Chapter 3. A Study on TPM Implementation Trend in Indian Industry. 3.1 Origin of TPM

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1 Chapter 3 A Study on TPM Implementation Trend in Indian Industry The aim of this chapter is to study the implementation trend of TPM and continued TPM in Indian industry. The source used for obtaining the information on this issue is newsletters published by CII-TPM Club India. The acceptability of implementing TPM in different types of Indian industries is another concern of this chapter. The identification of the success attributes gained by different companies that continued TPM levels II and III implementation successfully is one of the objective of the thesis work which is being covered in this chapter. The next important aspect of the study presented in this chapter is to explore the most promising benefits achieved by the industry after implementing TPM phase-iii level. 3.1 Origin of TPM TPM is a unique Japanese business concept and is accepted and practiced worldwide in industries for enhancing manufacturing performance. The origin of TPM can be traced back to 1951 when preventive maintenance was introduced in Japan. TPM, a unique Japanese system of managerial expertise, was created in 1971, based on the preventive maintenance (PM) concept. TPM combines productive and preventive maintenance techniques with an innovative approach to overcome production losses. Seiichi Nakazima vice-chairman of the Japanese institute of plant engineers (JIPE), the 51

2 predecessor of the Japan institute of plant maintenance (JIPM), promoted TPM throughout Japan and has become known as the father of TPM. 3.2 Initiation of TPM Implementation in Indian Industries Presently Indian manufacturing sector is at a critical juncture, facing tough competition from multinational manufacturers who are continuously working on improving manufacturing capabilities and quality standards by bringing in the latest technology or with the application of new business tools. The Indian industry has been witnessing a rise in productivity, efficiency and product quality with increase in its manufacturing capabilities. For the last several years, India is the only country which has won highest TPM awards outside Japan. India stands second in the world so far on the number of awards given on TPM since TPM club India was established in 1998 under the realm of Confederation of Indian Industries. The CII-TPM club India has been accredited as the assessment agency for TPM awards. It is one of the five agencies outside Japan which has capability to carry assessment by itself. TPM philosophy is based upon continuous improvement approach and hence can be implemented in phases- Phase-I, Phase-II & Phase-III to achieve manufacturing excellence, world class level and business excellence respectively. In the last two decades TPM has grown from Total Productive Maintenance which is limited to only production shop floor to Total Productive Management which is based on companywide expansion. Recently the focus of TPM is shifted to Total People Methodology so that the industries may become world class leaders and sustain the same status for a longer period of time. The eight pillars constitute the core of companywide activities for TPM Phase-I with an aim to bring improvement in corporate culture through the improvement of personnel and 52

3 equipment systems. For the TPM Phase-II & Phase-III implementation, the companies have to re-design the eight TPM pillars with new modifications to further improve the PQCDSM. Additionally the innovative TPM activities and creative TPM activities are to be performed in TPM Phase-II & Phase-III implementation respectively (Figure 3.2.1). These activities are to be established by a company itself from the viewpoint of management strategies and management goals. The efforts are to move from manufacturing excellence to world class and then to achieve business excellence to remain three years ahead of others and remain the global leader. TPM Phase-III Business Excellence TPM Phase-II World Class Fig : Phases of TPM Vikram cements was the first Indian industry that initiated the concept of TPM implementation in the year of At that time, the concept of TPM was totally new in India. TPM stage-1 activities were implemented under the leadership of a Japanese consultant Mr. C.P. Jajoo. There was outstanding overall improvement in the performance of the company due to involvement of all the employees. Major improvements achieved by the company after TPM were as: Production was increased by 42 % TPM Phase-I Manufacturing Excellence Customer complaints was reduced by 95 % 53

4 Overall equipment efficiency improved by 90 % Breakdowns came down drastically by 90 % Rate of accidents reduced by 90 % Vikram cements became the first company in India that achieved the TPM Excellence Award in The success of TPM implementation in Vikram Cements motivated a good number of industries to initiate TPM implementation. Sundram Fasteners Ltd. was the first engineering company to win the TPM excellence award in Next, Tanfac Industries Ltd. was the third company that won the TPM excellence award in Thereafter an increasing trend of acceptance of TPM concepts and philosophies with an aim of improving manufacturing performance in Indian organizations is observed. Till date, 199 companies have achieved TPM awards in India. The year wise trend of TPM awards received by Indian companies from 1995 to 2015 is shown in Figure TPM Award Winning Indian Companies Trend (Year wise) Fig : TPM awards received by Indian Companies The different industries of India which have achieved awards for TPM Excellence, Excellence in consistent TPM commitment and Special Award for TPM from 1995 to 2015 as presented in Table

