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Journal of Materials Processing Technology 103 (2000) 149±154




                        Implementation of TPM in cellular manufacture
                                                        G. Chand, B. Shirvani*
                     Faculty of Engineering and Computer Technology, University of Central England, Birmingham, B42 2SU, UK




Abstract

   A fundamental component of world-class manufacturing (WCM) is that of total productive maintenance (TPM), linked to both total
quality management (TQM) and the concepts of continuous-¯ow manufacturing which are embedded in cellular manufacturing.
   An investigation was conducted in collaboration with a ®rst tier automotive component supplier to determine the overall equipment
effectiveness (OEE) of a semi-automated assembly cell. The big losses associated with equipment effectiveness were also identi®ed.
   The production output of the cell over the observed period was 26 515. This represents 97% good components, 0.33% scrap and 2.67%
rework. The number of stoppages recorded was 156, where the 10 most common causes were identi®ed. The OEE was 62% and the six big
losses represent 38% loss of the productive time.
   Based on the ®ndings, it was recommended that a pilot project to be conducted to implement a TPM programme for the cell and expand it
further to the other cells in the factory. # 2000 Elsevier Science S.A. All rights reserved.

Keywords: Total productive maintenance; Planned preventive maintenance; World class manufacture; Overall equipment effectiveness and just-in-time




1. Introduction                                                               1.1. Companys manufacturing and operation strategies

   The collaborating company is internationally oriented,                        The new modern built plant has recently set-up on a
and is one of the leading suppliers of automotive compo-                      green-®eld site, and employs around 150 people. The man-
nents world-wide. The UK operation is a newly founded                         ufacturing layout comprises of three distinct cells which are
member of this global organisation and has recently estab-                    gradually becoming more customer-focused. The `JIT' phi-
lished itself in the UK market due to the competitively ®erce                 losophy and the overall shop-¯oor layout and it's facilities
and global scope of demand placed for their products; in-                     which incorporates a kanban system, helps ensure that
conjunction to the ever growing automotive investments in                     production scheduling is customer-based, as opposed to
the UK markets.                                                               capacity-based.
   Aware of the need for change of culture, the company has                      The production operation includes: forming shop, tool-
recently acquired BS EN ISO 9000 accreditation, and is                        room and a fully equipped product test-room. There are
currently preparing to gain the newly recognised QS 900                       three assembly cells: semi-automated, manually-operated
certi®cation.                                                                 and ¯exible cell.
   As part of the company's strategic plan in pursuit of                         An integrated computer system is used to control and
world-class manufacturing (WCM) status, it is required to                     monitor production planning and scheduling which provides
implement a total productive maintenance (TPM) pro-                           accurate and `real-time' processing of information to control
gramme in order to ensure smooth operation under the                          production progress which is linked to an electronic data
constraints of a just-in-time (JIT) production environment.                   interchange (EDI) system for scheduling and customer order
   A feasibility study was conducted on a semi-automated                      processing.
assembly cell, in order to determine the OEE of the cell as
well as establishing the associated big losses.                               1.2. Global competition

                                                                                 The automotive component industry is undergoing radical
  *
   Corresponding author.                                                      changes, and customers are placing greater expectations due
E-mail address: bez.shirvani@uce.ac.uk (B. Shirvani)                          to competitively ®erce and ever increasing global sourcing.

0924-0136/00/$ ± see front matter # 2000 Elsevier Science S.A. All rights reserved.
PII: S 0 9 2 4 - 0 1 3 6 ( 0 0 ) 0 0 4 0 7 - 6
150                           G. Chand, B. Shirvani / Journal of Materials Processing Technology 103 (2000) 149±154


                                                                                Reactive maintenance will lead to machinery condition
                                                                             and general state of facilities becoming locked into a down-
                                                                             ward spiral leading to further deterioration and more and
                                                                             more problems. Thus, the real cost of reactive maintenance
                                                                             is much more than the cost of maintenance resources and
                                                                             spare parts as indicated in Fig. 2.

                                                                             3. TPM and world-class manufacturing

                                                                                The purpose of any manufacturing enterprise is to con-
                                                                             sistently make a pro®t. Being world-class in manufacturing
                                                                             means that the company can compete successfully and make
                                                                             pro®t in an environment of international competition, not
                                                                             only now, but also in the future. In essence, being world-
                                                                             class means being capable of bringing products to the
                                                                             marketplace that offers better value than the competition
         Fig. 1. The vicious circle of reactive maintenance.                 without loss of pro®t going broke [4]. The TPM component
                                                                             of WCM, is linked to both TQM and the concepts of
                                                                             continuous-¯ow manufacturing, which are embodied in
The UK operation is even faced with competition from                         cellular manufacturing. TPM incorporates the strategies
different plants world-wide within the same organisation.                    of operator ownership and systematic planned preventive
As a result, the company must ensure that total customer                     maintenance (PPM) activities to keep machines from break-
satisfaction is met in combined terms of quality, price,                     ing down or malfunctioning during production. Overall, it is
delivery, and product choice.                                                clear that the components of WCM, whilst not sequential in
                                                                             implementation, are certainly highly interrelated. It is not
                                                                             possible, for example, to be a ¯exible, WCM, JIT producer
2. Current maintenance system                                                with poor equipment and second-rate quality systems [3].

