Several years ago, senior management. TPM at Gardner Bender: Making Your Internal Customers Successful, Improving External Customer Service

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1 TPM at Gardner Bender: Making Your Internal Customers Successful, Improving External Customer Service Total Productive Maintenance also helps to reduce unexpected breakdowns, reduce cost. Ugo Okoro In Brief Several years ago, senior management at Gardner Bender (GB), 1 near Milwaukee, WI recognized that we spent more money on maintenance and equipment than we could sustain over time, if we were going to meet our long-term Author Ugo Okoro describes the Total Productive Maintenance (TPM) implementation (including the step-by-step implementation process) and related results at a Gardner Bender facility. Thanks to this TPM process, the company reports benefits in OEE (overall equipment effectiveness) resulting in better internal and external customer service, cost savings, better deployment of capital, improved morale, and other benefits. goals for global competitiveness. Using a kaizen approach with a project team, we began looking at how much was spent on repairs and maintenance, and also targeted machine utilization issues. We launched a Total Productive Maintenance (TPM see the box, "About TPM and RCM") approach, with one key metric (supported by other metrics): OEE (overall equipment effectiveness). "Even though GB had embarked on a lean implementation program, TPM was not a focus of that initiative," according to Jeff Baldwin, the global operations leader for the Tools and Supplies division of Actuant Corporation, GB's parent firm. "We began a long-term strategy of TPM implementation and CMMS implementation focusing on the Glendale (WI) manufacturing operation in1999. We saw the need for this focus for several reasons: 1) There was no capacity planning being done in manu- 36 Target Volume 20, Number 3

2 facturing; 2) our manufacturing is a capitalintensive business productivity improvement is directly linked to equipment performance; and 3) no measurements were being made about equipment effectiveness or utilization." "Our Gardner Bender business unit sells to both professional electricians through distributors and to the do-it yourself market through major retailers like Lowe's and Home Depot, so the ability to ship product on time is crucial to satisfying customers," said Ralph Keller, Actuant Corporation's vice president of operations. "Their production equipment must be available when needed in their lean manufacturing environment to meet this objective, and that was not the case before the TPM implementation. They have been able to reduce their finished goods inventory substantially since the TPM process insures the ability to produce product when needed, helping our corporation to meet goals of debt reduction and effective deployment of capital." Documenting Baseline Performance Our TPM project team (production, maintenance, and senior management members, approximately 12 people) first gathered baseline data to help us understand our current performance and challenges. We focused on: 1) limited PM (preventive maintenance) practices deployed, resulting in machine breakdowns and limited knowledge about how to serve our internal customers more effectively; 2) underutilization we had more machines than we needed; and 3) the lack of involvement of process owners (machine operators) in the care of their machines. Our project team targeted these objectives: Restore production machines to original production performance capabilities Improve data collection; clean up questionable or unreliable data Develop a roadmap to guide us along the improvement path. About TPM and RCM TPM is the process of continuously improving the effectiveness of production equipment through the involvement of all people in the enterprise: Keeping the equipment running -When it should -At the specified rate -With the highest quality and yield Keeping the equipment clean People working together for optimal results. Reliability-centered maintenance (RCM) is the next step in the evolution of good maintenance practices. It entails applying the same TPM principles to subsystems and components to insure long-term, predictable performance through minimizing the probabilities of failure. Action Plan We focused on improvements, with OEE at the top of our list, in three areas of our manufacturing operations: parts manufacturing (spring coiling, molding), assembly, and packaging. Our project team developed a phased approach (see Figure 1). Six months after our initial assessment, training, and organizational issues were addressed in Phase 1, we moved to TPM launch, a TPM pilot, and other activities in Phase 2. Then we began Phase 3 (CMMS, or computerized maintenance management system), maintenance effectiveness planning, gap analysis, etc.), which took months. In Phase 4, we launched Enterprise CMMS, MTBF (mean time between failures), MTTR (mean time to repair), and RCM (reliability-centered maintenance) activities. Benchmarking Benchmarking visits to nearby Harley- Davidson, GE Medical, and Briggs facilities yielded information about the "mechanics" of TPM processes. Our benchmarking "team" (people who have guiding or key roles in our TPM efforts such as maintenance, production, scheduling, and core TPM team members) talked with associates at the benchmarking host sites about how 37 Third Issue 2004

