Chapter 5. TPM in Swaraj Division, M&M: A Case Study. 5.1 Introduction of Swaraj Division
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1 Chapter 5 TPM in Swaraj Division, M&M: A Case Study A case study on the highly successful implementation of continued TPM in Swaraj Division, Mahindra & Mahindra Limited, Mohali (Punjab) is presented in this chapter. The purpose of this case study is to uncover the critical contributing factors behind the successful TPM implementation and investigate the impact of these factors on TPM effectiveness indicators PQCDSM. To realize the vision of the company i.e. To be within top two brands in India, the company adopted TPM as business tool to counter both the external and internal business challenges. TPM journey comprising TPM phase-i and phase-ii implementation remained successful at Swaraj M&M. The aim of the study is to identify the most contributing success factors and establish ranking of these factors using analytic hierarchy process (AHP) methodology. 5.1 Introduction of Swaraj Division Mahindra & Mahindra (M&M) is one of the leading multinational automotive manufacturing company having nearly 150,000 employees in more than hundred countries. M&M incorporates a strong presence in the agribusiness, consultancy services, defence sector, industrial equipments, steel and two/four wheeler industries. Punjab Tractors Ltd. (PTL) was established by Punjab government in Mohali (Punjab) in 1970 and its first indigenous tractor was produced in The acquisition of PTL with Mahindra & Mahindra took place in Finally it merged with M&M in 2009 and became M&M Swaraj Division. The company is operating two tractor plants and manufactures vide range of tractors from 20 to 75 HP (Figure 5.1.1) to 156
2 cater the needs of various customer segments. Swaraj executive council (SEC) as an apex body was established with a purpose to promote manufacturing excellence in the industry. The role of SEC is to formulate the business strategies, translating strategies in policies, deployment of policies and carry out periodic reviews on manufacturing performances. Fig : Two plants of M&M, Swaraj Division in Mohali 5.2 TPM as a strategic tool for improving Manufacturing Performance The vision of the company was To be within top two brands in India, and to achieve this vision, the company adopted TPM as a business tool to counter both the external and internal business challenges. The following were the reasons for choosing TPM to attain manufacturing excellence in comparison to other management approaches: TPM approach is a scientific & logic based methodology to optimize resource utilization to achieve manufacturing excellence, which is imperative for vision realization. It is based on participative principle, which is a good fit with Indian culture and psyche. 157
3 The TPM initiatives were initiated in both the plants of the company to overcome the following business challenges: i. Old plant and ageing machines ii. iii. iv. Higher number of breakdowns Increased losses and higher tooling cost Lack of quality improvement in the product/equipment v. No involvement of operators in the up keep of machines vi. vii. viii. ix. Less employee engagement & rigid mindset No formal system for preventive & predictive maintenance No structured system for skill enhancement of cell members Unsafe working environment 5.3 TPM Journey at Swaraj To implement TPM in Swaraj plants, Mr Samir Adhikari was the consultant from CII, TPM club India. The first phase of TPM was initiated in M&M in 2008 and with its successful implementation, the company continued second phase of TPM implementation. The company initiated the TPM Phase-I journey for achieving zero breakdowns, zero losses, zero defectives and zero accidents. After analyzing the existing conditions of the plant, the business goals that were result oriented, specific, measurable, attainable and realistic were set accordingly. TPM policies, objectives, targets, organizational structure as well as all necessary procedures were formulated for the TPM implementation based upon the existing conditions and goals to be achieved. The journey of TPM phase-i implementation is shown in Figure
4 JIPM 2 nd Stage Assessment (December 2012) JIPM 1 st Stage Assessment (May 2012) TPM Health Check Audit (23 rd December 2011) TPM Kick-Off (18 th June 2008) TPM Promotional Activities (February 2008 onwards to April 2008) TPM Awareness Session (December 2007) Fig : TPM Phase-I journey TPM Phase-I implementation steps TPM starts with 5 S and its practice started well before initiating TPM. It is a systematic process of housekeeping to achieve a serene environment in the work place involving the employees with a commitment to sincerely implement and practice housekeeping. 5S is in practice in the company on continual basis along with implementation of all the TPM pillars. TPM implementation programme was implemented in the following four stages and twelve steps: I. Introduction-preparatory stage: Steps 1 to 5 II. Start of introduction: Step 6 III. Introduction-execution stage: Steps 7 to 12 IV. Established stage: Step