5 Sr. No. 1 Company Name ABI Showatech (India) Ltd, Sholinghur Award for TPM Excellence - Second Category / Category B Award for TPM Excellence in Consistent TPM Commitment - Second Category 55 Award for TPM Excellence - First Category / Category A 2007 Award for TPM Excellence in Consistent TPM Commitment / First Category 2 Aditya Cements Apcotex Industries Ltd., Taloja Plant AQUA Group, Aquapump Industries, Aquasub Engineering Aradhana Soft Drinks Company, Panipat Plant Asahi India Glass Ltd, Auto Glass Division, Bawal Plant AVTEC Ltd, Chennai AVTEC Ltd, Hosur AVTEC Ltd, Pithampur 2015 Special Award 10 Badve Engineering Ltd., Polymer Plant Bajaj Auto Ltd, Akurdi Plant, Pune Bajaj Auto Ltd, Chakan Bajaj Auto Ltd, Commercial 13 Vehicle Division (CVD), Waluj Plant, Aurangabad Bajaj Auto Ltd, Motorcycle 14 Division (MCD), Waluj Plant, Aurangabad Bajaj Auto Ltd, Pantnagar Plant Balasore Alloys Ltd Bharat Seats Ltd, Gurgaon Plant Birla Tyres, Balasore Brakes India Ltd - Foundry Division, Sholinghur Brakes India Ltd, Brake Division, Sholinghur Brakes India Ltd, Nanjangud Brakes India Ltd, Padi Plant Brakes India Ltd, Polambakkam Carborundum Universal Limited. (CUMI) Maraimalai Nagar Plant 25 Carborundum Universal Limited., Sriperumbudur 26 Chennai Petroleum Corporation Ltd, Cauvery Basin Refinery Chennai Petroleum Corporation Ltd, Manali Refinery Dattatreya Textile Pvt Ltd 2004

6 29 Delphi-TVS Diesel Systems Ltd Electrosteel Castings Ltd, Khardah Works, Kolkata Emami Paper Mills, Balasore Endurance Technologies Ltd Endurance Technologies Ltd, Aurangabad Endurance Technologies Ltd, Braking Division Endurance Technologies Ltd (Suspension Division) Endurance Technologies Ltd L6/3 - Casting Division Endurance Technologies Private Ltd., Pantnagar Plant 38 Exide Industries Ltd SF Division, Taloja Plant Exide Industries Ltd, Chinchwad Exide Industries Ltd, Haldia Exide Industries Ltd, Hosur Fenner (India) Ltd, Hyderabad Fenner (India) Ltd, Madurai Galaxy Surfactants Ltd, Taloja Galaxy Surfactants Ltd, Tarapur Godrej & Boyce Mfg. Co. Ltd. Locking Solutions & Systems 47 Godrej & Boyce Mfg. Co. Ltd. Godrej Precision Engineering 48 Godrej & Boyce Mfg. Co. Ltd.Godrej Tooling Division 49 Godrej & Boyce Mfg. Co. Ltd.Interio Division Plant Godrej & Boyce Mf. Co. Ltd., Godrej Precision Systems Godrej Consumer Products Ltd, Malanpur Gontermann-Peipers (India) Ltd Harsha Engineers Ltd. Changodar and Moraiya Plants Hero MotoCorp Ltd, Dharuhera Hero MotoCorp Ltd, Gurgaon Hero MotoCorp Ltd, Haridwar HIL Ltd Kondapalli (Roofing Sheet Manufacturing Plant) 58 Hi Tech Carbon Ltd, Gummidipoondi Hi Tech Carbon Ltd, Renukoot Hindustan Coca-Cola Beverages Pvt Ltd., Moula Ali Plant

7 Hindustan Coca-Cola Beverages Pvt Ltd., Srikalahasthi Hindustan Coca-Cola Beverages Pvt. Ltd., Pirangut Hindustan Coca-Cola Beverages Pvt. Ltd. Ameenpur Hindustan Coca-Cola Beverages Pvt. Ltd. Khordha Hindustan Coca-Cola Beverages Pvt. Ltd., Goblej Hindustan Coca-Cola Beverages Pvt. Ltd., Raninagar Hindustan Lever Ltd, Beverages Factory, Pondicherry 68 Hindustan Lever Ltd, Chindwara Hindustan Lever Ltd, Chiplun Plant Hindustan Lever Ltd, Daman Detergents Hindustan Lever Ltd, Hosur Hindustan Lever Ltd, HPC DIV- Detergents Factory, Pondicherry Hindustan Lever Ltd, Kalway Hindustan Lever Ltd, Kandla Factory Hindustan Lever Ltd, Khaliabad Beverages Factory Hindustan Lever Ltd, Kidderpore Hindustan Lever Ltd, Mangalore Hindustan Lever Ltd, Mysore Hindustan Lever Ltd, Orai Hindustan Lever Ltd, Personal Products, Dadra Hindustan Lever Ltd, Pondicherry Hindustan Lever Ltd, Rajpura Hindustan Lever Ltd, Silvasa Hindustan Lever Ltd, Silvasa Hindustan Lever Ltd, Sumerpur Hindustan Lever Ltd, Tatapuram Hindustan Lever Ltd, Toilet Soap Factory, Goa Hindustan Lever Ltd, Western Regional Office Hindustan Lever Ltd, Yavatmal Hindustan Motors Ltd (AVTEC Ltd, Power Plant, Pithampur) Hindustan Unilever Ltd, Haldia Detergents Factory