3 Figure 1. Phases of TPM implementation. 38 Target Volume 20, Number 3

4 the TPM efforts were led, and how these activities were perceived by affected employees. We also looked at some of their metrics how they collected and used data as well as how they posted visual information on machines, etc. Another area targeted in our benchmarking was how to justify the cost of a TPM program how do you pay for implementing and sustaining it? We found useful information about gathering data on the cost of repairs when machines are down, for example. Those figures calculated for downtime include more than the actual repairs; manufacturing resources may be diverted to other areas when equipment is not available, with related productivity losses, or overtime costs may rise as a result of equipment failures. We learned to be focused specifically on our key metric, overall equipment effectiveness (OEE), during our benchmarking activities. If you allow yourself to be distracted by ideas for production control and other improvements, you will dilute your project effectiveness. At the same time, we also learned to be more open-minded about gaining new ideas for planning, implementing, and sustaining an effective TPM program. When you get back to your own operation, then you can evaluate these ideas and look for those you can use or modify. Culture Change and Training Gardner Bender's emphasis on lean operations and continuous improvements helped us to gain acceptance for TPM. We assume that everyone comes with the intent to be successful on the job in an environment of trust, so the company is successful in turn. We can give people tools, such as TPM training, but it is important for associates to know for themselves how it can work and what's in it for them. What we encourage is understanding that we all have a role to play in OEE. TPM is a broad-based approach to world-class manufacturing. Getting our TPM training off the ground required a shift from previous maintenance department ownership for machine OEE to a multifunctional approach. We needed a shared understanding that TPM encompasses quality, machine availability, and performance issues. We found it useful to segment some elements of our TPM training, and to offer combined training sessions for other TPM basics. Various training segments are provided for maintenance technicians, operators, and engineers, for example. Kaizen projects as part of our training program provided valuable "real world" learning. Results improvements in machine availability, etc. were incorporated in our training sessions as projects were completed. Through this training, we gained broad support for our TPM initiative. People were not afraid of the program. This shared accountability serving the next person in line as well as external customers is more readily accepted when there is an environment characterized by teamwork and trust. Gardner Bender's lean manufacturing efforts, started years earlier, have helped to create a climate where change is accepted and encouraged. Actually putting that customer service into practice and improving our OEE requires training in TPM concepts as well as practice on a day-to-day basis. TPM concepts need to be revisited on a continuing basis. In addition to training, there are various ways to communicate. For example, as teams come together to do a TPM event, allocate time for training with specific reminders about TPM principles (Figure 2). Posting data on machines about condition and performance also involves process owners in the care of the machines they operate. Putting TPM to Work Our Sencorp Blister improvement project provides an example of TPM-related performance improvements. Associates targeted reduced downtime, improved availability, improved run rate, and reduced scrap in this project. They worked against our assembly machine TPM task checklist, starting with machine and work area 39 Third Issue 2004