5 Step-1: Top Person s announcement to Introduce TPM To achieve a competitive advantage and remain on leading edge, the management of M&M decided to implement TPM philosophy in M&M Swaraj division, Mohali. The management announced its implementation in early Step-2: Initial Training To carry out the TPM activities, a company needs persons with strong maintenance and equipment related skills. This is because one of the important goals of TPM is to raise workers skill levels and this only can be done if there is thorough and continuous training. For individual excellence, training programs were held in depth for the understanding of technical knowledge and for providing broad range of skills. The training programmes on TPM were organized in different modules for giving awareness on its advantages and challenges to adopt it, implementation plan and how to calculate OEE, 5S, sixteen major losses, etc. Step-3: Formation of TPM promotional organization TPM has eight pillars of activities, each being set to achieve a zero target. TPM pillars committees were formulated in the beginning with one pillar chairman heading the committee under TPM plant promotion management committee chairman. Members from various departments were nominated as pillar representatives. Monthly apex meetings were conducted and pillar chairman used to present the monthly progress to the unit head. Pillar members had to present the progress of their respective pillars to the chairman in fortnightly review meetings. Pillar chairman used to provide all necessary support and guidance to his pillar members. The TPM organizational structure established at Swaraj is shown in Figure
6 Fig : Swaraj TPM Organizational Structure Step-4: Setting of TPM policy, objectives and targets: a) TPM Policy TPM policy was formulated based upon the vision of the company (Figure 5.3.2) as: i. Maximize reliability of plant & machinery by aiming at zero breakdowns, zero defects, zero losses and zero accidents. ii. Nurture team work & continual improvement through total employee involvement. iii. Promote healthy, clean & cheerful working environment. iv. Cultivate My machine, My work place work culture for the overall improvement in the organization. b) TPM objectives i. To enhance productivity and quality of the product ii. iii. To establish a structured preventive & predictive maintenance schedule. Focused approach for the restoration of the basic condition of the machines rather than attending only breakdown failures iv. To develop machine ownership among cell members v. To create safe and hazard free environment 161
7 c) Vision deployment and TPM Targets setting To realize the vision of the company To be in top two brands in India by 2013 through TPM as a business tool, the company established its strategies and TPM indices inline with the vision of the company. Then the TPM indices viz. key management indices (KMIs), key performance indices (KMIs) and key activity indices (KAIs) were identified from the strategies. The responsibility of attaining these KMIs, KPIs and KAIs was of TPM steering committee, pillar heads and circle members respectively. The vision deployment to KMIs, KPIs & KAIs and TPM target setting methodology followed at Swaraj is presented in Figure VISION STRATEGIES KEY MANAGEMENT INDICES (KMIs) KEY PERFORMANCE INDICES (KPIs) KEY ACTIVITY INDICES (KAIs & TPM TARGETS) Fig : Vision deployment Vision: To be in top two brands in India by 2013 Swaraj Strategies: To realize the vision of the company with the implementation of TPM, the company established its strategies as mentioned in Table with a purpose to improve the various TPM performance parameters or aspects such as quality, productivity, cost, delivery, safety and morale. 162
8 TPM Parameters Quality Productivity & Delivery Cost Safety Morale Swaraj Strategies Improve customer centricity Improve market position Expand product range Attain cost leadership Achieve sustainability Enhance organizational capability Table 5.3.1: Swaraj Strategies Key Management Indices (KMIs): It is necessarily needed to monitor and study the progress in key TPM parameters for the successful implementation of TPM. The key management indices (KMIs) are the representative measures of TPM parameters which were identified from the planned strategies as highlighted in Table These KMIs are to be managed by the TPM steering committee. Parameters Quality Productivity & Delivery Cost Morale Safety Key Management Indices Customer satisfaction index Number of field complaints Sales volume System cost Employee satisfaction index Safety (No. of major accidents) Table 5.3.2: Swaraj KMIs Key Performance Indices (KPIs) and Key Activity Indices (KAIs): The eight TPM pillars were implemented companywide to improve the operational capabilities of the company. The pillar committees were made responsible to implement their pillars successfully with the significant improvement in key performance indices (KPIs). These KPIs were derived from KMIs. Monitoring the improvements in key performance indices was necessary as the same governs the enhanced operational capabilities of the company. Then these KPIs were deployed to circle levels as key activity indices (KAIs). 163
9 Next, the bench mark (BM) values for all the KAIs were evaluated from the existing plant conditions and annual targets to be achieved were set as described in Table The chief aim of the company was to improve the sales volume of the tractors manufactured by the company either by implementing improvement projects or by adding new production facilities. 164
10 KPI KAI KMIs No KPI UOM BM (F09) Target (F13) No KAI Overall Plant Efficiency-OPE % No. of de-bottlenecking machines 1 Overall Line Efficiency-OLE % No. of projects for defect reduction Overall Equipment Efficiency % Setup time reduction projects P Q 2 Productivity Tr./Man/ Month Breakdown Nos./ Month Cycle time reduction projects 2.2 Number of stations under multi - manning Corrective maintenance for zero breakdown of A category machines Hours/ Month Red tag removal activity 4 MTTR Hours/ Month Identifying Min-Max level of critical spares 5 Office Productivity Tr./Man/Month Reduction in field complaint hrs Improvement in tractor quality - DPR Machine shop rejection & rework Supplier rejection (GR) R/100 % Ppm/ Month 5.95 (F11) (F09) S Score in area offices 5.2 New IT applications introduced 6.1 No. of failures simulated 6.2 No. of counter measures identified & implemented 7.1 No. of poka-yoke installed 7.2 Kaizens done on Direct pass ratio 7.3 SOP revision (Assy. & Paint Shop) 7.4 Product audit-demerit score improvement 7.5 Process audits conducted 8.1 Kaizens done to reduce Rejection & rework 8.2 No. of poka-yoke installed 8.3 No. of zero defect machines 8.4 SPC of critical parameters 8.5 No. of Q components identified 8.6 No. of 4M conditions set % Kaizens done to reduce BOP rejections 165