8 92 Hindustan Unilever Ltd, Khamgaon Hindustan Unilever Ltd, Nashik Factory Hindustan Unilever Ltd, Pune Tea Exports Factory Hi-Tech Gears Ltd (Group) Hospet Steels Ltd Indian Oil Corporation Ltd, Digboi Refinery Indian Oil Corporation Ltd, Barauni Refinery Indian Oil Corporation Ltd, Bongaigaon Refinery Indian Oil Corporation Ltd, Guwahati Refinery Indian Oil Corporation Ltd, Haldia Refinery Indian Oil Corporation Ltd, Panipat Refinery Indo Gulf Fertilizer Ltd Ispat Industries Ltd, Dolvi Ispat Industries Ltd, Kalmeshwar J K Paper Ltd J K Paper Ltd, J K Paper Mills, Jaykaypur Jamshedpur Utilities and Services Company Ltd Jindal Stainless Ltd, Hissar Jindal Steel And Power Limited Barbil pellet Plant JK Tyre & Industries Ltd, Banmore Tyre Plant JK Tyre & Industries Ltd, Kankroli Tyre Plant JK Tyre & Industries Ltd, Vikrant Tyre Plant, Mysore LAP-Ross Engineering Ltd Light Alloy Products Ltd Lumax Industries Ltd. 117 Lumax DK Auto Industries Ltd, Pantnagar Mahindra & Mahindra Ltd. Automotive Division, Igatpuri 119 Mahindra & Mahindra Ltd. Automotive Division, Nashik 120 Mahindra & Mahindra Ltd (Auto Div.), Mumbai Mahindra & Mahindra Ltd, Farm Division, Mumbai

9 122 Mahindra & Mahindra Ltd, Farm Division, Nagpur Mahindra & Mahindra Ltd, Farm Division, Rudrapur M& M Ltd, Farm Equipment Sector, Swaraj Division M& M Ltd, Farm Equipment Sector, Swaraj Division Minda Industries Ltd Switch Division, Pune MRF Ltd - Arkonam Unit MRF Ltd - Goa Unit MRF Ltd - Kottayam Unit Mukand Ltd, Kalwe Steel Plant Mukand Ltd, MBD Munjal Showa Ltd, Gurgaon Plant Munjal Showa Ltd, Manesar Plant National Engineering Industries Ltd, Jaipur National Engineering Industries Ltd, Newai Plant Orient Cement (Props: Orient Paper & Industries Ltd), Orient 2012 Cement 137 Orient Cements, Devapur Cement Works PepsiCo India Holdings Private Ltd (Fritolay Division), Channo PepsiCo India Holdings Private Ltd, Frito Lay Division, Kolkata PepsiCo India Holdings Pvt. Ltd, Pune Foods Plant QH Talbros Ltd, IMT Manesar Rajsriya Automotive Industries (P) Ltd. Unit 4 & Raychem RPG (P) Ltd, Vasai Raychem RPG (P) Ltd, GMD- CFIP, Halol Showa Engineering Ltd, Melvenkatapuram Shriram Pistons & Rings Ltd Sona BLW Precision Forgings Ltd, Gurgaon Plant Sona BLW Precision Forgings Ltd, Pune Plant Sona Koyo Steering Systems Ltd, Gurgaon Sona Somic Lemforder Components Ltd, Gurgaon Plant

10 151 Sundaram Clayton Ltd, Brakes Division, Plant Sundaram Clayton Ltd., Die Casting Div., Hosur Plant Sundaram Industries Ltd - Rubber Factory Sundaram Textiles Ltd, Nanguneri Unit Sundaram-Clayton Ltd, Padi Sundram Fasteners Ltd, Hosur Sundram Fasteners Ltd, Krishnapuram Plant 158 Sundram Fasteners Ltd, Padi Sundram Fasteners Ltd, Pondicherry 160 Tanfac Industries Ltd Tata Cummins Ltd Tata Metaliks, Kharagpur Tata Sponge Iron Ltd, Joda TATA Steel Processing and Distribution Ltd, Jamshedpur Tata Hitachi Construction Machinery Company Private Ltd Kharagpur Telco Construction Equipment Co. Ltd (TELCON), Dharwad Telco Construction Equipment Co. Ltd (TELCON), Jamshedpur Tetra Pak India Private Ltd, Tetra Pak, Pune The Indian Steel and Wire Products Ltd, Jamshedpur The Supreme Industries Ltd, Pondicherry Plant The Tata Iron & Steel Co Ltd, Bearings Div. The Tata Iron & Steel Co Ltd, Hot Strip Mill The Tata Iron & Steel Co Ltd, Precision Tube Mill, Tube Div. The Tata Iron & Steel Co Ltd, Wire Rod Mill

