UNIVERSITI TEKNIKAL MALAYSIA MELAKA THE IMPLEMENTATION OF TOTAL PRODUCTIVE MAINTENANCE (TPM) AT HIGH VOLUME COMPANY

Transcription

1 UNIVERSITI TEKNIKAL MALAYSIA MELAKA THE IMPLEMENTATION OF TOTAL PRODUCTIVE MAINTENANCE (TPM) AT HIGH VOLUME COMPANY Thesis submitted in accordance with the requirements of Universiti Teknikal Malaysia Melaka for the Bachelor Degree of Manufacturing Engineering in Manufacturing Process By MAR EMAZAIRY BIN OMAR Faculty of Manufacturing Engineering Mei 2007

2 ABSTRACT This report is provided to explain the result of study on Total Productive Maintenance (TPM) implementation at high volume company. The company is Continental Sime Tyres (CST) which located at Alor Star, Kedah. This study covers the challenges, benefits, limitations and any related issue that occurred in TPM implementation. The data was obtained from several methodologies included observation, interview and group discussion. In addition questionnaire survey was distributed to selected employee which involved in TPM implementation. The data was analyzed by using Statistical Package for the Social Science (SPSS) programming. The result was showed that there are some issues of the TPM implementation and need to be highlighted toward successful TPM implementation.

3 ABSTRAK Laporan ini disediakan bagi menerangkan hasil keputusan daripada kajian tentang Senggaraan Produktif Menyeluruh (TPM) di syarikat yang mempunyai kapasiti pengeluaran yang tinggi. Syarikat tersebut ialah Continnental SimeTyres (CST) yang terletak di Alor Star, Kedah. Kajian ini akan meliputi aspek-aspek cabaran, faedah, batasan dan lain-lain isu yang berkaitan di dalam pelaksanaan TPM. Data diambil dari pelbagai kaedah termasuklah secara pemerhatian dan temubual. Selain itu, borang soal jawab juga diedarkan kepada pekerja-pekerja yang terlibat di dalam perlaksanaan TPM. Data yang terkumpul kemudiannya dianalisa menggunakan perisian Statistica1 Package for Social Science (SPSS). Hasil kajian mendapati terdapat beberapa isu mengenai pelaksanaan TPM dan perlu diberi perhatian dalam usaha untuk mencapai kejayaan di dalam pelaksanaan TPM

4 CHAPTER 1 INTRODUCTION 1.1 Introduction Globalization and economic turbulence have increased pressure on manufacturing firms to perform in cost efficient ways that are able to satisfy the ever changing need of their customers. Costs of production are often linked to maintenance related activities (maintenance labor and maintenance costs) and cost incurred due to the production losses (Blanchard, 1997). Bamber et al. (1997) reported that effective maintenance strategy significantly adds value to the production activities and subsequent business. One of the well-known innovative maintenance programs adopted by manufacturers is the Total Productive Maintenance (TPM). It was proven as one of the innovative approach for maintenance since it help to optimizes equipment effectiveness, eliminates breakdown and promotes autonomous maintenance via day today activities involving the firm s total workforce. Since it was introduced a few decades ago, it has attracted many companies in multi-industries to implement it. Continental Sime Tyres AS Sdn. Bhd. (CST), is one of the manufacturing companies which has implemented TPM in their operation system. Since it was launched 5 years ago in 2001, CST has successfully managed to increase their productivity through lower percentage of machine breakdown. Figure 1.1 shows the increase of their output from 1988 to From the graph, the rapid increased of their productivity can be seen from year to year which they achieved more than 45 million kg per year. This was showed

5 that the implementation of TPM was successful increase their productivity. The next chapter will details the performance of CST after the TPM implementation. However, CST still have to face of many challenges in order to maintain the TPM program such as failure factor, less expertise of maintenance crew, the increase of the production cost and some barriers from the management. CST is still looking for the best way to improve the implementation of TPM to achieve their mission and vision to be successful TPM company. Output Performance from Million KG Year Legend Radial steel x-playters Figure 1.1: Graph for Output Performance of CST from 1998 until 2003 (CST Annual Report 2003)

