Total Productive Maintenance (TPM)

TPM as the name suggests consists of three words:

Total. This signifies to consider every aspect and involving everybody from top to
bottom.
Productive. Emphasis on trying to do it while production goes on and minimize
troubles for
production and asset.
Maintenance. Means keeping asset autonomously by production operators in good
condition repair, clean, grease, and accept to spend necessary time on it.
History
Toyota 1962 QC, Preventive & Productive Maint
Nippondensu 1969 (Subcontractor to Toyota)
Toyota 1970-tal (Toyoda Production System)
JIPM 1971 (Japan Institute of Plant Maintenance)
1989 (Motorfabriken, Skövde)
TPM
TPM is a systematic way to provide undisturbed processes by using every workers
involvement in decreasing costs and increasing total economic effectiveness, through:
- Following up process disturbances
- Improvement groups
- Independent maintenance by operators
Goals
• Zero breakdown/losses 1/100th
• Zero defects 1/40th
• Zero accidents 0
What TPM can do?
- Work place management (5-S Techniques)
- Reduction of loss of resources (3-MUs)
- Provisioning of logistics in time (JIT & MRP)
- Productivity increase (OEE)
- Continuous improvement (Kaizen)
- Increase employee morale and job satisfaction

What is Total Productive Maintenance (TPM)?

Total Productive Maintenance (TPM) is a maintenance program which involves operators
in a newly defined concept for maintaining plants and equipment. The goal of the TPM
program is to markedly increase production while, increasing employee involvement,
morale and job satisfaction.
TPM brings maintenance into focus as a necessary and vitally important part of the
business. It is no longer regarded as a non-profit activity. Down time for maintenance is
scheduled as a part of the manufacturing day and, in some cases, as an integral part of the
manufacturing process. The goal is to hold emergency and unscheduled maintenance to a
minimum.
Why TPM?
TPM was introduced to achieve the following objectives. The important ones are listed below.
• Avoid wastage in a quickly changing economic environment.
• Producing goods without reducing product quality.
• Reduce cost.
• Produce a low batch quantity at the earliest possible time.
• Goods send to the customers must be non defective.

Similarities & differences between TQM and TPM

The TPM program closely resembles the popular Total Quality Management (TQM)
program. Many of the tools such as employee empowerment, benchmarking,
documentation, etc. used in TQM are used to implement and optimize TPM. Following
are the similarities between the two.
1. Total commitment to the program by upper level management is required in both
programmes
2. Employees must be empowered to initiate corrective action, and
3. A long range outlook must be accepted as TPM may take a year or more to
implement and is an on-going process. Changes in employee mind-set toward
their job responsibilities must take place as well.

The differences between TQM and TPM are summarized below.

Category TQM TPM

Equipment ( Input and
Object Quality ( Output & effects )
cause )
Systematize the
Employees participation
Mains of attaining goal management. It is software
and it is hardware oriented
oriented
Elimination of losses and
Target Quality for PPM
wastes.

TPM - History:
TPM is a innovative Japanese concept. The origin of TPM can be traced back to 1951
when preventive maintenance was introduced in Japan. However the concept of
preventive maintenance was taken from USA. Nippondenso was the first company to
introduce plant wide preventive maintenance in 1960. Preventive maintenance is the
concept wherein, operators produced goods using machines and the maintenance group
was dedicated with work of maintaining those machines, however with the automation of
Nippondenso, maintenance became a problem as more maintenance personnel were
required. So the management decided that the routine maintenance of equipment would
be carried out by the operators. ( This is Autonomous maintenance, one of the features of
TPM ). Maintenance group took up only essential maintenance works.
Thus Nippondenso which already followed preventive maintenance also added
Autonomous maintenance done by production operators. The maintenance crew went in
the equipment modification for improving reliability. The modifications were made or
incorporated in new equipment. This lead to maintenance prevention. Thus preventive
maintenance along with Maintenance prevention and Maintainability Improvement gave
birth to Productive maintenance. The aim of productive maintenance was to maximize
plant and equipment effectiveness to achieve optimum life cycle cost of production
equipment.
By then Nippon Denso had made quality circles, involving the employees participation.
Thus all employees took part in implementing Productive maintenance. Based on these
developments Nippondenso was awarded the distinguished plant prize for developing and
implementing TPM, by the Japanese Institute of Plant Engineers ( JIPE ). Thus
Nippondenso of the Toyota group became the first company to obtain the TPM
certification.