11 175 The Tinplate Co. of India Ltd, Golmuri Works Titan Time Products Ltd Toyota Kirloskar Auto Parts Pvt. Ltd. Tractors and Farm Equipment Ltd, DBR, Bangalore Tractors and Farm Equipment Ltd, Maraimalai Nagar Tractors and Farm Equipment Ltd, Sembiam Tractors and Farm Equipment Ltd, Doddaballapur Tractors and Farm Equipment Ltd, Madurai TTK LIG Ltd, Pallavaram TTK LIG Ltd, Pondicherry TTK LIG Ltd, Virudhunagar TTK Prestige Ltd. Coimbatore 187 Turbo Energy Ltd, Pulivalam TVS Motor Company Ltd. 189 TVS Motor Co., Plant TVS Motor Company, Hosur-Plant TVS Motor Company, Mysore Plant 192 TVS Srichakra Ltd Uniproducts (India) Ltd Usha Martin Ltd, Jamshedpur Usha Martin Ltd, Wire & Wire Ropes Varroc Engineering Pvt. Ltd.Pantnagar (VEPL-PN) Varroc Polymers Pvt. Ltd. Pune 198 Vikram Cements Wheels India Ltd, Padi, Chennai 2010 Table 3.2.1: TPM award winning companies in India. Table demonstrates that out of these 199 companies, 18 companies have achieved the Special Award for TPM, 59 companies have achieved the Award for TPM 61

12 excellence in consistent TPM commitment- first category, 114 industries have achieved Award for TPM excellence- first category and 8 industries have achieved Award for TPM excellence- second category. This trend of TPM awards received by Indian industries highlights that only a few industries continued the TPM journey and implemented higher levels of TPM methodology. Twenty nine percent industries achieved the Award for Excellence in Consistent TPM Commitment and only seven percent of them received Special Award for TPM respectively after successful implementation of TPM Level-II and TPM Level-III respectively. This study demonstrates that if in India some of the industries implemented TPM successfully, on the other hand a good number of industries in India could not complete the first level of TPM implementation because of some chronic problems and internal barriers faced by them. Some industries keep on practicing the TPM philosophy with best efforts, zeal and high spirit that helped them to remain successful in implementing different levels of TPM. Continuing TPM activities have given the spectacular results to reap the intended benefits in terms of PQCDSM. Eighteen industries in India continued the TPM journey till these industries implemented TPM Phase-III successfully and have attained the status of world class manufacturers after getting the Special Award for TPM are presented in Table

13 Sr. No. Company name TPM PHASE-I TPM PHASE-II TPM Award for TPM Kick-Off Excellence - First category/ Category A 1 Bajaj Auto Ltd. Chakan Plant, Pune Dec., Bajaj Auto Ltd. Waluj Plant, Aurangabad Oct., Brakes India Ltd, Brakes Division, Sholinghur Oct., Brakes India Ltd, Foundry Division, Sholinghur Oct., Brakes India Ltd, Polambakkam July, Brakes India Ltd, Padi Plant May, Galaxy Surfactants Ltd, Taloja Plant May, Hindustan Lever Ltd, Khamgaon June, Hindustan Lever Ltd, Mangalore Aug., Mahindra & Mahindra Ltd, Farm Division, Mumbai Plant Nov., Mahindra & Mahindra Ltd, Farm Division, Nagpur Plant Nov., Mahindra & Mahindra Ltd, Farm Division, Rudrapur Plant Nov., Shriram Pistons and Rings Ltd. Jan., Sundram Industries Ltd-Rubber Factory Feb., Sundram Fasteners Ltd, Hosur Aug., Sundram Fasteners Ltd, Krishnapuram plant Aug., Sundram Fasteners Ltd, Pondicherry Aug., Tetra Pak India Private Ltd, Tetra Pak, Pune Nov., Table 3.2.2: Special award winning companies Award for TPM Excellence Consistent TPM commitme First category 63

