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
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 1971. 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
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. 3.2.1: Phases of TPM Vikram cements was the first Indian industry that initiated the concept of TPM implementation in the year of 1991. 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
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 1995. 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 1998. Next, Tanfac Industries Ltd. was the third company that won the TPM excellence award in 1999. 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 3.2.2. 35 30 25 20 15 10 5 0 TPM Award Winning Indian Companies Trend (Year wise) 30 26 21 20 20 18 20 18 18 18 16 11 9 3 4 1 1 1 26 Fig. 3.2.2: 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 3.2.1. 54
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 2001 3 Apcotex Industries Ltd., Taloja Plant 2011 2013 4 AQUA Group, Aquapump Industries, Aquasub Engineering 2009 2015 5 Aradhana Soft Drinks Company, Panipat Plant 2008 6 Asahi India Glass Ltd, Auto Glass Division, Bawal Plant 2010 7 AVTEC Ltd, Chennai 2015 8 AVTEC Ltd, Hosur 2015 9 AVTEC Ltd, Pithampur 2015 Special Award 10 Badve Engineering Ltd., Polymer Plant 2013 11 Bajaj Auto Ltd, Akurdi Plant, Pune 2005 12 Bajaj Auto Ltd, Chakan 2006 2015 Bajaj Auto Ltd, Commercial 13 Vehicle Division (CVD), Waluj Plant, Aurangabad 2006 2012 Bajaj Auto Ltd, Motorcycle 14 Division (MCD), Waluj Plant, Aurangabad 2012 2015 15 Bajaj Auto Ltd, Pantnagar Plant 2011 2015 16 Balasore Alloys Ltd 2006 2008 17 Bharat Seats Ltd, Gurgaon Plant 2006 18 Birla Tyres, Balasore 2000 19 Brakes India Ltd - Foundry Division, Sholinghur 2003 2005 2007 20 Brakes India Ltd, Brake Division, Sholinghur 2003 2005 2008 21 Brakes India Ltd, Nanjangud 2005 2007 22 Brakes India Ltd, Padi Plant 2003 2005 2007 23 Brakes India Ltd, Polambakkam 2004 2005 2010 24 Carborundum Universal Limited. (CUMI) Maraimalai Nagar Plant 25 Carborundum Universal Limited., Sriperumbudur 26 Chennai Petroleum Corporation Ltd, Cauvery Basin Refinery 2009 2011 27 Chennai Petroleum Corporation Ltd, Manali Refinery 2010 28 Dattatreya Textile Pvt Ltd 2004
29 Delphi-TVS Diesel Systems Ltd 2005 30 Electrosteel Castings Ltd, Khardah Works, Kolkata 2008 2010 31 Emami Paper Mills, Balasore 2006 2008 32 Endurance Technologies Ltd. 2013 33 Endurance Technologies Ltd, Aurangabad 2013 34 Endurance Technologies Ltd, Braking Division 2013 35 Endurance Technologies Ltd (Suspension Division) 2011 36 Endurance Technologies Ltd L6/3 - Casting Division 2011 37 Endurance Technologies Private Ltd., Pantnagar Plant 38 Exide Industries Ltd SF Division, Taloja Plant 2011 2015 39 Exide Industries Ltd, Chinchwad 2010 40 Exide Industries Ltd, Haldia 2008 2015 41 Exide Industries Ltd, Hosur 2010 42 Fenner (India) Ltd, Hyderabad 2010 43 Fenner (India) Ltd, Madurai 2010 44 Galaxy Surfactants Ltd, Taloja 2003 2007 45 Galaxy Surfactants Ltd, Tarapur 2003 46 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 13 50 Godrej & Boyce Mf. Co. Ltd., Godrej Precision Systems 2013 51 Godrej Consumer Products Ltd, Malanpur 2006 52 Gontermann-Peipers (India) Ltd. 2007 2010 53 Harsha Engineers Ltd. Changodar and Moraiya Plants 2015 54 Hero MotoCorp Ltd, Dharuhera 2011 55 Hero MotoCorp Ltd, Gurgaon 2012 56 Hero MotoCorp Ltd, Haridwar 2012 2015 57 HIL Ltd Kondapalli (Roofing Sheet Manufacturing Plant) 58 Hi Tech Carbon Ltd, Gummidipoondi 2003 2004 59 Hi Tech Carbon Ltd, Renukoot 2004 60 Hindustan Coca-Cola Beverages Pvt Ltd., Moula Ali Plant 2013 56