Motives of TPM 1. Adoption of life cycle approach for improving the

overall performance of production equipment.
2. Improving productivity by highly motivated workers
which is achieved by job enlargement.
3. The use of voluntary small group activities for
identifying the cause of failure, possible plant and
equipment modifications.
Uniqueness of TPM The major difference between TPM and other concepts is
that the operators are also made to involve in the
maintenance process. The concept of "I ( Production
operators ) Operate, You ( Maintenance department ) fix" is
not followed.
TPM Objectives 1. Achieve Zero Defects, Zero Breakdown and Zero
accidents in all functional areas of the organization.
2. Involve people in all levels of organization.
3. Form different teams to reduce defects and Self
Maintenance.

Direct benefits of TPM 1. Increase productivity and OPE ( Overall Plant

Efficiency ) by 1.5 or 2 times.
2. Rectify customer complaints.
3. Reducethe manufacturing cost by 30%.
4. Satisfy the customers needs by 100 % ( Delivering
the right quantity at the right time, in the required
quality. )
 5. Reduce accidents.
6. Follow pollution control measures.
Indirect benefits of 1. Higher confidence level among the employees.
TPM 2. Keep the work place clean, neat and attractive.
3. Favorablechange in the attitude of the operators.
4. Achieve goals by working as team.
5. Horizontaldeployment of a new concept in all areas of
the organization.
6. Share knowledge and experience.
7. The workers get a feeling of owning the machine.

OEE ( Overall Equipment Efficiency ) :

Availability

Availability takes into account Down Time Loss, and is calculated as:

Availability = Operating Time / Planned Production Time

Performance

Performance takes into account Speed Loss, and is calculated as:

Performance = Ideal Cycle Time / (Operating Time / Total Pieces)

Ideal Cycle Time is the minimum cycle time that your process can be expected to achieve in
optimal circumstances. It is sometimes called Design Cycle Time, Theoretical Cycle Time or
Nameplate Capacity.

Since Run Rate is the reciprocal of Cycle Time, Performance can also be calculated as:

Performance = (Total Pieces / Operating Time) / Ideal Run Rate

Performance is capped at 100%, to ensure that if an error is made in specifying the Ideal Cycle
Time or Ideal Run Rate the effect on OEE will be limited.

Quality

Quality takes into account Quality Loss, and is calculated as:

Quality = Good Pieces / Total Pieces

OEE
OEE = Availability x Performance x Quality
Steps in introduction of TPM in an organization
Step A - PREPARATORY STAGE :

STEP 1 - Announcement by Management to all about TPM introduction in

the organization :

Proper understanding, commitment and active involvement of the top management in needed for
this step. Senior management should have awareness programmes, after which announcement
is made to all. Publish it in the house magazine and put it in the notice board. Send a letter to all
concerned individuals if required.

STEP 2 - Initial education and propaganda for TPM :

Training is to be done based on the need. Some need intensive training and some just an
awareness. Take people who matters to places where TPM already successfully implemented.

STEP 3 - Setting up TPM and departmental committees :

TPM includes improvement, autonomous maintenance, quality maintenance etc., as part of it.
When committees are set up it should take care of all those needs.

STEP 4 - Establishing the TPM working system and target :

Now each area is benchmarked and fix up a target for achievement.

STEP 5 - A master plan for institutionalizing :

Next step is implementation leading to institutionalizing wherein TPM becomes an organizational

culture. Achieving PM award is the proof of reaching a satisfactory level.

STEP B - INTRODUCTION STAGE

This is a ceremony and we should invite all. Suppliers as they should know that we want quality
supply from them. Related companies and affiliated companies who can be our customers,
sisters concerns etc. Some may learn from us and some can help us and customers will get the
communication from us that we care for quality output.

STAGE C - IMPLEMENTATION
In this stage eight activities are carried which are called eight pillars in the development of TPM
activity.
Of these four activities are for establishing the system for production efficiency, one for initial
control system of new products and equipment, one for improving the efficiency of administration
and are for control of safety, sanitation as working environment.

STAGE D - INSTITUTIONALISING STAGE

By all there activities one would has reached maturity stage. Now is the time for applying for PM
award. Also think of challenging level to which you can take this movement.