11 KMIs C D S M No KPI KPI 10 Energy consumption 11 Manufacturing cost reduction UOM Units/ Tractor % to total cost BM (F08) Target (F13) No KAI Projects for energy consumption reduction Projects for manufacturing cost reduction 12 Set up loss Hrs No. of single digit set up 13 Tool cost Rs./ Tractor No. of projects for tool life improvement 13.2 Projects for tool cost reduction 13.3 Alternate source development 14 Reduction in material cost % Projects for material cost saving through value engg 15 New equipment development lead time Days Schedule adherence % Activities for reducing equipment lead time 15.2 MP sheets implemented on new equipment 16.1 Kaizens related to stores 16.2 Suppliers covered under green zone 16.3 KAI Suppliers covered under supplier relationship management (SRM) 17 Reportable accidents Nos SHE awareness training to employees 18 Non reportable accidents Nos Hazard identification risk assessment 19 First Aid accidents Nos Kaizens Nos./ Team/ Yr 19.1 Safety committee meetings 19.2 Behaviour based training 19.3 Testing of lifting equipments & pressure vessels Circle meetings conducted 21 Multi-skilled operators Nos No. of training sessions for multi-skilling process 22 Employee satisfaction index Score No. of stations covered under Multi-skilling Table 5.3.3: KMIs and KAIs target setting 166
12 Step-5: Preparation of master plan for implementing TPM Detailed master plan for the implementation of TPM was prepared as shown in Table This master plan pillar heads and cell members for the successful implementation of TPM. No ACTIVITIES 1 Declaration by top management F08 F09 F10 F11 Q3 Q4 Q1 Q 2 Q 3 Q4 Q 1 Q 2 Q 3 Q4 Q 1 Q 2 Q 3 Q4 Q 1 2 Initial Training 3 Formation of TPM promotional organization 4 5 Setting of TPM policy, objectives and targets Preparation of master plan for implementing TPM 6 TPM Kick-off Establishment of systems for improving efficiency of production (Initiation and consolidation of KK, PM,JH & ET) Establishment of new product & new equipment development Establishment of quality maintenance systems Establishment of system for improvement of efficiency of administrative departments TPM KICK-OFF- 18 TH JUNE 2008 TPM HEALTH CHECK UP 23 RD DEC Establishment of safety, health & environment system Complete implementation of TPM & level improvement Table 5.3.4: TPM Master Plan (Swaraj) 167
13 Step-6: TPM Kick-off For the motivation of all employees, initially TPM initiatives were implemented only on manager model machines (Table 5.3.5) before companywide deployment of all the eight pillar activities. Machines Different Sections Machining Centre - (01 Nos.) Light machine shop (LMS) Internal Grinding - (01 Nos.) Light machine shop (LMS) CNC Turning machine- (01 Nos.) Light machine shop (LMS) Machining centre- (02 Nos.) Heavy machine shop (HMS) Table 5.3.5: Manager Model Machines First only three steps (Step 1, 2, 3) of Jishu-Hozen were implemented on manager model machines. After their successful implementation, other important themes of Kobetsu-Kaizen (KK) pillar were implemented. After deployment of KK pillar activities, all other pillars activities were also implemented in parallel on them. The progress of improvement in manager model machines was audited by the consultant from time to time till the improvement obtained up to his satisfaction level. After successfully implementing TPM pillar activities on manager model machines, TPM Kick-off ceremony was held on 18 th June 2008 and companywide deployment of all the eight pillars of TPM with their activities, were started from July, TPM activities were carried out on a total of 238 machines from various sections in the plant as shown in Table to enhance their efficiency. Different sections No. of machines Light machine shop 114 Heavy machine shop 46 Heat treatment shop 19 Paint shop 8 Assembly shop 31 Tool room 20 Total machines 238 Table 5.3.6: Plant machinery and equipment 168
14 Step-7: Establishment of a system for improving the efficiency of the production facilities with the execution of following four pillars as mentioned below: Step 7.1 Deployment of Kobetsu-Kaizen (KK) pillar The aim of Kobetsu-Kaizen (KK) pillar was to identify losses, allocate resources for eliminating these losses on a continual basis through the use of several TPM tools and techniques with a purpose to reduce manufacturing cost and increase production volume. To improve the manufacturing performance of equipment and processes, the KPIs of KK pillar were identified as shown in Table The benchmark values were established from the existing production practice conditions and the future targets to be achieved within a prescribed period were selected by KK pillar team. No. KPIs UOM BM Target Overall plant efficiency-ope % Overall line efficiency-ole % Overall equipment efficiency-oee % Productivity Tr./Man/Month Energy consumption Units per tractor Manufacturing cost reduction % to total cost Setup loss Hrs/Qtr Tool change loss Hrs/Qtr No. of Kaizen No./Team/Year 5 20 Table 5.3.7: KK pillar benchmark and target setting The following KK pillar initiatives were performed to achieve the desired KPIs: 1. Selected manager model machines. 2. Loss capturing and analysis was done on all the machines. 3. Prepared loss cost matrix and prioritized losses to be addressed at the earliest. 4. Kaizen projects were carried out and their findings were implemented. 5. Monitored savings achieved. 6. Horizontal deployment of the outcomes of the Kaizen projects. 7. Calculated the OLE and OPE and analyzed the improvements that have taken place in OLE and OPE. 169
