TOTAL PRODUCTIVE MAINTAINANCE

© Banks Roden Consulting1

World Class Maintenance

An Application ofTotal Productive Maintenance (TPM)

Concepts and Practices


Overview

• Objectives of manufacturing are cost, quality, and delivery• Maintenance is a tool to

achieve these objectives• Maintenance must be

integrated into the manufacturing function

• Maintenance strives to eliminate downtime and minimize breakdown cost


Maintenance losses are the tip of the Iceberg

Reduced machine life cycle

wasted critical human resources

late delivery

rework

lost capacity

scrap

downtime

Reduced project payback

poor quality


BRC recognizes that improving the effectiveness of maintenance is one of the critical elements of managing the enterprise and

maximizing the return on the asset base

Lean Manufacturing

InformationTechnologyMetrics

Asset Management

ProductionAssembly

Managementng

OperationalStrategy

FacilitiesMaintenance

Die &Tool Room

Maintenance

Equipmente

AssetManagement

MaintenancOrder

Planning & Scheduli


Maintenance Implementation - Path to Success

•Determine desired Cost, Quality, and Delivery

•Determine desired Maintenance Performance levels

•Review industry benchmarks

•Review improvement actions:

– Work Orders – Predictive/preven-

tive maintenance– MRO– Job Plans

– CMMS

•CMMS•Empowerment strategies

•Outsourcing•WO Management•Preventive and Predictive Maintenance

•Project Planning• Scope• Schedule• Budget• Resources

•Determine Performance Issues

•Analyze Maintenance Impact on Cost, Quality, and Delivery

•Review Processes and Product Flows

•Evaluate performance•Determine Mission, Vision, and Objectives

•Project Management

Assessment Develop To-Be Gap Analysis Solutions Planning Execution


•

As a part of the Path to Success, BRC utilizes a Maintenance Assessment Survey to help determine the areas of improvement

Communication• Organizational structure• Culture• Emergency response

• Facilities• Training and development

• Planning and Scheduling• measurement and controls• Spare parts control• Budgets and finance

• Reliability engineering

• Machine history and reporting• Work orders

CATEGORY• Hourly and salaried maintenance employees complete a comprehensive survey

• Purpose of the survey is to measure the magnitude of problems in 13 different categories


As a part of the Path to Success, BRC utilizes industry benchmarks to help determine the improvement potential and set aggressive targets

12%• Maintenance costs as percent plant controllable costs

40%• Storeroom issued/total maintenance material purchased

>90%• Storeroom inventory accuracy

3.0• Storeroom inventory turns

90-95%• PM Schedule compliance

2-3 weeks (equipment)2-4 weeks (tool room)

• Workable job backlog

15% - 20%• Preventive/Predictive maintenance as a percent of total work

<10%• Reactive repair as a percent of total maintenance work

World ClassSample Criteria


Maintenance Integrated with Operations

ProactiveMaintenance

• preventive & predictive maintenance• decreased breakdowns• improved productivity

Work Orders & History• improved maintenance productivity• breakdown root cause analysis

Maintenance Strategy

• performance measurement• linked to operations strategy

MRO• eliminate parts shortages• minimum effective inventory


•

As a part of the Path to Success, BRC identifies potential performance level in the Maintenance Performance Matrix

no strategy• maintenance viewed as a cost center

• parts shortages • no formal parts inventory

• limited preventive maintenance

• reactive• no formal WO

system

Traditional

• maintenance metrics• maintenance tied to production

• integration of maintenance and production• maintenance as a strategic advantage

• maintenance key partner in achieving production goals

MaintenanceStrategy

• parts availability• formal parts inventory

• quick response parts delivery• high parts inventory turns

• vendor managed MRO

MRO

• established preventive maintenance –scheduled PM

• predominate preventive maintenance• predictive maintenance

• breakdowns minimized

Proactive Maintenance

• initial phase of WO system

Standard

• formal WO system – current

requirements

Advanced

• advanced WO system with

future requirements

World Class

Work Orders & History

Performance Level


Path to Success and professional project management leads to Phase improvement in six months

1

2.

3.

4.

Traditional

Standard

Advanced

World Class

4.

1.