Pillars of TPM

PILLAR 1 - 5S :
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 Systematise

 Seiso Cleaning Sweep

Seiketsu Standardisation Standardise

Shitsuke Discipline Self - Discipline

SEIRI - Sort out :

This means sorting and organizing the items as critical, important, frequently used items, useless,
or items that are not need as of now. Unwanted items can be salvaged. Critical items should be
kept for use nearby and items that are not be used in near future, should be stored in some place.
For this step, the worth of the item should be decided based on utility and not cost. As a result of
this step, the search time is reduced.

Priority Frequency of Use How to use

Throw away, Store away from the

Low Less than once per year, Once per year<
workplace

At least 2/6 months, Once per month,

Average Store together but offline
Once per week

High Once Per Day Locate at the workplace

SEITON - Organise :

The concept here is that "Each items has a place, and only one place". The items should be
placed back after usage at the same place. To identify items easily, name plates and colored tags
has to be used. Vertical racks can be used for this purpose, and heavy items occupy the bottom
position in the racks.

SEISO - Shine the workplace :

This involves cleaning the work place free of burrs, grease, oil, waste, scrap etc. No loosely
hanging wires or oil leakage from machines.

SEIKETSU - Standardization :

Employees has to discuss together and decide on standards for keeping the work place /
Machines / pathways neat and clean. This standards are implemented for whole organization and
are tested / Inspected randomly.

SHITSUKE - Self discipline :

Considering 5S as a way of life and bring about self-discipline among the employees of the
organization. This includes wearing badges, following work procedures, punctuality, dedication to
the organization etc.

PILLAR 2 - JISHU HOZEN ( 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 :

1. Uninterrupted operation of equipments.

2. Flexible operators to operate and maintain other equipments.
3. Eliminating the defects at source through active employee participation.
4. Stepwise implementation of JH activities.

JISHU HOZEN Targets:

1. Prevent the occurrence of 1A / 1B because of JH.

2. Reduce oil consumption by 50%
3. Reduce process time by 50%
4. Increase use of JH by 50%

Steps in JISHU HOZEN :

1. Preparation of employees.
2. Initial cleanup of machines.
3. Take counter measures
4. Fix tentative JH standards
5. General inspection
6. Autonomous inspection
7. Standardization and
8. Autonomous management.

Each of the above mentioned steps is discussed in detail below.

1. Train the Employees : Educate the employees about TPM, Its advantages, JH
advantages and Steps in JH. Educate the employees about abnormalities in equipments.
2. Initial cleanup of machines :
o Supervisor and technician should discuss and set a date for implementing step1
o Arrange all items needed for cleaning
o On the arranged date, employees should clean the equipment completely with
the help of maintenance department.
 o Dust, stains, oils and grease has to be removed.
o Following are the things that has to be taken care while cleaning. They are Oil
leakage, loose wires, unfastened nits and bolts and worn out parts.
o After clean up problems are categorized and suitably tagged. White tags is place
where problems can be solved by operators. Pink tag is placed where the aid of
maintenance department is needed.
o Contents of tag is transferred to a register.
o Make note of area which were inaccessible.
o Finally close the open parts of the machine and run the machine.
3. Counter Measures :
o Inaccessible regions had to be reached easily. E.g. If there are many screw to
open a fly wheel door, hinge door can be used. Instead of opening a door for
inspecting the machine, acrylic sheets can be used.
o To prevent work out of machine parts necessary action must be taken.
o Machine parts should be modified to prevent accumulation of dirt and dust.
4. Tentative Standard :
o JH schedule has to be made and followed strictly.
o Schedule should be made regarding cleaning, inspection and lubrication and it
also should include details like when, what and how.
5. General Inspection :
o The employees are trained in disciplines like Pneumatics, electrical, hydraulics,
lubricant and coolant, drives, bolts, nuts and Safety.
o This is necessary to improve the technical skills of employees and to use
inspection manuals correctly.
o After acquiring this new knowledge the employees should share this with others.
o By acquiring this new technical knowledge, the operators are now well aware of
machine parts.
6. Autonomous Inspection :
o New methods of cleaning and lubricating are used.
o Each employee prepares his own autonomous chart / schedule in consultation
with supervisor.
o Parts which have never given any problem or part which don't need any
inspection are removed from list permanently based on experience.
o Including good quality machine parts. This avoid defects due to poor JH.
o Inspection that is made in preventive maintenance is included in JH.
o The frequency of cleanup and inspection is reduced based on experience.
7. Standardization :
o Upto the previous stem only the machinery / equipment was the concentration.
However in this step the surroundings of machinery are organized. Necessary
items should be organized, such that there is no searching and searching time is
reduced.
o Work environment is modified such that there is no difficulty in getting any item.
o Everybody should follow the work instructions strictly.
o Necessary spares for equipments is planned and procured.
 8. Autonomous Management :
o OEE and OPE and other TPM targets must be achieved by continuous improve
through Kaizen.
o PDCA ( Plan, Do, Check and Act ) cycle must be implemented for Kaizen.