15 Step 7.2 Deployment of Jishu-Hozen (JH) pillar The aim of JH pillar was to develop equipment competent operators so that equipment should be well maintained along with the improvement in work place. For this, JH steps were implemented to eliminate forced deterioration of equipment. The benchmark values were established and targets to be achieved were set for the successful implementation of JH pillar as shown in Table No. KPI UOM BM Target 1 Breakdown due to poor JH Nos./ month CLITA time reduction Minutes/machine/shift Minor stoppage due to poor JH Nos./ month Defects due to poor JH Nos./ month Reduction in first aid injury due to poor JH Nos Zero leakages machine Nos S score in direct area (shop floor) % Table 5.3.8: JH pillar benchmark and target setting To achieve the above mentioned targets, the following activities were performed under JH pillar initiatives: 1. 1S-2S activities were carried out in shop floor areas. 2. Manager model machines were selected and JH activities were initiated on model machines. 3. Initial training on TPM activities were given to operators. 4. Implemented JH Steps 0-5 on shop floor. Step 7.3 Deployment of Planned maintenance (PM) pillar The goal of PM pillar was to achieve the zero breakdowns by ensuring the equipment conditions at their best with minimum maintenance cost and to sustain it with the help of continual improvement activities. PM pillar initiatives include all the necessary maintenance tasks which were required for the proper up keep of equipment. Based upon the criticality of machines and other equipment, the benchmark values were identified and targets to be achieved were set as shown in Table
16 No. KPIs UOM BM Target 1 Breakdown incidences A category machines Breakdown incidences B category machines Breakdown incidences C category machines Nos./ month 76 0 Nos./ month Nos./ month Total breakdown incidences Nos./ month Zero breakdown machine A category Nos./ month Total breakdown hours Hours/month MTTR Hours Energy consumption Unit/ Tractor Oil consumption cost INR/ Tractor Cost of repair maintenance & improvement INR/ Tractor Table 5.3.9: PM pillar benchmark and target setting The following activities were carried out under PM pillar initiatives to meet above targets: 1. TPM awareness programme to all employees. 2. Formation of PM teams to carry PM activities on manager model machines. 3. Carried out 1S-2S activities in the entire plant. 4. Initial training were given to all the employees to support JH activities. 5. Initiated zero breakdown activities on all the equipment. 6. Established maintenance planning management and maintenance information management systems. 7. Developed modules for the spare parts and lubrication management. 8. Predictive maintenance systems were deployed to achieve the target of zero breakdowns. 9. Maintenance skill and knowledge of the employees was up-graded. 171
17 Step 7.4 Deployment of Education & Training (E&T) pillar The aim of E&T pillar was to build employee s capability by upgrading their knowledge and skills. E&T pillar initiative improves individual and team performance, thereby enhancing the morale of the employees. Based upon the performance of employees before TPM, the benchmark values and targets to be achieved under E&T pillar were set as shown in Table No. KPIs UOM BM Target Quality defect due to poor 1 skill/human Error Nos./ Month 18 0 Break down due to poor Skill Nos./ Month Accident due to poor skill Nos./ Month No. of multi skilled operators Nos Cell member productivity Tractor/Man/Month Skill index of cell members Score Training coverage % No. of trainers developed Nos Employee satisfaction index Score Kaizen Nos./Team/ year 5 20 Table : E&T pillar benchmark and target setting The following activities were carried out under E&T pillar initiatives to impart education and training to employees: 1. Formation of E&T pillar objectives and carried out its promotional activities. 2. Setting up of technical training centre for machine shop and assembly shop. 3. Identified skills and competency level of staff and cell members. 4. Modules were prepared and training was delivered to the employees as per the need. 5. Evaluation of training was carried out to check employee capability. Step-8 Deployment of Initial Control / Development Management (DM) Pillar The aim of DM pillar was to upgrade existing products, develop new products and improve process capability. It mainly focuses on production of right products in first time thereby meeting customer requirements. From the past manufacturing processes, 172
18 the KPIs to be improved were set accordingly and their targets were fixed as shown in Table No. KPIs UOM BM Target 1 Sales from upgraded & New products % Alterations in new product % Target material cost achievement ratio (New product) % Design related field complaints hrs R/ New equipment development Lead time Days New equipment start up lead time Days Table : DM pillar benchmark and target setting The following activities were carried out under DM pillar initiatives to enhance manufacturing performance: 1. Setting up of TPM targets and policy for continual development of the process and the product. 2. Captured customer needs to upgrade existing processes and products. 3. Identified area of improvement in existing products and design improvements required in existing products. 4. Introduced improvements in existing products and analyzed gaps in the existing product line-up. 5. Identified & introduced new models. 6. Analyzed existing product development process. 7. Studied M&M new product development (NPD) process. 8. Developed Swaraj new product development process and implemented new product development process. 9. Reduced machine installation time. 10. Initiated life cycle costing (LCC) of the equipment. 11. Reduced vertical startup time. 173