14 The brief highlights on the TPM journey of the organizations which are awarded Special Award for TPM and the chief benefits achieved by these industries are discussed in following sections: 1. Brakes India Limited- Brake division, Sholinghur- Tamil Nadu Products S cam brakes, hydraulic actuating cylinders, lining & pad Award for TPM Excellence- First Category : 2003 Award for Excellence in Consistent TPM Commitment- First Category : 2006 Special Award for TPM Achievement : 2008 Brakes India Ltd. is a group company of TVS and its Brake Division- Sholinghur was established in The company manufactures and supplies foundation brakes for commercial and utility vehicles in domestic and international market. TPM has been applied in this organization to synergize marketing, engineering and operation management. In marketing management, TPM has been deployed to evolve suitable business strategy segment wise. In engineering, the focus has been on product innovation, enhancement of engineering capabilities and lead time reduction in new products. In operation management, TPM has been widely deployed in shop floor to achieve breakthrough Kaizens and process innovations. Satisfying the employee satisfaction, customer satisfaction, social satisfaction and global satisfaction remained most contributing achievement of TPM implementation. Tangible benefits: The tangible benefits achieved are shown in Table Achievement Unit BM Phase-I Phase-II Phase-III Production / Productivity Times Overall Equipment Efficiency % Overall Plant Efficiency % - BM Breakdown Occurrences / Month Nos In-House Rejection % OEM Line Rejection PPM Delivery % Employee Involvement Suggestions Times Kaizen Times Table 3.2.3: Tangible benefits achieved by Brake India limited- Brake division. 64

15 2. Brake India limited- Foundry Division, Sholinghur- Tamil Nadu Products Castings for automotive & refrigeration applications Award for TPM Excellence- First Category : 2003 Award for Excellence in Consistent TPM Commitment- First Category : 2005 Special Award for TPM Achievement : 2007 Brake India Foundry Division was established in the year 1981 with a modest capacity of 5000 MT per year. In year 2007, the company has witnessed substantial growth with the capacity increasing to MT per year. Brakes India Foundry was the first foundry in India to obtain ISO 9002 certification for the quality management system in The company used long term business objectives along with medium term objectives to align the activities of different departments through TPM. Tangible benefits: The tangible benefits achieved are shown in Table Category Parameter Units P Q C D M Productivity Internal failure cost External failure Process control Output/input ratio Melting energy consumption Stocks Product life cycle management Employee involvement Tonnage/ employee/ year Scrap cost/ turnover% Customer return rate-ppm Good parts/ parts realizable Pattern plate yield % kwh/ M.T of metallic Total stocks/turnover% Developmental lead time No. of suggestions/ Emp./ year Present Status From to % improved 42% reduction 57% reduced 2% improved 11%improved 85%reduced 4%reduced 51%reduced 34% reduced Comparison with Global Status Better than global status Better than global status Better than global status Global status yet to be achieved Global status yet to be achieved Better than global status Global status yet to be achieved Better than global status Global status yet to be achieved Table 3.2.4: Tangible benefits achieved by Brake India limited- Foundry division. 65

16 3. Brakes India Limited, Polambakkam Award for TPM Excellence- First Category : 2004 Award for Excellence in Consistent TPM Commitment- First Category : 2005 Special Award for TPM Achievement : 2010 Brakes India Ltd. started its fourth manufacturing unit at Polambakkam to meet the demand of growing requirements of caliper & heavy commercial vehicles in the year The main products of the plant are caliper brakes, S cam brakes & brakes shoes. Tangible benefits: The tangible benefits achieved are shown in Table Category Target Item Units General Management P Q C Present Status Excellence to Special Level Sales In Rs. Million 81% Imroved Operating Profit In Rs. Million 77% Improved Sales/Employee Value Added Productivity/ Employee/ Annum In Rs. Million/ Employee In Rs. Million/ Employee 45% Improved 7% Improved OEE Percentage 10% Improved MTBF MTTR Average hours/ Month Average hours/ Month 681% Improved 43% Reduced In process Rejections PPM 51% Reduced Customer Complaints PPM 67% Reduced Fixed Cost on Cost Percentage 5% Reduced Variable cost (% to sales) Percentage 1% Reduced D S M Delivery Performance Percentage 2% Improved Inventory Turns No of Times 9% Improved Accident Man Days Lost due to Accident Nos/ Year No of Days Sustained at Zero No. of Kaizens Nos 79% Improved No. of Suggestions Nos 125% Improved Table 3.2.5: Tangible benefits achieved by Brake India limited, Polambakkam 66

17 5. Galaxy Surfactants Limited, Tajola and Tarapur, Maharashtra Products Performance surfactants, specialty and fine chemicals, specialty soaps Award for TPM Excellence- First Category : 2003 Special Award for TPM Achievement : 2007 The Galaxy group has emerged as the largest indigenous manufacturer of surfactants who gives maximum value to its domestic and international customers in meeting their requirements of consistent quality products and reliable services. Continuous improvement, de-bottlenecking and kaizens have raised quality, throughputs and productivity of the company to higher heights with the TPM application (Table 3.2.6). Key Performance Indicator Benchmark (2000) Achievements up to Phase III (2007) Delivery days (% / year) 40 2 Major accident (Nos./year) 11 1 Manufacturing cost (% / year) Table 3.2.6: Improvement in KPIs Galaxy Surfactants Tangible benefits in product quality: The tangible benefits achieved are shown in Table Sr. No. Performance indicator Unit Benchmark (2000) Phase-I (2003) Phase-II (2005) Phase-III (2007) 1 Color of SLS Klett Color of LES Klett Iron content in SLS PPM Purity of SLS % Purity of PE % Purity of OMC % Monomer in Galsilk PPM Table 3.2.7: Tangible benefits achieved in product quality Galaxy Surfactants 67