   Current maintenance in the company is based on tradi-                     3.1. De®nition and distinctive features of TPM
tional practices and is reactive, i.e., breakdown. It is a
practice that is inherently wasteful and ineffective with                       TPM as de®ned by [2] is ``productive maintenance invol-
disadvantages such as: unscheduled downtime of machinery,                    ving total participation''. The goal of TPM is to enhance
possibility of secondary damage, no warning of failure with                  equipment effectiveness and maximise equipment output. It
possible safety risks, production loss or delay, and the need                strives to attain and maintain optimal equipment conditions
for standby machinery where necessary.                                       in order to prevent unexpected breakdowns, speed losses,
   TPM will enable the company's traditional maintenance                     and quality defects in process. Overall ef®ciency, including
practices to change from reactive to proactive by sharing                    economic ef®ciency, is achieved by operating at optimal
responsibility for machine condition, performance and                        conditions through the life of equipment, i.e., by minimising
maintenance. Fig. 1 illustrates the vicious circle of reactive               life cycle cost (LCC). A complete de®nition of TPM
maintenance which should be broken [1].                                      includes the following ®ve activities:




                                                   Fig. 2. The real cost of reactive maintenance.
G. Chand, B. Shirvani / Journal of Materials Processing Technology 103 (2000) 149±154                    151


 To maximise overall equipment effectiveness.                          4.2. Quality control and inspection
 To establish a thorough system of PPM for the equip-
  ment's entire life span.                                                 The cell is regularly inspected daily during the morning,
 To include all departments in implementation plan.                    afternoon and night shift. The individual stations perform
 To involves every single employee, from top manage-                   speci®c test, which includes; testing of the detection laser
  ment to shop-floor operators.                                         and sensors, and inspection of pressure tester for vacuum test
 To promote PPM through autonomous small group activ-                  at Station 7.
  ities.                                                                   The operator's perform visual inspection prior to packa-
                                                                        ging, to check for any type of defect (e.g., scratches on cover,
   Equipment effectiveness is maximised and life cycle cost             shorts, tool marks, etc.), and necessary rework (e.g., rivets
minimised through company-wide efforts to eliminate the                 not screwed in properly). All defects are noted on an
following ``six big losses'' that reduce equipment effective-           assembly attribute control chart.
ness, these are [2]:
                                                                        4.3. Maintenance on the cell
 Downtime losses
   Failures. Downtime losses caused by unexpected                         PPM has been recently devised for the cell and
    breakdowns.                                                         involves various cleaning and testing procedures. Mainte-
   Set-up and adjustments. Downtime losses due to set-                 nance tasks are carried out by the maintenance personnel,
     up and adjustments such as exchanging dies in presses              weekly during the night shift on Wednesday and Friday. The
     and plastic injection moulding machines.                           operators are only responsible for the good housekeeping of
 Speed losses                                                          the cell. These PPM schedules were implemented at the
   Idling and minor stoppages. Idling and minor stop-                  beginning of 1998, demonstrating the company links with
    pages caused by the malfunction of sensors and                      TPM.
    blockages of work on chutes.
   Reduced speed. Losses caused by the discrepancy
     between the designed speed and the actual speed of                 5. Data capture and analysis
     equipment.
 Defect losses                                                           The cell was monitored over a period of 4 weeks. The
   Defects in process. Losses caused by defects and the                operation is based on three shifts per day (one shift for
    reworking of defects.                                               Saturday only), six days per week. This accumulates to 16
   Reduced yield. Reduced yield losses that occur                      shifts and 125 h of operation. The planned downtime per
     between start-up and stable production.                            shift was 15 min at the end of each shift for cleaning/tidying-
                                                                        up the work area, machines and complete any associated
                                                                        paperwork. During this period, activities such as stoppage,
4. The assembly cell                                                    speed reduction, set-up/adjustments, quality impaired and
                                                                        reworks were recorded. The total number of stoppages was
   The assembly cell selected to conduct the feasibility study          156 and the production output was as follows:
was a semi-automated cell controlled by three production                Total number of products produced                       26 515
operatives, and supplies three types of product designs. The            Total number of re-work                                 710
production cell comprised of seven workstations with indi-              Total number of scraping                                87
vidual on-board computer control panels. Parts are fed via a            Total number of quality products                        25 718
powered belt conveyor. The manual operations only include
loading/unloading the component parts, ®tting clips, ®nal               5.1. Measuring overall equipment effectiveness
visual inspection, and packaging.
                                                                           The goal of TPM is to increase equipment effectiveness so
                                                                        each piece of equipment can be operated to its full potential
4.1. The operators                                                      and maintained at that level. The cell suffers from losses that
                                                                        prevent effective operation. These losses are caused by
   The three production operators are fully trained in oper-            operator actions and equipment faults. In order to improve
ating the line. They are capable of carrying out some simple            the effectiveness of the cell, it is important to recognise,
tooling and process adjustments such as setting/re-setting              measure and reduce these losses. The most effective method
stations via the on-board control panels. However, the cell is          is to analyse the OEE of the cell. The OEE is a measure of
continuously monitored and controlled by a production                   the value added to production through equipment, which is a
technician who performs tool changes, rework, quality                   function of machine availability, performance ef®ciency and
control checks, and aids when breakdowns occur during                   the rate of quality. The relationship between these para-
the production process.                                                 meters and major losses are shown in Fig. 3 [2].
152                        G. Chand, B. Shirvani / Journal of Materials Processing Technology 103 (2000) 149±154