19 Step-9 Deployment of Quality Maintenance (QM) Pillar The QM pillar focuses towards delighting customers by offering defect free tractors. The aim was to achieve zero defects by supporting and maintaining equipment conditions. For this, TPM tools and techniques were to be employed to overcome quality issues and to improve the quality of tractors. Based upon the past quality issues, benchmark values were set and corresponding targets were fixed as shown in Table No. 1 1a 1b KPI UOM BM Target Reduction in field complaint hrs Reduction in supplier related field complaint Reduction in design related field complaint R/100 2 Improvement in tractor quality-dpr % 5.95 Modified SOP 4.2 R/ R/ Calculated with modified SOP Machine shop rejection and rework PPM/Month Supplier rejection (GR) % Supplier rejection (LR) PPM Table : QM pillar benchmark and target setting The following QM Pillar activities were carried out to overcome quality related issues: 1. TPM awareness programme to all employees. 2. Captured defects and stratify those defects. 3. Prepared quality matrix. 4. 4M conditions were analyzed and the root causes were identified. 5. Mapping out of kaizen plan was done along with its implementation. 6. Confirmed effects and horizontal deployment of outcomes of kaizen projects was done. 174
20 Step-10 Deployment of Office TPM (OTPM) Pillar The aim of OTPM pillar was to build and maintain a highly productive and responsive office by improving the office efficiency. OTPM acts as supportive function for better plant performance by reducing inventory cost and increasing utilization of work area (offices). Thus, the benchmark values were established for the key areas and the targets to be achieved were fixed as shown in Table No KPIs UOM BM Target 1 Effective working capital management No. of days Reduction in material cost % to revenue Schedule adherence % Production loss due to want of material No. of tractors/ Quarter Realisation of payment at components Same No. of days 5 suppliers end day Reduction in vehicle in-out time Minutes Offices productivity Tractors/Man/Month Errors /mismatch in documentation to 4 total documents Nos. / Month 6 0 Reduction in outbound logistics defects Nos. / Month Ensuring safety & security of data % No. of accident reported in Store Nos. / Year 9 0 Table : OTPM pillar benchmark and target setting The following OTPM pillar initiatives were taken to improve workplace efficiency: 1. Good housekeeping: In this, activities such as initial cleaning by implementing 1S, 2S in workplace, along with 5S activity for continuous improvement were carried out. Also, visual management was done to enhance efficiency of the system. 2. Inventory Management: In this, potential areas were identified and improvement initiatives were implemented. 3. Process Improvement: In this, areas to be improved were identified and improvement initiatives were carried out to enhance process efficiency. 4. Minimization in System downtime: In this, record keeping of breakdowns in PCs / Printers and improvement initiatives were carried out. 175
21 Step-11 Deployment of Safety, Health & Environment (SHE) pillar The main goal of SHE pillar was to achieve zero incidence, zero health hazard & pollution free workplace. From the previous data, the benchmark values were obtained and targets to be achieved were set for the improvement in SHE conditions of the plant (Table ). No KPIs UOM BM Target Numbers of reportable accidents Nos Numbers of non reportable accidents Nos Numbers of first aid cases Nos No. of incidents of occupational health hazards Nos. 0 0 Employee health check compliance adherence % Reduction in natural resources (Energy) Units/tractor Reduction in natural resources (Water) KL/tractor Control of environment parameters limits % Noise lvel monitoring (20 critical areas) Db Illumination level monitoring (22 critical areas) Lux level Dust level monitoring (24 equipments) Mg/ MN 3 <150 <150 Table SHE pillar benchmark and target setting The following activities were initiated under SHE pillar: General initiatives 1. SHE awareness training to all the employees was carried out. 2. Promotional activities such as safety day, environment day were carried out at regular intervals. 3. SHE audits were done at regular intervals. Safety and health initiatives 1. Area wise hazard identification and risk assessment was done. 2. OHSAS internal audit and surveillance audit was performed. 3. Implementation of behavior based training and observations were made from them. 4. Safety committee meetings and health check-up of employees were carried out. 176
22 Environmental initiatives 1. Monitoring of environment parameters, ISO internal audit and surveillance audit was done. 2. Monitoring of noise level, illumination level and dust level were performed at regular intervals. Step-12 Deployment of Tool Management (TM) Pillar The TM pillar is implemented as an additional pillar to overcome tool losses. The focus of TM pillar was on reducing tool cost & tool inventory through various improvement activities. For improvement in tool technology, benchmark values were obtained and targets were fixed as shown in Table No. KPI UOM BM Target 1 Tool cost INR/ tractor Tool inventory INR/ tractor Machine waiting for tool Hr./ machine/ month Table : TM pillar benchmark and target setting The following activities were performed under TM pillar initiatives: 1. All the tools were identified and categorized such as cutting and assembly tools. 2. Identified highly consumable tools. 3. Data was collected for tool cost per tractor. 4. Identified and implemented tool cost reduction projects. 5. Improved control system for reduction in tool inventory; rationalize/standardize tools to reduce variety lead time; find out inventory levels and maintain. 6. Generated monthly/quarterly reports, analyzed gaps and countermeasures were taken to reduce those gaps. 7. Generated loss-cost matrix to identify the most contributing losses and Kaizens were performed to reduce these tool losses. The deployment of TM pillar in detail as a case study on implementation of innovative TPM practices is discussed in detail in Section 6.3 of Chapter