6 1.2 Problem Statement This study is performed to study the implementation of TPM at CST. It covers the journey of implementation and any related issue that occurred in CST. The related issue is referred to benefits, challenges, limitations and the require elements to improve the TPM implementation plan. In addition it also will show the current state of TPM implementation at CST 1.3 Objective The objectives of this study are: 1. To identify any related issue of TPM implementation in terms of the benefits, challenges, limitations and the require elements to improve the TPM implementation plan. 2. To study the current stage of TPM implementation at high volume company. 1.4 Scope of Study This study is only a case study of TPM implementation at CST. This study is performed to identify the benefits, challenges, limitations, the require elements to improve TPM implementation and to review the current state of TPM implementation. The study was conducted from November 2006 until Mac For data gathering, only observation, interview and questionnaire survey for 56 respondents were used. Some of the data was analyzed by using SPSS programming version The result may not applicable for other company.

7 1.5 Company Background Sime Tyres International (M) Sdn. Bhd. (STI) is a subsidiary of Continental Sime Tyre Sdn Bhd (CST). Based in Malaysia, CST is 75% owned by Continental AG of Germany and 25% owned by Sime Darby Berhad of Malaysia. STI began its operation on 20th December, 1979 and was then known as IT International Sdn.Bhd. In 1986, there was a change in the shareholding structure and the company became a wholly owned subsidiary of PSD Holdings Sdn.Bhd., a subsidiary of Sime Darby Berhad. On 2nd November, 1988 the company changed its name to Sime Tyres International (M) Sdn.Bhd. STI also signed a Technical Co-operation Agreement with Sumitomo Rubber Industries of Japan (DUNLOP JAPAN) in This move is to ensure that STI has access to the latest tyre production technology and design. To ensure that the Sime Darby Tyre Group will be better equipped to meet the new challenges as well as capitalizing on the opportunities in the new environment of AFTA and WTO, Sime Darby also signed another agreement with Continental AG giving Continental a stake in SDC Tyre. On 1st October 2003, another agreement was signed with Continental AG giving Continental 51% share in SDC Tyre which in effect resulting the name of the holding company to be changed to Continental Sime Tyre Sdn Bhd (CST). Currently the Sales and Marketing activity is being handled by the subsidiary company Continental Sime Tyre Marketing Sdn.Bhd. that is located in Petaling Jaya. CST exports to over 58 countries worldwide. It has over 400 dealer outlets domestically (Peninsular and East Malaysia). Figure 1.2 shows their export market.

8 Percentage of Export Market Legend Europe 41% Asia 2% Australia 18% Others Asean Europe Asia Asean 15% Others 1% Middl e East 23% Australia Middl e East Figure 1.2: The Percentage of Export Market for CST (CST Annual Report 2003) From the chart, it can be seen that CST s major export market is from Europe with 41 %, due to their high market demand and high standard of living. The second runner is from the Middle East with 23%, and then follows up by Australia with 18%, Asean with 15%, Asia with 2% and lastly 1% for the other markets. This data proves that CST has a big potential in the market worldwide. Since CST was established in 1979 with a work force of only a few hundreds of employees, after over 20 years of progress, it has grown to be the largest private company in Alor Star with about 1600 employees producing motorcycle, scooter, passenger car and light truck commercial tyres. It had also been awarded ISO 9002 for Retread Plant (SIRIM), Malaysian Standard MS 149 and 1394 (SIRIM), European Standards ECE 30, ECE 54, ECE 75 (VCA and TUV), ISO 9002 (SIRIM), ISO (SIRIM) and so on from the nationwide and international.

9 Since they implemented TPM a few years ago, there are some improvements in their company performance. However, they are still facing some related issues regarding The TPM implementation. The next chapter will be details of all these aspects. 1.6 Benefit of the Study The benefits of this study are: 1. Identify the related issue resulting from the implementation of TPM 2. Identify the important criterion in order to implement TPM program 3. Also can give a guidelines in planning and launching of TPM