                                                         Fig. 3. Measuring OEE.



5.1.1. Measuring equipment productivity                                    Actual availability
   The true performance of the equipment productivity is
measured by total effective equipment productivity (TEEP),               Actual availability
and is a combined measure of equipment utilisation (which                    …Loading time À Set-up time À Downtime† Â 100
                                                                           ˆ
includes planned downtime) and OEE. The latter can be                                           Loading time
improved at the expense of equipment utilisation by sche-                     …28 965 À 225 À 4 656† Â 100
duling PPM and product changeovers during planned down-                    ˆ                               ˆ 847
                                                                                           28 965
time.
   The OEE is not an exact measure of equipment effec-                     Net equipment effectiveness
tiveness as set-up, changeovers and adjustments are                      Operating timeˆ 5470 ‡ 6275 ‡ 6320 ‡ 6090
included. Therefore, to provide a more accurate analysis,
                                                                                              ‡24 155 min
the net equipment effectiveness (NEE) can be measured that
re¯ects the true quality and effectiveness of the equipment              Equipment failures …excluding set-up and adjustments†
when running.                                                              ˆ …1781 ‡ 975 ‡ 880 ‡ 1170† À 225 ˆ 4581 min
                                                                           Uptime
5.1.2. Calculations of TEEP, OEE, and NEE
                                                                                   …Operating time À Equipment failures† Â 100
  Utiisation                                                             Uptimeˆ
                                                                                                  Operating time
Total running time ˆ 125 h per week  4 weeks                                       …24 155 À 4 581†  100
                                                                                  ˆ                        ˆ 817
                         Â 60 ˆ 30 000 min                                                  24 581
                                                                           Performance ef®ciency
Planned downtime …excluding set-up and adjustments†
  ˆ 240 ‡ 255 ‡ 300 ‡ 240 ˆ 1035 min                                     Operating time ˆ 24 155 min

…Total running time À Planned downtime† Â 100                            Average cycle time ˆ 0X75 minaunit
              Total running time                                            Â …components supplied from machine†
     …30 000 À 1035† Â 100                                                 ˆ 0X66 minaunit …components supplied from stores†
  ˆ                        ˆ 967
             30 000                                                                                …0X73 ‡ 0X72 ‡ 0X69 ‡ 0X71†
                                                                         Average cycle timeˆ
                                                                                                                4
  Planned availability                                                                           ˆ 0X71 minaunit
Loading time ˆ Running time À Planned downtime                           Number of good units made
                ˆ 30 000 À 1035 ˆ 28 965 min                               ˆ 5588 ‡ 6655 ‡ 6800 ‡ 6675 ˆ 25 718
Set-up and adjustments 15 min per tool change                            Performance efficiency
      Â 15 changes ˆ 225 min                                               …Average cycle timeÂNoX of good units made† Â 100
                                                                         ˆ
                                                                                               Operating time
Planned availability
                                                                            …0X71 Â 25 718† Â 100
    …Loading time À Set-up time† Â 100                                    ˆ                       ˆ 767
  ˆ                                                                                24 155
               Loading time
                                                                           Rate of quality
     …28 965 À 225† Â 100
   ˆ                      ˆ 997
            28 965                                                       Number of good units made ˆ 25 718
G. Chand, B. Shirvani / Journal of Materials Processing Technology 103 (2000) 149±154                  153


