicated for chemical filling, they are abstemiously decorated. This is to make the rooms easy to clean and to reduce the risk of contamination. For the thermal processes in the EFA there are several machineries which require intensive maintenance. The heat exchangers, pumps and condensers are all placed in separate thermal process rooms. This does not only help the maintenance staff but also produce a better working environment for the operators making it almost noiseless outside the machinery rooms. 5.2 Maintenance strategy
Figure 5:2 TPM Pyramid (AstraZeneca, TPM pyrmid, 2009d) Substance Inventory Solvent Inventory Charging Reactor Process Reactor Centrifuge Dryer Filling to Barrels Finished Goods Inventory Drying Process Separation Process Mother Liquid Drainage Reaction Process API production schematics Figure 5:1 Schematic view of the active ingredient substance production process Present situation | 23 The maintenance department follows a pyramid structured maintenance schematics which is based on a vision to be world class in maintenance management, Figure 5:2. At AstraZeneca this means being green in all of the boxes in the TPM-Pyramid. It requires at least 80% completion in a box for it to become green. The Pyramid is a blueprint on how to manage and change the daily routines in the operational base to move upward as each box go from red to yellow to green. The methodology is to start in the base and move upward. The concept is derived from TPM (Total Productive Maintenance), a sibling of the TQM concept and the continuous improvement philosophy as explained in chapter 4.1. This is the main strategy of the maintenance management. It is difficult to study their work and to model exactly where TPM applies in reality but they do measure key figures in order to map how the maintenance work is improving. The maintenance department is encouraging a cultural change where everything is reported back in the CMMS system. They stress the fact that a job is not done until it is also reported in as finished. This is important for the maintenance engineer to follow up on performance. Another issue is the cultural aspect of TPM. It comes down to what kind of motivational strategy is being employed. One of the most important factors in the strategy is continuous improvements by all personnel. However TPM specialist priority is to convince the top managers first and then convince the middle managers. When he a has reached the line managers then have the line managers convince the operators that they need for instance; to adopt an operator maintenance mindset. 5.3 Standard operation procedures A standard operating procedure (SOP) is the framework of the way the work is conducted. The purpose of SOPs are to make sure that the work, in this case the maintenance work, is conducted within the boundaries of Swedish and international law. The SOP states that the maintenance work needs to be done with a certain degree of documentation due to the traceability requirements in the pharmaceutical industry and in particular the Food and Drug Administration (FDA). It starts with defining maintenance, corrective maintenance and preventive maintenance. The definitions are important because mixing up terminology can lead to misunderstanding and thus mishap. In the maintenance management there is a hierarchical structure of the SOPs, Figure 5:3. Present situation | 24
The first thing stated in the highest aggregated maintenance SOP; the Plant Registry (ANL). To achieve control in the facility it is crucial to have an understanding of the structure and where the equipment is located, given the 250 000 items only at the Snckviken facility. Next there is the documentation of the items. Such documentations can be the blueprints of facilities and machinery. The SOPs also state the handling of the machines test report. The importance is that the work is conducted in obedience to the best practice procedure. As the maintenance work is broken down to its components the SOPs are getting more specific regarding facility documentations, safety, health and environment, buildings and process equipment and control systems. The SOPs of AstraZeneca are based on best practice procedures to ensure that the requirements supersede both the legislative conditions imposed by authorities but also good manufacturing practice. What is described in Figure 5:4 is the staircase of control vs. workload that show that the law requirements are the lowest standard of maintenance and control. The second step is the Good Manufacturing Practice (GMP) and represents a standard level control in the industry. The highest level of control and also workload is the Best Practice procedures. It is not always sound to employ Best Practice procedures if it is not called for.
Figure 5:3 Hierarchical structure of the SOPs associated with maintenance Law requirements Good Manufacturing Practice Best Practice Increased work load I n c r e a s e d
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ANL Item Number Registry Facility Documentation Safety, Health & Environment Buildings and Process Equipment Process Control System Figure 5:4 The SOP staircase Maintenance SOP Present situation | 25 5.4 Planning coordination The site production planning and scheduling at API are managed by maintenance engineers, production planners and calibration engineers. To coordinate and synchronize the different plans there are two coordinators employed. The coordinators objective is to act as a link between production planning, maintenance planning, calibration planning and production scheduling. The coordinators work is important due to the fact that there is no computerized link in between the different activities. There is no tool for sharing quantitative information between the departments, thus they rely on intimate and informal communication. If a conflict arises it is usually resolved through discussion and cooperation in between the departments. When a conflict cant be solved with a good outcome for both parties, the production planning often is the dominant one. When scheduling the three disciplines there is a risk that each one adds some extra time to ensure they managed the work in time. A problem mentioned is that all three adds their own safety time, adding up to an unnecessary large amount of safety time. If there is e.g. a stop in production due to unplanned maintenance work or a calibration activity the responsible manager contacts the production coordinator who tries to re-plan activities so that all interests are fulfilled. If that is not possible the coordinator calls for a meeting where the managers discusses and comes up with a solution to the problem. The coordinators function is shown in Figure 5:5.
Figure 5:5 The coordinators organizational function 5.5 Production planning The production planning process is managed by two employees. To give an equal work load the products are split on the two planners. In total there are 8 end products and 28 types of raw material excluding solvents. When the raw materials are ordered the planners need to consider both the supplier lead time and the time needed for validity control. The validity check procedure is regulated by law and internal policies. This is to ensure that the raw material is at a proper quality level and to get it approved for production. The lab, that controls all incoming raw material, has a maximum time limit of two weeks. In exceptional cases this time can be reduced when there e.g. is a stock out of a crucial material. The lab is regarded as an internal organization and it is located at the Snckviken compound. Production Coordinator Maintenance and calibration planning Production planning Production scheduling Present situation | 26 The orders and planned production are implemented in a computerized system. In the system the production planners can check current inventory levels and forecasts for the different products. The forecast has a time bucket of one year and are updated once a month. Internal customers like e.g. Liquid and Tablets have a vendor managed inventory (VMI), which makes their inventory levels available in the system. External customers update the forecast through a market department. Due to the planned shutdown of API in Sweden the current production strategy is to increase the inventory level of finished products. This is to handle the transition period when the Swedish plant reduce its production and the new plant is starting up. There is also a speculation inventory build up in substances due to new product releases. When the new products is approved and introduced a large increase in demand is expected. And to level the load in production this inventory build up is initiated. The tool used in planning is an Excel based material resource planning (MRP) sheet. The two planners have developed their own sheets, though with similar layout and structure. The planning method used is similar to cyclic planning with orders recurring with different time periods. The method is not scientifically based but rather depends on the planners expertise and experiences. The forecast used by production extends over a one year time period which makes the planning horizon twelve month. At the beginning of every week the manufacturing unit is updated with information about the upcoming weeks planned production. This is managed by the planners who attend at a morning meeting. At the meeting they present the weeks job and give production cards to the person responsible for the detailed scheduling. The cards include information about lot number, name of the substance and the batch quantity. The detailed production schedule is then set by, for instance, a group leader that are familiar with process times and current capacity situation. The process is visualized in Figure 5:6.
5.6 Maintenance planning At AstraZeneca, the maintenance department works alongside the production planning department. At each flow; EFA, SYFA, METO/PILOT, Solvents and Warehouse there is a maintenance engineer, Figure 5:7. The maintenance engineer is responsible for planning and managing the maintenance at their own flow. Every month the maintenance engineers are to report the status of the maintenance to the maintenance director at API who reports to the chief of API. This is to inform the top management of maintenance that has affected or will affect the production capacity. Production scheduling C B A C B A Forecast Production planning 1 week Figure 5:6 The production planning process Present situation | 27
Figure 5:7 The maintenance organization structure. (Jaensson, A. 2010) The maintenance work, performed by the maintenance engineers, does not follow any pre- defined process or guidelines how to fulfil the work. Instead the different flows have developed their own routines and ways to manage the work. Of course there are general guidelines on how to manage maintenance but there is no specific instruction in detail. The general work procedure is regulated in the SOPs (standard operation procedures), more detailed described in chapter 5.2. Not all competence and experience are available within the own flow or unit. To cope with the competence issue, consultants may be needed. It is the maintenance engineers responsibility to assure that the maintenance worker possess the right competence. A maintenance manager is employed to synchronize and connect the work between the flows. The manager has an overview of the situation in on-going work and is also used as a link between both flows within API and to external consultants. The overall technical responsibility is delegated the manager and the director is the one ultimately responsible for the maintenance issues being solved. The maintenance department uses a system called, SAK 142 further described in chapter 5.9 and it comprises; ANL (Plant registry), AOH (Work order manager) and FUH (Preventive maintenance manager). It is aimed to systematize the maintenance process. The traceability for maintenance and calibration is crucial to comply with authorities demand for the origin of a specific batch in case of a mishap or a recall. 5.6.1 Preventive maintenance In API the preventive maintenance is based on several aspects. The interval between maintenance varies from one week to several years depending on the equipment. The intervals are regulated by the vendors recommendations, process and product requirements, legislation, and experience and risk assessment. The maintenance work aims at being evenly distributed over the year, so that the organization is able to handle the work internally with current capacity. When production is expected to be low there are more equipment planned to be maintained and vice verse. The general work process for preventive maintenance at API is described in the following text. The process can be seen in Figure 5:8. Maintenance director API Maintenace engineer EFA Maintenace engineer SYFA Maintenace engineer METO/PILOT Maintenance engineer Solvents Maintenace engineer Warehouse Maintenance manager Present situation | 28
Figure 5:8 The preventive maintenance process The preventive maintenance plan is based on upcoming maintenance work. This information is gathered from the system FUH. When a plan has been established the preparations can begin. This is an important phase and includes many crucial activities. The planner needs to ensure that the repair materials are available. An order of the needed parts has to be placed and a delivery lead time has to be considered when scheduling the work. When scheduling the job the planner also has to consider that required personal and equipment are available. This is to make the stop in production as short as possible so that the productivity can be kept at a high level. When the job is completed it has to be reported and documented in FUH. A brief description of the job and the cost associated with the task are put into the system. The due date for the next maintenance activity is updated and when the report is finish the work has to be controlled and approved so that production can start again. Some maintenance work is of different character, for instance an oil change in a motor or controlling pressure levels. These jobs dont require any material and can be performed while production is still running. The level of complexity is also low and the work can be performed by operators or other personal associated with production. To make this process effective the maintenance engineer establishes a list of jobs to be performed within a time period. This is called a round list and it is delegated to a group leader, by a maintenance engineer who is responsible. When the work is finished the performer reports back to the maintenance engineer who registers the work as completed in the system. There is always a risk that some maintenance work hasnt been performed in time, due to different causes as insufficient resources, delayed part delivery or that the planned execution time is hindered by an overdue in production. These unfinished tasks are compiled into a delayed-work-list. The maintenance planner has to revise all the delayed work for the plant top management. The severance of each unfinished work order is determined and a handling plan is established. Some maintenance may be regulated by law or crucial for the production. In these cases a deviation report and a plan for how it should be handled needs to be performed. For non critical maintenance work the task is moved to the next time period and handled according the standard procedure as described above. 5.6.2 Corrective maintenance As in all industries there are unpredictable failures and errors that are hard to foresee. Should this happen, API has established a predefined action plan, Figure 5:9.