18 6. Hindustan Lever limited, Mangalore The factory faced closure in the year 1998 due to rising costs, which is overcome with productivity improvement and optimization of supply chain management. Over the years factory has acquired the capability to innovate continuously and deliver, in addition to being the cost/loss reduction leader in the detergents category. The tangible benefits achieved are shown in Table Category Target item Unit Bench mark Achievements up to (1998) Phase III (2006) OEE % Volume Ton 48,000 76,000 P Machine Minutes changeover Defects QDI Q Customer complaints Nos 0 0 Conversion cost % C Specific energy KWH/ton Maint. Cost Rs/ton Inventory Weeks 2 1 D Dispatch compliance % S Accident frequency rate TRFR Effluent discharge KL/day 2 0 M Suggestions Nos./Employee/ year Table 3.2.8: Tangible benefits achieved by Brake Hindustan Lever Limited, Mangalore 7. Hindustan Lever limited, Khamgaon Product Toilet Soaps & Laundry Award for TPM Excellence- First Category : 2003 Award for Excellence in Consistent TPM Commitment- First Category : 2005 Special Award for TPM Achievement : 2007 Khamgaon factory has been provided with facilities to manufacture DFA, toiler soaps and pears. The company manufacture products like Lux, Dove, Breeze, Lifebuoy, 68

19 Pears, Laundry soap noodles and is the dingle sourcing site for Bits in the country. The site was commissioned in 1987 with Lifebuoy as its first soap and then further expanded in After TPM implementation, the company made significant strides in all areas of manufacturing activities, reduced breakdowns and thereby reducing maintenance cost by application of rigorous use of planned maintenance. The factory has commissioned Coal Fired Boiler & Coal Fired Thermic Fluid Heater for DFA plant in order to reduce energy cost. The unit has earned a niche for itself as the leader in innovation and creativity. Twin colour soap production first time in the world, on-line tablet countingfirst time in HLL, single digit change over time, Barbie soap manufacturing, in-house developed duplex case packer, etc. are some of the examples on innovative TPM used at Hindustan Lever Ltd, Khamgaon plant. TPM helped in achieving high skill level and commitment level of operators and technicians, and their active involvement/participation. Tangible benefits: The tangible benefits achieved are shown in Table Category Target item Units P Q 69 Bench mark (2000) Achievements up to Phase III (2007) OEE % DFA output TPW Machine changeover Minutes Defects QDI Consumer complaints Nos. 0 0 C Conversion cost Rs/ton D S M Dispatch compliance Accident frequency rate Suggestions % TRFR Nos./Employee /Year Table 3.2.9: Tangible benefits achieved by Brake Hindustan Lever Limited, Khamgaon

20 8. Sundaram Industries Limited- Rubber factory, Madurai Award for TPM Excellence- First Category : 2004 Award for Excellence in Consistent TPM Commitment- First Category : 2006 Special Award for TPM Achievement : 2008 Sundaram Industries Ltd. (TVS Rubber) a part of TVS Group of companies was established in the year The company witnessed substantial growth and has become a leading market player in the automotive sector. TVS Rubber was the first Indian rubber company to establish in-house tool room in 1977 and also to bring in Injection Molding technology for rubber products in In 1986, TVS Rubber started supply of engine mounts to Maruti Suzuki, the first company to indigenize these parts. TVS rubber established a tie up with Bridgestone, Japan for manufacture and supply of anti vibration automotive parts. In order to achieve zero defects and achieving one suggestion per employee per month, they have launched Small Group Leader concept. They have formed more 150 small group leaders that focus on making every employee of the organization a member of TPM circle to bring in total employee involvement. These initiatives helped the industry to achieve the desired TPM targets. Tangible benefits: The tangible benefits achieved are shown in Table Category Benefits achieved from (Up to TPM phase II) Productivity Improved from 70% to 87% Sustained to 87% Quality Customer returns have been brought down from 3500 PPM to 160 PPM Customer delivery adherence has Delivery been increased from 77.5% to 99.8% Safety Morale Brought down the accidents rate to zero No. of suggestions/months has greatly increased from 12 to 235 Benefits achieved from (TPM phase III) Customer returns have been brought down from 160 PPM to 65 PPM Customer delivery adherence has been increased from 99.8% to 100% Sustained to zero No. of suggestions/months has greatly increased from 235 to 303 Table : Tangible benefits achieved by Sundaram Industries Limited, Madurai 70