Scrap units and rework ˆ 234 ‡ 173 ‡ 109 ‡ 281 ˆ 797                       Thus, the cell could have potentially earned an additional
                                                                        £256 089 for the company if it operated at 100% effective-
Rate of quality                                                         ness as opposed to 62% effectiveness. However, if the
    …Number of good units made À Rejects† Â 100                         company can reach the more realistic world-class target
  ˆ                                                                     of 85% OEE, then every 1% improvement towards the target
             Number of good units made
                                                                        of 85% OEE can be calculated as
     …25 718 À 797† Â 100
   ˆ                      ˆ 977                                                                  £256 089
            25 718                                                      1% improvement ˆ                  £6739X18
                                                                                                   38%
  TEEP
                                                                          Thus, if the world-class target of 85% was reached, then
TEEPˆ UtilisationÂAvailability  Performance efficiency                 the 23% increase of OEE would represent an earning
       Rate of quality  100 ˆ 0X96  0X84  0X76                      capacity of
         Â 0X97 Â 100 ˆ 59%                                             23% improvement ˆ £6739X18 Â 23 ˆ £l55 000
  OEE
OEEˆ Availability  Performance efficiency                              6. Discussion and conclusion
     Â Rate of quality Â100 ˆ 0X84 Â 0X76 Â 0X97 Â100
      ˆ 627                                                             Company's cell performance World-class performance

  NEE                                                                   84%    Availability           90% Availability
                                                                        Â                             Â
NEEˆ Uptime  Performance efficiency                                    76%    Performance efficiency 95% Performance efficiency
      Rate of quality  100 ˆ 0X81  0X76  0X97                                                    Â
                                                                        97%    Rate of quality        99% Rate of quality
        Â 100 ˆ 60%
                                                                        ˆ                             ˆ
                                                                        62%    OEE                    85% OEE
5.2. The cost of the six big losses
                                                                           Therefore if the WCM target of 85% OEE was reached,
  The cost of components is £8.50 and the cost of assembled             then 23% increase would have represented a potential earn-
product is £10.00. Therefore the assembly process has                   ing capacity of £155 000 per annum.
earned £1.50 (added value) for the company. If the expected                The ef®cient maintenance of the production and other
theoretical output is 80 components every hour, then the                plant machinery is crucial in determining the success and
added value per hour can be calculated as                               overall effectiveness of the manufacturing process. Des-
                                                                        pite time and money spent on the development/production
Added valueah ˆ £1X50 Â 80 ˆ £120ah                                     of the advanced plant and its equipment, there has not been
  The expected throughput is based upon the theoretical                 enough attention to de®ning comprehensive maintenance
cycle time for the assembly process, and does not take into             strategies, practices and policies. However, there are indica-
consideration the six big losses associated with the machin-            tions that the transition process from reactive (breakdown)
ery. Therefore, having measured the OEE of the cell at 62%,             maintenance to preventive maintenance is already taking
then the actual added value per hour can be calculated as               place.
                                                                           In order to establish autonomous maintenance teams, a
                                   £120 Â 62                            better communication and team-work must be promoted. It
Actual added value per hour ˆ                ˆ £74X40ah
                                      100                               is essential that the company devises an ef®cient data
  Thus, the six big losses represent a loss of added value of           recording system, so that up-to-date and accurate informa-
£45.60/h (38% loss of OEE). The annual loss can be                      tion will be available to the management.
determined by estimating the average loading of the cell                   The process of recording information must remain simple,
during the year. For instance, if the cell was used on a three-         but effective for future data analysis. If provisions were
shift basis, and operated on average 117 h per week (exclud-            made to highlight such problems and possible causes, then it
ing Saturday overtime), and for 48 weeks per year, then the             may lead to the correction of common problems such as
average loading can be calculated as                                    breakdowns and re-work. Ultimately, if possible, the aim is
                                                                        to eliminate such causes.
Average loading ˆ 117 h  48 weeks ˆ 5616 h per year                       Information provided by the trend analysis can provide a
  Therefore, the annual loss is the product of the loading              basis for forming long-term plans. The maintenance depart-
hours and loss per hour.                                                ment can plan spending requirements by using historical
                                                                        information to state the return on investment when contri-
Annual loss ˆ £45X60 Â 5616 h ˆ £256 089                                buting to the annual business plan of the company. The
154                       G. Chand, B. Shirvani / Journal of Materials Processing Technology 103 (2000) 149±154