Figure 5:9 The corrective maintenance process (AstraZeneca, 2009b) When an error or failure are detected the production immediately need to be informed so that production, if necessary can be stopped. In the system AOH a work order is established. Depending on the error, the right department is contacted and the preparation for the job PM plan Preparations Completion Report Control and validation Error detected Technician and prod.flow are contacted Preparation Completion Documentation Inform production unit Present situation | 29 begins. If the production needs to be stopped or the failure risks to be crucial for product quality or safety, health and environment (SHE); the job is classified with emergency status and this is also marked in the work order. For important matters the system is used as a documentation tool and not to execute the work order. The communication is performed via telephone or person to person to get a fast and short process time. To perform a job at AstraZeneca a working promotion has to be established. The working promotion describes what and when the work can be performed. This is to prevent accidents and to ensure that the worker has the right qualifications. When the preparation is done the work can be completed and the repaired equipment tested. The work performed is reported in AOH and the production unit is informed so that production can re-start again. In this phase the work promotion is enclosed. For errors not vital for product quality or SHE the job can be postponed to a more proper time for execution so that production can continue without interruption. These errors are registered in AOH and a maintenance engineer handles these orders. When an order is registered the manager has to attest it and start preparing for the job. The preparation process for postponed orders is the same as the preparation phase for preventive maintenance. When the job is completed the work needs to be registered and documented in AOH. Some equipment is classified as crucial and some may cause a change in product quality. For these errors a deviation report has to be made due to legal regulations. 5.7 Calibration planning The calibration process is a crucial activity to make sure the equipment is measuring right. The measured parameters need to be within the boundaries of what is tolerable both to AstraZeneca internal requirements as well as the authorities. In calibrating the systems at the Snckviken compound a computerized calibration system is employed. The company requires, in its corporate world wide maintenance strategies, that the calibration and maintenance work should be performed and logged in a computerized system to enhance traceability and to ease up information handling. The answer to this guide line is the recently introduced CMX 193 system which is the calibrations management tool. The system was introduced in 2005 and replaced the paper procedure which had become obsolete. When the new system was introduced the culture was not embracive towards leaving the traditional paper form. The CMX software led to a better understanding and overview of what equipment needs to be calibrated. There is a search function to see at what date and in what time span a calibration is due, this simplifies the calibration planning process. It is simple for a calibration technician to look at the results and contributions of others, to have an up to date view of the actions and what needs to be done. The calibration is managed by a department called Serviceteknik which is responsible for the operational calibration at API and at the R&D department. Under the calibration engineer there are five full time employees working towards API. There is a total of about 6000 CPs (calibration points) each year that need to be checked at API. To decrease the number of CP, all the non-critical CPs are not periodically checked. These are only calibrated when an error is spotted and the equipment has been repaired or exchanged. All the critical CPs is checked within a predefined time interval established in forehand. Serviceteknik is working to revise those intervals and change them to be more appropriate. This is because of the parameter values for some CPs remained constant over several calibrations revisions. This Present situation | 30 work is also done to reduce the number of calibrations per year. This leads to a request for quality and assurance to increase the calibrations intervals. When performing calibration there is need for validated equipment like for instance a reference multi meter calibration tool. These tools are located in a centralized storage that is shared between other calibration departments at AstraZeneca. There is a booking system where the departments need to reserve the tools for the time when it is needed. There are occasions when a tool is double-booked in the system. This causes problem due to that the calibration is planned in the production schedule and need to be performed within this time span. I these occasions the maintenance manager prioritizes what calibration that is most urgent and which that can wait. The one responsible that the equipment is calibrated is the maintenance engineer at each flow. The maintenance engineer is the one that establishes a work order in AOH, which the calibration department reports to. The one responsible to gather the upcoming CPs is however delegated to the Serviceteknik. The work process is shown in Figure 5:10.
Figure 5:10 Calibration work process (AstraZeneca, 2009b) The spare part storage within calibration is inadequate and there is no computerized database that contains information about stock kept items. The most efficient way of getting spare parts today, is to go to a local retailer instead of searching in the storages in Snckviken. Serviceteknik is also involved in more large-scale projects where different departments need to cooperate for instance when installing a new reactor. In these jobs there may be need for a mechanic, an electrician and so on. The Serviceteknik manager has experienced a lack of coordination in these projects. It does not seem to be a clear leader and this makes the work unstructured and sometimes inefficient.
Serviceteknik gather upcoming CP's and send it to a maintenance manager The maintenance manager establishes a work order in AOH Requsts for time in production schedule Booking equipment and personal Completion Backreports in CMX and SAK Present situation | 31 5.8 Key measurements The key measurements used by the maintenance team at API are: Technical availability (TA) Mean time between failure (MTBF) Number of unfinished work orders Number of urgent work orders Number of critical deviations The technical availability is calculated at each of the production flows and the target is to exceed 95 %. The low TA in April was cause by a major breakdown on one of the machines that required a long repair. The formula used for the computation is: =
The last year history of TA is shown in Figure 5:11.
Figure 5:11 History of TA at API 2009 The measure, MTBF, has recently been introduced at API. This is calculated to get an overview of how often the stoppages occur in the production flows. The current target is primarily to log all failures in a proper way so it can be used for further analysis and the more long-term goal is to lengthen the time between failures. When there is a stop in production there is a paper form that is filled in by the operators. The information is compiled and used for the calculation. Number of unfinished work orders is important to use in the analysis of the efficiency of the maintenance organisation, Figure 5:12. Every month there is a follow-up where the unfinished work orders are examined. The most important issue is that there is no GMP or SHE critical orders that could create quality problems or pose as a safety risk to personnel and/or the environment. API has a target where the number of unfinished work orders must not exceed a total of 100 within all flows. 60% 65% 70% 75% 80% 85% 90% 95% 100% 105% Technical Availability 2009 EFA SYFA Meto/Pilot Present situation | 32
Figure 5:12 History of unfinished work orders 2009 Every month the numbers of urgent work orders are counted, Figure 5:13. The information is gathered from AOH and the work orders that are classified with the label urgent and process control system are summed up. The number of these work order has been reduced last year as a consequence intensive work with the classification on the orders. Many work orders has frequently been assign with urgent, even if is not. The goal is to reduce the amount of these work orders.
Figure 5:13 The history of urgent work orders One important issue at API is to run the production quality loss free as this could cause primarily pose as a safety risk for the user and secondly represent a monetary loss. One of the measurements used to examine how the maintenance is performing in this manner is the number of critical deviations that occurs. A deviation can be divided into three risk levels (AstraZencea, 2009c). Level 1 is a serious deviation that could negatively affect the product quality or a critical departure from the GMP (Good manufacturing practice). Level 2 is a less critical departure from GMP or a smaller product quality deviation. Level 3 is a small GMP departure or a deviation that barely affect the product quality. All the deviations that are classified as level 1 and 2 are logged, and the target is to not exceed 4 deviations over a 3 month time interval. To have the deviations documented and under control is a high priority because of the safety issues posed to customers and the law and regulation requirements from authorities. The key measurements explained above are the ones by the maintenance team at API. These are linked upstream in the organisations through a hierarchical measurement 0 50 100 150 200 250 300 350 400 450 Number of unfinished work orders 0 50 100 150 200 250 300 Number of urgent work orders 2009 Total EFA Meto/Pilot SYFA Present situation | 33 structure. The main targets have been gathered from internal documents (Sweden operations scorecard final draft) and are presented in Table 5:1. Table 5:1 List of internal targets and goals Sweden operations Conversion cost Deviations, level 1 & 2 SCM (supply chain monitor) Inventory TGS (Technical governance & support) UH/site cost TPM API Service level delivery Deviations, level 1 & 2 Waste First class batch percentage Unclosed deviations work orders OMA (Operations Maintenance API/R&D) Unfinished WO/Total WO (FUH and CMX) TPM pyramid Internal efficiency, UH cost/ total cost GMP deviations level 1 & 2 Technical availability (for Brilinta) OMA team Technical availability MTBF Number of urgent work orders. Unfinished work orders in AOH Number of GMP deviations level 1 & 2 5.9 Computerized maintenance management system The system used at AstraZeneca is called SAK142 (System fr AnlggningsKontroll: System for plant control). It is complied by several modules used for different purposes, Figure 5:14. The three main modules are ANL (Anlggningsregister: Plant registry), AOH (Arbetsorderhanteraren: Work order manager), FUH (Frebyggande underhllshantering: Preventive maintenance manager). These independent systems are connected to each other via joint database called Oracle discovery. SAK142 is ER-secured (Electronic Record) which means that all changes are traceable in time and individual. The importance of saving the historical data is related to the traceability requirements from the federal regulations. Every end-product must be traceable through the manufacturing process and the supply chain.
Figure 5:14 Schematic view of the maintenance information system (Based on AstraZeneca, (2009e) Oracle discovery Preventive maintenance manager Work order manager Admini- stration Plant registry SAK142 Purchasing Economics Billing AOH ANL FUH Present situation | 34 ANL is the system for maintaining a good knowledge of the machines, equipment etc. that are related to a unit. Every item gets an individual identification number in the system where maintenance information, documentation, needed spare parts and other relevant information are registered. The system has a hierarchic structure which makes it easy to identify a location for a chosen item, Figure 5:15. This feature is also a regulated by law and by privies, for instance insurance companies and Swedish work environment authority. The basic idea with the system is that one should be able to locate equipment easily and declare where it is located. This module is also used by the AOH and FUH where maintenance and work orders are connected to specific equipment. In total the systems contains about 250 000 individual items.
Figure 5:15 Principle view of the hierarchical system structure. The module AOH is the most frequently used system for maintenance as it handles and administrates all work orders that are generated. When an error is found the operator writes a work order with the most important information such as a description of the problem, the ANL number, the initiators identification and information about whether the problem is urgent or not. From this information, the maintenance engineer attests the work order and start planning the work. All information about preventive maintenance is kept in FUH. A list of upcoming preventive maintenance work can be extracted from the system. The extracted works are compiled to a round list which is supposed to be completed within a defined period of time. This is described in more detail in the next chapter. The information and data for the whole organisation is handled by several different computerized systems. A world-wide project is initiated which will gather all the separately systems into one. The enterprise system that will be introduced is SAP. 5.10 Mechanical workshop and operative maintenance The workshop focuses on supporting the mechanical equipment at the manufacturing site. Such equipment might be pumps, motors, pipes, mixer arms etc. If any mechanical component is malfunction or down the item is removed and examined at the workshop. At the workshop the technicians makes an assessment if the item is to be repaired or replaced. The maintenance staffs, works in some ways in accordance to the TPM model and they emphasize that the best maintenance is achieved if the operators check the oil levels, preventively cleans the equipment and fix what they can. If the maintenance is too complicated there is a chance that an operator is trying to fix something that is too difficult rendering a faulty installation. In these cases the workshop stresses the importance that the operator maintenance is only performed at a certain level, even if the operator feels confident. There are rules regulating what can be done and by whom. If, for instance, there Building 1 Machine A Generator X Motor Z Machine B Generator Y Present situation | 35 is an electrical installation it requires a certified electrician. The traceability is also important at the work shop; they use the SAK142 but also utilize the invoices to monitor the work orders mainly for budgetary control. The work shop reduced its workforce which makes the work load high and the schedule compact. When they utilize consultants to cope with the capacity the policy is to quickly make the consultants productive by following experienced maintenance crew. At the same time the maintenance crew is learning from the consultant whom usually is an expert in his field. 5.11 Motivation In order to motivate the employees at API there are individual monetary bonuses. The total bonus to divide in between the employees is related to how well API reaches its goals and targets in the organisation. The bonus is then divided in the different departments and finally set on the individual. How the bonus is divided to each of the employees is determined by to what extent they have reached their individual goals. These goals are reviewed and updated once a year in order to continuously improve the skill of the workforce. In order to inform the employees of performance in the Lean and TPM work there are charts in the factory environment. These aim at keeping the crew motivated as they can supposedly see the how there work influences the performance of the improvement programmes. The motivational work is also based on how card (Hur-kort) which is a goal setting programme revised at least once a year. The cards are followed up and we see them as a good suitable tool. The power of the how-cards are based in how well the employees and employers get along and assign it meaning and value. A bit more of responsibility could also be assumed by the employees. This might be solved if there will be more rewards based on the follow up on the how cards. The how card in itself is used to discuss suitable goals during a given period of time where the boss writes down expectations, goals and a timeframe in the how cards. It is reported that more dedication is wanted from the employee. The employer wants the employee to assume more responsibility and show more interest in the system. The problem has been that the technicians have been negative out of inconsistent follow ups and bad system support thus questioning the reliability of the system. The commitment towards the how cards have been rather cool and not particularly embracive. The vast majority is reported to regard the cards on a sceptical note although some appreciate the concept. The follow ups are reported inadequate during 2010. This is mainly on the technician level whereas the managers and engineers already are used to goal setting and follow-ups so they are merely regarding the how cards as a formal tool to do what they already have done for some time. The challenge is thus getting the culture embracive towards the technician level. The image is a bit like that the managers are still pushing it down on the technicians and it has created a bit of a clash.