61 62 63 64 65 66 67 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 2001 2005 2013 2015 2015 2005 69 Hindustan Lever Ltd, Chiplun Plant 2003 70 Hindustan Lever Ltd, Daman Detergents 2002 71 Hindustan Lever Ltd, Hosur 2006 72 Hindustan Lever Ltd, HPC DIV- Detergents Factory, Pondicherry 2004 73 Hindustan Lever Ltd, Kalway 2005 74 Hindustan Lever Ltd, Kandla Factory 2005 75 Hindustan Lever Ltd, Khaliabad Beverages Factory 2004 76 Hindustan Lever Ltd, Kidderpore 2004 2006 77 Hindustan Lever Ltd, Mangalore 2002 2004 2006 78 Hindustan Lever Ltd, Mysore 2004 79 Hindustan Lever Ltd, Orai 2002 2004 80 Hindustan Lever Ltd, Personal Products, Dadra 2001 2004 81 Hindustan Lever Ltd, Pondicherry 2003 2005 82 Hindustan Lever Ltd, Rajpura 2002 83 Hindustan Lever Ltd, Silvasa 2003 2005 84 Hindustan Lever Ltd, Silvasa 2003 2005 85 Hindustan Lever Ltd, Sumerpur 2000 2002 86 Hindustan Lever Ltd, Tatapuram 2005 87 88 Hindustan Lever Ltd, Toilet Soap Factory, Goa Hindustan Lever Ltd, Western Regional Office 2004 2006 2004 89 Hindustan Lever Ltd, Yavatmal 2002 90 91 Hindustan Motors Ltd (AVTEC Ltd, Power Plant, Pithampur) Hindustan Unilever Ltd, Haldia Detergents Factory 2003 2005 2005 2007 57
92 Hindustan Unilever Ltd, Khamgaon 2003 2005 2007 93 Hindustan Unilever Ltd, Nashik Factory 2007 94 Hindustan Unilever Ltd, Pune Tea Exports Factory 2007 95 Hi-Tech Gears Ltd (Group) 2009 2011 96 Hospet Steels Ltd 2007 97 Indian Oil Corporation Ltd, Digboi Refinery 2011 2013 98 Indian Oil Corporation Ltd, Barauni Refinery 2008 2011 99 100 101 102 Indian Oil Corporation Ltd, Bongaigaon Refinery Indian Oil Corporation Ltd, Guwahati Refinery Indian Oil Corporation Ltd, Haldia Refinery Indian Oil Corporation Ltd, Panipat Refinery 2012 2009 2010 2008 2012 103 Indo Gulf Fertilizer Ltd 2000 2002 104 Ispat Industries Ltd, Dolvi 2006 2008 105 Ispat Industries Ltd, Kalmeshwar 2006 2008 106 J K Paper Ltd. 2006 2009 107 108 J K Paper Ltd, J K Paper Mills, Jaykaypur Jamshedpur Utilities and Services Company Ltd 2006 2009 109 Jindal Stainless Ltd, Hissar 2004 110 Jindal Steel And Power Limited Barbil pellet Plant 2015 111 JK Tyre & Industries Ltd, Banmore Tyre Plant 2010 112 JK Tyre & Industries Ltd, Kankroli Tyre Plant 2010 113 JK Tyre & Industries Ltd, Vikrant Tyre Plant, Mysore 2010 2015 2008 114 LAP-Ross Engineering Ltd 2013 115 Light Alloy Products Ltd 2013 116 Lumax Industries Ltd. 117 Lumax DK Auto Industries Ltd, Pantnagar 2012 2015 118 Mahindra & Mahindra Ltd. Automotive Division, Igatpuri 119 Mahindra & Mahindra Ltd. Automotive Division, Nashik 120 Mahindra & Mahindra Ltd (Auto Div.), Mumbai 2003 121 Mahindra & Mahindra Ltd, Farm Division, Mumbai 2010 2012 2015 58