• reactive maintenance• no formal

controls

• initiate preventive

maintenance• initiate WO

system• initiate

predictive maintenance

• transition to less than 50% reactive

maintenance• transition to

complete WO control • entrenched predictive

maintenance

• minimal reactive maintenance• maintenance in equipment design


Foundation

• Autonomous Maintenance• Preventive/Predictive

Maintenance • Work Order System• Maintenance Materials

Management• Equipment Management• Labor Management• Data

Standardization/Collection/Analysis

• Communication


Continuous Improvement

• Failure Rate• MTBF (Mean Time

Between Failure)• Failure Analysis• Root Cause

?


Benefits

• Improved uptime• Increased quality• Improved delivery • Improved manpower

utilization• Reduced

maintenance costs


Total Productive Maintenance

TOTAL PRODUCTIVE MAINTENANCE has five major components• Maintenance assessment• Planning and hands-on on-site implementation• Computerized Maintenance Management System (CMMS) implementation• Maintenance training• Periodic follow-up reviews

Maintenance assessment is an evaluation of the client’s current maintenance proficiency as compared against world class benchmarks. The client’s current maintenance performance is placed against a matrix of maintenance performance levels. An implementation program can be designed to raise the performance level to the next higher maintenance proficiency level in a progression towards world class.Implementation of the project plan based upon the output from the assessment can begun immediately and led by professional project management.Where appropriate, implementation or enhancement of a Computerized Maintenance Management System (CMMS) can be accomplished.Value-added training is a pre-requisite for success.Post-implementation reviews are highly recommended to maintain momentum.


Total Productive MaintenanceMAINTENANCE ASSESSMENT• A maintenance assessment is performed of the maintenance organizational structure, its vision, relationship

of maintenance objectives to production cost, quality, and delivery objectives, maintenance budgets and other financial information, downtime history, data and issues, state of current breakdown maintenance, preventive and predictive maintenance, spare parts control, work order control, empowerment initiatives, and current IT as used by maintenance

• In addition to the management interviews, a survey is to taken to of hourly and salaried maintenance personnel to measure the magnitude of issues in 13 different categories that can influence the effectiveness of plant maintenance operations. The survey includes the following:

– Work Orders - Training and development– Machine history and reporting - Facilities– Reliability engineering - Emergency response– Budgets and finance - Culture– Spare parts control - Organizational structure– Measurement and controls - Communication– Planning and scheduling

• Information from the maintenance assessment is an evaluation of the client’s current maintenance proficiency. This is compared against world class benchmarks. The client’s current maintenance performance is placed against a matrix of maintenance performance levels. Based upon the organization’s maintenance objectives a new maintenance environment is designed. Specific solutions are developed to accomplish the new environment.; An implementation program can be designed to raise the performance level to the next higher maintenance level

• Success story for a major steel corporation involved forming a corporate maintenance team, facilitating this team to document and standardize best maintenance practices across the seven manufacturing plants, performing a requirements study to select a computerized maintenance management system and other solutions, and conducting implementation planning.



PLANNING AND HANDS-ON ON-SITE IMPLEMENTATION• Planning Phase An implementation program can be designed to raise the

performance level to the next highest maintenance level. A project plan is developed including timelines, budget, and resources. This is accomplished in partnership with the client organization. .

• The project will have as its deliverables to be the next level of maintenance performance on the maintenance performance matrix. This level of performance will be higher levels of proactive maintenance, higher levels of work order control, higher levels of spare parts control as determined by the assessment phase

• Training phase – see section on Training• The implementation phase can be led by our professional project management and

can consist of maintenance processes and if required a new CMMS or upgrade/enhancement of an existing CMMS

• Success story for a tier 1 automotive forging components manufacturer consisted of a complete lean manufacturing/maintenance implementation. A detailed assessment was conducted for the manufacturing organization. Based on this assessment four improvement initiatives were launched including productivity improvement, setup reduction, first-time quality, and maintenance. A cross-functional Kaizen team was formed with production hourly and salaried, maintenance, die room, engineering, and quality representatives. Action items were developed and pursued to improve cost, cost, quality, and delivery. Several maintenance initiatives were created and executed as part of the productivity program. Change management was instituted to attack and solve root causes before degradation of performance as opposed to after failure had occurred. Savings exceeded $900,000 annually.



