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IJQRM
17,2 TPM implementation in China:
a case study
Albert H.C. Tsang and P.K. Chan
144 The Hong Kong Polytechnic University, Hung Hom, Kowloon, Hong Kong
Keywords Total productive maintenance, Work psychology, Organizational change,
National cultures, China
Abstract Total productive maintenance (TPM) is an innovative approach to maintenance
which holds the potential for enhancing effectiveness of production facilities. It demands
significant change of work culture and radical restructuring of work. Introducing TPM in
operations located in developing countries, such as mainland China, is a major challenge because
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the environment is typically traditional and unfavourable to the transformation. This paper
presents a case study of TPM implementation in such an environment ± a high-precision
machining factory in mainland China. The workforce in the factory consists primarily of
migrant workers who are driven by instant gratification, and who are passive and hesitant to take
new challenges. None of these characteristics is conducive to TPM. A three-phase programme was
adopted by the factory to implement the change. The first two phases of the programme have been
completed, producing significant improvement in production performance. While the advanced
stage of the multi-year programme is still in progress, the lessons so far learned from the change
initiative are discussed.
Introduction
Nakajima (1988) states that TPM is a proactive and cost-effective approach to
equipment maintenance which is widely adopted in Japanese industries with
successful results. Moreover, he reports that many companies in North
America and South-East Asia are also attracted to the approach. The
successful implementation of TPM depends on a number of factors, such as a
culture of mutual trust, operators agreeable to providing basic care to their
machines, and maintenance personnel trained in management and people
skills. These factors are not commonly found in factories located in mainland
China. This paper presents a case study of introducing TPM in such an
environment which is not conducive to the new approach to maintenance.
The first part of this paper reviews the concept of TPM and discusses the
work values in mainland China. This provides the backdrop for the change
initiative of implementing TPM in the highly automated factory covered in the
case study. In the second part, a three-phase programme for TPM
implementation is introduced. The steps involved are also mapped to the
12-step procedure for TPM development proposed by Nakajima (1988). Finally,
there is a discussion on the lessons learned so far from the ongoing
development in the case study.
Company background
The case study reported in this paper happened in a high-precision machining
factory located in Pearl River Delta, China. It is a manufacturing site of a Hong
Kong-based supplier of semiconductor assembly equipment and leadframes.
The range of assembly equipment it makes include die and wire bonders, auto-
moulding systems, and trim form systems, all for the worldwide market. It has
the vision to be one of the top three semiconductor equipment suppliers in the
world. The declared mission is: ``We will be the preferred, profitable supplier of
assembly systems and materials who satisfies the needs of the customers we
serve.'' The factory has significant investment in high-precision machine tools,
which include more than 100 sets of CNC and NC machines. It has a total
workforce of about 2,000 employees, and about 40 of them work in the
maintenance department which used to handle all maintenance tasks in the
factory. Maintenance work is outsourced only on a need basis when it requires
specialist knowledge not available in the company. Simplified organization
charts of the factory and of the maintenance department are shown in Figures 1
and 2, respectively.
In mid-1995, the factory introduced TPM as an initiative to maximize
availability of the highly expensive machine tools, upgrade product quality,
improve safety performance and reduce operation and maintenance costs. It
was also expected that the change programme would transform the culture in
the workplace into one characterised by team spirit, ownership of problems,
Director
Administration
Manufacturing Manager Assembly & Purchasing
(External Liaison)
Figure 1.
Simplified organization
CNC Precision Shop Maintenance
Manager Manager Manager chart of the factory
IJQRM and drive for continuous improvement. The second author, who is the
17,2 maintenance manager of the factory, was the champion driving the TPM
implementation programme.
Maintenance Manager
Technical Expert
150
150
100
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50
Figure 3.
Number of machine 0
breakdowns per month Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov
in the pilot sites
Period from Aug 1995 to Nov 1996
programme
T7 Improve equipment This was initially focused on two pilot sites. The
effectiveness improvements were made by the maintenance
department
T8 Develop an autonomous
maintenance programme:
A1 Perform initial cleaning Tasks A1-A3 were performed by the maintenance
A2 Address sources of department in collaboration with production.
contamination and Visual controls such as equipment nameplates
inaccessible places and correct operating range displays on gauges,
A3 Establish cleaning and valve on-off indicators, etc. were introduced.
lubricating standards Photographs were used to document the desired
cleanliness of equipment and the workplace
Inspection checklists were prepared by
A4 Set overall inspection maintenance
standards
Promotion and T4 Establish basic TPM policies The operator is responsible for providing primary
consolidation care for his equipment ± cleaning, lubricating,
phase adjusting and inspecting
T2 Education campaign Steps T2 and T8 were extended to all production
T8 Develop an autonomous units
maintenance programme ±
steps A1-A4
Management leadership
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Pilot project
To limit the uncertainty and enhance the chances of success in the initial stage,
small-scale pilot projects should be conducted where quick and visible benefits
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can be expected. In the case study, the admirable results in the first six months
of the pilot phase convinced both management and the workforce that
significant improvement in machine uptime can be achieved by performing
simple PM tasks such as cleaning and proper lubrication. The setback in
machine uptime following the relaxation of control on operator performed PM
activities eloquently highlighted the need for self-discipline to hold the gains of
TPM. The experience gained from the pilot projects should also be used to fine-
tune the subsequent full-scale implementation.
Open communication
Anxiety and misunderstanding in the workforce are major problems
encountered during implementation. Some may perceive TPM as a threat to
their job security because they lack confidence in acquiring new skills and
behaviour to meet the restructured job requirements. Also, the elimination of
wasted equipment capacity may create labour redundancy. Some may regard
the change as exploitation because they have to take up additional
responsibilities without getting extra reward. In this regard, the maintenance
manager plays a very important role as the TPM champion. By practising
``management by wandering around'', he obtains first-hand information about
sentiments on the shopfloor. This tactic also promotes communication,
improves mutual understanding and develops trust between management and
the workforce. It prevents the spread of misinformation, such as the purported
hidden agenda of TPM, in the closely knitted worker communities in mainland
China.
Maintain focus
Misunderstanding, poor interpersonal skills and distrust are factors that can
hinder TPM implementation. Creating a climate of trust so that people feel free
to share their thoughts without fear of repercussions is very important if
autonomous maintenance is to be accomplished. Given the cultural archetype
of people in mainland China, this proves to be particularly difficult in China's
IJQRM factory environment. The barrage of activities and media that maintain a
17,2 sustained focus on TPM, as well as all the training and development
opportunities made available to employees, are important ingredients of the
change programme. However, they can never be a substitute for real action
taken by management. Managers must walk the talk ± their decisions and
behaviour must consistently send a strong message to employees that
156 openness, trust, teamwork, continuous improvement and learning are the core
values of the company.
Conclusions
TPM is a concept developed in Japan and its adoption is spreading to other
industrialized countries. It embraces the concept of empowerment such that
sufficient authorities, resources and freedom to contribute are given to
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