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 :

1. Practice concepts of zero losses in every sphere of activity.

2. relentless pursuit to achieve cost reduction targets in all resources
3. Relentless pursuit to improve over all plant equipment effectiveness.
4. Extensive use of PM analysis as a tool for eliminating losses.
5. 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 :

1. PM analysis
2. Why - Why analysis
3. Summary of losses
4. Kaizen register
5. Kaizen summary sheet.

The objective of TPM is maximization of equipment effectiveness. TPM aims at maximization of

machine utilization and not merely machine availability maximization. As one of the pillars of TPM
activities, Kaizen pursues efficient equipment, operator and material and energy utilization, that is
extremes of productivity and aims at achieving substantial effects. Kaizen activities try to
thoroughly eliminate 16 major losses.

16 Major losses in a organisation:

 Loss Category

1. Failure losses - Breakdown loss

2. Setup / adjustment losses
3. Cutting blade loss
4. Start up loss
5. Minor stoppage / Idling loss. Losses that impede equipment efficiency
6. Speed loss - operating at low
speeds.
7. Defect / rework loss
8. Scheduled downtime loss

9. Management loss
10. Operating motion loss
11. Line organization loss Loses that impede human work efficiency
12. Logistic loss
13. Measurement and adjustment loss

14. Energy loss

15. Die, jig and tool breakage loss Loses that impede effective use of production resources
16. Yield loss.

Classification of losses :

Aspect Sporadic Loss Chronic Loss

This loss cannot be easily
Causes for this failure can be
identified and solved. Even if
Causation easily traced. Cause-effect
various counter measures are
relationship is simple to trace.
applied
This type of losses are caused
Easy to establish a remedial because of hidden defects in
Remedy
measure machine, equipment and
methods.

A single cause is rare - a

Impact / Loss A single loss can be costly combination of causes trends to
be a rule

Frequency of The frequency of occurrence is

The frequency of loss is more.
occurrence low and occasional.
 Specialists in process
Usually the line personnel in
engineering, quality assurance
Corrective action the production can attend to
and maintenance people are
this problem.
required.

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.

1. Preventive Maintenance
2. Breakdown Maintenance
3. Corrective Maintenance
4. 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 :

1. Achieve and sustain availability of machines

2. Optimum maintenance cost.
3. Reduces spares inventory.
4. Improve reliability and maintainability of machines.

Target :

1. Zero equipment failure and break down.

2. Improve reliability and maintainability by 50 %
3. Reduce maintenance cost by 20 %
4. Ensure availability of spares all the time.

Six steps in Planned maintenance :

1. Equipment evaluation and recoding present status.

2. Restore deterioration and improve weakness.
3. Building up information management system.
4. Prepare time based information system, select equipment, parts and members and map
out plan.
5. Prepare predictive maintenance system by introducing equipment diagnostic techniques
and
6. 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 :

1. Defect free conditions and control of equipments.

2. QM activities to support quality assurance.
3. Focus of prevention of defects at source
4. Focus on poka-yoke. ( fool proof system )
5. In-line detection and segregation of defects.
6. Effective implementation of operator quality assurance.

Target :

1. Achieve and sustain customer complaints at zero

2. Reduce in-process defects by 50 %
3. Reduce cost of quality by 50 %.

Data requirements :

Quality defects are classified as customer end defects and in house defects. For customer-end
data, we have to get data on

1. Customer end line rejection

2. Field complaints.

In-house, data include data related to products and data related to process

Data related to product :

1. Product wise defects

2. Severity of the defect and its contribution – major/minor
3. Location of the defect with reference to the layout
4. Magnitude and frequency of its occurrence at each stage of measurement
5. Occurrence trend in beginning and the end of each production/process/changes. (Like
pattern change, ladle/furnace lining etc.)
 6. Occurrence trend with respect to restoration of breakdown/modifications/periodical
replacement of quality components.

