Total Productive Maintenance, Sourcing Vendors, Ancilliary Mgt.

TPM is a medical sciences of machines. A maintenance program which involves a

newly defined concept for maintaining plants & equipment

Brings maintenance into focus as vital part of business. Minimize unscheduled & emergency maintenance.

Goal – significantly increase production, at the same time, employee morale & job satisfaction.

Focus on Improvement of A. People -- Involvement -- Skills & Expertize development -- Enthusiastic work environmentresulting in effectiveness of machines

B. Equipment – Reliability Maintainability Economy of use.resulting in improving Quality & Productivity

Why TPM ?Avoid wastageProduction of QUALITY goodsReduce costSmall batch in shortest possible timeNon defective goods sent to customer.

Types of MaintenanceBreakdownPreventive , 1951 : i. Periodic; ii.PredictiveCorrective; 1957Maintenance prevention( 1960)

Overall eqpt Efficiency = A *PE*QA = MTBF – MTTR / MTBFAvailability; Perf efficiencyPE : RE * SE ; Rate efficiency – Actual

average cycle time is slower than design cycle time , & Speed efficiency -- Actual cycle time is slower than DCT.

Quality ; percentage of good parts of the total production

Pillars of TPM 5 S – Sort the items. Systematize – organize

the items, Sweep the workplace- shiningh , Standardize, Self discipline among employees

Autonomous maintenanceKaizenPlanned MaintenanceQuality MiantenanceTraining Office safety, health & Environment

Selection of Source & Supplier developmentA good supplier ;* delivers material of correct specs* on stipulated dates* ethical in behaviour* stands by his promises* regards buyer seller relationshipsProgressive in business & seeks

technological adv in improvement of product quality

Purchase Mgr has expertize in Providetechnical assistanceDetermine price trendsDefining qlty reqtsMaintain Inventory controlRight quality of supplies is obtained in right

quantities at right time at right place at right price.

7 factors to choose a SupplierInternal facilitiesFinancial adequacy & stabilityModern outlook, Management expertize,

latest techniques like value analysis, R & D, etc

ReputationAfter sales serviceLocation, congenial, accessLabour relationsAgent or Manufacturer

Purchase Mgr always look at competition with competitive price, better quality, service, etc

Technical competitionServices competitionPrice competition

Information of Potential vendorsTrade directoriesTrade journalsTelephone directoriesSuppliers cataloguesTrade exhibitions & fairsSales team members : good aource for

possible suppliers. On the move, alert, familiar with all products, services, new apllications for P/S, extensive knowledge of neww P/ S/ process.

Company staff – Engg, Design, Purchase dept of other companiesPublic tenders ; Other condiderations :From which industry, availability, quantity,

time frame, required repeatedly, component for manufacture, only once occasionally, particular eqpt or machinery, size & its lin k to source

One or more SuppliersMonopolistic buyerAgent or manufacturerLocal or distant supplierSmall or Big supplierReciprocityPlant visits

Registration of suppliersDeveloping new SuppliersANCILLIARY DEVELOPMENT : Company

wants to outsource its components & parts. Subcontract to others.

Subcontractor is ancilliary industryCompany wants to concentrate on core

business, small parts to subcontractors with low overheads.

Major policy of Govt – Ancilliary development to speed industrial dev Public sector enterprises will earmark certain

items for ancilliary dev technical knowhow & Managerial guidance on ; prod process, method, eqpt selection, layout,

design, detailed drawings, tooling, jogs, qlty control procedure, manpower plng, Orgn for PPC, Management aids, Sourcing of funds,,,

Proprietary item manufactured by ancilliary for parent enterprises. Prices to be fixed, 10 to 20% allowance variation, taxes,etc

Not proprietory, ancilliary gets a 5 to 10% price preference for 2 to 3 yrs, over outstation vendors.

Items to be substituted for imports :12 to 15% return on capital employed; 15%

price preference over landed cost,taper off gradually.

After Subcontractor is appointedEntire facilities to one buyer – commit by

buyer??Confidential, other design , blue prints, legal,

safeguardsPricing policyEnsuring qualityCan he sell apres directly to customers or via

buyer???

Foreign purchasesSome parts not available have to be imported. Follow

some procedures.Agent – gives quote. Some cases, pymt, delivery,

inspection, shipping details thru agent – Endorsing import license in name of vendor, who

coordinates. – steel thru SAIL, nylon yarn theu STC. Rare eqpt – global tendersSourcingQlty of product, price, other terms of sale, language

may be a problemImport license of material, pymt to supplier,

insurance, shipping, customs,

Evaluation of SuppliersSurvey stage ; All possible sources explored,

advts, catalogues, brochures, etc. Make a list.Enquiry stage : Details in a standard enquiry

form, present customers, performence, Negotiation stageSelection stage;Experience stage – Qlty, Delivery, Service