Project Scheduling and

Maintenance Management

Unit 6

Industrial Engineering (MEC 441)

Introduction:

• A project is a collection of tasks that must be

completed in minimum time or at minimal
cost.

• A project is – a temporary endeavour

undertaken to create a "unique" product or
service

• A project is composed of – a number of

related activities that are directed to the
accomplishment of a desired objective
Start and End of a Project

• A project starts when – at least one of

its activities is ready to start

• A project is completed when – all of its

activities have been completed
Classification of Projects
• Personal Projects: Project of an individual like
tour planning or completion of a small project etc.
• Local or neighborhood Projects: Project at a
society or village level like construction of a
community hall etc.
• Organizational Projects: Project at the
organizational level like purchase of a new
machine etc.
• National Projects: Project at the country level
like construction of a dam etc.
• Global Projects: Project at the world level like
laying a petroleum pipeline between two countries
etc.
Features of a Project
• Start & end
• Life Cycle
• Budget
• Activities
• Interdependence
• Resources
• Management Principles
• Manager’s Responsibility
• Team Rules and Responsibility
• Objective
Scheduling
– “what” will be done, and “who” will be
working
• relative timing of tasks & time frames
– a concise description of the plan
Objectives of Project Scheduling
– Completing the project as early as
possible by determining the earliest start
and finish of each activity.
– Calculating the likelihood a project will be
completed within a certain time period.
– Finding the minimum cost schedule
needed to complete the project by a
certain date.
Network Analysis
Network analysis is a vital technique in
PROJECT MANAGEMENT. It enables us to
take a systematic quantitative structured
approach to the problem of managing a
project through to successful completion.
Network Analysis Techniques:
• PERT (Program Evaluation and Review
Technique)
• CPM (Critical Path Management).
Basic Terms
• Activity: An activity is a physically
identifiable part of a project, which consumes
both time and resources. Activity is
represented by an arrow in a network
diagram.
• Predecessor Activities: All those activities,
which must be completed before the start of
activity under consideration, are called its
predecessor activities
• Successor Activities: All those activities, which
have to follow the activity under
consideration, are called its successor
activities
• Dummy Activity: An activity, which is used
to maintain the pre-defined precedence
relationship only during the construction of
the project network, is called a dummy
activity. Dummy activity is represented by a
dotted arrow and does not consume any time
and resource
• Event: An event represents the
accomplishment of some task. In a network
diagram, beginning and ending of an activity
are represented as events.
• Path: An unbroken chain of activities
between any two events is called a path.
Errors to be Avoided in Constructing a
Network
• Two activities starting from a tail event must
not have a same end event. To ensure this, it
is absolutely necessary to introduce a dummy
activity, as shown in Figure below
• Looping error should not be formed in a
network, as it represents performance of
activities repeatedly in a cyclic manner, as
shown below in Figure