Present situation | 36 5.12 Strengths and improvement potentials This sub-chapter presents the strengths found at API but also weaker points where there is room for improvement. The found weak points will later be analyzed and considered when generating the improvement proposals. Strengths Intelligent factory design, easy to operate and maintain and it provides a good oversight of the production process. They work with goals and have goal setting as an important part of the agenda. There is a bonus system as an incentive to well performed work. Working with reducing the number of calibrations points. Multifunctional calibration personal, can perform work in automation, calibration and electronic. Project initiated to cope with spare part handling. There is a common maintenance strategy selected for the whole AstraZeneca group and that the TPM pyramid is a common tool to measure the success on the improvement work. The SOPs are calling for best practice procedures from a quality and brand name perspective. SAP project is initiated. This might further simplify the productions and maintenance process and further increase transparency in the operations. Highly experienced maintenance engineers and maintenance workers which have great knowledge about the processes and equipment. The mechanical workshop can do their own spare parts and have their own easily accessible mechanics. There are short lead times because the mechanical workshop can fix items in place. The mechanical workshop advocates operator maintenance and is not afraid of losing work assignments. Areas with improvement potentials Project management in cross functional projects is not standardized, where a dedicated project leader could provide useful coordination making sure that five employees work effective. Hard to get calibration equipment, it needs to be booked long in advance. There are no historical data of the time needed for calibration. CMX does not support time reporting. It is hard to understand what needs to be done to go from one step to the next in the TPM-box. That has a negative impact on the motivation when the road to success is not clearly mapped out. And when the cause and effect of the effort put in translated to tangible results is not fed back properly. No TPM-charts that provides information on where the TPM work is at and what needs to be done to go from red to green in a particular box. Present situation | 37 It might me pricey to always conduct business above GMP standard or even above law requirements. The generic enterprises might compete in a lower standard but to a lower cost and the clientele might be more cost-sensitive than quality focused. Production planners have no easy access to information in any system about the production schedule and needs to rely on printed plans No clear overhead / top down view and process for handling changes in the production schedule. All maintenance, production and calibration utilize their own safety time in planning; this makes for unnecessary large portions of safety margins in the planning and scheduling when each entity inserts their buffer time to be on the safe side when planning. The usage of historical data from SAK142 is not used, due to a lack of quality in the data. The back reporting work orders in AOH is not fully utilized. Individual working processes, every flow has its own way to work. The measures of MTBF have no connection to SAK142 but is handled in separate papers forms. The goal setting in individual key targets is not completely mapped out. This can be a problem in motivating the employees because there is little consistent and mapped out road to success. Little attention made to the intrinsically motivational aspect like personalized goal setting and instigating a particular towards goal culture. The bonuses are divided in a relatively evenly range on the personnel. This could affect the motivation of a well performing employee. Vague towards goal motivation and cultural change anchorage at the site (secondary anchorage). Little attention on how to make all technicians charged up. High focus on top management support and low attention on the hands-on technicians support. Long time between achievement and reward. Little to no intrinsic motivation strategy in place and thus a loss in tools to motivate to performance.
Analysis | 38 6 Analysis This chapter will present the analysis of the current situation at API. The focus of the analysis is chosen with respect to the purpose and area of interest in this masters thesis. 6.1 Total productive maintenance The TPM work at the Snckviken facility is working on the pyramid and has some green and yellow boxes but still the TPM Pyramid has long way to go to become world class. When asking anybody in the maintenance department staff, except the directly responsible maintenance managers, where they are at in the TPM pyramid, they do not know what box in the pyramid they represent. Neither do they know what colour they are, in the box. The maintenance crew; the people that are the closest to the problems and the closest to the solution might not have a clear view of the goals. They should be able to tell, where they are at and where they are heading and why. The why part, is one of the most important aspects of the Y-theory strategy; given that the basic rule in TPM (Wireman, 2004) is to train the staff to improve the skills of all people involved. This means also to adopt a way of thinking that motivates everybody, at every level, to want to do their best. This means to have all personnel have a maintenance viewpoint and report variation and suspected errors regardless if it is their job or not. Also it means to activate the group consciousness at all levels and all departments.
The implementation of TPM is a change of mindset and culture. To speed up the change of culture it is necessary to have a primary anchorage and a secondary anchorage, see Figure 6:1. The primary anchorage is the convincing of the leaders to embrace the new mindset. This is a top down approach. According to Wireman (2004), TPM needs to have the full support from the leaders of the organization. It should be very possible to have a spontaneous dialogue with any technician on how this weeks MTBF was, compared to last weeks. Today that is not the case because they usually dont have a clear view of the key measurements or TPM pyramid advancements being Technicians Maintenance Engineer Maintenance Manager API SweOps The boss supports the idea = Primary anchorage Information charts, competition, team spirit, results posted public = Secondary anchorage This is important for the positive Y-based TPM-culture awareness to become a full swing grass roots empowerment movement. Secondary anchorage is an information chart on the wall telling and reaffirming people why it is so important for the company survival. New culture gains momentum. Figure 6:1 TPM Implementation and cultural change pyramid anchorage schematics Analysis | 39 made. These types of measurements and their interconnection to other key figures should be visible out in the factory and in different places around the facility for everybody to get involved in the TPM process and to communicate the information of where the organization is at and where it is heading according to Bowen and Lawler (1992), for having a motivated staff. It is important to have the information charts of the TPM work, with focus on respective field of interest rather than just a standard AstraZeneca pyramid. The problem is that even if AstraZeneca has a well organized TPM pyramid it is few people that actually understand what the pyramid represent and what needs to be done to go from red to green colour. A focused pyramid could help ease this and make the specific department understand which TPM pyramid boxes that are important to them and how they will work (brake down of key steps to reach their specific goal) to get to the next TPM-level. If there is a goal; but the goal is not well defined and the route to get to the goal is not clearly understood then there will be no expectancy from the employees and it wont be motivating when the expectation and instrumentality is lost. The absence smaller of steps (part goals) to reach the final goal takes away the perception that an effort leads to results and rewards that are relevant. This is some of the improvement possibilities that the TPM pyramid has at AstraZeneca. It is not easy to understand and the part goals are not sufficiently detailed to provide fuel and incentives The maintenance strategy chosen is the TPM concept. The TPM is more of a concept or philosophy than a guide. Wireman (2004) give the five rules of TPM: 1. Improving equipment effectiveness 2. Improving maintenance efficiency and effectiveness 3. Early equipment management and maintenance 4. Training to improve the skills of all people involved 5. Involving operators (occupants) in routine maintenance The rules stated might be derived from the auto industry. In the particular pharmaceutical industry we are looking at, it is more focused like this (due to excessive capacity). 1. Involving operators in routine maintenance 2. Training to improve skills 3. Early equipment management and maintenance 4. Improving maintenance efficiency and effectiveness 5. Improving equipment effectiveness (It is the inverse of the TPM strategy above.) Every time a manager needs to convince another manager below there is a risk for drift in information fidelity and also a drift in scope. The TPM responsible is newly appointed and also have a large set of responsibilities and may not spend as much time in the field as they want. With little hands on involvement it can be difficult to change the culture within the maintenance team. That is why a further involvement from the TPM crew and more information charts that shows the current state of the TPM work, may be needed. The indifference might be due to the downsizing policy. More likely is it solely based in the fact that there are few measurements and few incentives. The motivational strategy is based in the go with the stream attitude rather than the towards goal motivation. Nevertheless are Analysis | 40 there any information boards on attitude and enlightenment on what is being done and what financial implication the maintenance has to the final profit. To have a monetary effect analysis of the maintenance work effort could work as incentive for the maintenance crew, an emotional reward for them to see what kind of a difference they make to the profit. We dont see the cause and effect connection, or simply put the direct measurement of what the maintenance crew is doing and the direct feedback on their great work. 6.2 Maintenance management The maintenance work at API is functioning well and the availability is above the targeted level. When analysing the data from Oracle discovery the relation between the critical and non-critical work orders can be seen, see Figure 6:2. This is not to be mixed up with the earlier mentioned total cost curve by (Johansson, 1993). In this figure there are no costs or time considered since this data is not logged in SAK which makes it hard evaluating the economical effect of the different maintenance policies. Because of the quality in data in SAK the historical data cannot be used effectively. The only data used are the data necessary to produce the key indicators. Not even the data for calculating the MTBF is gathered from SAK but from a separate data handling procedure.
Figure 6:2 The relation between critical and non-critical work orders Related to the use of historical data from SAK is the quality of data in the system. The maintenance engineers have worked to improve the quality in data. The maintenance workers that fill in the work order, called back report, does not report in sufficient amount of data thus the integrity of the measurements is compromised. To mention is that, after all, this has been surely improved within the last couple of years but still there is a lot of information that is missing in the back reports. To make the back reports more useful they should be strictly defined on the way they are filled in When the data necessary is obtained systematically there will be an easier job to map of the maintenance departments efficiency.. A first phase could include more time reports from which, for instance, the mean time to repair and the cost of different maintenance task could be calculated. When having enough data the preventive maintenance and corrective maintenance could be further examined to optimize the use of resources. Another problem mentioned, is the shortage of project management process in cross functional maintenance work and minor rebuilding projects. This is extra important when 0% 20% 40% 60% 80% 100% M e a n
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o r d e r s / m o n t h Critical and non-critical work orders % Non-critical % Critical Analysis | 41 using contractors, which is common in this kind of special jobs, since they are relatively expensive to use in comparison to employees. The preventive maintenance work is divided into calibration and maintenance work. Since calibration has a separate system, it has its own routines and also its own problems. In CMX, as in SAK, there is very little time data information stored about the capacity necessary to perform the different calibrations tasks. Calibration should be relatively easy to predict in terms of time needed for completion compared to the more various maintenance process times. If there was time data information in both CMX and SAK it would be possible to make feasible and more precise schedules. To decrease the workload of the calibration team a rationalization work of reducing the number of calibrations point has been initiated and is an on-going project. When removing calibration points the effect of running the equipment un-calibrated has to be evaluated. This is done in cooperation with the quality department that is responsible for having the produced products fulfil the specified requirements. The reduction process will in the long run reduce the cost for calibration since the total number of man-hours needed to calibrate the facility will decrease. 6.3 Integration between maintenance and production planning The integration between maintenance and production planning is functioning adequately today and the production does hardly ever get interrupted by preventive maintenance work. The results from the meetings between production and maintenance turn out with good results. The planning process in between production and maintenance is not visualized in a satisfactory manner. The maintenance engineers and managers are not having easy access to information about when production is down. Another problem mentioned is that the operators have too short-sighted information. They have no long term perception of the maintenance and productions planning. The operators are the ones that have the best knowledge about the production processes. Their knowledge and experience should be used more effectively. Due to the short term information available, it is difficult for the crew to come up with suggestions on how to improve the current production and maintenance schedule. In order to make a feasible and reliable schedule it should be documented how much time the different maintenance work and calibration takes. Maintenance work may be difficult to plan in detail, since it differs from one execution to the next. But having a good estimated value should simplify the planning process. For calibration tasks the work orders would be easier to set arbitrarily estimated times. The current planning situation is very person- dependent since the maintenance engineers approximate or guess the time in planning. For an inexperienced engineer, maintenance planning would be impossible to complete in an adequate way. The development of a well working interaction between the different disciplines is hindered by the fact that there is a lot of spare capacity in production. The spare time capacity could be used for completion of unfinished maintenance work. The attitude is slightly characterised by -why change a functioning concept. But in a situation where the plant utilization is higher, the need of a more cohesive interaction will be necessary in order to maintain the availability in the facility with the current capacity.