10 CHAPTER 2 LITERATURE REVIEW 2.1 Introduction to TPM In the world of business today, customers expect manufactures to provide excellent quality, reliable delivery, and competitive pricing (Borris, 2006). This demands that the manufacture s machine and processes are highly reliable. Certainly, with manufacturing, process and service industries becoming progressively dependent on the reliability of fewer but more sophisticated machine and process while poor equipment operating performance is no longer affordable or acceptable. The overall effectiveness of the machine, equipment and process is paramount to provide consistency of product quality and supply at a realistic price. Some word class Japanese companies recognized over twenty years ago that the effective application of modern technology can only be achieved through people, starting with the operators of that technology, and not through system alone (Wilmot, 2000). Total Productive Maintenance is a tool to maximize the effectiveness of the equipment by setting and maintaining, the optimum relationship between people and machines (Wilmot, 2000). Nippodenso, a supplier of electrical parts of Toyota, first used the term of TPM in the late 1960s. At that time, it was a slogan for their plant improvement theme, productive maintenance with total employee participation. In 1971, Nippondenso received the

11 Distinguished Plant Award (The TPM Prize) from the Japan Institute of Plant Maintenance (JIPM). Nippondenso was the first plant to receive the award as the result of implementing TPM, and this marked the beginning of JIPM s association with the improvement methodology. Eventually Seiici Nakajima a vice chairman of JIPM, known as the father of TPM as he provided implementation support to hundred of plants, mostly in Japan. Nakajima describes TPM as productive maintenance carried by all employees through small group activities. He considers it an equal partner to total quality management in the attainment of world-class manufacturing (Ireland, 2001). According to TPM principles, the responsibility for optimizing equipment lies not just with the main tenancy department, but also with all plant personnel. Furthermore, TPM can be say as a plant improve methodology which enabling continuous and rapid improvement of the manufacturing process through use of employee involvement, employee empowerment, and closed-loop measurement of result (Nakajima, 1989). 2.2 Importance of TPM Johnson in his article was said that companies, which seek to improve competitiveness, must infuse quality and improvement measures in all aspects of their operations. This principle led to complete overhaul of maintenance practices in manufacturing plants. Maintenance managers now view the consistent production of quality goods as greatly dependent on the quality of operations rendered by the necessary machinery. The TPM approach helps increase uptime of equipment, reduces machinery set-up time, enhances quality, and lowers costs (Borris, 2006). Through this approach, maintenance becomes an integral part of the team. The ultimate benefits that can be obtained by implementing TPM are increased profitability and improved productivity. Financial quantification specifically calculating the savings is not directly shown on the income statement. Nonfinancial measures can be converted into financial savings and cost reductions realized

12 by implementing TPM. The implementation of TPM if intertwine with other initiatives causing a confounding impact. Meanwhile, Adler and Shenhar (1990) were indicated that, companies that develop their technological base were able to capitalize on technology s ability to make a positive contribution to performance. TPM can improve the technological base of a company by enhancing equipment technology and improving the skills of employees. Furthermore, TPM helps to improve the organizations the capabilities by enhancing the problemsolving skills of individuals and enabling learning across various functional areas (Ferrari et al. 2005). Furthermore, refer to Willmott, 2000, was stated there is seven useful definitions and benefits of implementing TPM in a company as below. 1. Maximized efficiency of equipment leading through participation of all employees. 2. Improved reliability of equipment leading to improved product quality and equipment productivity 3. Economical use of equipment throughout its total service life. 4. Operators trained and equipped to perform minor but essential asset care of their machines. 5. Increased utilization of skilled trades in higher technical areas and more diagnostic work 6. Practical and effective total quality team working example aimed at equipment improvement and maintenance prevention. 7. Improvement in overall equipment effectiveness as a measurable route to increase profitability

13 2.3 Definition of TPM Willmot (2000), was described TPM as enabling tool to maximize the effectiveness of equipment by setting and maintaining the optimum relationship between people and machines. The father of TPM, Nakajima who has given the original approach of its application, defined TPM as productive maintenance carried out by all employees through small group activities and can be viewed as equipment maintenance performed on a company-wide basis (Bamber, 1999). TPM is thus a method for bringing about change. It is a set of standard activities that can lead to improved management of plant assets when properly performed by individuals and teams (Robinson and Ginder, 1995). Philosophically, TPM resembles total quality management (TQM) in several aspects, such as (Nanta et al, 2005) 1. Total commitment to the program by upper level management is required, 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. Total productive maintenance (TPM) is the systematic execution of maintenance by all employees through small group activities (Venkatesh, 2003). The two main goals of TPM are to develop optimal conditions for the workshop as a human machine system and to improve the overall quality of the workshop environment. 2.4 Type of Maintenance a. Preventive Maintenance i. Monitored ii. Scheduled