Data related to processes:

1. The operating condition for individual sub-process related to men, method, material and
machine.
2. The standard settings/conditions of the sub-process
3. The actual record of the settings/conditions during the defect occurrence.

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 :

1. Focus on improvement of knowledge, skills and techniques.

2. Creating a training environment for self learning based on felt needs.
3. Training curriculum / tools /assessment etc conductive to employee revitalization
4. Training to remove employee fatigue and make work enjoyable.

Target :

1. Achieve and sustain downtime due to want men at zero on critical machines.
2. Achieve and sustain zero losses due to lack of knowledge / skills / techniques
3. Aim for 100 % participation in suggestion scheme.

Steps in Educating and training activities :

1. Setting policies and priorities and checking present status of education and training.
2. Establish of training system for operation and maintenance skill up gradation.
3. Training the employees for upgrading the operation and maintenance skills.
4. Preparation of training calendar.
5. Kick-off of the system for training.
6. Evaluation of activities and study of future approach.
PILLAR 7 - OFFICE TPM :
Office TPM should be started after activating four other pillars of TPM (JH, KK, QM, PM). 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

1. Processing loss
2. Cost loss including in areas such as procurement, accounts, marketing, sales leading to
high inventories
3. Communication loss
4. Idle loss
5. Set-up loss
6. Accuracy loss
7. Office equipment breakdown
8. Communication channel breakdown, telephone and fax lines
9. Time spent on retrieval of information
10. Non availability of correct on line stock status
11. Customer complaints due to logistics
12. 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.

1. Providing awareness about office TPM to all support departments

2. Helping them to identify P, Q, C, D, S, M in each function in relation to plant performance
3. Identify the scope for improvement in each function
4. Collect relevant data
5. Help them to solve problems in their circles
6. Make up an activity board where progress is monitored on both sides – results and
actions along with Kaizens.
7. Fan out to cover all employees and circles in all functions.

Kobetsu Kaizen topics for Office TPM :

• Inventory reduction
• Lead time reduction of critical processes
• Motion & space losses
• Retrieval time reduction.
• Equalizing the work load
 • Improving the office efficiency by eliminating the time loss on retrieval of information, by
achieving zero breakdown of office equipment like telephone and fax lines.

Office TPM and its Benefits :

1. Involvement of all people in support functions for focusing on better plant performance
2. Better utilized work area
3. Reduce repetitive work
4. Reduced inventory levels in all parts of the supply chain
5. Reduced administrative costs
6. Reduced inventory carrying cost
7. Reduction in number of files
8. Reduction of overhead costs (to include cost of non-production/non capital equipment)
9. Productivity of people in support functions
10. Reduction in breakdown of office equipment
11. Reduction of customer complaints due to logistics
12. Reduction in expenses due to emergency dispatches/purchases
13. Reduced manpower
14. Clean and pleasant work environment.

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.

How office TPM supports plant TPM :

Office TPM supports the plant, initially in doing Jishu Hozen of the machines (after getting training
of Jishu Hozen), as in Jishu Hozen at the
 1. Initial stages machines are more and manpower is less, so the help of commercial
departments can be taken, for this
2. Office TPM can eliminate the lodes on line for no material and logistics.

Extension of office TPM to suppliers and distributors :

This is essential, but only after we have done as much as possible internally. With suppliers it will
lead to on-time delivery, improved ‘in-coming’ quality and cost reduction. With distributors it will
lead to accurate demand generation, improved secondary distribution and reduction in damages
during storage and handling. In any case we will have to teach them based on our experience
and practice and highlight gaps in the system which affect both sides. In case of some of the
larger companies, they have started to support clusters of suppliers.