23 5.4 Pillar-wise Achievements after Implementing TPM Phase-I After performing the TPM pillar initiatives, the achievements obtained in individual pillar of TPM are shown in Table to Table KK Pillar Achievements: No. 1 KPI UOM BM (F09) Target (F13) Actual (F13) Overall Plant Efficiency-OPE % Overall Line Efficiency-OLE % Overall Equipment Efficiency-OEE % 63 (F10) Productivity Tr./Man/Month Energy consumption Units per tractor Manufacturing cost reduction % to total cost 5 Setup loss Hrs/Qtr. 6 Tool change loss Hrs/Qtr. 7 No. of Kaizen No./Team/Year Table 5.4.1: KK pillar achievements JH Pillar Achievements: 9.26 (F09) (F09) 1365 (F09) 5 (F09) No. KPI UOM BM (F08) Target (F13) Actual (F13) 1 Breakdown due to poor JH Nos./month CLITA time reduction Minutes/ Machine/ shift Minor stoppage due to poor JH Nos./month Defects due to poor JH Nos./month Reduction in first aid injury due to poor JH Nos Zero leakages machine Nos S score in direct area (shop floor) % Table 5.4.2: JH pillar achievements 178
24 PM Pillar Achievements: No. KPIs 179 UOM BM (F08) Target (F13) Actual (F13) Breakdown incidences A category machines Nos./month Breakdown incidences B category machines Nos./month Breakdown incidences C category machines Nos./month Total breakdown incidences Nos./month Zero breakdown machine A category Nos./month Total breakdown hours Hours/month MTTR Hours Energy consumption Unit/ Tractor Oil consumption cost INR/Tractor Cost of repair maintenance & INR/Tractor improvement Table 5.4.3: PM pillar achievements QM Pillar Achievements: No. 1 1a 1b KPIs Reduction in field complaint hrs Reduction in supplier related field complaint Reduction in design related field complaint Improvement in tractor quality- DPR UOM R/100 BM (F08) 5.95 (F11) Modified SOP Target (F13) Actual (F13) R/ (F11) R/ (F11) % 75 (F09) Calculated with modified SOP Machine shop rejection and rework PPM/month Supplier rejection (GR) % Supplier rejection (LR) PPM Table 5.4.4: QM pillar achievements DM Pillar Achievements: BM Target Actual KPIs UOM No. (F08) (F13) (F13) 1 Sales from upgraded & New products % Alterations in new product % Target material cost achievement ratio (New product) % Design related field complaints hrs R/ (F11) New equipment development Lead time Days (F12) 6 New equipment start up lead time Days (F12) Table 5.4.5: DM pillar achievements
25 E&T Pillar Achievements: No. Parameter UOM BM Target Actual (F08) (F13) (F13) 1 Quality defect due to poor skill/human 18 Nos./ Month 0 13 error (F12) 20 Break down due to poor skill Nos./ Month 9 10 (F12) 2 Accident due to poor skill Nos./ Month No. of multi skilled operators Nos. 15 (F12) Cell member productivity Tract/Man/ Month Skill index of cell members Score Training coverage % No. of trainers developed Nos (F12) Employee Satisfaction Index Score (F14) Kaizen Nos./Team/year OTPM Pillar Achievements: No. 1 2 Table 5.4.6: E&T pillar achievements Parameter UOM BM (F08) Target (F13) 74.1 Actual (F13) Effective working capital management No. of days Reduction in material cost % to revenue Schedule adherence % Production loss due to want of material Realisation of payment at components suppliers end Reduction in vehicle in-out time 3 Offices productivity 4 5 Errors /mismatch in documentation to total documents Reduction in outbound logistics defects No. of tractors/ Quarter 472 (F11) No. of days 5 Minutes Tractors/Man/ Month 94 (F12) 10 9 Same day Same day Nos. / Month Nos. / Month 3 (F12) Ensuring safety & security of data % No. of accident reported in Store Nos. / Year Table 5.4.7: OTPM pillar achievements 9 (F09)
26 SHE Pillar Achievements: No. 1 2 Parameter UOM BM (F08) Target (F13) Numbers of reportable accidents Nos Numbers of non reportable accidents Nos Actual (F13) Numbers of first aid cases Nos No. of incidents of occupational health hazards Nos Employee health check compliance adherence % Units/ Reduction in natural resources (Energy) tractor 3 KL/ Reduction in natural resources (Water) tractor 4 Control of environment parameters limits % Noise lvel monitoring (20 critical areas) db Illumination level monitoring (22 critical areas) Lux level Dust level monitoring (24 equipments) Mg/ MN 3 <150 <150 <150 TM Pillar Achievements: Table 5.4.8: SHE pillar achievements S. No. KPI UOM BM (F08) Table 5.4.9: TM Pillar Achievements Target (F13) Apart from the individual pillar achievement after TPM achievements, there occurred overall improvement in factory targets which are highlighted in Table Actual (F13) 1 Tool Cost INR/ tractor Tool Inventory INR/ tractor Machine Waiting for Tool Hr./Mc/ Month
27 Overall Improvements in Factory Targets: KPI K KMIs No 1 KPI UOM BM (F09) Target (F13) Actual (F13) Overall Plant Efficiency-OPE % Overall Line Efficiency-OLE % Overall Equipment Efficiency-OEE % 63 (F10) No KAI No. of de-bottlenecking machines No. of projects for defect reduction Setup time reduction projects 2 Productivity Tr./Man/ Month Cycle time reduction projects 2.2 Number of stations under multi - manning P 3 Breakdown Nos./ Month Corrective maintenance for zero breakdown of A category machines Hours/ Month Red tag removal activity 4 MTTR Hours/ Month Identifying & defining Min- Max level of critical spares 5 Offices Productivity Tr./Man/ Month S Score in area offices 5.2 New IT applications introduced 182
28 KPI KAI KMIs No KPI UOM BM (F09) Target (F13) Actual (F13) No KAI 6 Reduction in field complaint hrs R/ (F11) Modified SOP No. of failures simulated 6.2 No. of counter measures identif & implemented 7.1 No. of poka-yoke installed 7 Improvement in tractor quality - DPR % 75 (F09) Modified SOP Kaizens done on Direct pass rat 7.3 SOP revision (Assy. & Paint Sh Q 7.4 Product audit-demerit score improvement 7.5 Process audits conducted 8.1 Kaizens done to reduce machine shop Rejection & rework 8.2 No. of poka-yoke installed 8 Machine shop rejection & rework Ppm/ Month No. of zero defect machines 8.4 SPC of critical parameters 9 Supplier rejection (GR) % No. of Q components identified 8.6 No. of 4M conditions set Kaizens done to reduce BOP rejections 183