14 iii. Breakdown iv. Corrective v. Renovative. This section will be describe briefly all of this type of maintenance Preventive Maintenance (PM) Preventive maintenance is a philosophy, not just a term. It is rapidly replacing common maintenance practices in competitive industry today. Without this type of program ingrained into an organization, maintenance costs become excessive. A typical costversus-delay cure is illustrated in Figure 2.1. To cover this cost, the price of the manufactured product must be raised. Such a rise in price will present the manufactures from being competitive in the marketplace. Figure 2.1: Cost-versus-delay curve (Wireman, 1992)

15 Refer to Wireman (1992), he was describe preventive maintenance (PM) as an action which taken to keep an item which is in operation in an operating condition by means of inspection, detection and prevention of failure. Equipment failure usually occurs at the worst possible time. For example, the production department may be in the middle of a rush order that is very critical to the customer. This is the time the equipment will be breakdown and cause an interruption in production. The equipment may be down from a few hours to a few days and this delay can prove very costly in the competitive marketplace. This situation can be avoid if the maintenance department been able to detect the problem in the equipment, and made the necessary repairs before a failure occurred at the convenient time. This is the ideal situation, and can be achieved after the programming has been in use for a period of time, and after proper training has been given to those performing the inspections. The second reason for preventive maintenance is safety. Proper inspections can detect the unsafe conditions in time to prevent an accident, which might cause damage to the equipment or injure operating personnel (Wireman, 1992). A third reason is to reduce repair costs. When a failure occurs, it usually destroys equipment that is associated with the detective component (Wireman, 1992). The repairs cost can be reduced if the defective component is changed before the failure occurs. With the price of spare parts escalating at today s rate, this cost can be savings. Good PM procedures should incorporate the following elements (Brown, 2000): 1. A list of tools, parts, or instruments required to perform the PM should be provided at the beginning of every procedure 2. A form must be provided if the PM procedure includes taking measurements or readings, so this information can be recorded.

16 3. If measurements or readings are taken, the data form must include a limit or range of values, which will indicate whether or not the measurement or reading is normal. 4. Safety considerations should be listed, such as "lock-out" or "hot-work" procedures. Preventive maintenance can be divided into two basic categories: scheduled and monitored Scheduled Maintenance It is the process of periodic overhauled or service of the equipment (Wireman, 1992). This may be anything from lubrication routine to a time frame for replacement of component parts on a piece of equipment. The time can be consider as the hours of operation, number of shift of operation, or a given service period in days, weeks, or months. Periodic check should be run time to time to ensure that the time set up are correct, and that the equipment is not being inspected too frequently or not often enough (Wireman, 1992) Monitored Maintenance It used a sophisticated testing equipments to help predict when the equipment components will fail (Wireman, 1992). It can be interfaced with a microprocessor to chart equipment wear rates for even better estimations of equipment condition. (Wireman, 1992).Such a system allows logical decisions to be made as to replacement of worn parts without causing lost productions hour, for the equipment can be changed on scheduled repairs turns. This help take the guess work out of component replacement. Figure 2.2 illustrate how the control limit is set defining the amount of wear that is

17 acceptable (Wireman, 1992). Once this point is exceeded, the component should be changed. If it is not replaced then the failure area will be reached resulting in a breakdown. If changed had been done when the control limit is reached, it can be scheduled so as not to interface with production (Wireman, 1992). As the progress through the preventive maintenance program, notice that all of the previous type of maintenance has their place in the organization. The cost of the equipment, lost production, wasted man hours, and repairs times can weighed against the cost of preventive maintenance to see what equipment it needs. Any properly designed and operated preventive maintenance program will more than pay for itself. The initial setup and operation will increase the overall cost, but after a period of time, the maintenance cost will drop off below the original (Wireman, 1992). Figure 2.2: Control limit versus wear (Wireman, 1992)