• In a network, there should be only one start

event and one ending event as shown below,
in Figure
• The direction of arrows should flow from left
to right avoiding mixing of direction as shown
in Figure
Fulkerson’s Rule
Each network diagram starts with an initial event and
ends at a terminal event. Each node is represented by a
circle ( Figure below ) and numbered by using the
Fulkerson's Rule. Following steps are involved in the
numbering of the nodes
• The initial event, which has all outgoing
arrows and no incoming arrow, is numbered
as 1.
• Delete all the arrows coming out from the
node just numbered (i.e. 1). This step will
create some more nodes (at least one) into
initial events. Number these events in
ascending order (i.e. 2, 3 -etc.).
• Continue the process until the final or
terminal node which has all arrows coming in,
with no arrow going out, is numbered.
Illustration
Rules for Drawing Network
Diagram
Rule 1: Each activity is represented by one and
only one arrow in the network.
Rule 2: No two activities can be identified by
the same end events. (figure below)
Rule 3: Precedence relationships among all
activities must always be maintained.
Rule 4: Dummy activities can be used to
maintain precedence relationships only when
actually required. Their use should be
minimized in the network diagram.
Rule 5: Looping among the activities must be
avoided.
Example
Construct a network for a project whose
activities and their predecessor relationship are
given in Table 8.3.
Solution
PERT/CPM Approach
• The PERT/CPM approach to project
scheduling uses network presentation
of the project to
– Reflect activity precedence relations
– Activity completion time
• PERT/CPM is used for scheduling
activities such that the project’s
completion time is minimized.
Critical Path Method (CPM)
• Primary objectives:
– Plan for the fastest completion of the
project
– Identify activities whose delays is likely to
affect the completion date for the whole
project
– Very useful for repetitive activities with well
known completion time
• Developed by Du Pont Chemical Company
and published in 1958
– Can we decrease the completion time by
spending more money
Some CPM Terms
• Float = the amount of time an activity can
be delayed without delaying the project
• Critical = activities with no float; these
activities can not be delayed w/o extending
project duration
• Contingency = include a time allowance to
account for time slippage & other delays
• Slippage = difference between actual and
scheduled progress
CPM Calculations
• The forward pass
– calculate the earliest start dates of
the activities to calculate the project
completion date
• The backward pass
– calculate the latest start dates for
activities to identify the critical path
from the graph
Forward Pass Computations
• Step 1: Begin from the start event and move
towards the end event.
• Step 2: Put TE = 0 for the start event.
• Step 3: Go to the next event (i.e node 2) if there is
an incoming activity for event 2, add calculate TE
of previous event (i.e event 1) and activity time.
• Note: If there are more than one incoming
activities, calculate TE for all incoming activities
and take the maximum value. This value is the TE
for event 2.
• Step 4: Repeat the same procedure from step 3 till
the end event.
Backward Pass Computations
• Step 1: Begin from end event and move towards
the start event. Assume that the direction of
arrows is reversed.
• Step 2: Latest Time TL for the last event is the
earliest time. TE of the last event.
• Step 3: Go to the next event, if there is an
incoming activity, subtract the value of TL of
previous event from the activity duration time. The
arrived value is TL for that event. If there are more
than one incoming activities, take the Minimum TE
value.
• Step 4: Repeat the same procedure from step 2 till
the start event.
Critical Path and Events
• Critical event: an event that has zero slack
• Critical path: a path joining those critical
events
• Benefit of Critical Path Analysis:
– During planning stage
• Shortening the critical path will reduce the
overall project duration
– During management stage
• Pay more attention to those activities which
fall in the critical path
Activity Float
• Free Float FFij: The time by which the
completion of an activity can be delayed from
its earliest finish time without affecting the
earliest start time of the succeeding activity is
called free float.
FF ij = (Ej – Ei) – tij ....................(3)
FFij = Total float – Head event slack
• Independent Float IFij: The amount of time
by which the start of an activity can be
delayed without affecting the earliest start
time of any immediately following activities,
assuming that the preceding activity has
finished at its latest finish time.
IF ij = (Ej – Li) – tij ....................(4)
IFij = Free float – Tail event slack Where tail
event slack = Li – Ei