5 TPM Pre-event Check List observations and continuing through problem-solving as needed, updating operator work instructions, etc. (see Figure 3.) Blister machine TPM event results were dramatic. Machine availability, machine OEE, and other performance indicator improvements are shown in Figure 4. Although progress in machine OEE average and other indicators was significant, operators will continue to monitor machine performance and look for additional improvements. How We're Doing We now schedule maintenance and gather related data in the three targeted areas within our facility (parts manufacturing, assembly, and packaging). We have consistently measured OEE performance in those three areas as well as specific areas within each one. Whenever OEE performance slips in a particular area, we schedule a TPM event troubleshooting, process mapping and 5S (sort get rid of unneeded items; simplify organize what's left; scrub clean; standardize develop needed procedures; and sustain make these changes a way of life; and we added a sixth element safety), then selecting and implementing solutions. As we have learned to restore machines to their targeted performance levels, and improved OEE, we have also reduced the number of machines needed to meet customer demand. This decrease in space requirements enabled us to consolidate production into one building in the Milwaukee facility (compared to the previous two plants). Over time, this approach has not only helped us to improve customer satisfaction, but also to reduce our cost of capital and improve corporate profitability. Our TPM current state encompasses: Policy deployment documented preventive maintenance (PM) procedures and autonomous maintenance AM)/PM instructions Performance measurement OEE tracking implemented for all machines TPM training all operations employees trained in TPM and participated in events 1. Equipment history documentation Develop Pareto of equipment history Drawings, specs, and any other available documentation 2. Develop detail of OEE data package OEE Utilization Breakdown Setup frequency and times 3. Develop preliminary AM & PM procedures 4. Develop rough draft of setup procedures 5. Develop production/quality Product demand profile First pass yield Defects rates Scrap units & dollars & scrap Pareto 6. Take before pictures 7. Develop actual vs. Oracle system standard rates analysis 8. Set goals and objectives for event 9. Set up logistics for event, (such as reserve conf room, order lunches, soda, coffee, etc.) 10. Materials needed: Flipcharts Markers Tape measures Note pads Post-it notes Pencils Clip boards Stop watches Digital camera Overhead projector Floor tapes Cleaning supplies (rags, paper towels, degreaser, etc.). Figure Target Volume 20, Number 3

6 Figure Third Issue 2004

7 Blister Machine TPM Event Results Before After % Improvement Machine availability average 72% 81% 13% Machine performance average 78% 116% 49% Machine quality average 99% 98% -1% Machine OEE average 56% 92% 64% Figure 4. PM task development 98 percent of production machines completed AM task development 95 percent of all production machines completed (visual inspection, verify settings, cleaning, etc. tasks) CMMS installation completed user training and ongoing configuration (work orders, labor tracking, equipment history and costs, etc.) Monthly status report all TPM event results, OEE performance in the three process areas (and plant-wide), and a summary of the next month's focus Kaizen events scheduling based on analysis of metrics (OEE drops) and critical production needs Gap analysis assess current implementation status against the designed roadmap and against world-class companies. TPM Activities, Results Our goal is two TPM events a month, or 24 annually. In fiscal year 2001, for example, 39 events were completed (Kraft Automation Line, auto bagger machines, Sencorp Blister, all assembly and spring coiling, cooling tower). We completed 17 and 19 TPM events in 2002 and 2003, respectively. Thanks to these projects, automated assembly machines run rates improved an average of 30 percent; associates also removed four spring coilers, one press, and three assembly machines from production without sacrificing capacity. These projects also enabled manufacturing consolidation. Fishing and bending operations were moved from one building to another, resulting in a savings of approximately 1.2 percent of our total operations budget for fiscal 2000 and reducing space requirements by 35,000 sq. ft. Automated production data collection is also among added improvements. In turn, OEE accuracy improved and we gained timely feedback to production and support personnel. We now average 23 PMs a month. Our production machine availability and performance rose 15 percent over a year's time as a result of these PMs. Additional performance improvements are shown in Figure 5. Lessons Learned Our TPM improvements continue. Among the lessons we have learned during the past few years are: A team approach, reinforced by an OEE metric, is needed for TPM success; this team effort is needed to execute and sustain TPM, with continuing efforts to encourage participation by operators and support personnel such as maintenance technicians Performance, availability, and quality variables all must be considered in a 42 Target Volume 20, Number 3