availability of relatively cheap computing power makes this             manually-operated cells and machines as their set-up times
process feasible and ®nancially attractive.                             were too excessive (up to 2 h).
   The principle of using localised data gathering and infor-
mation processing, rather than a computer maintenance                   References
management system (CMMS), recognises the important role
of the operators. This does not replace the need for a CMMS              [1] R. Davis, Productivity Improvements Through TPM, Prentice-Hall,
to monitor costs, control spares and schedule planned pre-                   Englewood Cliffs, NJ, 1995 (Chapters 2 and 3).
ventive maintenance. A local PC-based facility-performance               [2] S. Nakajima, Introduction to Total Productive Maintenance (TPM),
measure can be seen as enhancing existing CMMS.                              Productivity Press, Cambridge, MA, USA, 1988 (Chapter 1).
                                                                         [3] J.H. Steudel, Manufacturing in the Nineties Ð How to Become a
   It is recommended that the company can go ahead with                      Mean, Lean, World-Class Competitor, Van Nostrand Reinhold, New
plans to implement TPM. Further research is also to be                       York, 1992, pp. 2±15.
conducted into the introduction of a facility performance log            [4] J. Todd, World-class Manufacturing, McGraw-Hill, New York, 1995,
system, and single minute exchange of die (SMED) for the                     pp. 83±92.