The negative value of independent float is

considered to be zero.
• Critical Path: After determining the earliest
and the latest scheduled times for various
activities, the minimum time required to
complete the project is calculated. In a
network, among various paths, the longest
path which determines the total time duration
of the project is called the critical path. The
following conditions must be satisfied in
locating the critical path of a network.
• An activity is said to be critical only if both
the conditions are satisfied.
1. TL – TE = 0
2. TLj – tij – TEj = 0
Example
A project schedule has the following characteristics
as shown in Table
i. Construct PERT network.
ii. Compute TE and TL for each activity.
iii. Find the critical path.
Solution
a) From the data given in the problem, the activity network is
constructed as shown in Figure given below
B) To determine the critical path, compute the earliest, time TE
and latest time TL for each of the activity of the project. The
calculations of TE and TL are as follows:,
C) From the Table 8.6, we observe that the activities 1 – 3, 3 –
5, 5 – 7,7 – 8 and 8 – 10 are critical activities as their floats are
zero.
Program Evaluation and Review
Technique (PERT)
• Primary objectives:
– Shortest possible time
– Coping with uncertain activity completion
times, e.g.:
• For a particular activity
• The most likely completion time is 4
weeks but
• It could be anywhere between 3 weeks
and 8 weeks
• Developed by the US Navy for the planning
and control of the Polaris missile program
PROJECT EVALUATION REVIEW
TECHNIQUE, (PERT)
In the critical path method, the time estimates are
assumed to be known with certainty. In certain
projects like research and development, new
product introductions, it is difficult to estimate the
time of various activities.
Hence PERT is used in such projects with a
probabilistic method using three time estimates for
an activity, rather than a single estimate, as shown
in Figure 8.22.
• Optimistic time tO:
It is the shortest time taken to complete the
activity. It means that if everything goes well then
there is more chance of completing the activity
within this time.
• Most likely time tm:
It is the normal time taken to complete an activity,
if the activity were frequently repeated under the
same conditions.
• Pessimistic time tp:
It is the longest time that an activity would take to
complete. It is the worst time estimate that an
activity would take if unexpected problems are
faced.
Taking all these time estimates into consideration,
the expected time of an activity is arrived at.
• The average or mean (ta) value of the activity
duration is given by,
• The variance of the activity time is calculated using
the formula,
• Probability for Project Duration
The probability of completing the project within the
scheduled time (Ts) or contracted time may be
obtained by using the standard normal deviate
where Te is the expected time of project
completion.
Probability of completing the project within the
scheduled time is,
Comparison between CPM & PERT
Basis PERT CPM
Meaning PERT is a project CPM is a statistical
management technique, technique of
used to manage project
uncertain activities of a management that
project. manages well
defined activities
of a project.
What is it? A technique of planning A method to
and control of time. control cost and
time.
Orientation Event-oriented Activity-oriented
 Basis PERT CPM
Evolved as
Evolved as Research &
Evolution Construction
Development project
project
Model Probabilistic Model Deterministic Model
Focuses on Time Time-cost trade-off
Estimates Three time estimates One time estimate
Appropriate High precision time Reasonable time
for estimate estimate
Management Predictable
Unpredictable Activities
of activities
Nature of
Non-repetitive nature Repetitive nature
jobs
 Basis PERT CPM
Critical and
Non-critical No differentiation Differentiated
activities
Non-research
Research and projects like civil
Suitable for
Development Project construction, ship
building etc.
Crashing
Not Applicable Applicable
concept
Maintenance
A formal definition of maintenance is
“that function of manufacturing
management that is concerned with day
to day problem of keeping the physical
plant in good operating condition”
Maintenance Management
• Modern maintenance management is not to
repair broken equipment rapidly. Modern
maintenance management is to keep the
equipment running at high capacity and
produce quality products at lowest cost
possible.
• Maintenance is a set of organized activities
that are carried out in order to keep the item
in its best operational condition with
minimum cost required.
Objectives
• Minimize loss of productive time
• Minimize repair time & cost
• Keep productive assets in working
condition
• Minimize accidents
• Minimize total maintenance cost
• Improve quality of products
• Efficient use of maintenance personnel
and equipments.
Importance
• Dependability of service
• Assured quality
• Prevent equipment failure
• Cost control
• Huge investment in equipment
Areas of Maintenance
1. Civil maintenance- Building construction and
maintenance, maintaining service facilities
2. Mechanical Maintenance- Maintaining