122 Mahindra & Mahindra Ltd, Farm Division, Nagpur 2010 2012 2015 123 Mahindra & Mahindra Ltd, Farm Division, Rudrapur 2010 2012 2015 124 M& M Ltd, Farm Equipment Sector, Swaraj Division 2012 2015 125 M& M Ltd, Farm Equipment Sector, Swaraj Division 2012 2015 126 Minda Industries Ltd Switch Division, Pune 2011 127 MRF Ltd - Arkonam Unit 2008 128 MRF Ltd - Goa Unit 2008 129 MRF Ltd - Kottayam Unit 2011 130 Mukand Ltd, Kalwe Steel Plant 2005 131 Mukand Ltd, MBD 2003 132 Munjal Showa Ltd, Gurgaon Plant 2008 2013 133 Munjal Showa Ltd, Manesar Plant 2010 134 National Engineering Industries Ltd, Jaipur 2008 135 National Engineering Industries Ltd, Newai Plant 2007 136 Orient Cement (Props: Orient Paper & Industries Ltd), Orient 2012 Cement 137 Orient Cements, Devapur Cement Works 2001 2003 138 PepsiCo India Holdings Private Ltd (Fritolay Division), Channo 2008 139 PepsiCo India Holdings Private Ltd, Frito Lay Division, Kolkata 2009 2012 140 PepsiCo India Holdings Pvt. Ltd, Pune Foods Plant 2011 141 QH Talbros Ltd, IMT Manesar 2011 142 Rajsriya Automotive Industries (P) Ltd. Unit 4 & 5 143 Raychem RPG (P) Ltd, Vasai 2011 144 Raychem RPG (P) Ltd, GMD- CFIP, Halol 2015 145 Showa Engineering Ltd, Melvenkatapuram 2007 146 Shriram Pistons & Rings Ltd 2004 2007 147 Sona BLW Precision Forgings Ltd, Gurgaon Plant 2011 2013 148 Sona BLW Precision Forgings Ltd, Pune Plant 2013 149 Sona Koyo Steering Systems Ltd, Gurgaon 2007 150 Sona Somic Lemforder Components Ltd, Gurgaon Plant 2011 59
151 Sundaram Clayton Ltd, Brakes Division, Plant 2 2007 152 153 154 Sundaram Clayton Ltd., Die Casting Div., Hosur Plant Sundaram Industries Ltd - Rubber Factory Sundaram Textiles Ltd, Nanguneri Unit 2013 2004 2006 2008 2005 155 Sundaram-Clayton Ltd, Padi 2009 156 Sundram Fasteners Ltd, Hosur 1998 2005 2007 157 Sundram Fasteners Ltd, Krishnapuram Plant 158 Sundram Fasteners Ltd, Padi 2004 159 Sundram Fasteners Ltd, Pondicherry 160 Tanfac Industries Ltd 1999 2002 161 Tata Cummins Ltd 2005 162 Tata Metaliks, Kharagpur 2002 2005 163 Tata Sponge Iron Ltd, Joda 2012 164 165 166 TATA Steel Processing and Distribution Ltd, Jamshedpur Tata Hitachi Construction Machinery Company Private Ltd Kharagpur Telco Construction Equipment Co. Ltd (TELCON), Dharwad 2009 2015 2010 2013 2004 2008 2005 2007 167 168 169 170 171 172 173 174 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 2010 2006 2008 2011 2013 2004 2004 2004 2004 60
175 The Tinplate Co. of India Ltd, Golmuri Works 2005 176 Titan Time Products Ltd. 2007 177 178 179 180 181 182 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 2012 2015 2012 2015 2011 2015 2015 183 TTK LIG Ltd, Pallavaram 2003 2004 2005 184 TTK LIG Ltd, Pondicherry 2004 2005 185 TTK LIG Ltd, Virudhunagar 2003 2004 2005 186 TTK Prestige Ltd. Coimbatore 187 Turbo Energy Ltd, Pulivalam 2011 2013 188 TVS Motor Company Ltd. 189 TVS Motor Co., Plant 3 2004 190 TVS Motor Company, Hosur-Plant 2 2007 191 TVS Motor Company, Mysore Plant 192 TVS Srichakra Ltd 2003 2005 2007 193 Uniproducts (India) Ltd 2012 194 Usha Martin Ltd, Jamshedpur 2001 195 196 Usha Martin Ltd, Wire & Wire Ropes Varroc Engineering Pvt. Ltd.Pantnagar (VEPL-PN) 2005 2008 197 Varroc Polymers Pvt. Ltd. Pune 198 Vikram Cements 1995 2001 199 Wheels India Ltd, Padi, Chennai 2010 Table 3.2.1: TPM award winning companies in India. Table 3.2.1 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
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 3.2.2. 62