PILLAR 8 - SAFETY, HEALTH AND ENVIRONMENT :

Target :

1. Zero accident,
2. Zero health damage
3. 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.

Conclusion:
Today, with competition in industry at an all time high, TPM may be the only thing that stands
between success and total failure for some companies. It has been proven to be a program that
works. It can be adapted to work not only in industrial plants, but in construction, building
maintenance, transportation, and in a variety of other situations. Employees must be educated
and convinced that TPM is not just another "program of the month" and that management is
totally committed to the program and the extended time frame necessary for full implementation.
If everyone involved in a TPM program does his or her part, an unusually high rate of return
compared to resources invested may be expected.
 Maintenance performance measurement
Aditya Parida

INTRODUCTION
More and more studies are carried out to ascertain and establish the relationship
between maintenance performance and reliability of the productive/operative system,
with overall profitability and corporate strategy. Performance measurement provides a
base for improvement since without measurement there can be no certainty of
improvement. Maintenance performance indicators are used for the measurement of
maintenance performance, as performance indicators are just that of an indicator of
performance. An indicator is a product of several metrics (measure), when used for
measurement of maintenance performance in an area or activity; is called the
maintenance performance indicators. Maintenance performance measurement is a
complex task since multiple inputs and multiple outputs are involved in the process.

MAINTENANCE PERFORMANCE INDICATORS

Performance indicators compare actual conditions with a specific set of reference
conditions. They measure the distance(s)’ between the current environmental situation
and the desired situation (target): ‘distance to target’ assessment. The purpose of
measuring maintenance performance is designed to help and predict future action and
performance based on past data. While selecting and deciding the metrics for
measuring performance, appropriate and correct metrics be chosen, otherwise
performance results could be misleading. Performance indicators should be integrated
and interdependent to provide an overall perspective on the company’s goals, business
strategies, and specific objectives. In order to focus and streamline performance
indicators, the term “key performance indicators” has come to identify the key
objective performance, which could consist of several indicators and metrics . While
determining the performance level of maintenance, its strength and weaknesses has to
be considered and accordingly the key performance indicators has to consider those
areas for which the management of the corporate is interested.
Key performance indicators could be broadly classified as leading or lagging
indicator. A leading indicator is the one, which warns the user about the non-
achievement of objectives beforehand. A leading indicator thus works as a
performance driver and supports the concerned head of the department/section to
ascertain the present status with comparison to the reference one. A lagging indicator
normally change direction after economy does. Lagging indicators are useless for
prediction, as it would indicate the condition/status after the performance has taken
place. The maintenance cost per unit or return on investment calculation, could be the
example of lagging indicator.
The list of performance indicator is a long one. But each organization’s selection of
performance indicators will vary as per their corporate strategy objectives and
requirements. From maintenance objective point of view, a sample list of key
performance indicators has been prepared, which could be as mentioned below:
Finance performance
• Maintenance cost/unit
• Return on investment (ROI)(in maintenance term)
 Process perspective
• Overall equipment effectiveness (OEE)

Customer satisfaction
• Number of complaints/call back of equipment
• Customer satisfaction (Value for money- feedback etc.)
Innovation and development
• Number of new ideas generated
• Skills and competency development/training
• Outsourcing of skilled manpower
Concern for employee and society
• Number of accidents/casualty
• Number of health, safety and environment (HSE) complaints received or
raised by regulating authority
• Employee complaints
CORPORATE BALANCED SCORECARD
The balanced scorecards provide a framework for organizing strategic
objectives in to four perspectives
• Finance
• Customer
• Internal business process
• Learning and growth
The balanced scorecard is intended to link short-term operational control to the long-
term vision and strategy of the business. Thus the company focuses on a few critical
key ratios in meaningful target areas, forcing to control and monitor day to day
operations as they affect development of tomorrow.
A scorecard makes sense primarily for business units and divisions with a well-
defined strategy. Most companies have several divisions, each with its own mission
and strategy, whose scorecards cannot be aggregated into an overall corporate
scorecard. This is mostly because the division and group prepare their own scorecard
inline with the corporate scorecard.
INTEGRATING THE MAINTENANCE PERFORMANCE
INDICATORS
Today, after optimising other business areas of the industrial/corporate world,
the focus is more on the areas of maintenance and logistics. Most of the
organizations are paying more and more attentions to their less optimised area
of operation with a direct impact on the corporate strategy/objectives. The
importance of maintenance is considered from both tangible and intangible
assets.
In any organization, the corporate objective is formulated keeping the corporate vision
and mission statement in view. A corporate strategy is formulated as the way and
means for achieving corporate objectives and corporate strategy are translated to
different divisions, departments and down to employee level so that it can be judged
and evaluated at various level. Similarly, maintenance performance indicators can be
translated from different balanced scorecard perspectives down to the divisions,
department, section and employee level.
At figure 1, down below the relationship between the vision statement of the
corporate to the objective and corporate objective to balanced scorecard and
maintenance objectives are given. The maintenance objectives are linked in to critical
success factors, key result areas and key performance indicators. The critical success
factors are the factors, which critically provides support to achieve the maintenance
objectives. The key result areas are the areas, successes of which are the key factors to
achieve the maintenance objectives.