machines and equipments, transport vehicles,
compressors and furnaces.
3. Electrical Maintenance- Maintaining electrical
equipments such as generators, transformer,
motors, telephone systems, lighting, fans,
etc.
Impact of Poor Maintenance
1. Production capacity:
Machines idled by breakdowns cannot produce,
thus the capacity of the system is reduced
2. Production costs:
Labor costs per unit rise because of idle labor due
to machine breakdowns. When machine
malfunctions result in scrap, unit labor and material
costs increase.
3. Product and service quality:
Poorly maintained equipment's produce low quality
products. Equipment's that have not been properly
maintained have frequent break downs and cannot
provide adequate service to customers.
4. Employee or customer safety:
Worn-out equipment is likely to fail at any moment
and these failures can cause injuries to the
workers, working on those equipments. Products
such as two wheelers and automobiles, if not
serviced periodically, can break down suddenly and
cause injuries to the stress
5. Customer satisfaction:
When production equipments break own, products
often can not be produced according to the master
production schedules, due to work stoppages. This
will lead to delayed deliveries of products to the
customers.
Types of Maintenance
• Breakdown maintenance or Corrective
maintenance
• Preventive maintenance
• Predictive maintenance
• Routine maintenance
• Planned maintenance
• Unplanned maintenance or Emergency
maintenance
Breakdown Maintenance
• Occurs when there is a work stoppage
due to machine breakdown
• Maintenance becomes repair work
• Seeks to get the equipment back into
operation as quickly as possible
• To control the investment in
replacement spare machines
Preventive Maintenance
It is undertaken before the need arises
and aims to minimize the possibility of
un -anticipated production interruption
or major breakdowns.
Predictive Maintenance
In this, sensitive instruments (eg.
vibration analyzers, amplitude meters,
audio gauges, optical tooling and
resistance gauges) are used to predict
trouble. Conditions can be measured on
a continuous basis and this enables the
maintenance people to plan for an
overhaul.
Routine Maintenance
This includes activities such as periodic
inspection, cleaning, lubrication and
repair of production equipments after
their service life.
Planned Maintenance
It involves the inspection of all plant
and equipments, machinery, buildings
according to a predetermined schedule
in order to service overhaul, lubricate or
repair, before actual break down or
deterioration in service occurs
Unplanned Maintenance
• Maintenance action which is carried out
without any fore thoughts or prior planning is
called unplanned maintenance.
• Emergency maintenance is one of the
example of unplanned maintenance.
• In this type of maintenance the maintenance
action is executed with the help of all
available maintenance resources in least
possible time, without any major time lag.
• Examples are gas leakage in chemical plant,
fire hazards, breakdown of boiler, turbine etc.
Control of Maintenance
1. Authorized by an official
2. Maintenance schedule
3. Issue materials against proper
authorization
4. Maintenance budgets
5. Equipment records
Issues
• How much maintenance is needed?
• What size maintenance crews must be
used?
• Can maintenance be sub-contracted?
• Should maintenance staff be covered
by wage incentive schemes?
• Can effective use be made of
computers for analyzing and
scheduling activities?
Maintenance Planning & Scheduling
Effective planning and scheduling contribute
significantly to the following:
• Reduced maintenance cost.
• Improved utilization of the maintenance
workforce by reducing delays and interruptions.
• Improved quality of maintenance work by
adopting the best methods and procedures and
assigning the most qualified workers for the job.
Importance
• Facilitates optimum use of highly paid
maintenance staff
• Equipments can be utilized effectively
• Eliminates undue interruptions in the
production flow
• Eliminates chances of sudden breakdown
• Facilitates proper sequence in maintenance
service
Objectives
• Minimizing the idle time of maintenance workers.
• Maximizing the efficient use of work time,
material, and equipment.
• Maintaining the operating equipment at a
responsive level to the need of production in terms
of delivery schedule and quality.
Elements
• Written work orders that are derived from a
well-conceived planning process. (Work to be
done, methods to be followed, crafts needed,
spare parts needed, and priority).
• Time standards.
• Information about craft availability for each
shift.
• Stocks of spare parts and information on
restocking.
• Information on the availability of special
equipment and tools necessary for maintenance
work.
• Access to the plant production schedule and
knowledge about when the facilities will be
available for service without interrupting
production schedule.
• Well-define priorities for maintenance work.
• Information about jobs already scheduled that
are behind the schedule (backlog).
Maintenance Schedule Can be Prepared at
Three Levels (Depend on The Time
Horizon)