18 Cost of PM vs Cost Equipment One of the most important considerations in a preventive maintenance program is the cost of the program versus the cost of the equipment (Wireman, 1992). It would be a waste of time and money to spend several cost to inspect and maintain a part that and would not interrupt production in case of failure. Some plants set limits on equipment inspection, holding them into certain cost. The limits would have to be set by each plant for its particular equipment. Some guides to follow are as follow. 1. Inspect any item that will cause a major shutdown, lower quality, or cost damage to related components, or produce a safety hazard to employees. 2. Plant fixture such as lighting, flooring, or ceiling that would interfere with producing a quality product, or would produce poor working conditions, should be included in a preventive maintenance inspection. Items that become questionable for inclusion in a preventive maintenance inspection program might include the following. 1. Equipment that has backup or standby system. In case of a breakdown, the secondary system can be operated while repairs are made to the primary system. 2. Equipment that cost no more to repair than it does to perform preventive maintenance. If the cost to take the equipment apart to repair it is lower than or the same as the cost of removing a defective item found on an inspection preventive maintenance, then it is highly questionable to inspect it.

19 3. Equipment that lasts long enough to meet minimum life requirement without preventive maintenance should not be included in the preventive maintenance program.

20 Inspection Intervals After the decision is made as to which equipment will receive the preventive maintenance inspections and be included in the program, the decision must be made on how the inspection intervals should be spaced. This time interval will also vary with the age of the equipment. As the equipment gets a little older and the bugs are ironed out, the failure rates become fairly consistent. As the equipment ages, the individual components begin to wear out and the failure rate begins to go up again. It will become important to adjust the preventive maintenance times according to this curve. Usually as the equipment enters the last part of the curve, an overhaul or renovative maintenance is performed, resetting the equipment to an earlier part of the cure. Preventive maintenance timing falls into three classes. The illustration was show in Figure Too little 2. Just right 3. Too much Figure 2.3: Preventive Maintenance timing: #1 shows too little maintenance, #2 show too frequent maintenance, and #3 shows the correct amount of maintenance (Wireman, 1992).

21 The too-little or not-frequent service (# 1 in the Figure 2.3) will be evident by the excessive number of breakdown that occurs. The equipment fails before it receives the proper service. The other extreme is too much or too-frequent service (# 2 in the Figure 2.3). This is a waste of manpower and a waste of components, which are changed before they wear out. This adds unnecessary expense to the preventive maintenance program. The question is how to determine if there is too much preventive maintenance. The program should be evaluated to see when the failures are occurring. If there are no failures, chances are performing too much preventive maintenance. It might reduce expenses to lengthen the service times. About 20 % of the equipment should fail before service if the preventive maintenance times are set correctly before service if the preventive maintenance is set correctly (# 3 in the Figure 2.3). If the failure rate is higher, the time between services should be reduced to prevent the breakdowns. Accurate records are necessary to properly set the time schedule for preventive maintenance. While this method is to be applied as a rule of thumb, there are many more complicated methods available to maintenance engineers using statistical analysis and probability models that can give a more exact time frame, should this be necessary. One thing to keep in mind is that either extreme will be costly. Whatever action is necessary to achieve the lower cost program with the proper schedule of PM activities must be taken. If the simplified method will serve the purpose, then use it. If may to consult an engineering firm dealing with maintenance in order to establish the corrective frequency. Whichever method that had been used should give the necessary results, lower cost maintenance which is the bottom line. The other type of maintenance was described below.

22 2.4.2 Corrective Maintenance Corrective maintenance merely repairs work, which may be performed on a scheduled basis or during inspection time (Wireman, 1992). It usually used in correcting a defect before the breakdown of the component occurs. This type of maintenance is usually performed in response to a preventive maintenance inspection. The effect that corrective maintenance has on equipment availability is shown in Figure 2.4. As the amount of corrective maintenance is reduced by PM inspections or condition monitoring maintenance, equipment availability increase (Wireman, 1992). Care must be taken to avoid either extreme, otherwise it s not cost effective. Somewhere along the line is the most economical situation. Figure 2.4.: Corrective maintenance effect on equipment availability (Wireman, 1992)

23 2.4.3 Renovative Maintenance Renovative maintenance is performed when the equipment can be taken off line for an extended period of time. It must be scheduled with production to prevent a bottleneck around the equipment (Wireman, 1992). This type of maintenance usually refers to a major modification, redesigns, or installation of some technological advancement. Figure 2.5 is shown the cost of effectiveness of this type of maintenance (Wireman, 1992). At the beginning, the cost to operate the equipment and replace parts is cheaper. However, when the cost of overhaul became greater than the cost to replace, then it s time o schedule a period of renovative maintenance. After performing this type of extensive maintenance on a piece of equipment, it s usually restored to a condition close to new. The breakdown rate should fall off dramatically, until the next period of renovation is needed. Figure 2.5: Cost effective of renovatine maintenance (Wireman, 1992)