21 9. Shriram Pistons & Rings Limited, Ghaziabad Product Pistons, piston rings, piston pins and engine valves Award for TPM Excellence- First Category : 2004 Special Award for TPM Achievement : 2007 The company was established in The company is a leading manufacturer of precision automotive engine components namely pistons, piston rings, piston pins & engine valves, under the well known USHA brand. The products cater to all the segments of the market like cars, two wheelers, trucks, buses, tractors, gensets, and agricultural pump sets etc. Shriram Pistons and Rings Ltd initiated TPM implementation in January The raw material prices were escalating, market was unpredictable, there was pressure on price reduction from customers and through competition in domestic and global market. The company addressed all these challenges through TPM implementation to achieve long term and sustainable competitive edge in the market. In the third phase of TPM, the company employed additional pillars on supply chain, new product development and information management. The company also kept a strong focus on the development of people and provided unlimited budget for education & training of the employees including organizing in-house kaizen workshops and seminars. Tangible benefits: The tangible benefits achieved are shown in Table Category Target item Unit Benchmark Achievements up to % (2000) Phase III (2007) change OEE % P Plant labour Parts/man productivity /year Quality Nos./ Q complaints month Defect rate % C Manf. Cost % of sales Total inventory % of sales D Dispatch compliance % S Reportable Nos./ accidents month M No. of suggestion Nos./year/ employee Table : Tangible benefits achieved by Shriram Pistons & Rings Ltd., Ghaziabad 71

22 10. Sundaram Fasteners Ltd. - Rubber factory Product Automotive Rubber Parts Award for TPM Excellence- First Category : 2004 Award for Excellence in Consistent TPM Commitment- First Category : 2006 Special Award for TPM Achievement : 2008 Sundram Industries Ltd. - Rubber Factory has achieved a significant improvement in P, Q, C, D, S & M (Table ) and won TPM Special Award in The industry has become a world leader in the automotive rubber, component manufacturing field by continuously enhancing the performance of people, machines and practices through innovative and creative TPM activities. Category Benefits Achieved Productivity Overall plant efficiency has improved from 70% to 87% Quality Receiving material defects reduced from PPM to 300 PPM Customer returns have been brought down from 35oo PPM to 65 PPM Yield loss reduced from 29% to 10% Cost Power cost reduced from 17% to 6% Product finishing cost reduced from 3 million to 0.74 millions Delivery Customer delivery adherence has increased to 100% Safety Brought down the accidents to 'Zero' and sustaining the same Morale No. of suggestions per month has greatly increased from 12 to 303 No. of self directed work teams [SDWT] launched 96 Table : Tangible benefits achieved by Sundaram fasteners Ltd. - Rubber factory 11. Sundaram Fasteners Limited, Hosur Product Cold extruded and Powder metallurgy parts Award for TPM Excellence- First Category : 2004 Award for Excellence in Consistent TPM Commitment- First Category : 2006 Special Award for TPM Achievement : 2008 Sundaram Fasteners Ltd. (SFL) is a part of TVS and was established as a small company in SFL has grown in to multi-product multi-location company, as a market leader in the domestic market with a strong presence in the international market. 72

23 SFL-Hosur plant was started in 1979, now grown as one of the leading suppliers of cold extruded and powder metallurgy parts in India. The implementation of all the three phases of TPM remained very successful in Sundram Fasteners Ltd, Hosur Plant and achieved the special award in The company applied the 13 Pillar Approach during the implementation of TPM Level-III with an additional four pillars to the 09 Pillars used in TPM Phase-II. These were Marketing Pillar, Technology Pillar, Office TPM (Factory) and Kobetsu-Kaizen (KK) Pillar. Marketing and Technology Pillars helped in establishing new business and new technologies to reach competitive advantage. Office TPM (Factory) focused on reduced lead time through improved manufacturing systems and minimizing inventories while the KK Pillar gave the cost competitiveness. Tangible benefits: The tangible benefits achieved are shown in Table Category Target Items / Parameters % of improvement Total sales 227% General Management Export sales 500% Sales/Employee 205% Value added productivity 189% Operating profit 226% Productivity (P) Quality (Q) Cost ( C ) OPE 43% OEE 27% Labour Productivity 137% MTBF 112% MTTR 66% In process Rejections 76% Customer Complaints 93% Manufacturing cost 14% Maintenance Cost 37% Delivery (D) Despatch Plan Adherence 3% Safety (S) Major/Minor Accidents Sustained at 0 Morale (M) No. of Kaizens 45% No. of Suggestions 374% Table : Tangible benefits achieved by Sundaram Industries Limited- Hosur plant 73