Analysis | 42 6.4 Performance indicators The current maintenance performance measurement system is shown in Appendix 1. An interpretation and analysis of the connection between the different levels in the structure have been made to get a clearer view of the link to external measures that customers deem important. This analysis will focus on the measurements on the level of OMA maintenance team (OMA MT). The OMA MT is responsible for determine maintenance intervals, repairs and when equipment is planned to be down due to maintenance. Besides the operational decision the OMA MT is also responsible for deciding the level of preventive maintenance, skill of workforce etc., decision in a more tactical level. The unfinished work order measures the number of uncompleted jobs each week. The data is gathered from SAK and a list of these order are extracted. Some of the orders handles long time project, e.g. a rebuilding project that is planned to run over a three month period. The main purpose for this key indicator is to make an incitement of closing the work order. Closing a work order means that the work has been performed but it hasnt been registered into the SAK yet. The number of unfinished work order is a lagging indicator at the tactical and operational level. It is used by the maintenance manager to track the different flows status. Every week the different flows maintenance engineer reports its current work order status. The unfinished work orders need to be declared why they have not been performed or why they are not closed. The urgent work order is used to track failures and error that is classified with the urgent status. This indicates the proportion of corrective maintenance performed each month. The time consumed by each of the orders differs a lot and also the resources needed to complete an order. This is, like unfinished work orders, a lagging indicator at the operational level but could be used as a leading indicator at the tactical level to determine the preventive maintenance. If the urgent work orders are very expensive to complete it may be more proper including them in the preventive maintenance schedule. Needed information to analyze this at the tactical level is cost and/or manpower hour consumed for the urgent maintenance work but at the moment this information is not documented. As urgent work orders arent planned with the same foresight as preventive maintenance the need for spare capacity in terms of manpower and safety time is high when there is a lot of urgent work. Reducing the number of urgent work would make it easier to produce feasible maintenance schedules. But having a very high level of preventive maintenance requires a big maintenance crew. On the other hand, having a low level of preventive maintenance will increase the number of break-downs which is very expensive at AstraZeneca. One has to find the balance between preventive and corrective maintenance to keep the maintenance cost a low as possible, see Figure 6:3. Analysis | 43
Figure 6:3 Total cost curve of maintenance (Johansson, 1993) The newly introduced key indicator MTBF has only been used during a couple of month and for the moment there is no history to analyze. There have been previous attempts of introducing this key indicator. A reason for failure in earlier implementations is, according to the maintenance manager, too little interest in using it. The management havent been genuinely interested in this measurement which may have caused earlier failures. The new attempt is initiated by the management team which makes a more clear incitement for the maintenance engineers to use it. The system for recording MTBF based on a paper sheet to be filled in by the operators. Each stop is documented and the list is then handed to the maintenance engineer who is responsible reporting to the maintenance manager each month. This information is not stored in SAK which makes it hard for future employees finding history information of the stops if they dont have access to the maintenance engineers Excel files, in which the information is stored today. The measure is today presented at an aggregated level for each of the production flows. This makes it impossible to make any conclusions of which equipment that may need some special attention in terms of maintenance. MTBF can be used both as a lead and a lag indicator. I the terms of future prediction, lead, it can be used to identify trends in the MTBF. An increase in the frequency may imply that the equipment needs to be replaced. The lag indication can be used to evaluate the maintenance work since break down is to be prevented by a proper maintenance plan. When recording the MBTF it would be easy also to record how long time the reparation took, time to repair. This could be used measuring the maintenance teams internal efficiency. The technical availability level at API is high, more than 95 % which is the target set. In months when the TA is not that great, the production outcome is of course affected. But because of the fact that there is spare capacity that could be used the stops has no or very little effect on the delivery. The method used for calculating the TA corresponds to reviewed literature for instance, (De Groote, 1995). On interesting finding is that Turbuhaler uses another definition of TA not, by the authors of this masters thesis, found in literature. Turbuhalers way of calculating TA was found in internal document (AstraZeneca, Formler fr berkning av nyckeltal - Turbuhaler, 2010). =
+( , )
0 2 4 6 8 10 12 C o s t s Level of preventive maintenance Cost of corrective maintenance Cost of preventive maintenance Total cost Analysis | 44 Table 6:1 Example of the difference with various methods Total production time Total stop time TA API TA Turbuhaler Difference 400 h 10 h 97,5% 97,6% 0,1% 400 h 30 h 92,5% 93,0% 0,5% 400 h 50 h 87,5% 88,9% 1,4% 400 h 70 h 82,5% 85,1% 2,6% 400 h 90 h 77,5% 81,6% 4,1% 400 h 110 h 72,5% 78,4% 5,9%
This only affects the result of the calculation fairly when the stop times are relatively small. But with increased relatively stop times the difference increases, se example in Table 6:1. This will of course not affect the way of work in the maintenance team at API but could be interesting at a higher hierarchical level when comparing and analyzing the TA in different departments. Within API maintenance team, TA is only used as a lagging indicator mapping the performance against former values. The number of GMP classified work orders is an important tool in the safety, health and environment (SHE) work. Keeping this value at a low value is important both for the safety of the crew at the flows and also for the quality of the products delivered. Since there are strict regulations considering the production processes and how the products are manufactured it is at high priority keeping good track of these work orders. Equipment that are classified as crucial for product quality is classified as GMP critical and these need to be calibrated as all other machines. GMP classified equipment that is not calibrated need to be evaluated at each of these cases to ensure that product quality isnt affected. Historically a lot of the equipment has been GMP classified which lead to high capacity need. The number of GMP calibration points is continuously evaluated to, if possible remove the GMP classification. In the long term this will reduce the work load of the maintenance workers. The current measurement system is not associated with any extra cost for the maintenance department expect for the recently introduced MTBF. The cost associated with this measure is the extra time used by the operator to fill in the form and some administrational work for the maintenance engineer to compile the data at each month. This cost can be considered negligible. The network of measurement at AstraZeneca and API shown in Appendix 1, bring out the link from external customer requirements down to the OMA MT set of key indicators. The set of key indicators is controllable by the maintenance engineers and the maintenance manager. Their work directly affects the outcome of the maintenance via the key indicators. But in order to improve the maintenance there need to be tools that the maintenance engineers can use. This is one thing missing in the current system. There is a proper set of key indicators but the tools to work with improving them are missing. The set of measurements has a high focus in number of work orders, three out of five (Unfinished WO, Urgent WO and GMP critical WO). These dont encouraging the maintenance crew to improve because they cant control this parameter directly. The crew get the work order and are then to fulfil it. The time used to carry out the work is not logged or followed up. Neither is the time the equipment needs to wait before the work begins. Analysis | 45 6.5 Motivation
Figure 6:4 shows how motivation leads to results and what affects the chain from incentive to action. The reward can be intrinsic or extrinsic but preferably it should be a combination of them both. In Victor Vrooms expectancy theory he addresses the why question with his motivational schematics. That the expectation of an effort will lead to a positive feeling when surpassing a key figure goal (intrinsic motivation). Also it might be a bonus that will motivate extrinsically to perform according to the given key figure goals. When the individual to be motivated is given a real tangible measure of where he is at for the moment and is intrinsically or extrinsically stimulated to pursue a goal, it leads to an expectation and that might translate into an effort. When there are measurements there is instrumentality and the achievements are measurable. If the achievement is successful the valence (or the relevance) of the reward for the person is evaluated as if it was worth the stretch. If it was, then the person will be even more motivated taking on the next assignment. If properly understood and embraced by a manager or coach; then this person can soon be self- motivated and needs no or little attention except for the scheduled follow ups. The only thing the manager or coach need to have in mind is keeping the valence of the reward to achievement attractive. That could be a compliment, a bigger desk or a bonus. Dedicated work will be seen and be premiered. For this to work the reference frame for measuring dedicated work and success must be clear. That means the expectations; instrumentality and valence cycle is clearly understood. (Here is one of the remarks to map the cycle out and have it repeat itself faster). Also it is important to map out which technician is having what type of goal and how he or she is moving towards them; posted on a chart on the wall. There are no charts of this type at API to this date. If publicly posted a chart of goal setting and progress on the wall; this most likely results in a culture of towards goal motivation. The Maslow pyramids fourth block the need for status and prestige will come as a positive side effect of starting to measure and to follow up on the results. There will be a competition involved so this need will start to emerge from the follow ups, not only in their rewards, but more from the eager to be the best. Finally the culture of wanting to be the best outperforms and the extrinsic motivational forms. Expectation That an effort leads to result Instrumentality Expectation that an achievement leads to result Valence What value one credit the results EFFORT ACHIEVEMENT RESULTS What is the probability that if I do a good job that there will be some kind of outcome in it for me? Is the outcome I get of any value to me? Figure 6:4 Victor Vrooms Expectancy Theory Analysis | 46
The bonus as an incentive will only reach the third level and constitutes a hygiene factor. It is nice to have but will soon be taken for granted. The need for status and prestige and finally the self actualization are motivational factors and work in a loop manner continually with amplifying effect as the valence of the results keep coming and are attractive. The attractiveness of the valence is based on the good feelings as emotional currency more than monetary incentives as motivator. The emotional currency is very motivational, very addictive and has a very short cause and effect cycle which is good for motivation. 6.5.1 Extrinsic motivation Figure 6:6 shows how the bonuses are too close to each other. The criteria are often vague for setting bonus thus the bonuses are set on a collectivistic basis, not on a performance basis. This incapability to show what behaviour is premiered halts its sole purpose. A problem with extrinsic motivation such as bonus is also that it takes long time from the point the achievement is made to the actual reward. That is why a compliment (or a hand on the shoulder) many times is more powerful than the bonus part; because it shortens the achievement reward cycle. This type of extrinsic motivation is utilized by a Y-thinking boss/leader/manager. The motivational work done at the maintenance department are existent but might be improved. There is a bonus system that is connected to targets. But often the targets are vaguely set or even worse that the goals are set the same month that the bonus is to be Figure 6:6 The bonus (incentive) made out of percentage of base salary 50 % of base salary (Everybody is in the 15 % of base salary at the moment) 0 % of base salary 50 % of base salary Have the guts to review the past years goal achievement and to pay bonus from that standpoint. (15 %) (5 %) (50 %) Physiological needs Safety needs Social needs Need for status & prestige Self actualisation Higher order need Intrinsic motivation has a loop characteristic that amplify motivation. More powerful than a bonus. Bonus only reaches the social needs level and is extrinsic motivation. Figure 6:5 Intrinsic and extrinsic vs. Maslov's pyrmid Analysis | 47 paid. For a bonus to be motivating the goals need to be set a year before. Another problem reported is that the bonuses are set too close to each other there should be a greater span between the percentages of the base salary the employees are paid as bonus each year and that it also should be heavily connected to goals achievements. Otherwise much of the effect of the bonus is lost and is merely viewed as an extended salary and is thus not motivating to the individual. Not having efficient goal setting also makes employees that actually do a great work think they dont; merely because they have nothing to compare with. Another aspect mentioned during the interviews is that the workers union halts the flexibility of the bonus system. The union takes a very collectivistic standpoint and questions or blocks many attempts to pay more for great achievement. Also sometimes it is hard for the boss to give his employees different pay not only because they have not set tangible goals but they might have worked together for 15 years and the boss simply cant heart not to give his friend and colleague a bonus. Also the group pressure around the coffee table as well as jealous sentiments from the non-beneficiaries can be hard to handle. These types of problems are easier to cope with if real tangible goals are set up and thoroughly discussed a year before. A problem with extrinsic motivation such as bonus is that it takes long time from the point the achievement is made to the actual reward. That is why a compliment or a hand to the shoulder many times is more powerful than the bonus part because it shortens the achievement reward cycle. This type of extrinsic motivation is utilized by a Y-thinking boss/leader/manager. 