24 2.5 TPM Obstacles The number of companies successfully implementing a TPM program is considered relatively small and failure has been attributed to the following three major obstacles (Bakerjan, 1994): 1. Lack of management support and understanding 2. Lack of sufficient training 3. Failure to allow sufficient time for the evolution The lack of management support is attributed to management not completely understanding the true goal of the TPM program. For example if management consider that TPM is a means to reduce maintenance staff, they have failed to understand the true goal and purpose of the program. The real goal is to increase the equipment's effectiveness, not reduce the labour head-count. Lack of training will inevitably lead to a decrease in overall equipment effectiveness and result in failure to adopt new and improved methods. To make TPM become a successful part of factory life will take considerable effort to change mindsets from a traditional maintenance approach. Roy Davis a UK director of Manufacturing Productivity Improvements Ltd. considers a good awareness, education and training strategic plan to be an essential factor in the success of implementation (Davis, 1997). The time required to change from a reactive program to a proactive approach will be considerable by some estimates it may be a three to five year venture before achieving a competitive venture for the TPM program. TPM must be seen as a long-term commitment to strive for zero losses and not a way of obtaining short-term fixes, an active management consultant implementing improvement programs, considers that limited applications of TPM from companies, which have taken the short-term perspective, have led to regressive steps, including:

25 1. Converting skilled maintenance personnel into routine operators; 2. Shifting line authority for maintenance crews to production managers; 3. Pushing TPM as a means to reduce the apparent overhead of the maintenance department; 4. Applying TPM principally to reduce maintenance costs. Similarly, Davis (1997) outlines ten main reasons for TPM failure in manufacturing organizations as: 1. The program is not serious about change. 2. Inexperienced consultants/trainers are used. 3. The program is too high level, run by managers for managers. 4. There is a lack of structure and relationship to strategic needs. 5. The program does not implement change on the shop floor and is not managed. 6. A lack of education and training for those expected to take it on board and provide support. 7. Programs are initiated and run exclusively by engineering and seen by production as a project that does not involve them. 8. Attempts to apply TPM in the same way it is implemented in Japan, using the standard approach found in Japanese publications. 9. TPM teams lack the necessary mix of skills and experience. 10. Poor structure to support the TPM teams and their activities.

26 2.6 Critical Success Factor (CSF) in Implementing of TPM TPM demands commitment, structure and direction. It also takes a great deal of time, effort and resource to establish and sustain as with many other change management philosophies (Bamber,1999) Furthermore, according to the senior consultant of Manufacturing Productivity Improvements Limited, Davis (1997), experience of TPM implementation in the UK has shown that the key factors for successful implementations are to: 1. Approach TPM realistically, developing a practical plan and employing program and project management principles; 2. Accept that TPM will take a long time to spread across the company and change existing maintenance culture; 3. Be determined to keep going; 4. Put in place, train and develop a network of TPM co-cordinators that will promote and support TPM activities every day; 5. Support TPM co-ordinators with time and resources, plus senior level back up 6. Put in place relevant measures of performance and continually monitor and publicize benefits achieved in financial terms;

27 Figure 2.6: Cause and effect diagram a generic model of factors affecting successful implementation of TPM (Bamber, 1999) 2.7 TPM journey at CST Continental Sime Tyres is the only company that involve in tyre manufacturing at the Malaysia Northern. They was act as a manufacture, distributor and tyre marketing. Since it was established 20 years ago, they have their own target to become a world class company in their production. To achieve this primary target it requires extraordinary ethical and safety standards. So, it will involve dedicated and well trained work teams. As parts of an overall strategy for improved performance a number of complementary initiatives have been established. Realize of this current competition they implemented Total Productive Maintenance in their company since 2001, which offers the following: 1. Comprehensive quality. 2. High Machine reliability 3. Planning and control 4. Maintenance Preventation 5. Autonomous Maintenance.