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., 2004 2006 2012 2 Bajaj Auto Ltd. Waluj Plant, Aurangabad Oct., 2002 2006 2012 3 Brakes India Ltd, Brakes Division, Sholinghur Oct.,2000 2003 2005 4 Brakes India Ltd, Foundry Division, Sholinghur Oct., 2000 2003 2005 5 Brakes India Ltd, Polambakkam July, 2000 2004 2005 6 Brakes India Ltd, Padi Plant May, 2000 2003 2005 7 Galaxy Surfactants Ltd, Taloja Plant May, 2000 2003 --- 8 Hindustan Lever Ltd, Khamgaon June, 2001 2003 2005 9 Hindustan Lever Ltd, Mangalore Aug., 1999 2002 2004 10 Mahindra & Mahindra Ltd, Farm Division, Mumbai Plant Nov., 2006 2010 2012 11 Mahindra & Mahindra Ltd, Farm Division, Nagpur Plant Nov., 2006 2010 2012 12 Mahindra & Mahindra Ltd, Farm Division, Rudrapur Plant Nov., 2006 2010 2012 13 Shriram Pistons and Rings Ltd. Jan., 2000 2004 --- 14 Sundram Industries Ltd-Rubber Factory Feb., 2000 2004 2006 15 Sundram Fasteners Ltd, Hosur Aug., 1995 1998 2005 16 Sundram Fasteners Ltd, Krishnapuram plant Aug., 1995 1998 2004 17 Sundram Fasteners Ltd, Pondicherry Aug., 1995 1998 2005 18 Tetra Pak India Private Ltd, Tetra Pak, Pune Nov., 2002 2006 2008 Table 3.2.2: Special award winning companies Award for TPM Excellence Consistent TPM commitme First category 63
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 1982. 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 3.2.3. Achievement Unit BM Phase-I Phase-II Phase-III Production / Productivity Times 1 1.46 1.75 1.92 Overall Equipment Efficiency % 64.8 88 92 93 Overall Plant Efficiency % - BM-72 77 81 Breakdown Occurrences / Month Nos. 216 93 45 5 In-House Rejection % 1.13 0.43 0.05 0.03 OEM Line Rejection PPM 162 150 49 2 Delivery % 99 100 100 100 Employee Involvement Suggestions Times 1 2.87 6.6 8 Kaizen Times 1 3.3 8.5 12.5 Table 3.2.3: Tangible benefits achieved by Brake India limited- Brake division. 64
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 75000 MT per year. Brakes India Foundry was the first foundry in India to obtain ISO 9002 certification for the quality management system in 1992. 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 3.2.4. 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 2002-03 to 2006-07 70% improved 42% reduction 57% reduced 2% improved 11%improved 85%reduced 4%reduced 51%reduced 34% reduced Comparison with Global Status 2006-07 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
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 1995. The main products of the plant are caliper brakes, S cam brakes & brakes shoes. Tangible benefits: The tangible benefits achieved are shown in Table 3.2.5. 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
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) 100 65 Table 3.2.6: Improvement in KPIs Galaxy Surfactants Tangible benefits in product quality: The tangible benefits achieved are shown in Table 3.2.7. Sr. No. Performance indicator Unit Benchmark (2000) Phase-I (2003) Phase-II (2005) Phase-III (2007) 1 Color of SLS Klett - 20 15 7 2 Color of LES Klett - 8 6 2 3 Iron content in SLS PPM - 12 8 4.5 4 Purity of SLS % - 95 96.2 97.5 5 Purity of PE % 99.1 99.2 99.6 99.8 6 Purity of OMC % 98 98.2 98.8 99.2 7 Monomer in Galsilk PPM 96 23 1.3 0.4 Table 3.2.7: Tangible benefits achieved in product quality Galaxy Surfactants 67
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 3.2.8. Category Target item Unit Bench mark Achievements up to (1998) Phase III (2006) OEE % 60 90 Volume Ton 48,000 76,000 P Machine Minutes 240 4 changeover Defects QDI 1.5 0.4 Q Customer complaints Nos 0 0 Conversion cost % 100 76 C Specific energy KWH/ton 45 29 Maint. Cost Rs/ton 100 62 Inventory Weeks 2 1 D Dispatch compliance % 76 99 S Accident frequency rate TRFR 0.4 0.17 Effluent discharge KL/day 2 0 M Suggestions Nos./Employee/ year 0.5 7.5 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