6.5.2 Intrinsic motivation More powerful but harder to manage is the intrinsic motivation. In the Maslow pyramid it is the top two, the higher order need; the need for status and prestige and the self actualisation seen in the figure. As mentioned in earlier chapter the higher order need loops and the satisfied need leads to more motivation. As an example a person is getting more used to report data back into the work order system and get feedback from the maintenance engineer that it is appreciated when doing so, soon make it standard operating procedure and also takes pride in performing the activity. Already the maintenance manager is aware of the importance of this loop and investigates in how to amplify the loop and make the intrinsic motivation stronger. The API has highly skilled and well performing technicians so the goal setting should be individualized depending on skill but aligned with the goals that the organization have outlined. This is why the key measurements and dividing the different goals into sub goals until it actually has reached down to an individual level is important. The goals and key figures must be divisible and that is a chain that is not completely mapped out, throughout the API maintenance organization. Nor is it visible in the form of a chart on the wall. It is important to see the results of the work (Hertzberg, 1968) to have a direct reward to performance in order to maintain high motivation. Analysis | 48 Unsatisfied need Motivation Action Satisfied need Finish Unsatisfied need Motivation Action Satisfied need Lower order need Higher order need
It is important to look at each individual, to map out the achievement needs (McClelland, 1955) and look how it conjunct with the expectancy theory to figure out what is important to each technician and make individualized plans (Abrahamsson & Andersen, 2005). If one makes the employees understand and work towards an intrinsic goal and give them responsibility and mandate, the technicians most likely will be more self-scheduling and also more personal accountable. According to (Hertzberg, 1968) the employees given freedom under responsibility in the clerical typewriting study conducted internationally in 1986 that the Y-theory actually scientifically proves that the work was performed more efficiently in a Y- based environment. 6.5.3 Leadership and cultural change at API The leadership at the Snckviken facility is characterized with a laissez-faire attitude where the hierarchy is not over emphasized and there is a natural dialogue occurring in between the departments. The informal approach is good for information sharing and is reinforced by the cross-departmental lean-meetings they have every morning. Sometimes the leadership can be too soft and too laissez-faire when for instance the planning is halted because it is unclear who is determining what, as with the production and maintenance planning problem. 6.6 Performance indicators related to motivational theory The key measurements and the motivation theory relate to each other. The purpose of measuring is to have a gauge on where one is at for the moment and also if the results measured are good or bad. Key measurements are necessary in comparing the results to prior performances and the competition. As discussed earlier the towards goal motivation strategy as the underlying formula for the TPM work. In the towards goal strategy it is necessary to know where one is at and where one is heading. It is also important to understand what one wants; otherwise it is hard to set a goal. So the first step seems to be to map out where we are. Next question to ask is what we want and maybe why. When the goals to be achieved are understood and mapped out as well as the road to get there; a series of questions arises to the subconscious mind. The subconscious mind immediately starts to seek out possible solutions to pass the obstacles and reach the desired outcome. So now the subconscious mind is actively seeking ways to get to the point visualized. Now the subconscious mind works in our favour seeking ways and reasons why the plan will work, and not the opposite. This is towards goal motivation or according to (Robbins, 1991) Figure 6:7 The Maslow Pyramid intrinsic higher order need compared to lower order need of hygiene factors Physiological needs Safety needs Social needs Need for status & prestige Self actualisation Higher order need Intrinsic motivation Analysis | 49 pleasure motivation. To access this powerful cycle of towards goal motivation employees need to ask themselves, where am I right now? Where do I want to go and why? The where am I now is simply measurement, the where do I want to go next is goal setting and visualization, and finally the why is the motivational aspect. As mentioned before the key measurements needs to be hierarchically broken down to smaller components and visualized to show their connection to lower rank measurement figures until all the levels has their own set of connected and understood key figures at the respective level. It is important that the technicians and managers understand their maintenance key figures so they understand where they are at for the moment. The second step is to sit down and ask the employee where he or she wants to go next and ultimately that every individual decides for him or herself where to go next and soon set goals on his or her own. The sit down meeting is useful to map out the possibilities for promotion as a function of achieving their key targets and show how the key targets are connected to each other to gain knowledge how their effort is important for others efforts to be successful. At the same time the boss has a chance to get a more profound understanding of where the individuals are at for the moment and what type of motivational form is attractive to them. Improvement proposals | 50 7 Improvement proposals This chapter will present the proposals on how the maintenance work and motivational aspects can be improved. The improvement proposals have considered the fact that API have a tight maintenance budget and that there is no possibility for any larger investments. 7.1 Total productive maintenance It is important to communicate the route to the TPM targets so that there are short, medium and long term goals that pave the way in a TPM improvement programme. The goals and the way to get there should be clearly understood by everybody involved and also understood by departments that are not directly involved in the maintenance routines. A cross functional maintenance understanding helps operators and maintenance technicians to dialogue and share information in a more natural way. A rotational programme where maintenance technicians and operators try each others position gives a feel for what is challenging in the opposite position. The understanding that emerges from trying the opposite position might serve to give a new perspective and valuable insight. In such a perspective it might be more natural for an operator to tell his maintenance colleagues that there are, for instance, vibrations in a certain mechanical component and pass the information on; potentially rendering in a preventive work order that saves time and money in the big picture. 7.1.1 TPM-pyramid related to responsibility and mandate There are three important key factors in this; to assume responsibility, to be given mandate and to share information effectively. The TPM-group acknowledges that the operators are to take responsibility for the machines in what is referred to as operator maintenance. The mandate factor in this is to clearly understand who is responsible for what. To evade having a situation where someone say that they dont care to report a potential failure, a clear field of responsibility is suitable. On the mandate side the employee need to be mandated to actually form his plan to reach his targets. Also it is important that the budgetary responsibility is given as peripheral as possible. If one really wants to give mandate to match up the responsibility then budgetary responsibility is important. It is a move from centralized control out to peripheral control and affects the motivation. 7.1.2 TPM-pyramid, goal setting and measurement To get back to the pyramid; the goals and milestones need to be clearly defined and understood and worked with in accordance. In the information sharing aspect the question of what and why need to be answered clearly and easily throughout the organization. This is answered in the zoomed TPM charts see Figure 7:1. If an organizational behaviour change is to emerge then it is vital to have a solid communications channel to explain why it is worth the agony of the change. Usually it is a slow and durational process to change a culture but that is outside the scope of this thesis. If there is a competition in place and prices to be given for great performance it has a positive side effect that the rules for how great maintenance is measured will automatically be adjusted partly by the managers but more profoundly by the technicians themselves they will object if the measurements are not fairly constructed or even better start giving proposals on how to measure maintenance. This makes everybody involved in how Improvement proposals | 51 maintenance is measured and creates participation and motivation as well as valuable input from the people closest to the source of the problems. 7.1.3 TPM-zoomed in charts and step by step guide to World Class Maintenance The TPM charts might have a zoomed in focus on the TPM boxes that affects the assigned department. In a zoomed in box it could be useful to provide information on where we are and what needs to be done to get to the next milestone. For each milestone passed there should be a collective price for the group that have made the effort. This is not in conflict with the fact that only individuals can get motivated. Every individual in the group will be motivated, but in a collectivized beneficial environment; the group motivates itself. 7.1.4 TPM-pyramid and personal commitment and competition The group is being premiered compared to other groups and thus seen by the organization. The organization then communicates its core values throughout its body through this mechanism of rewarding a sound behaviour. This all implies that there should be TPM charts on the walls with specific scope with the respective departmental focus. Also on this wall chart there should be mapped out key figures and responsibility down at each level in a hierarchical tree all the way down to the operators and technicians. To see each technician or operators personal responsibility also serves the purpose that the person is being seen by the organization. It creates participation to the programme if ones name is also on the same goal chart that the progress is measured from. It creates a feeling of belonging and it states the true effect that each technician and operator have to the profit. It creates a feeling of belonging and importance that each individual wants to feel. TPM zoomed charts with roadmap to success in a nutshell: 1. Identifies the step by step route to excellent maintenance and that affects the short term and medium term steps in the TPM programme that provides TPM insight. 2. The chart share information throughout the organization and that affect the cultural change. 3. The connected targets and step by step guide set goals all the way down to the individual technician level that create participation thus it affects motivation. 4. The extrinsic bonus goals are connected to the pyramid and form the basis for the bonus programme and thus it acts as a real motivational factor. 5. The zoomed chart acts as a roadmap to success for the maintenance personnel and thus creates participation and that stimulates commitment to the programme.
Improvement proposals | 52
Planned and improved big stop TPM EFA Short term and medium term route to success Strategy: To make sure the base of the pyramid is green and by managing the short term goals on a daily and weekly basis. (World class is a long series of great performances on a short term basis.) How can we make success unavoidable? 4. Who will make this happen?
Sven Svensson - responsible for Technical Availability Target value: exceed TA of 89% for 3 weeks in a row. Current record holder: John (94%) Ray Rayleigh Responsible for root cause analysis Target value: To predict failure with 58% accuracy. Current record holder: Ray (67 % in a 3 week span) John Johnston Responsible for MTBF Target value: To extend the MTBF of up to 18 weeks: Current record holder: Sven (16 weeks) Possible errors of measurements in competition: Uncertainty 1. Important boxes for EFA: * Planned and improved big stop (67%) 2. How to reach the target 1. Raise Critical machine equipment to 95% 2. Spare parts inventory availability 98% 3. Time to search for equipment < 1 h.