COMPUTERIZED MAINTENANCE MANAGEMENT SYSTEM (CMMS) IMPLEMENTATION• Planning Phase An implementation program can be designed to raise the performance level

to the next highest maintenance level. A project plan is developed including timelines, budget, and resources. This is accomplished in partnership with the client organization. The implementation plan includes scope, work breakdown structure, processes and procedures, and risk management

• The implementation phase can be led by our professional project management and can consist of maintenance processes and if required a new CMMS or upgrade/enhancement of an existing CMMS

• The BRC team will conduct the project kick-off meeting, co-ordinate the project events with the client, prepare and distribute project reports on a regular basis, anticipate problems and expedite solutions, evaluate and maintain the quality of each event, and identify, evaluate, and make recommendations on customer change requests

• Implementation benefits commonly run as 10% improvement in operational availability and a 20% reduction in machine breakdown

• Success story for a large automotive assembly plant was the implementation of a top-of-the-line CMMS software package. An implementation team was formed with the client maintenance and production staff and our project leader. The implementation covered the entire assembly plant and was initiated with an assessment and business case. A pilot area was selected in the project planning and the core and steering committee teams were formed. Hardware and software requirements were identified and procured. Equipment was installed and data migration occurred. Users were trained and the CMMS was phased in sequentially through the production/facility departments. The project was brought in on time and under budget. Benefits were improved maintenance planning and scheduling, improved spare parts management and inventory reduction, improved maintenance productivity, reduced maintenance overtime, improved quality, increased production up-time, and reduced premium freight. Net savings in cost avoidance for old system, reduction in maintenance overtime, and downtime reduction was almost $500,000.



MAINTENANCE TRAINING• Value-added training is a critical phase of any implementation and is a pre-requisite

for success• Training can be value added for implementation of the maintenance processes

including preventive maintenance, predictive maintenance, work order processing, breakdown history build-up, or spare parts control.

• Training can also be instituted for learning to use effectively a Computerized Maintenance Management System to the utmost advantage

• BRC has developed a number of courses that can be offered at your location or held off-site to address the educational needs of your organization. We have provided courses for a number of the computerized maintenance management, project management, and report writer systems. Courses include:

– Maintenance management philosophy and practices– Work orders and the work cycle– Developing a preventive maintenance program– Inventory control for maintenance– Job estimating– Project management for maintenance– Introduction to personal computers– Computerized maintenance management



PERIODIC FOLLOW-UP REVIEWS• Value-added follow-up consists of audits to evaluate the organization’s progress on

the maintenance performance matrix• Changing priorities or management changes at companies can leave maintenance

projects stalled. We can jump-start these programs and get them up to speed. • This initiative can be stand alone or in concert with a full-blown assessment and or

implementation



MAJOR CASE STUDY• Client:: Stamping division of major automotive manufacturer• Time Frame: Late 1980’s –mid 1990’s• Initial Project Work scope: To assess current operations within the maintenance organization of three Stamping

Plants. To identify opportunities for reducing costs and improving productivity. To build an implementation plan for agreed upon improvements and provide implementation assistance as requested.

• Results: As a result of the assessment and identification / implementation of improvements, the project was “rolled out” to all nine facilities. As well as specifying, implementing and customizing a computerized maintenance management system, the project also included the establishment of Division wide “standards” and guided the establishment of compliance audits to perpetuate results and continuous improvement. Results were so significant that similar efforts were subsequently expended to include the die room operations of all nine plants. Further improvements, related to project planning principles and practices, were implemented in both the maintenance and die room operations across the Division. These projects were coordinated with concurrent management initiatives associated with production inventory control, a Corporate wide quality program, and lean manufacturing methods. Incorporating TPM (Total Productive Maintenance), SMED, 5S methodologies across the Division, millions of dollars were recovered in obsolete and redundant parts/materials, as well as quantified cost avoidance initiatives. Cost avoidance initiatives were related to:

• preventive maintenance (more reliable lubrication, autonomous maintenance, die refurbishment)• reduction in die change out / set up times (error proofing)• “first hit” improvements (reduction in scrap costs)• equipment safety modifications• Manpower (residential, as well as contracted) productivity was increased by approximately 25% through sound

maintenance and production equipment scheduling. Enhanced preventive / predictive maintenance, work flow control and OEM participation resulted in better equipment reliability and availability, increasing the Division’s production capacity. The incorporated TPM methods and practices formed the basis for Division wide training and maintenance continuous improvement.

Documents

TOTAL PRODUCTIVE MAINTAINANCE