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1.tpm 11

  • 1. Journal of Materials Processing Technology 103 (2000) 149±154 Implementation of TPM in cellular manufacture G. Chand, B. Shirvani* Faculty of Engineering and Computer Technology, University of Central England, Birmingham, B42 2SU, UK Abstract A fundamental component of world-class manufacturing (WCM) is that of total productive maintenance (TPM), linked to both total quality management (TQM) and the concepts of continuous-¯ow manufacturing which are embedded in cellular manufacturing. An investigation was conducted in collaboration with a ®rst tier automotive component supplier to determine the overall equipment effectiveness (OEE) of a semi-automated assembly cell. The big losses associated with equipment effectiveness were also identi®ed. The production output of the cell over the observed period was 26 515. This represents 97% good components, 0.33% scrap and 2.67% rework. The number of stoppages recorded was 156, where the 10 most common causes were identi®ed. The OEE was 62% and the six big losses represent 38% loss of the productive time. Based on the ®ndings, it was recommended that a pilot project to be conducted to implement a TPM programme for the cell and expand it further to the other cells in the factory. # 2000 Elsevier Science S.A. All rights reserved. Keywords: Total productive maintenance; Planned preventive maintenance; World class manufacture; Overall equipment effectiveness and just-in-time 1. Introduction 1.1. Companys manufacturing and operation strategies The collaborating company is internationally oriented, The new modern built plant has recently set-up on a and is one of the leading suppliers of automotive compo- green-®eld site, and employs around 150 people. The man- nents world-wide. The UK operation is a newly founded ufacturing layout comprises of three distinct cells which are member of this global organisation and has recently estab- gradually becoming more customer-focused. The `JIT' phi- lished itself in the UK market due to the competitively ®erce losophy and the overall shop-¯oor layout and it's facilities and global scope of demand placed for their products; in- which incorporates a kanban system, helps ensure that conjunction to the ever growing automotive investments in production scheduling is customer-based, as opposed to the UK markets. capacity-based. Aware of the need for change of culture, the company has The production operation includes: forming shop, tool- recently acquired BS EN ISO 9000 accreditation, and is room and a fully equipped product test-room. There are currently preparing to gain the newly recognised QS 900 three assembly cells: semi-automated, manually-operated certi®cation. and ¯exible cell. As part of the company's strategic plan in pursuit of An integrated computer system is used to control and world-class manufacturing (WCM) status, it is required to monitor production planning and scheduling which provides implement a total productive maintenance (TPM) pro- accurate and `real-time' processing of information to control gramme in order to ensure smooth operation under the production progress which is linked to an electronic data constraints of a just-in-time (JIT) production environment. interchange (EDI) system for scheduling and customer order A feasibility study was conducted on a semi-automated processing. assembly cell, in order to determine the OEE of the cell as well as establishing the associated big losses. 1.2. Global competition The automotive component industry is undergoing radical * Corresponding author. changes, and customers are placing greater expectations due E-mail address: bez.shirvani@uce.ac.uk (B. Shirvani) to competitively ®erce and ever increasing global sourcing. 0924-0136/00/$ ± see front matter # 2000 Elsevier Science S.A. All rights reserved. PII: S 0 9 2 4 - 0 1 3 6 ( 0 0 ) 0 0 4 0 7 - 6
  • 2. 150 G. Chand, B. Shirvani / Journal of Materials Processing Technology 103 (2000) 149±154 Reactive maintenance will lead to machinery condition and general state of facilities becoming locked into a down- ward spiral leading to further deterioration and more and more problems. Thus, the real cost of reactive maintenance is much more than the cost of maintenance resources and spare parts as indicated in Fig. 2. 3. TPM and world-class manufacturing The purpose of any manufacturing enterprise is to con- sistently make a pro®t. Being world-class in manufacturing means that the company can compete successfully and make pro®t in an environment of international competition, not only now, but also in the future. In essence, being world- class means being capable of bringing products to the marketplace that offers better value than the competition Fig. 1. The vicious circle of reactive maintenance. without loss of pro®t going broke [4]. The TPM component of WCM, is linked to both TQM and the concepts of continuous-¯ow manufacturing, which are embodied in The UK operation is even faced with competition from cellular manufacturing. TPM incorporates the strategies different plants world-wide within the same organisation. of operator ownership and systematic planned preventive As a result, the company must ensure that total customer maintenance (PPM) activities to keep machines from break- satisfaction is met in combined terms of quality, price, ing down or malfunctioning during production. Overall, it is delivery, and product choice. clear that the components of WCM, whilst not sequential in implementation, are certainly highly interrelated. It is not possible, for example, to be a ¯exible, WCM, JIT producer 2. Current maintenance system with poor equipment and second-rate quality systems [3]. Current maintenance in the company is based on tradi- 3.1. De®nition and distinctive features of TPM tional practices and is reactive, i.e., breakdown. It is a practice that is inherently wasteful and ineffective with TPM as de®ned by [2] is ``productive maintenance invol- disadvantages such as: unscheduled downtime of machinery, ving total participation''. The goal of TPM is to enhance possibility of secondary damage, no warning of failure with equipment effectiveness and maximise equipment output. It possible safety risks, production loss or delay, and the need strives to attain and maintain optimal equipment conditions for standby machinery where necessary. in order to prevent unexpected breakdowns, speed losses, TPM will enable the company's traditional maintenance and quality defects in process. Overall ef®ciency, including practices to change from reactive to proactive by sharing economic ef®ciency, is achieved by operating at optimal responsibility for machine condition, performance and conditions through the life of equipment, i.e., by minimising maintenance. Fig. 1 illustrates the vicious circle of reactive life cycle cost (LCC). A complete de®nition of TPM maintenance which should be broken [1]. includes the following ®ve activities: Fig. 2. The real cost of reactive maintenance.