1. Long-range (master) schedule

2. Weekly schedule

3. Daily schedule
Long Term (Master) Schedule
• Covering a period of 3 months to 1 year.
• Based on existing maintenance work orders
(blanket work order, backlog, PM, anticipated
EM).
• Balancing long-term demand for maintenance
work with available resources.
• Spare parts and material could be identified and
ordered in advance.
• Subject to revision and updating to reflect
changes in the plans and maintenance work.
Weekly Schedule
• Covering 1 week.
• Generated from the master schedule.
• Takes into account current operations schedules
and economic considerations.
• Allow 10% to 15% of the workforce to be
available for emergency work.
• The schedule prepared for the current week and
the following one in order to consider the
available backlog.
• The work orders scheduled in this week are
sequenced based in priority.
• CPM and integer programming techniques can
be used to generate a schedule.
Daily Schedule
• Covering 1 day.
• Generated from weekly schedule.
• Prepared the day before.
• Interrupted to perform EM.
• Priorities are used to schedule the jobs.
Maintenance Strategies
Maintenance Strategy is an approach which
aims at maintaining the current market share of
a product or brand, with continuous but limited
investment in marketing, especially in low share
or stagnant markets.
Why use maintenance strategies?
• Large amount of life-cycle cost are allocated
to maintenance activities
• Reliability has a significant economical role so
condition management is important
• Business area is more difficult because of
regulations and competition
• Extend lifetime of the system components or
prolong the period between repairs
Maintenance Strategies
• CM - Corrective Maintenance
– Corrective maintenance actions in case of a
fault in order to return to normal condition
– Run to failure: inspections aren’t
performed. Replacement is done when
component fails.
• TBM - Time Based Maintenance
– Age replacement
– Periodic inspections
– Sequential inspections
• CBM - Condition Based Maintenance
– Continuous inspection
– Component is replaced when it doesn’t fill
the requirements
• RCM - Reliability Centered Maintenance
– Systematic approach for identifying
effective and efficient preventative
maintenance tasks for items in accordance
with a set of specific procedures and for
establishing intervals between maintenance
tasks
– Selects the maintenance strategy to be
used (CM, TBM, CBM)
Typically used Strategies
• Scheduled Maintenance
– Big spread in reported maintenance intervals and
durations ( generators, transformers, breakers)
– Preventive maintenance strategy
– Time intervals are based on probabilities
• Predictive (as needed) maintenance
– Use of periodic inspections (transformers) and
continuous monitoring (generators)
• Reliability-Centered Maintenance (RCM)
Probabilistic Models
– Based on number estimations of system
components
– Block diagrams, fault trees, Markov models, Monte
Carlo simulation etc.
Total Productive Maintenance
• Total Productive Maintenance (TPM) is
both
– a philosophy to permeate throughout an
operating company touching people of all levels
– a collection of techniques and practices
aimed at maximizing the effectiveness (best
possible return) of business facilities and processes
TPM Philosophy
It is a Japanese approach for
• Creating company culture for maximum
efficiency
• Striving to prevent losses with minimum
cost
– Zero breakdowns and failures, Zero
accident, and Zero defects etc
• The essence of team work (small group
activity) focused on condition and
performance of facilities to achieve zero
loss for improvement
• Involvement of all people from top
management to operator
Reasons of TPM
1. It guarantees dramatic results
(Significant tangible results)
• Reduce equipment breakdowns
• Minimize idle time and minor stops
• Less quality defects and claims
• Increase productivity
• Reduce manpower and cost
• Lower inventory
• Reduce accidents
2. Visibly transform the workplace (plant
environment)
• Through TPM, a filthy, rusty plant covered in oil
and grease, leaking fluids and spilt powders
can be reborn as a pleasant and safe working
environment
• Customers and other visitors are impressed by
the change
• Confidence on plant’s product increases
3. Raises the level of workers knowledge and
skills
As TPM activities begin to yield above concrete
results, it helps:
• The workers to become motivated
• Involvement increases
• Improvement suggestions proliferate
• People begin to think of TPM as part of the job
TPM Policy and Objectives
• To maximize overall equipment effectiveness
(Zero breakdowns and failures, Zero accident, and
Zero defects etc) through total employee
involvement
• To improve equipment reliability and
maintainability as contributors to quality and to
raise productivity
• To aim for maximum economy in equipment for
its entire life
• To cultivate equipment-related expertise and skills
among operators
• To create a vigorous and enthusiastic work
environment
TPM Corporate Policy
• To aim for world-class maintenance,
manufacturing performance and quality
• To plan for corporate growth through business
leadership
• To promote greater efficiency through greater
flexibility
• Revitalize the workshop and make the most of
employee talents
8 Major Pillars of TPM
Pillar 1: 5 S
TPM starts with 5S. Problems cannot be clearly seen when
the work place is unorganized. Cleaning and organizing the
workplace helps the team to uncover problems. Making
problems visible is the first step of improvement.