3. Why is this important? Estimated gain downstream of supply chain: 1% increase in improved Big Stop Box = $16 million / year Figure 7:1 TPM Zoomed chart with the what, why and hows shows the whole chain. Improvement proposals | 53 7.2 Planning process The planning process involves the planning of productions, maintenance and calibrations and to simplify we call it the planning process. This sub-chapter presents what can be changed to make the planning process easier to handle. 7.2.1 Improve the planning process The planning process could be improved by having calibrations, maintenance and productions representatives attend a single planning meeting where the plan is adjusted with all the attendees at place at the same time saving valuable time because the plan will be revised directly. When the plan is laid, revised and accepted it needs to be communicated quick and effectively into the factories. We recommend that the plans are, for instance, laid in the Wednesday afternoon and printed into big A1 charts and posted on the wall directly afterwards it has been approved. Thus the operators have a greater insight on what is coming up next week and it touches upon the information sharing and the participation within the organization and creates more certainty and thus well being out of the certainty that the information provide. The plans that are made does not include maintenance activities, but only calibrations and productions, so the maintenance need to search out air in the schedule and squeeze in the maintenance in the windows that hopefully exist. Thus in our opinion, we opt for a more intertwined planning process. The planning software should be easier to manipulate. We believe these hard to change plans could be handled easier if data is imported from SAK and CMX to a common database on the hard drive of the planning PC and then let an Excel programme use the PCs own RAM memory (random access memory) which is accessed and manipulated much quicker than a direct uplink to the ERP, where each time all the data that needs to be manipulated have to be downloaded through the SAK and CMX. To create a common database is outside the scope of our objectives but there are specialists in IT, that the company already contracts, that could solve this problem quite easily.
ANL: 111 ANL: 112 ANL: 113 Calibration
Production
Maintenance Calibration
Production Maintenance Calibration Production
Maintenance 2010-04-21 2010-04-22 2010-04-23 2010-04-24 Day2 Day3 Day4 Day5 Day6 Day7... Selected: 112 Drier Item: Drier MTBF: 15 weeks TTF: 2 weeks (estimate) Status: Very important Type: Predictive maint. Figure 7:2 The planning process visualization Improvement proposals | 54 The planning software proposed should have the time on the X-axis and the ANL-number on the Y-axis. The easy retrieval of information might help give a birds eye view of the condition of the machine park. Another advantage is when the planner lays the plan he or she needs to click on the machines to handle the ANL numbers. The planner then automatically retrieves important data presented as an example in Figure 7:2. These types of charts should directly be printed and posted into the factories favourably next to their Lean-charts. The proposal can be summarized with the following steps. 1. Plan at the same time with all participants attending. 2. Put maintenance plan in directly in the schedule not only calibrations tasks and production. The maintenance is equally important to the profit thus also it should be visualized in the plans. 3. Revise the system so that it is based on onboard RAM-memory instead of accessing slow ERP-databases for each manipulation. 4. Have the information of the status of the machines included from the ANL- number imported to the program so it can visualize the performance indicators and use statistical tools to try to pinpoint next time for the preventive maintenance. 5. When the plan is completed immediately post it on the walls at the factory. 7.2.2 Define safety time that maintenance and production needs. When setting the production schedule each week, production and maintenance including calibration, have a meeting. During this meeting the present what they have planned to perform and how much time they need. One problem that exits is that they both add their safety time. This could easily add up to an unnecessary amount. More openhanded information about the uncertainty that exits in the plans should make it possible to reduce the total amount of safety time in schedule. Maintenance is by nature an activity that is hard to predict how long time it will take to conduct. This is because a maintenance task could differ from time to time. The time needed for the production process should be easier to predict even if there are some uncertainties regarding process times throughout manufacturing. Figure 7:3 shows an example how maintenance and production adds their safety time. By using a joint safety time instead, the total safety time can be reduced. The total planned time can then be reduced, see the shared safety time pile, where the planned safety time has been reduced. This free time can then be used for other more valuable activities for instance more maintenance tasks.
Figure 7:3 Safety time 0 5 10 15 20 25 30 35 40 45 50 Maintenance Production Total Shared safety time Safety time Planned time Improvement proposals | 55 7.3 System use In this sub-chapter the improvement proposals that cover the maintenance system use will be presented. 7.3.1 Introduce more comprehensive classification of work orders A known problem at AstraZeneca is that there are few analyses that can be made out from the historical data. The data dont contain the information needed. One parameter in maintenance is the proportion of the different policies (CM, PM etc.) that a company aims at having, to obtain the minimal resources needed. The ultimate goal is to reduce the total cost of maintenance, but finding out those costs may require quite an effort and may not be proper for API since it have a limited time left to operate. A not that complex technique of measuring the proportion, is to instead use the time consumed by each of the maintenance policies. If the time is not available, one can at least compare the proportion of how many work orders of the different classes that have been registered in SAK. Having a high level PM may reduce the number of CM in the factory but it may be expensive than accepting a certain amount of CM, even if each CM job is costly in itself. To get an overview how the different policies affect each other, a more comprehensive classification of work orders is needed. First, one must define which policies that should be used in the classification, so that every type of maintenance can be assigned with a proper policy. The policies chosen are the ones below. They are based on the different categories of maintenance that is defined by Vassiliadis & Pistikopoulos (2000) but modified with two categories of corrective maintenance. This is to make a difference between corrective maintenance that affects the production process or product quality and those that dont. The classes proposed are: Non-critical corrective maintenance Critical corrective maintenance Periodic maintenance Predictive maintenance The benefits of classify a work orders when would be when analyzing the percentage of the different policies performed. A relationship between for instance periodic maintenance and critical corrective maintenance would be able to be extracted. The benefits of doing such an analysis would be that one could identify a proportion that utilizes the smallest amount of resources (time, cost, number of work orders). The proportion between different classes of maintenance is also a commonly used maintenance key indicators. If this classification is fully implemented this key indicators will be easy to compile. To give an example, if predictive maintenance classified work has increased with 10 % and at the same time critical corrective maintenance work has been reduced with 15 % one can make the conclusion that 1 % increase in predictive maintenance corresponds to a 1.5 % reduction in critical corrective maintenance (or equipment failure) in this specific proportion. With the same reasoning, other correlations could be examined and evaluated. Today the different classes and types of maintenance tasks are differentiated by an account number, for instance 5511 is critical classified maintenance. To have a logical and useful system of classification the different maintenance tasks in SAK could use a four digit number. The positions in the number are then to be assigned with different meanings. The Improvement proposals | 56 first digit could for instance imply the class of maintenance (1. Critical corrective maintenance, 2. Non-critical corrective maintenance, 3. Periodic maintenance, 4. Predictive maintenance, 5. Others (e.g. modification). The second digit could indicate if the task is for instance 1. equipment related, 2. building related etc. The third digit could indicate which factory that work orders considers and the forth could indicate the type of error that needs to be fixed. Is it an electrical, pneumatically, mechanical etc. kind of failure. A more comprehensive review of what the different numbers should denote is needed to be carried out with experienced personal and maintenance engineers on site. This is to cover all areas of interested that the authors of this masters thesis doesnt possess. 7.3.2 Review of the maintenance policies for equipment One issue to handle in API is how the equipment will be maintained. Either it can be part of a PM schedule and in predefined intervals undergo maintenance. It could also be left out from this schedule and be part of an inspection scheme (round list) were one tries to identify variation that could lead to failure. Today this work, with assigning different policies to equipment, has been made with common sense and the experience that the maintenance engineers possess. From an economical and technical point of view the current policies may not be the proper one for each and every part in the factory. To have more structured way of addressing different policies for the equipment, a maintenance policy decision model may be used. The proposed model is easy to use and considers both costs and technical possibility and it identify the proper maintenance policy for a particular component. The different steps in the model have been complimented with a questionnaire making it more objective in the judgment when deciding how to maintain equipment. The benefits of redesigning the maintenance policy structure is that there will be more proper maintenance performed according to economical and technical considerations. A possible outcome of a review of the equipment would be that some use based maintenance (PM) could be reclassified. This will reduce the need for maintenance man-hours since they are the ones that perform this work. If the possibility of running more detective based maintenance the operators could easily be more involved in the maintenance work which also is a keystone in the philosophy of total productive maintenance. Detecting more errors before the equipment totally breaks will also reduce the number of failures. Design-out maintenance could have the advantage that the equipment doesnt need any maintenance. This is the case when removing equipment that may not longer be needed in production. In situations where a part has been changed to a more durable, the life time of the equipment will be extended, making it go into a use based maintenance schedule but with an extended time between maintenance. If for instance one could be able to double the time between maintenance for half of the equipment the work load will be reduced by 25% for periodic maintenance. 7.3.3 Increase the length of visualized plans The schedules placed and the plans visualized in the factory are focusing on the weeks production and maintenance tasks that are planned for execution. With this information the production is managed by the operators. Since the plan is short-termed the integration from the operators is very small. They have little or no possibility in giving proposals how to re- plan the schedule if there is a failure or delay making the plan obsolete. If the plans had a longer time horizon it will be easier for the operators to come with proposals to the Improvement proposals | 57 production and maintenance personnel that set the schedules. Since the operators are the ones that have the best knowledge of the production processes their experience and knowledge could give great input to the planners. In the long-term schedules the level of detail will not be as high as within the nearest time horizon but it will give the operators and crew in the factories a more comprehensive view of the up-coming jobs. By having more long-term schedules the integration between maintenance and production will be improved. The operators can then see the maintenance tasks that are planned. By having more transparent information sharing the acceptance for the other departments assignments would possible increase. If the departments works more openhanded there will be better cooperation between maintenance and production and the operators may feel more motivated in helping maintenance crew in case when needed. This could also be seen as a first step towards operator maintenance. 7.3.4 Document time needed for preventive maintenance The employees and engineers at API are highly experienced and have a great knowledge of the production and maintenance work. Many of the maintenance engineers have worked for many years. During this time they have obtained an understanding about the complexity of the processes and times needed for different maintenance tasks. Therefore the schedules placed, have a high reliability and the time consumed are often relatively close the approximated. This method for planning is functional as long as the maintenance engineers have great experience and a profound knowledge of the specific maintenance characteristics that is conducted within API. A not that experienced maintenance engineer would have a hard time estimating times and complexity of different maintenance tasks. This makes the maintenance planning very personal dependent as it is performed today. One way of addressing this problem is to assign estimated time of completion for maintenance tasks and document it in SAK. This will make the information easy to access for any person that is interesting in times for different maintenance work. The information would also be useful for the experienced maintenance engineers who can more easily see how much capacity that is needed for different time periods. This will also make it easier to re-plan work, to other periods.