24 12. Sundaram Fasteners Limited, Krishnapuram Plant Product High Tensile Fasteners Award for TPM Excellence- First Category : 1998 Award for Excellence in Consistent TPM Commitment- First Category : 2004 Special Award for TPM Achievement : 2008 SFL-Krishnapuram plant was started in The company has now grown as one of the leading suppliers of high tensile fasteners in India. This company is practicing TPM for the several years and TPM culture is built across the organization. The company applied the 11 Pillar Approach with additional four pillars to the 07 Pillars used in TPM Phase-II. Total sales enhanced by 185%, profit increased by 152%, OEE improved by 67% are some of the important benefits achieved by the industry. Tangible benefits: The tangible benefits achieved are shown in Table Category Target Items / Parameters % age improvement Total sales 185% Export sales 116% General Management Sales/Employee 279% Value added productivity 249% Operating profit 152% OPE 62% OEE 67% Productivity (P) Labour Productivity 254% MTBF 248% MTTR 65% Quality (Q) In process Rejections 71% Customer Complaints 97% Cost ( C ) Manufacturing cost 23% Maintenance Cost 25% Delivery (D) Despatch Plan Adherence 26% Safety (S) Major/Minor Accidents Sustained at 0 Morale (M) No. of Kaizens 38% No. of Suggestions 52% Table : Tangible benefits achieved by Sundaram Industries Ltd., Krishnapuram 74

25 13. Sundaram Fasteners Limited, Pondicherry Plant Product High Tensile Fasteners Award for TPM Excellence- First Category : 1998 Award for Excellence in Consistent TPM Commitment- First Category : 2005 Special Award for TPM Achievement : 2007 Sundaram Fasteners Ltd. Pondicherry plant was started in 1995, now grown as one of the leading suppliers of high tensile fasteners in India. The gross sale of the plant in was Rs 1266 million with the export sale of Rs 231 million. Company had planned 13- pillars approach with 4 pillars forming the second tier built on the base of 9 pillars. Innovative pillars like marketing and initial control production pillar were used in establishing new business with new technologies to build the required competitive advantage. Tangible benefits: The tangible benefits achieved are shown in Table Category Target Items / Parameters % of improvement Total sales 297% Export sales 346% General Management Sales/Employee 203% Value added productivity 217% Operating profit 133% OPE 56% OEE 45% Productivity (P) Labour Productivity 139% MTBF 378% MTTR 92% Quality (Q) In process Rejections 62% Customer Complaints 67% Cost ( C ) Manufacturing cost 19% Maintenance Cost 30% Delivery (D) Despatch Plan Adherence 23% Safety (S) Major/Minor Accidents Sustained at 0 Morale (M) No. of Kaizens 122% No. of Suggestions 476% Table : Tangible benefits achieved by Sundaram Industries Ltd. Pondicherry Plant 75

26 3.3 Discussion and Summary The following are the research findings of the study on the implementation trend of TPM in Indian industries: I) The first Indian industry namely Vikram Cements initiated implementation of TPM methodology as a business improvement tool in The study on trend of TPM Awards received by Indian Companies highlights that initially the industries in India were not much keen in implementing TPM. Later the trend of TPM implementation improved significantly after observing the good success of TPM in other Indian industries, which continued up to 2005 and then the trend goes down from 2006 onwards. This trend reflects that either the industries lose their interest in implementing TPM or they could not implement TPM effectively and can t get the TPM award. II) Only few industries continued implementation of second level of TPM after getting the Award for TPM Excellence - First Category / Category A. A few companies continued to implement third level of TPM after getting the Award for TPM Excellence in Consistent TPM Commitment / First Category. After the successful implementation of the third level of TPM, these companies received the Special Award for TPM. Eighteen Indian industries remained successful to receive the Special Award for TPM up to III) The type of industry is also a very important factor in the equipment maintenance system since the type of equipment, customer demands and strategic uncertainty can be differ from industry to industry. Thus the acceptability of implementing TPM in different types of industries varies. The engineering industries in India remained keener towards TPM implementation as compared to process and service industries. 76

27 The Figure shows the distribution of number of award winning companies with respect to their categories. Distribution of companies with respect to categories Engineering Process Service Fig : Distribution of award winning companies with respect to categories IV) A large number of industries in India started implementing TPM as a business improvement methodology. But only twenty five to thirty percent of them initiated implementation with appropriate planning and due consideration on continuous improvement on long term gains. Some of the industries initiated TPM implementation without proper planning and implemented three to four TPM pillars only to obtain the benefits on short term goals. These industries could not reach to obtain any of the TPM awards from JIPM. V) The industry all over the world is facing a very turbulent time from the third quarter of Cost reduction, running the plant at full capacity and maintaining the same manpower were some of the key challenges before industry. TPM showed the most unique way to progress on this front and becomes a way of life for all. Many Indian companies have harnessed the power and magic of TPM philosophy and achieved international recognition and in the process India proud. VI) The industry must pursue the TPM methodology in continuation till it achieves the world class status. The industry must keep on practicing the TPM philosophy with 77

28 the same spirit and best efforts for sustaining the growth. It is find out that continuing TPM activities have given the spectacular results to overcome the current worldwide economic recession. VII) All types of industries should take initiatives to implement TPM in their organizations or become more rigorous in TPM implementation to achieve cost competitiveness. The tangible benefits gained by different industries governed that there is minimum 10 times return on investment after TPM implementation. 78