Japanese Term English Translation Equivalent 'S' term

Seiri Organisation Sort

Seiton Tidiness Systematize
Seiso Cleaning Sweep

Seiketsu Standardisation Standardise

Shitsuke Discipline Self - Discipline

Pillar 2: Autonomous Maintenance
This pillar is geared towards developing operators to be
able to take care of small maintenance tasks, thus
freeing up the skilled maintenance people to spend time
on more value added activity and technical repairs. The
operators are responsible for upkeep of their equipment
to prevent it from deteriorating.
Policy :
• Uninterrupted operation of equipments.
• Flexible operators to operate and maintain other
equipments.
• Eliminating the defects at source through active
employee participation.
• Stepwise implementation of JH activities.
JISHU HOZEN Targets:
• Reduce oil consumption by 50%
• Reduce process time by 50%
• Increase use of JH by 50%
Steps in JISHU HOZEN :
• Preparation of employees.
• Initial cleanup of machines.
• Take counter measures
• Fix tentative JH standards
• General inspection
• Autonomous inspection
• Standardization and
• Autonomous management.
Pillar 3: Kaizen
"Kai" means change, and "Zen" means good ( for the
better ). Basically kaizen is for small improvements, but
carried out on a continual basis and involve all people in
the organization. Kaizen is opposite to big spectacular
innovations. Kaizen requires no or little investment. The
principle behind is that "a very large number of
small improvements are move effective in an
organizational environment than a few
improvements of large value.
This pillar is aimed at reducing losses in the workplace
that affect our efficiencies. By using a detailed and
thorough procedure we eliminate losses in a systematic
method using various Kaizen tools. These activities are
not limited to production areas and can be implemented
in administrative areas as well.
Kaizen Policy :
• Practice concepts of zero losses in every sphere of
activity.
• Relentless pursuit to achieve cost reduction targets in
all resources
• Relentless pursuit to improve over all plant
equipment effectiveness.
• Extensive use of PM analysis as a tool for eliminating
losses.
• Focus of easy handling of operators.
Kaizen Target :
Achieve and sustain zero loses with respect to minor
stops, measurement and adjustments, defects and
unavoidable downtimes. It also aims to achieve 30%
manufacturing cost reduction.
Tools used in Kaizen :
• PM analysis (Phenomena Mechanism)
• Why - Why analysis
• Summary of losses
• Kaizen register
• Kaizen summary sheet.
Pillar 4: Planned Maintenance
It is aimed to have trouble free machines and
equipments producing defect free products for total
customer satisfaction. This breaks maintenance down
into 4 "families" or groups which was defined earlier.
• Preventive Maintenance
• Breakdown Maintenance
• Corrective Maintenance
• Maintenance Prevention

With Planned Maintenance we evolve our efforts from a

reactive to a proactive method and use trained
maintenance staff to help train the operators to better
maintain their equipment.
Policy :
• Achieve and sustain availability of machines
• Optimum maintenance cost.
• Reduces spares inventory.
• Improve reliability and maintainability of machines.

Target :
• Zero equipment failure and break down.
• Improve reliability and maintainability by 50 %
• Reduce maintenance cost by 20 %
• Ensure availability of spares all the time.
Six steps in Planned maintenance :
• Equipment evaluation and recoding present status.
• Restore deterioration and improve weakness.
• Building up information management system.
• Prepare time based information system, select
equipment, parts and members and map out plan.
• Prepare predictive maintenance system by
introducing equipment diagnostic techniques and
• Evaluation of planned maintenance.
Pillar 5: Quality Maintenance
It is aimed towards customer delight through highest quality
through defect free manufacturing. Focus is on eliminating
non-conformances in a systematic manner, much like
Focused Improvement. We gain understanding of what parts
of the equipment affect product quality and begin to
eliminate current quality concerns, then move to potential
quality concerns. Transition is from reactive to proactive
(Quality Control to Quality Assurance).
QM activities is to set equipment conditions that preclude
quality defects, based on the basic concept of maintaining
perfect equipment to maintain perfect quality of products.
The condition are checked and measure in time series to
very that measure values are within standard values to
prevent defects. The transition of measured values is
watched to predict possibilities of defects occurring and to
take counter measures before hand.
Policy :
• Defect free conditions and control of equipments.
• QM activities to support quality assurance.
• Focus of prevention of defects at source
• Focus on poka-yoke. ( fool proof system )
• In-line detection and segregation of defects.
• Effective implementation of operator quality
assurance.
Target :
• Achieve and sustain customer complaints at zero
• Reduce in-process defects by 50 %
• Reduce cost of quality by 50 %.
Pillar 6: Training
It is aimed to have multi-skilled revitalized employees whose
morale is high and who has eager to come to work and
perform all required functions effectively and independently.
Education is given to operators to upgrade their skill. It is not
sufficient know only "Know-How" by they should also learn
"Know-why". By experience they gain, "Know-How" to
overcome a problem what to be done. This they do without
knowing the root cause of the problem and why they are
doing so. Hence it become necessary to train them on
knowing "Know-why". The employees should be trained to
achieve the four phases of skill. The goal is to create a
factory full of experts. The different phase of skills are
Phase 1 : Do not know.
Phase 2 : Know the theory but cannot do.
Phase 3 : Can do but cannot teach
Phase 4 : Can do and also teach.
Policy :
• Focus on improvement of knowledge, skills and
techniques.
• Creating a training environment for self learning
based on felt needs.
• Training curriculum / tools /assessment etc
conductive to employee revitalization
• Training to remove employee fatigue and make work
enjoyable.
Target :
• Achieve and sustain downtime due to want men at
zero on critical machines.
• Achieve and sustain zero losses due to lack of
knowledge / skills / techniques
• Aim for 100 % participation in suggestion scheme.
Steps in Educating and training activities :
• Setting policies and priorities and checking present
status of education and training.
• Establish of training system for operation and
maintenance skill up gradation.
• Training the employees for upgrading the operation
and maintenance skills.
• Preparation of training calendar.
• Kick-off of the system for training.
• Evaluation of activities and study of future approach.
PILLAR 7: OFFICE TPM
Office TPM must be followed to improve productivity,
efficiency in the administrative functions and identify
and eliminate losses. This includes analyzing processes
and procedures towards increased office automation.
Office TPM addresses twelve major losses. They are
• Processing loss
• Cost loss including in areas such as procurement,
accounts, marketing, sales leading to high inventories
• Communication loss
• Idle loss
• Set-up loss
• Accuracy loss
• Office equipment breakdown
• Communication channel breakdown, telephone and
fax lines
• Time spent on retrieval of information
• Non availability of correct on line stock status
• Customer complaints due to logistics
• Expenses on emergency dispatches/purchases