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 1989. 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 3.2.9. Category Target item Units P Q 69 Bench mark (2000) Achievements up to Phase III (2007) OEE % 50 82 DFA output TPW 250 525 Machine changeover Minutes 480 9 Defects QDI 1.7 0.5 Consumer complaints Nos. 0 0 C Conversion cost Rs/ton 6843 5635 D S M Dispatch compliance Accident frequency rate Suggestions % 76 98 TRFR 0.4 0.17 Nos./Employee /Year 0.5 17 Table 3.2.9: Tangible benefits achieved by Brake Hindustan Lever Limited, Khamgaon
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 1962. 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 1981. 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 3.2.10. Category Benefits achieved from 2000-06 (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 2006-08 (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 3.2.10: Tangible benefits achieved by Sundaram Industries Limited, Madurai 70
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 1972. 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 2000. 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 3.2.11. Category Target item Unit Benchmark Achievements up to % (2000) Phase III (2007) change OEE % 54 88 63 P Plant labour Parts/man productivity /year 19 35 84 Quality Nos./ Q complaints month 9.8 1.6 84 Defect rate % 10.3 2.0 81 C Manf. Cost % of sales 82.1 72.0 12 Total inventory % of sales 12 5.6 53 D Dispatch compliance % 92 100 9 S Reportable Nos./ accidents month 2 0 100 M No. of suggestion Nos./year/ employee 1.92 17 785 Table 3.2.11: Tangible benefits achieved by Shriram Pistons & Rings Ltd., Ghaziabad 71
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 3.2.12) and won TPM Special Award in 2008. 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 50000 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 3.2.12: 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 1966. 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
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 2007. 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 3.2.13. 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 3.2.13: Tangible benefits achieved by Sundaram Industries Limited- Hosur plant 73
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 1981. 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 3.2.14. 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 3.2.14: Tangible benefits achieved by Sundaram Industries Ltd., Krishnapuram 74
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 2006-07 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 3.2.15. 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 3.2.15: Tangible benefits achieved by Sundaram Industries Ltd. Pondicherry Plant 75
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 1995. 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 2015. 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
The Figure 3.3.1 shows the distribution of number of award winning companies with respect to their categories. Distribution of companies with respect to categories 2 66 88 Engineering Process Service Fig. 3.3.1: 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 2008. 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
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