Figure 7:4 Capacity/ utilization diagram In the following example Figure 7:4, it is easy to see that the work in period 4 cannot be performed with the available capacity. But there is free capacity in period 2 and 3 making it convenient to move work to these periods. This is possible for maintenance task since them often has an implementation window. If there is still not the required capacity available, it is easy to see and predict how much of external contractors that need to be used. In the long 0 20 40 60 80 100 120 1 2 3 4 5 Avaiable capacity Demand according to PM plan Period H o u r s
Improvement proposals | 58 run these capacity diagrams can be used as a decision base for reducing or increasing the number of employees, since the capacity is directly correlated to the number of maintenance workers. 7.3.5 Introduce time data in SAK SAK has a great range of functionality but is not fully used. One parameter supported in the system is time logging. Times can easily be reported in SAK but this is not done in the work orders. This makes it impossible to track, monitor and map how much time that is spent on maintenance. The time logging supported in SAK is: Registration time, planned start, planned time to be completed, planned amount of time needed, actual start time, actual time of completion and finally the status closed. Since many maintenance task is flexible in start time of execution filling this time out may not contribute to a better maintenance planning situation. But however filling out this field will make it possible to easily count how long time a task is considered to take. A more important field to fill out is the time that the work order took to complete because this information is used for many of the analyses. To make it possible to compile reliable key figures such as mean wait time, it is important that the time of registration corresponds to the time when the equipment broke down or the error was detected. If AstraZeneca starts to log time in SAK and getting the data of the time needed for executing a set of maintenance tasks, the planning situation will be improved. At the same time the maintenance key indicators will be more reliable and useful, and a general view of how much resource that specific maintenance activity actually requires. The planning situation would be improved in the way that the maintenance engineers who schedule the work orders will have more detailed information of times for different maintenance tasks. If, for instance, there is a critical failure on equipment, the engineer would be able to search in the history of work orders in SAK for a similar failure. From the information about time consumed from the last execution, the engineer would be able to more accurate estimate the time needed for the repair. To make reliable key indicators it requires good data that the indicators are based on. The information needed for many key indicators are often time related, for instance mean time between failure, mean wait time and mean time to repair. Introducing a more extensive time logging in SAK would make it very easy extracting this information from Oracle Discovery and compile it to desirable maintenance key indicators. Historical time data could also be used for updating expected time of execution for many PM tasks. 7.4 Performance indicators In this sub-chapter the improvement proposal that handles performance indicators will be presented 7.4.1 Introduce more useful performance indicators As a consequence of the maintenance key indicators used today, the actual result of the reduction in workforce is hard to declare. The performance indicators used today does not indicate if the maintenance work has been improved. The maintenance engineers can only make assumptions that it is has. To map and actually measure how the maintenance is performed is therefore important. There are several key indicators that could be used for Improvement proposals | 59 measuring maintenance performance. One important issue when using indicators is the conclusions that can be made from them. Simply if it is worth the stretch because measuring and handling the information requires man-hours and it is necessary that there is an incitement to perform those measures, there is no point in over measuring. The indicators (MTTR) mean time to repair and (MWT) mean wait time are useful in the way that they are actually measuring the maintenance crew performance, a future missing in the current system of maintenance key indicators. In the MWT, the lead time from placed work order fill the work order has begun is measured. This time is directly correlated to the performance of both the maintenance engineers and the maintenance crew. The indicator follows the condition that it must be directly controllable by the process manager (Anupindi et al. 2008). With this close relationship between how work is performed and the value of the indicator it makes a good incitement for the engineers of actually working with improvement and also involving the maintenance crew in this process. The MTTR is also correlated to how the maintenance engineers and the crew manage their job. The maintenance engineers are responsible for planning the work so that it can be performed without interruptions. A good plan makes the prerequisite for a fast performed job. The maintenance workers on the other hand have an incitement of completing the job efficient and effective. 7.5 Motivation Our analysis on this is to start to measure and to connect the key measures so they are placed in their context. Make the long term goals divided into sub goals and to map out the milestones to reach the goals. Implement towards goal thinking. Have sub-goals divided into weekly goals and get intrinsic or extrinsic rewards for each passed goal. Every weekly goal should be intrinsically motivating (good feeling) the motivation action reward cycle need to be short so the time between achievement and reward is short. Create competition to nurture the need for status and prestige. Not have maintenance only judged from unfinished work orders that are quite non-saying on performance and thus not very motivating rather compete on things that are justly measurable or gives a comparable challenge. Even in a good day with zero late work orders someone at maintenance should be angry if not surpassing his own stated goals; very similar to top athletes. This type of passion (Maslow (1), the base of the Maslows pyramid) is what results if the need for status and prestige is let loose and transforms into the self actualisation pyramid top. Sweden Operations have to start somewhere and then measure to create achievement need and to focus on Maslow (2) is a good start. To have world class creative TPM employees that breed world class TPM performance, the motivational form needs to be similar to world class top athletes. Preferably a hierarchy styled schematics of the key figures. As well as to show what economical effect a single technician has downstream in the supply chain to visualize the effect and importance of good maintenance. 7.5.1 Intrinsic motivation results There should be an economic calculation chart next to the key figures that show how much a single technician produces in downstream supply chain revenue to show a good job. It should have profit tag or revenue tag next to it.
Improvement proposals | 60 The goals should be to fit the pyramid and fully understood.
Rewards are based on performance intrinsic or extrinsic.
Individualized competitions or group competitions provide incentive for the need for status and prestige as well as the need for self actualization.
Employee of the month programme
There should be a big A1 paper on the wall that map out the key figures from Sweden Operations key figures all the way down to the individual maintenance technicians set of key figures. If there are goals set and routes to reach the goals in place and the information is spread and a Y-theory approach is implemented the foundations exist for motivation to come in to play. The management of motivation is important and thus it is important to understand the expectancy theory and the Maslows theory of motivation to get an understanding of the motivation loop. The need for self actualization combined with McClellands achievement need in a loop structure where the satisfied need creates more motivation and more achievement need, makes it possible to map out the motivational process and where the chain might be stopped today. The manager should pay attention to what is motivating for different individuals.
If the key measurements are in place and connected to the TPM pyramid and the two together form tangible goals and milestone sub-goals that are explained and managed properly then for each time an individual achieve a goal it will create more achievement need and more motivation. The assignment of the manager is to keep the expectation, instrumentality and the valence up. A valence reward can be a pat on the back or a compliment or the honour to be employee of the month as well as a bonus. The manager is Unsatisfied need Motivation Action Satisfied need Finish Unsatisfied need Motivation Action Satisfied need Lower order needs (Social, Safety and Physiological needs) Higher order needs (Self Actualisation & Need for status and prestige) Expectation That an effort leads to result Instrumentality Expectation that an achievement leads to result Valence The value one credit the results EFFORT ACHIEVEMENT RESULTS What is the probability that if I do a good job that there will be some kind of outcome in it for me? Is the outcome I get of any value to me? Improvement proposals | 61 the moderator that makes sure there is an environment for employees to grow. His or her objective is to keep the competition up. Be the one that provides approval. The longer this management is in place the more self managed the employees will become. It is important to always answer the question why and to spread the information throughout the organization. This is why we advocate information charts to quickly provide information on financial implication of excellent conducted maintenance management. A word of caution is that any motivational programme can backfire and that too big of a change too quickly can give rise to resentment. 7.5.2 Extrinsic motivation Results Bonus set after achievement derived from the TPM-pyramid The extrinsic motivation is external motivation. Extrinsic motivation is motivation that comes from outside the individual. The bonus is a good example of extrinsic motivation and it touches the Maslow no.4 need for status and prestige at its best but if incorrectly set; it touches the Maslow no.3 social needs. In plain English, if the bonus is set collectively and not based on achievement, the effect of it as a motivating factor turns to be a hygiene factor. That said if the bonus is not set on an achievement basis it becomes regarded simply as an extended salary. Thus it becomes a hygiene factor and a hygiene factor cannot motivate but only destroy motivation if not present. 7.5.3 Intrinsic versus extrinsic motivation If the bonus is correctly handled (that would be set upon achievements) then it touches upon Maslow number four; the need for status and prestige but not his number five, which is the need for self actualization as explained in the theory chapter 4.6.2. That means that the bonus can never be as powerful a motivator as the intrinsic self actualization approach. This approach requires that new measures be introduced. It also requires a new thinking and a cultural change. Comparing the intrinsic and extrinsic motivational forms show how they differs but also interconnects. We urge the reader to have a look at (Lepper & Green, 1975) helps to understand the transformative nature of intrinsic and extrinsic motivation. We dont go in depth into the subject due to the complexity of the subject and the scope of the thesis. What we want to show is simply put that the extrinsic route with external rewards set on achievements can be a step stone to amplifying the need for self actualization (intrinsic motivation) and probably serves as a major positive motivational boost to performance. To illustrate with an example; a parent has a daughter and the parent wants her to play the piano. The bonus philosophy is giving the child a piece of candy every time she plays good or only plays the piano. The other way of motivating the child is creating an atmosphere where music is fun, show her some chords and then kick-back and let her see it is fun. When she tries it out she might find that she likes it and maybe world class piano playing starts to become an achievement need in her and a self-actualization process starts. She plays a lot, likes it and becomes good at it. The point trying to be made is that extrinsic motivation can never outperform intrinsic motivation. Thus API should revise the bonus policy to be based on achievements and think about ways to put a bigger focus on intrinsic motivation. This type of change requires a continual effort and thus the TPM group should either be more involved or should there be a representative that consolidates the group to share ideas and experiences and then have the mandate to put into action the types of changes that are necessary. There should be charts that stimulates to performance. These types of charts Improvement proposals | 62 could be sole information charts, group competition results postings and show the monetary effect the maintenance has to the profit thus leading to a feeling of importance. Just as with the piano playing girl the technicians start to want to know what world class maintenance is and getting more interested in getting there. 1. Put a full time or part time employee from each department to be department specific TPM representative to fill the void between the TPM-group and the operations. 2. Actually gauge the motivation by taking the temperature in field and in surveys. 3. Gain comprehension of what motivates technicians by asking and observing. 4. Put changes slowly and gradually and on a; it is fun to participate spirit. Those who want to compete are simply premiered and seen through rankings. Forcing will entrench resistance. The others will probably join in later.