How to start office TPM ?

• A senior person from one of the support functions
e.g. Head of Finance, MIS, Purchase etc should be
heading the sub-committee. Members representing
all support functions and people from Production &
Quality should be included in sub committee. TPM co-
ordinate plans and guides the sub committee.
• Providing awareness about office TPM to all support
departments
• Helping them to identify P, Q, C, D, S, M in each
function in relation to plant performance
• Identify the scope for improvement in each function
• Collect relevant data
• Help them to solve problems in their circles
• Make up an activity board where progress is
monitored on both sides - results and actions along
with Kaizens.
• Fan out to cover all employees and circles in all
functions.
P Q C D S M in Office TPM :
• P - Production output lost due to want of material,
Manpower productivity, Production output lost due to
want of tools.
• Q - Mistakes in preparation of cheques, bills, invoices,
payroll, Customer returns/warranty attributable to BOPs,
Rejection/rework in BOP's/job work, Office area rework.
• C - Buying cost/unit produced, Cost of logistics -
inbound/outbound, Cost of carrying inventory, Cost of
communication, Demurrage costs.
• D - Logistics losses (Delay in loading/unloading)
 Delay in delivery due to any of the support functions
 Delay in payments to suppliers
 Delay in information
• S - Safety in material handling/stores/logistics, Safety of
soft and hard data.
• M - Number of kaizens in office areas.
Benefits of Office TPM
• Involvement of all people in support functions for focusing
on better plant performance
• Better utilized work area
• Reduce repetitive work
• Reduced inventory levels in all parts of the supply chain
• Reduced administrative costs
• Reduced inventory carrying cost
• Reduction in number of files
• Reduction of overhead costs (to include cost of non-
production/non capital equipment)
• Productivity of people in support functions
• Reduction in breakdown of office equipment
• Reduction of customer complaints due to logistics
• Reduction in expenses due to emergency
dispatches/purchases
• Reduced manpower
• Clean and pleasant work environment.
Pillar 8: Safety, Health & Environment
Target :
• Zero accident,
• Zero health damage
• Zero fires.
In this area focus is on to create a safe workplace and a
surrounding area that is not damaged by our process or
procedures. This pillar will play an active role in each of the
other pillars on a regular basis.
A committee is constituted for this pillar which comprises
representative of officers as well as workers. The committee
is headed by Senior vice President ( Technical ). Utmost
importance to Safety is given in the plant. Manager (Safety)
is looking after functions related to safety. To create
awareness among employees various competitions like safety
slogans, Quiz, Drama, Posters, etc. related to safety can be
organized at regular intervals.