  • 3. G. Chand, B. Shirvani / Journal of Materials Processing Technology 103 (2000) 149±154 151 To maximise overall equipment effectiveness. 4.2. Quality control and inspection To establish a thorough system of PPM for the equip- ment's entire life span. The cell is regularly inspected daily during the morning, To include all departments in implementation plan. afternoon and night shift. The individual stations perform To involves every single employee, from top manage- speci®c test, which includes; testing of the detection laser ment to shop-floor operators. and sensors, and inspection of pressure tester for vacuum test To promote PPM through autonomous small group activ- at Station 7. ities. The operator's perform visual inspection prior to packa- ging, to check for any type of defect (e.g., scratches on cover, Equipment effectiveness is maximised and life cycle cost shorts, tool marks, etc.), and necessary rework (e.g., rivets minimised through company-wide efforts to eliminate the not screwed in properly). All defects are noted on an following ``six big losses'' that reduce equipment effective- assembly attribute control chart. ness, these are [2]: 4.3. Maintenance on the cell Downtime losses Failures. Downtime losses caused by unexpected PPM has been recently devised for the cell and breakdowns. involves various cleaning and testing procedures. Mainte- Set-up and adjustments. Downtime losses due to set- nance tasks are carried out by the maintenance personnel, up and adjustments such as exchanging dies in presses weekly during the night shift on Wednesday and Friday. The and plastic injection moulding machines. operators are only responsible for the good housekeeping of Speed losses the cell. These PPM schedules were implemented at the Idling and minor stoppages. Idling and minor stop- beginning of 1998, demonstrating the company links with pages caused by the malfunction of sensors and TPM. blockages of work on chutes. Reduced speed. Losses caused by the discrepancy between the designed speed and the actual speed of 5. Data capture and analysis equipment. Defect losses The cell was monitored over a period of 4 weeks. The Defects in process. Losses caused by defects and the operation is based on three shifts per day (one shift for reworking of defects. Saturday only), six days per week. This accumulates to 16 Reduced yield. Reduced yield losses that occur shifts and 125 h of operation. The planned downtime per between start-up and stable production. shift was 15 min at the end of each shift for cleaning/tidying- up the work area, machines and complete any associated paperwork. During this period, activities such as stoppage, 4. The assembly cell speed reduction, set-up/adjustments, quality impaired and reworks were recorded. The total number of stoppages was The assembly cell selected to conduct the feasibility study 156 and the production output was as follows: was a semi-automated cell controlled by three production Total number of products produced 26 515 operatives, and supplies three types of product designs. The Total number of re-work 710 production cell comprised of seven workstations with indi- Total number of scraping 87 vidual on-board computer control panels. Parts are fed via a Total number of quality products 25 718 powered belt conveyor. The manual operations only include loading/unloading the component parts, ®tting clips, ®nal 5.1. Measuring overall equipment effectiveness visual inspection, and packaging. The goal of TPM is to increase equipment effectiveness so each piece of equipment can be operated to its full potential 4.1. The operators and maintained at that level. The cell suffers from losses that prevent effective operation. These losses are caused by The three production operators are fully trained in oper- operator actions and equipment faults. In order to improve ating the line. They are capable of carrying out some simple the effectiveness of the cell, it is important to recognise, tooling and process adjustments such as setting/re-setting measure and reduce these losses. The most effective method stations via the on-board control panels. However, the cell is is to analyse the OEE of the cell. The OEE is a measure of continuously monitored and controlled by a production the value added to production through equipment, which is a technician who performs tool changes, rework, quality function of machine availability, performance ef®ciency and control checks, and aids when breakdowns occur during the rate of quality. The relationship between these para- the production process. meters and major losses are shown in Fig. 3 [2].
  • 4. 152 G. Chand, B. Shirvani / Journal of Materials Processing Technology 103 (2000) 149±154 Fig. 3. Measuring OEE. 5.1.1. Measuring equipment productivity Actual availability The true performance of the equipment productivity is measured by total effective equipment productivity (TEEP), Actual availability and is a combined measure of equipment utilisation (which …Loading time À Set-up time À Downtime†  100 ˆ includes planned downtime) and OEE. The latter can be Loading time improved at the expense of equipment utilisation by sche- …28 965 À 225 À 4 656†  100 duling PPM and product changeovers during planned down- ˆ ˆ 847 28 965 time. The OEE is not an exact measure of equipment effec- Net equipment effectiveness tiveness as set-up, changeovers and adjustments are Operating timeˆ 5470 ‡ 6275 ‡ 6320 ‡ 6090 included. Therefore, to provide a more accurate analysis, ‡24 155 min the net equipment effectiveness (NEE) can be measured that re¯ects the true quality and effectiveness of the equipment Equipment failures …excluding set-up and adjustments† when running. ˆ …1781 ‡ 975 ‡ 880 ‡ 1170† À 225 ˆ 4581 min Uptime 5.1.2. Calculations of TEEP, OEE, and NEE …Operating time À Equipment failures†  100 Utiisation Uptimeˆ Operating time Total running time ˆ 125 h per week  4 weeks …24 155 