Key Performance Indicators

Performance Goals KPI
(KPI)
Key Result Areas Action Plan
(KRA)
KRA
Job Excecution
Critical Success Factors
(CSF) Results CSF

Balanced Measurement &

Scorecard Reporting Maintenance
Strategy
Corporate strategy Analysis

Corporate objective Maintenance

Objective
VISION
Corporate Level

Maintenance
Maintenance strategy
strategy
CSF

KRA

KPI

Group Level Department Level

Figure 1. Linkage and relationship of maintenance performance indicator

at corporate, division and group level.

As shown at the figure 2, below, the corporate objective can be linked to maintenance
objectives of the corporation. All divisions/ departments of the corporate having
maintenance functions and staff should ideally be communicated, trained and made
aware with the maintenance objectives, its critical success factors, key result areas,
key performance indicators and performance measurement’s importance with the
reference point. Once this linkage and integration is achieved by an organization, in
all possibility, the organization can achieve maintenance excellence, which could
support the organization to achieve its corporate objectives.
 VISION

Corporate objective

Corporate strategy

Balanced scorecard Maintenance objective

Key Performance
Critical Success Factor Key Result Area
Indicators

Finance Finance - Cost - Maintenance cost / unit

Prospectives Performance - Gain - ROI (maintenance)

Internal
Business Process - OEE
- Equipment
Process Performance

- No. of complaints /call

Customer Customer - Quality back
Perspective Satisfaction - Service - Value for money
(Intangible - feedback)

- No. of new ideas

generated
Learning& - Innovation
Innovation & - skill & competency
Growth - Performance
Development training
Perspective development
- Out sourcing for skilled
manpower
- Health
Concern for - Safety No. of accidence
Employees - Environment - No. of HSE complaints
/ Society - Legal - Employee complaints
Compliance

Figure 2. Linkage and relationship between corporate

objectives with maintenance performance
indicators.
Ref:
1. Parida, A, Ahrens, T, & Kumar, U, “Integrating maintenance Performance
with Corporate Balanced Scorecard”, COMADEM 2003, Proceedings of the
16th International Congress, 27-29 Aug 2003, Växjö, Sweden (pp 53-59).
2. Development of Multi-Criteria Hierarchical framework for Maintenance
Performance Measurement (MPM). Parida, A. and Chattopadhyay, G. (2007).
Journal of Quality in Maintenance Engineering, Vol. 13, No. 3, pp 241-258

3. Study and analysis of Maintenance Performance Indicators (MPIs) for LKAB:

A Case Study. Parida, A. (2007). Accepted for publication Journal of Quality
in Maintenance Engineering, Vol. 13, No.4, pp. 325-337.
 1

BENCHMARKING

Compiled by

Uday Kumar
Professor of Maintenance Engineering
Stavanger University College, Stavanger
Norway
&
Luleå University of Technology, Luleå
Sweden
 2

Benchmarking: an Introduction
Benchmarking has its root in fundamental business exercise and began to shape in the beginning of
1980. It was introduced as a tool for business development and is supposed to offer a key to large-scale
improvements, as it provides a basis for learning from the best practices, providing a road map for
copying the work process of the best in the class, i.e. it provides gains with relatively little effort
(Dunn, 2003). In general the magnitude of the improvement is around 10 –15% (Varcoe, 1996) and in
some cases it can be as high as 35% (Burke, 2004).
There are different benchmarking approaches ranging from the purely quantitative to the highly
qualitative (Oliverson, 2000). Quantitative benchmarking will benchmark, for example, the percentage
of emergency work orders, the number of skilled workmen per first line supervisor or the percentage of
overtime. Moulin (2004) discusses benchmarking of the public sector, in which some aspects of
performance measurement must be considered, and states that, since organisations in this sector often
perform non-profitable administrative work, they should be viewed from a Balanced Scorecard
perspective (see Kaplan and Norton, 1992) . Such organizational measures are useful to service users
and provide a clear system for translating feedback from the analysis into strategy for corrective
actions.