8 balanced approach; you cannot do well in one area and neglect the other two A data-driven process is required for effective decision-making; develop baseline performance data OEE, costs for maintenance as well as overtime, productivity, and other costs related to equipment availability issues, and use process and machine data as a guide along the journey Do not assume that everyone in the organization understands what TPM is about and how it can benefit internal as well as external customer service; ongoing communication and training are needed TPM requires top management support and direct supervision commitment for implementation and sustained improvements Customer service involves everyone in our operation; we all participate in serving our internal and external customers Our TPM improvements will not end; we continue to seek better ways to serve our customers. Effective execution of TPM programs must be accompanied by efforts to sustain performance excellence over time. Continually train and emphasize the TPM philosophy. If properly applied and implemented, TPM supports just-in-time (JIT) and other elements of world-class performance. What's Next We continue to restore targeted equipment to their original condition in our TPM projects. We are also working toward refinement of the maintenance system: precision PM practices to ensure that maintenance technicians are doing thorough and effective work, and renewed support for autonomous maintenance (both management and production). Gap analysis is another focus. Comparing current performance versus world-class companies will provide more ideas for improvement. As part of our benchmarking activities, we have learned that OEE at 85 percent is considered worldclass. Our goal is to sustain this OEE level, Figure Third Issue 2004

9 Figure 6. Gap analysis questions. putting systems in place to ensure this level of performance over a long period of time. We will continue to strive for even better performance. One of our lessons learned through our team efforts is that our TPM performance improves through the use of a set of questions we developed for gap analysis (Figure 6). Every year, we go through and answer those questions, and score the answers. Depending on our scores, we look at areas where we didn't do as well as we should have, and then work on those for next year. OEE improvement actions include targets such as: packaging focus on breakdown time reduction; automated assembly minimizing jams; molding/spring coiling minimizing process variability; and encouraging operators to look for early warning signals of potential problems affecting OEE. One-piece flow in connector production and CMMS enterprise implementation are on the drawing board as well, with TPM components. "After our positive results from TPM kaizen events at the Glendale facility, we have started implementing TPM at our other manufacturing facilities following the same roadmap," said Jeff Baldwin. "Each GB manufacturing facility is now in the final phase IV of the TPM plan, having achieved related dramatic productivity improvements. This process has allowed us to remain competitive in a very difficult global environment." Added Tony Webster, GB plant manager at Glendale, "The benefits of TPM manifest themselves in several different ways. Primary benefits are seen as OEE improvements. Manufacturing equipment will suffer fewer breakdowns of lesser severity, maintaining higher performance levels over time. Less unplanned downtime and sustained product throughput levels are maintained, resulting in product availability and satisfied customers. "Financial benefits accrue from TPM as well," Webster continued. "Since a mature TPM program is predictive and based on equipment usage, lower level (and less expensive) maintenance activities 44 Target Volume 20, Number 3

10 are performed, reducing the opportunity for catastrophic failure. A normal cost benefit expectation is a percent reduction in overall maintenance costs every year!" Webster also noted TPM's intangible benefits. "Although they are more difficult to measure, benefits in morale can be attributed to TPM as well," he said. "Of course, maintenance personnel appreciate increased equipment reliability and fewer trouble calls but don't forget the machine operator who works with the equipment day in and day out. All in all, implementing TPM within your organization can certainly help on several fronts and I highly recommend it." Ugo Okoro is the kaizen leader for Gardner Bender's facility in Glendale, WI. He has a bachelor's degree in engineering and a master's degree in engineering with a manufacturing focus from Milwaukee School of Engineering. Footnote: 1. Gardner Bender (GB) is a division of Actuant Corporation, headquartered in Milwaukee, WI. Gardner Bender is an industry-leading manufacturer of professional electrician's tools and supplies. References: A brief list of additional TPM resources includes: Focused Equipment Improvement, Japan Institute of Plant Maintenance Total Productive Maintenance, Tel-A-Train, Inc. TPM for Every Operator, Japan Institute of Plant Maintenance TPM for Supervisors, The Productivity Press Development Team TPM Team Guide by Kunio Shirose TPM for Workshop Leaders by Kunio Shirose 2004 AME For information on reprints, contact: Association for Manufacturing Excellence 45 Third Issue 2004