29 KMIs C No KPI 10 Energy consumption 11 Manufacturing cost reduction KPI UOM Units/ Tractor % to total cost 12 Set up loss Hrs 13 Tool cost Rs./ Tractor BM (F08) Target (F13) Actual (F13) No (F09) KAI KAI Projects for energy consumption reduction Projects for manufacturing cost reduction No. of single digit set up No. of projects for tool life improvement 13.2 Projects for tool cost reduction 13.3 Alternate source development 14 Reduction in material cost % to revenue Projects for material cost saving through cost/value engg. 15 New equipment development lead time Days (F12) Activities for reducing equipment lead time MP sheets implemented on new equipment D 16.1 Kaizens related to stores 16 Schedule adherence % Suppliers covered under green zone 16.3 Suppliers covered under supplier relationship management(srm) 184
30 KMIs S M No 17 Reportable accidents 18 KPI Non reportable Accidents KPI UOM BM (F08) Target (F13) Actual (F13) No Nos Nos First Aid accidents Nos Kaizens Nos./ Team/Year 21 Multi-skilled operators Nos. 22 Employee satisfaction index 5 (F09) 15 (F12) Score 68.3 KAI SHE awareness training to employees Hazard identification risk assessment 19.1 Safety committee meetings Behaviour based training (employee coverage) KAI Testing of lifting equipments & pressure vessels Circle meetings conducted (F14) No. of training sessions for multi-skilling process No. of stations covered under Multi-skilling U N M N Y N M N N Table : Overall Improvement in TPM Targets (Phase-I) 185
31 Step 13: Overall improvement in manufacturing performance after TPM phase-i implementation Tangible benefits achieved: The TPM activities were carried out so effectively that in three years after the initiation of TPM, the company s revenue became double i.e. it increased from Rs 9589 million to Rs million. Also, the profit became triple i.e. it increased from Rs 1095 million to Rs 4096 million in The company s KMIs improved significantly with the implementation of TPM initiatives and are discussed below: i. Improvement in customer satisfaction index (CSI): A significant improvement in customer satisfaction index was obtained as shown in Figure CSI increased from benchmark 72 in 2008 to 106 by This increase in CSI shows that the customers were delighted with the performance of the tractor manufactured by the company. Improvement in CSI happened because of reduction in manufacturing cost, decrease in defects due to poor JH and poor skill/human errors, reduction in field complaints and schedule adherence Customer Satisfaction Index Index Target Actual Fig : Improvement in customer satisfaction index 186
32 ii. Reduction in field complaints: Field complaints reduced significantly after the implementation of TPM initiatives. The desired target of reducing the field complaints were achieved as shown in Figure From 2011 onwards, new standard operating procedure (SOP) were formulated which includes minor failures. Fig : Reduction in Field Complaints iii. Increase in sales volume: There was a massive increase in sales of tractor over the benchmark year. The Figure shows that in year 2008, the sale was only around but after TPM initiatives, the productivity improved and with that delivery of the equipment also got enhanced. This helped the industry in increasing its sales volume up to in year Increase in sales volume occurred because of enhanced OEE, decrease in defects due to poor JH and poor skill/human error, reduction in breakdown incidences, schedule adherence, capacity enhancement without new additions and reduction in production losses. 187
33 No. of Tractors Sales Volume Target Actual Fig : Increase in Sales Volume iv. Reduction in system cost: After the implementation of TPM initiatives, the losses occurring during the production got reduced along with the increase in productivity. Due to this, the system cost in terms of percentage to sales revenue reduced considerably from 21.5% to 14.5% as shown in Figure System cost reduced significantly because of increase in productivity (OEE), reduction in field complaints, effective working capital management, reduction in maintenance cost, reduction in energy consumption, reduction in tool change loss, improvement in skill of operatives, reduction in supplier complaints and reduction in machine shop rejection. % System Cost (% to Sales Revenue) Target Actual (Q2) Fig : Reduction in system cost 188
34 v. Improvement in employee satisfaction index: A substantial improvement was observed in employee satisfaction index (ESI) as shown in Figure Improvement in ESI was obtained because of successful implementation of 5S throughout the industry, increase in number of multi-skilled operatives, decrease in number of accidents/first aid cases, knowledge/skill improvement, improvement in financial benefits and rewards/appreciation certificates. More number of employees began to participate in TPM activities which lead to the effective implementation of TPM in the plant. Score Employee Satisfaction Index Target 70 Actual Fig : Improvement in employee satisfaction index vi. Improvement in safety conditions A significant decrease in number of accidents after TPM initiatives was achieved, thereby creating a safe and healthy work environment. The number of accidents got reduced from 38 in 2008 to 0 in 2012 as shown in Figure Numbers Safety- Accidents Target 9 Actual (Q1) Fig : Reduction in safety accidents 189