The Benchmarking Methodology

Successful benchmarking starts with a deep understanding and good knowledge regarding one’s own
organisation’s processes; i.e. learning about one’s own performance and bringing one’s own core
business under control before learning from others (Wireman, 2004).
The most common approach to benchmarking is to compare one’s own performance indicators with
those of competitors or other companies in the same area, which can be accomplished using simple
questionnaires completed by personnel involved in maintenance activities, with little or no expert help
to conduct comprehensive studies, or with help from outside firms providing expertise in the planning,
execution and implementation of such processes. Based on what is to be compared, benchmarking can
be classified as performance, process or strategic benchmarking (Campbell, 1995). Similarly, based on
whom one should make a comparison with, benchmarking can be classified as internal, competitive,
functional or generic benchmarking (Zairi and Leonard, 1994).
The results obtained from benchmarking identify the gap between one’s own organisation’s
performance and the one following the best practices. These results are then used to improve and
develop core competencies and core businesses, leading to lower costs, increased profit, better service
towards the customers, increased quality, and continuous improvements. In order to gain benefits, an
organisation has to mature in its own core competencies, and to ensure success, the ROI (return on
investment) should be calculated for each benchmarking exercise (Wireman, 2004, Wireman, 1998).

BENCHMARKING
• What is meant by benchmarking?
• How to perform benchmarking exercises?
• How can this technique be used for improving performance/energy consumption
etc.?

PURPOSE
1. Know your own operation (for example, from energy consumption point of view)
Strength
Weakness
2. Know industries that excel in maintenance and energy saving

3. Set new targets and incorporate best practices

Measure your own performance

 3

BENCHMARKING
• A process of comparing performance by different organizations,
preferably against best performers, and learning from this to improve
own business performance.
• The process of continuously comparing and measuring against other
organizations anywhere in the world to gain information on
philosophies, policies, and measures that will help the organization
improve its performance.
• Evaluating the practices of best-in-class organization and adapting
processes to incorporate the best of these practices
• The search for industry best practices that lead to superior
performance.
• A process of comparing performance by different organizations,
preferably against best performers, and learning from this to improve
own business performance.
• The process of continuously comparing and measuring against other
organizations anywhere in the world to gain information on
philosophies, policies, and measures that will help the organization
improve its performance.
• Evaluating the practices of best-in-class organization and adapting
processes to incorporate the best of these practices
• The search for industry best practices that lead to superior
performance.
• The practice of being humble enough to admit that someone else is
better at something and being wise enough to learn how to match and
even surpass them at it
SIMPLY SPEAKING, BENCH MARKING IS A SEARCH FOR THE BEST
PRACTICE.
TYPES OF BENCH MARKING
There are four types of benchmarking:
1. Internal type The process of comparing one particular operation
within your organisation with another. Success in this area is a matter of
“ the left hand knowing what the right hand is doing.” Internal bench
marking is by far the easiest, both to perform and implement.
Experiences have shown that with little effort productivity improvement
in this type is usually about 10 percent.
2. Competitive type: The process of comparing an operation with that of
your direct competitors. For obvious reasons, this is the most difficult
type of benchmarking to carryout successfully. In such type legal
considerations must be kept in mind. Productivity improvement achieved
in such types is usually 20 percent.
 4

3. Functional type: The process of comparing an operation with that of

similar ones within the broad range of your industry (e.g. cost of
maintenance in coal mining and iron ore mining). Often productivity
improvement may be 30-35 percent.
4. Generic type: The process of comparing operations from unrelated
industries (i.e. ones used by a wide variety of industries). An example
would be a film library using warehousing techniques of another industry
to store more efficiently its catalogue of old movies. The advantage of
this type is that the problems of competition don’t apply. This increases
the possibility of access to information and no risk of legal problems.
Productivity improvement achieved through this type of bench marking
may be around 30-35 percent or even better.

BENCHMARKING CAN BE PERFORMED AT DIFFERENT LEVELS

IN AN ORGANIZATION
1. At resource level through resource audit
Examples of measures
Quantity of resources
• revenue/employee,

Quality of resources such as

• qualifications of employees
• age of machinery
• uniqueness

2. Competence level in separate activities through analysing individual

activities
Examples of measures:
• output per employee
• material wastage per ton of saleable product
• customer serviced per repairman
3. Overall level through analysing overall performance

Examples of measures
• productivity
• profitability
• market share
• brand recognition, etc.