Conclusions | 63 8 Conclusions The improvement proposals presented in previous chapter all contributes to answering the purpose of this masters thesis which is to examine how AstraZeneca can improve maintenance management and work with motivational aspects in order to ameliorate the completion of the TPM pyramid and thus increase the maintenance efficiency. By working with increasing the TPM pyramid completion, the maintenance efficiency also improves. One of the goals of TPM is to improve maintenance efficiency and effectiveness. The TPM pyramid is based on these goals and is supposed support reaching these goals. Thus increasing the completion of the TPM pyramid will therefore increase the maintenance efficiency which in turn fulfills the purpose of this masters thesis. The initial state of the TPM pyramid is presented in Appendix 3 showing that there is potential improvement at the base of the pyramid. This masters thesis has focused on the boxes in the first three base levels, since these often are a prerequisite for improving higher located boxes in the pyramid. The boxes directly affected by the improvement proposals are: Key measurements ensuring availability, Equipment history, Standards and routines, Weekly planning, Weekly maintenance reporting, Operational routines for planning of maintenance activities, Planning and routines for condition control , Work order system, Daily planning, Maintenance key measurements. The improvement proposals that API has been recommended to launch have got an identification number in the list below from 1-10 and this is not to be seen as the proposed order of priority. 1. Introduce more useful performance indicators (Chapter 7.4.1) 2. Introduce more comprehensive classification of work orders (Chapter 0) 3. Review of the maintenance policies for equipment (Chapter 7.3.2) 4. Document time needed for preventive maintenance (Chapter 7.3.4) 5. Introduce time data in SAK (Chapter 7.3.5) 6. Zoomed TPM charts (Chapter 7.1.3 and 7.1.4) 7. Follow-up on motivation and leadership (Chapter 7.5) 8. Introduce competition in daily work (Chapter 7.5) 9. Employ a TPM-representative at API (Chapter 7.5.3) 10. Set bonuses after performance (Chapter 7.5.1 and 7.5.2) Within each of the boxes in the TPM pyramid there is a questionnaire, rating the level of completion, which is to be filled out by the maintenance team. By implementing the improvement proposals these ratings will improve the average percentage in level 1 and 2 by 4 %. The percentage of the TPM implementation can also be seen as how good the maintenance is since a fully implemented TPM is considered as a world-class maintenance. If implementing all of the proposed improvements the pyramid will have more green boxes. From the current state there will be two boxes that will change from yellow to green color and one box from red to yellow. The TPM is shown in Appendix 4 and it shows how the TPM pyramid could look after an implementation of the improvement proposals. To mention is that not all of the proposals directly affect the boxes in the TPM pyramid. The motivational aspects are not covered by the TPM pyramid but these can however be seen as Conclusions | 64 a prerequisite for having a good working environment and a well performing team. The lack of motivated personnel will highly reduce the potential to run improvement projects successfully. Which box in the TPM pyramid that is affected by the different improvement proposal is shown in Table 8:1. Table 8:1 Improvement proposals effect on TPM pyramid Box in the TPM pyramid Proposal No. Key measurements ensuring availability 1, 5 Equipment history 5 Standards and routines 2 Weekly planning 1, 5 Weekly maintenance reporting 1 Operational routines for planning of maintenance activities 3, 4 Planning and routines for condition control 3 Work order system 4, 5 Daily planning 5, 6 Maintenance key measurements 1, 2
Recommendations | 65 9 Recommendations From the improvement proposals, we have extracted 10 actions that are the most important to implement. When choosing what to prioritize we have not only valued the effect of implementing the proposal but also the effort needed in terms of man-hours and further the costs associated with the implementation. Due to the fact that none of the proposals presented below require any big investment, the effort part in the effect/effort diagram is thus mostly related to the man-hours and the training hours necessary. First the improvement proposals will be presented and then followed by a sub-chapter describing how these should be prioritized. 9.1 Improvement actions as presented before (not a prioritized list) 1. Introduce more useful performance indicators Introduce the MTTR and MWT performance indicators. These are important in the evaluation of the maintenance performances. The performance indicators are necessary as motivational bench mark tools. 2. Introduce more comprehensive classification of work orders Using a consistent system will improve the process when assigning a work order with its account number. By using a code system in the four digit number it will be easier to locate equipment and repair codes saving valuable time. This will in turn reduce the number of work orders that are assigned with the wrong account number which will increase the visibility and control of the performed maintenance work. 3. Review of the maintenance policies for equipment Implement a policy decision model to be used to evaluate the maintenance in the respective units. Through a structured process the model aims to assign a maintenance policy for equipment, considering both technical and economical aspects. By using the model, the judgement will also be objective, and also possible to conduct by an inexperienced person. 4. Document time needed for preventive maintenance Start to log and document the time needed for preventive maintenance task. To make functional plans a long maintenance in field experience is required. By having the times documented in the system the planning will be more accurate and easier to perform. It will also increase the control of capacity and make sure anybody can make a production plan not only the individuals with a vast experience from in field maintenance. 5. Introduce time data in SAK Introduce the start and the completion times on every work order. To have complete and accurate data of the maintenance time to repair etc. will serve as a support tool for decision making. It will be possible to gather the data for the performance indicators, updating the times used for preventive maintenance, map out the capacity utilization and it will help calculating the maintenance costs involved. 6. Zoomed TPM-charts Zoomed TPM-charts should be visible at offices and at the factories and constructed so that they put a focus on the TPM-box that are important at each department. The zoomed chart Recommendations | 66 works as a cultural anchorage of change, and answers the questions of what, why, how and who is responsible for what. It maps out the entire chain all the way down to individual level and explains how an effort leads to results. 7. Follow up on motivation and leadership A bigger focus put on the short term goal setting and the follow-ups of them. The how-cards form the basis for the zoomed TPM chart and should answer the what, why and who questions and simply put this should be the standpoint or outlook for all the revisions of intrinsic and extrinsic motivational stimuli. The point is that it takes time for a manager to introduce this and make it work. It might be harder to foresee how much time it saves in the long run. 8. Introduce competition in daily work The effect of this is based at what level the manager handles the rules, the follow-ups and manages to convince his employees to accept and embrace it. This could be done by putting competitions and both intrinsically and extrinsically stimulate the team to performance. 9. Employ a TPM-representative at API Some of the proposals involve organizational behavior change and usually that is more difficult to handle than changing the way to calculate for instance a performance indicator. To cope with the behavioral change there must be an external force that keeps the old habit from resurrecting. A dedicated TPM-representative must fill the void in between the TPM- group and the operational maintenance. He or she can exert this force by continual reviews and follow ups, posting results and handling the environment much like a referee so that the competition is fair and the climate is good. 10. Set bonuses after performance To further enhance the points made above is to set bonuses after performance. The bonus tool is an extrinsic motivational tool and not as sharp as the intrinsic tools but works to highlight the important aspects of the intrinsic tools. The bonus should be set one year in advance and be revised and paid in accordance. The point is not to be too harsh but to introduce the common awareness into the organization that an effort that leads to results is seen and premiered by the organization. This keeps the valence up in the Vroom-cycle and sends the message that what each employee does counts, and this lead to participation. 9.2 Prioritizing the improvement proposals Seen in Figure 9:1 are the 10 proposals mapped out in the diagram. The effect gain and the effort needed have been carefully evaluated and discussed to get a subjective view. But however the effort and effects are estimations and should not be used as absolute values. The different quadrants indicate which of the proposals that gives the highest anticipated effect in relation to the effort. In the quadrant, indexed 1, there is a high output from a relatively low effort put in. The quadrants with index 2 have an estimated effect that is in proportion to the effort put in. The quadrant indexed 2a, requires a comprehensive effort put in but the potential benefits are still big. In quadrant with index 3, the effort is high relative to the effect of implementing the proposal. From the philosophy of this figure we present three possible ways to prioritize what to start with. Recommendations | 67 One important issue to consider when deciding in what order the improvement proposals will be implemented; is that proposal 5 is a prerequisite for executing proposal 1 and 2, see arrows in Figure 9:1.
Depending on the strategy and resources available one can choose to start with different improvement projects. In the following text we present three alternative methods on how to prioritize the improvement proposals. Option no. 2 prioritizes the improvements with the highest assumed effect while Option no. 3 prioritizes according to the minimal effort needed. Our recommendation is prioritizing as Option no. 1 suggests, of which considers both the effect and the effort. This option is presented last in this chapter. Option no. 1. This option is a compromise between Option 2 and Option 3. Here both the effects gained and the efforts required are taken into account. It is therefore beneficial to start with the improvement projects that have a great potential effect but requires a minimum of effort. The ratio between the effect and the effort gives the order shown in Figure 9:2 where the proposals with the highest ratio are prioritized first.
This method will result in starting with proposal 6 but we propose that both proposal 5 and 6 are launched simultaneous. This is mainly because of two reasons. Proposal 5 needs quite an effort and is not done in a couple of days but is more of a continuous work, which benefits are visible first when sufficient data have been gathered to make a sound analysis or can be used as a decision support. This means that there isnt any clear completion or finished date when this proposal can be considered completed. Number 5 is also important to start with because it is a prerequisite for succeeding with other improvements. 9 6 4 3 8 7 5 1
2 10 Figure 9:1 Effect/ Effort diagram of the 10 important improvement proposals 9 7 4 6 10 2 8 3 1 1 2 a 3 5 2 b H i g h
L o w
Effort High Low E f f e c t
1. Introduce more useful performance indicators 2. Introduce more comprehensive classification of work orders 3. Review of the maintenance policies for equipment 4. Document time needed for preventive maintenance 5. Introduce time data in SAK 6. Zoomed TPM charts 7. Follow-up on motivation and leadership 8. Introduce competition in daily work 9. Employ a TPM-representative at API 10. Set bonuses after performance Figure 9:2 Execution order when using priority option no. 1 Recommendations | 68 Option no. 2. This way is to focus on the improvements that give rise to the biggest effect. Here the effort is foreseen and this option is believed suitable for companies with a lot of resources that are not used for any value adding activity at the present-day. This option will give the priority order as shown in Figure 9:3.
Option no. 3. This option addresses the improvement proposals that need the least resources to implement. If a company have little time and its machine park is highly utilized this option may be a proper one. Even if the effect of the improvement is not that great it can provide motivational incentive seeing that one actually succeed in a single improvement project. This can later boost the implementation of more resource requiring improvements. If this option is followed strictly the priority order will be as depicted in Figure 9:4.
When starting to implement the improvement projects we urge to launch the projects one at a time. This ensures the improvement work is focused and doing the opposite; all at once presents a risk that none of the projects will succeed. Instead every improvement project should have a committed project leader that is responsible for planning the start-up phase and the implementation. It is also important to do follow ups on the result and analyze the benefits gained. 9.3 Future research During the field study there were some findings that did not get fully evaluated due to the limitations and focus of this masters thesis. One problem mentioned in communication with the maintenance engineers where that some cross functional projects does not seem to have a clear and mandated project leader. This could affect the efficiency in those project and they might take longer to complete than necessary. We recommend AstraZeneca to review this and to evaluate the above proceedings on their journey to a world class maintenance programme. Another interesting finding was that API differed from Turbuhaler in the way that they calculated their technical availability. This gave rise to the question why this differs and also if there are any additional areas that sets them apart in their measurements. A comparison in some of the different units key processes may sort things out and also give the opportunity to make use of the expertise from the other departments to further enhance their maintenance programme. We thank you for reading this masters thesis and hope you liked it and have use of the ideas and results derived from it. Figure 9:4 Execution order when using priority option no. 3 1 6 4 7 8 5 3 2 9 10 Figure 9:3 Execution order when using priority option no. 2 1 5 6 8 9 4 7 3 2 10 References | 69 References Abrahamsson, B., & Andersen, J. A. (2005). Organisation. 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Delivery service level Waste Deviation First class batches Unclosed deviation WO UH/Site cost TPM Conversion cost Deviation level Supply chain monitor Inventory Unfinished WO TPM pyramide UHcost/Total Technical avaliability GMP Unfinished WO Urgent WO MTBF Technical avaliability GMP Sweden Operation API TGS OMA OMA MT Price Quality Delivery External demand Law- regulations Appendix 1 Performance indicators schematics
1. Is the equipment critical to the production process or for ensuring product quality? a. Is it complicated to exchange or repair equipment? (Does it require special skills or tools?) b. Is repair expensive or consequences of a breakdown costly? 2. a. Is it possible to redesign the equipment by for instance changing to more durable parts? b. Is this redesign expensive to perform and will it be economically sustainable? 3. a. Is it possible to predict the failure? b. Are the symptoms of failure detectable by human senses? (Looking, smelling, hearing and feeling) 4. a. Are the symptoms measurable by any monitoring device? (Vibration detektors, termometers etc.) b. Is this equipment worth investing in? (Can the benefits exceed the costs?) 5. a. Is the condition predictable after a period of time or hours of usages? b. Is it affordable to place this equipment in a PM schedule? Failure based maintenance Design-out maintenance Detective based maintenance Condition based maintenance Further investigation
CBM? Use based maintenance Condition predictable? UBM? Technical Economic Yes No (Corrective) (Predictive) (Periodic) (Prevention) a b 1. 2. 3. 4. 5. Appendix 2 Policy decision model
TPM Pyramid before the implementation of improvement proposals Appendix 3 TPM pyramid (Current state) Green >80 % Yellow >40 % Red <40 %
TPM Pyramid after the implementation of improvement proposals. (The improvement, in percentage, in the small boxes) 4 % increase of the average in level 1 and 2
+5 +13 +19 +13 +16 +6 +12 +50 +14 +4 Appendix 4 - TPM pyramid (After improvements) N i v