À 4 581†  100 ˆ ˆ 817  60 ˆ 30 000 min 24 581 Performance ef®ciency Planned downtime …excluding set-up and adjustments† ˆ 240 ‡ 255 ‡ 300 ‡ 240 ˆ 1035 min Operating time ˆ 24 155 min …Total running time À Planned downtime†  100 Average cycle time ˆ 0X75 minaunit Total running time  …components supplied from machine† …30 000 À 1035†  100 ˆ 0X66 minaunit …components supplied from stores† ˆ ˆ 967 30 000 …0X73 ‡ 0X72 ‡ 0X69 ‡ 0X71† Average cycle timeˆ 4 Planned availability ˆ 0X71 minaunit Loading time ˆ Running time À Planned downtime Number of good units made ˆ 30 000 À 1035 ˆ 28 965 min ˆ 5588 ‡ 6655 ‡ 6800 ‡ 6675 ˆ 25 718 Set-up and adjustments 15 min per tool change Performance efficiency  15 changes ˆ 225 min …Average cycle timeÂNoX of good units made†  100 ˆ Operating time Planned availability …0X71  25 718†  100 …Loading time À Set-up time†  100 ˆ ˆ 767 ˆ 24 155 Loading time Rate of quality …28 965 À 225†  100 ˆ ˆ 997 28 965 Number of good units made ˆ 25 718
  • 5. G. Chand, B. Shirvani / Journal of Materials Processing Technology 103 (2000) 149±154 153 Scrap units and rework ˆ 234 ‡ 173 ‡ 109 ‡ 281 ˆ 797 Thus, the cell could have potentially earned an additional £256 089 for the company if it operated at 100% effective- Rate of quality ness as opposed to 62% effectiveness. However, if the …Number of good units made À Rejects†  100 company can reach the more realistic world-class target ˆ of 85% OEE, then every 1% improvement towards the target Number of good units made of 85% OEE can be calculated as …25 718 À 797†  100 ˆ ˆ 977 £256 089 25 718 1% improvement ˆ £6739X18 38% TEEP Thus, if the world-class target of 85% was reached, then TEEPˆ UtilisationÂAvailability  Performance efficiency the 23% increase of OEE would represent an earning  Rate of quality  100 ˆ 0X96  0X84  0X76 capacity of  0X97  100 ˆ 59% 23% improvement ˆ £6739X18  23 ˆ £l55 000 OEE OEEˆ Availability  Performance efficiency 6. Discussion and conclusion  Rate of quality Â100 ˆ 0X84  0X76  0X97 Â100 ˆ 627 Company's cell performance World-class performance NEE 84% Availability 90% Availability   NEEˆ Uptime  Performance efficiency 76% Performance efficiency 95% Performance efficiency  Rate of quality  100 ˆ 0X81  0X76  0X97   97% Rate of quality 99% Rate of quality  100 ˆ 60% ˆ ˆ 62% OEE 85% OEE 5.2. The cost of the six big losses Therefore if the WCM target of 85% OEE was reached, The cost of components is £8.50 and the cost of assembled then 23% increase would have represented a potential earn- product is £10.00. Therefore the assembly process has ing capacity of £155 000 per annum. earned £1.50 (added value) for the company. If the expected The ef®cient maintenance of the production and other theoretical output is 80 components every hour, then the plant machinery is crucial in determining the success and added value per hour can be calculated as overall effectiveness of the manufacturing process. Des- pite time and money spent on the development/production Added valueah ˆ £1X50  80 ˆ £120ah of the advanced plant and its equipment, there has not been The expected throughput is based upon the theoretical enough attention to de®ning comprehensive maintenance cycle time for the assembly process, and does not take into strategies, practices and policies. However, there are indica- consideration the six big losses associated with the machin- tions that the transition process from reactive (breakdown) ery. Therefore, having measured the OEE of the cell at 62%, maintenance to preventive maintenance is already taking then the actual added value per hour can be calculated as place. In order to establish autonomous maintenance teams, a £120  62 better communication and team-work must be promoted. It Actual added value per hour ˆ ˆ £74X40ah 100 is essential that the company devises an ef®cient data Thus, the six big losses represent a loss of added value of recording system, so that up-to-date and accurate informa- £45.60/h (38% loss of OEE). The annual loss can be tion will be available to the management. determined by estimating the average loading of the cell The process of recording information must remain simple, during the year. For instance, if the cell was used on a three- but effective for future data analysis. If provisions were shift basis, and operated on average 117 h per week (exclud- made to highlight such problems and possible causes, then it ing Saturday overtime), and for 48 weeks per year, then the may lead to the correction of common problems such as average loading can be calculated as breakdowns and re-work. Ultimately, if possible, the aim is to eliminate such causes. Average loading ˆ 117 h  48 weeks ˆ 5616 h per year Information provided by the trend analysis can provide a Therefore, the annual loss is the product of the loading basis for forming long-term plans. The maintenance depart- hours and loss per hour. ment can plan spending requirements by using historical information to state the return on investment when contri- Annual loss ˆ £45X60  5616 h ˆ £256 089 buting to the annual business plan of the company. The
  • 6. 154 G. Chand, B. Shirvani / Journal of Materials Processing Technology 103 (2000) 149±154 availability of relatively cheap computing power makes this manually-operated cells and machines as their set-up times process feasible and ®nancially attractive. were too excessive (up to 2 h). The principle of using localised data gathering and infor- mation processing, rather than a computer maintenance References management system (CMMS), recognises the important role of the operators. This does not replace the need for a CMMS [1] R. Davis, Productivity Improvements Through TPM, Prentice-Hall, to monitor costs, control spares and schedule planned pre- Englewood Cliffs, NJ, 1995 (Chapters 2 and 3). ventive maintenance. A local PC-based facility-performance [2] S. Nakajima, Introduction to Total Productive Maintenance (TPM), measure can be seen as enhancing existing CMMS. Productivity Press, Cambridge, MA, USA, 1988 (Chapter 1). [3] J.H. Steudel, Manufacturing in the Nineties Ð How to Become a It is recommended that the company can go ahead with Mean, Lean, World-Class Competitor, Van Nostrand Reinhold, New plans to implement TPM. Further research is also to be York, 1992, pp. 2±15. conducted into the introduction of a facility performance log [4] J. Todd, World-class Manufacturing, McGraw-Hill, New York, 1995, system, and single minute exchange of die (SMED) for the pp. 83±92.