35 vii. Improvement in market share A considerable improvement in market share has taken place after the implementation of TPM initiatives. The market share increased from 9.1% in 2008 to 12.6% in 2012 as shown in Figure % Market Share Actual (Q2) Fig : Improvement in market share Intangible benefits: The company also gained a number of intangible benefits apart from tangible benefits: i. Restoration of basic conditions of machines was carried out which enhanced the equipment efficiency. ii. Visual management was improved to a good extent which eliminated the wasteful motion involved in searching for information or item. iii. Improvement in total employee involvement was observed that promoted friendly work culture among all. iv. Technical skills of the operators got improved. v. The basic knowledge of the operators about their machines got improved. The operator became efficient in identifying the abnormalities in machines. 190
36 5.4.1 Receipt of TPM award Swaraj implemented TPM Phase-I successfully by end of 2011 and on 30 th December 2011, health check audit by CII TPM club of India was carried out and then the company became eligible for challenging the TPM excellence award as per JIPM guidelines. The company cleared the JIPM assessment on 30 th May 2012 and got awarded Category-A TPM excellence award from JIPM. Soon after getting the 1 st phase award, the company management decided to continue the TPM journey for implementing second phase of TPM from 2012 onwards with following objectives: To achieve business growth by meeting changing customer needs & sustaining competitive edge To sustain & improve the gains achieved through TPM phase-i implementation To continuously use TPM as a strategic business management tool in order to become World Class Organization by working on TPM Consistency Award & further. To extend TPM culture to other units of Swaraj (SEL,SAL& SDF) 5.5 TPM Phase-II Implementation Swaraj initiated the TPM Phase-II implementation from 2012 onwards with a target to achieve the JIPM level-ii (TPM Consistency Award) award by In fact the purpose of implementing TPM Phase-II is to achieve business excellence through innovation and thus its focus was kept wider and higher as compared to the level of TPM Phase-I. The journey of TPM Phase-II implementation is presented in Figure
37 JIPM 2 nd Stage Assessment (21 st December 2015) JIPM 1 st Stage Assessment (4 th May 2015) TPM Health Check Audit (December 2014) JH Step-6 (January 2014) JH Step-5 Training (May 2013) Fig : TPM Phase-II Journey The activities carried out for all the 8 pillars of in TPM phase-ii are highlighted below: KK pillar: The main focus was on improving overall plant efficiency (OPE) and for this, the following activities were carried out: Introduced the concept of cellular manufacturing in the plant. Value stream mapping (VSM) analysis was carried out to enhance overall efficiency. High impact Kaizens were preformed Single digit set up machines were generated JH pillar: The main focus was on reducing non-value added activities and for this, the following activities were carried out: Implementation of JH step 5 & step 6 Standard operating procedure (SOP) for work instructions was developed. Practical demonstration of OPLs, JH steps, CLITA activities were imparted. Human error prevention study and analysis were done, and based on analysis actions were taken. 192
38 PM pillar: The main focus was to increase service life of the equipment along with reduction in maintenance cost, and for this following activities were carried out: Adoption of life span estimation analysis based on failure approach for improving life of the component Rigorous component level analysis for failure and for spare planning was done Cockpit management were performed on machines QM pillar: The main focus was given on reduction of field failure and for this, following activities were carried out: Improvement in supplier quality was enhanced with initiatives of Direct on-line inspection Introduced advance oil management- online oil filtration system DM pillar: For achieving vertical start up of the newly installed lines/equipments and for reducing material cost, following activities were carried out: Introduced the concept of life cycle costing (LCC) Line balancing was done through layout changes E&T pillar: Focus was kept on building the culture of 1 st time right- every time right, and for this, the following activities was carried out: Introduced new training modules Implementation of Kanban Training to new join employee in newly developed machine shop dexterity and paint shop dexterity. Regular participation in TPM conferences to upgrade knowledge & skill of all employees Kaizen competition were carried out at regular intervals 193
39 OTPM pillar: Focus was kept on enhancing efficiency of office areas and of stores, and for this, the following activities were carried out: Material cost reduction was done through VA/VE Reduction in turn around time (TAT) time SHE pillar: With a focus of having clean and healthy work environment, the following activities were carried out: Hammerless activities/ projects were carried out Behavior based safety practices were performed Reduction in carbon emission through kaizen projects High fatigue zone was converted into low fatigue zone Support provided for effective implementation of TPM phase-ii initiatives i. Plant visits a. Visit to SONA KOYO by plant head, pillar heads & team members b. Visit to ASAHI Glass by plant head, pillar heads & team members c. Visit to Bajaj by plant head, pillar heads & team members d. Visit to Mahindra & Mahindra, Nagpur by JH & KK team e. Visit to Mahindra & Mahindra, Rudarpur by E&T & OTPM team members ii. TPM national conferences a. Pillar heads & cell members participated in 11 th TPM national conference held at Chennai b. Pillar heads & cell members attended 12 th TPM national conference held at Chennai iii.national Kaizen conference a. JH team members attended 17 th national kaizen conference held at Pune b. JH team members participated in 19 th national kaizen conference held at Pune and won best Kaizen award 194
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