World Class Maintenance

An Application of
Total Productive Maintenance (TPM)
Concepts and Practices

1 © Banks Roden Consulting

 Overview

• Objectives of
manufacturing are cost,
quality, and delivery
• Maintenance is a tool to
achieve these objectives
• Maintenance must be
integrated into the
manufacturing function
• Maintenance strives to
eliminate downtime and
minimize breakdown
cost

2 © Banks Roden Consulting

Maintenance losses are the tip of the Iceberg

scrap

downtime
rework

wasted critical human resources

late delivery
lost capacity
poor quality

Reduced project payback

Reduced machine life cycle

3 © Banks Roden Consulting

 BRC recognizes that improving the effectiveness of maintenance
is one of the critical elements of managing the enterprise and
maximizing the return on the asset base

Production Lean
Assembly Manufacturing

Equipment Facilities
Maintenance Maintenance
Order Management Operational Asset
Asset
Planning & Scheduling Strategy Management
Management

Die &
Tool Room
Information Maintenance
Metrics
Technology

4 © Banks Roden Consulting

 Maintenance Implementation - Path to Success

Assessment Develop To-Be Gap Analysis Solutions Planning Execution

•Determine •Determine desired •Review improvement •CMMS •Project Planning •Project Management
Performance Issues Cost, Quality, and actions: •Empowerment • Scope
•Analyze Maintenance Delivery – Work Orders strategies
• Schedule
Impact on Cost, •Determine desired – Predictive/preven- •Outsourcing
Quality, and Delivery Maintenance • Budget
tive maintenance •WO Management
•Review Processes and Performance levels • Resources
– MRO •Preventive and
Product Flows •Review industry – Job Plans Predictive
•Evaluate performance benchmarks Maintenance
•Determine Mission, – CMMS
Vision, and
Objectives

5 © Banks Roden Consulting

As a part of the Path to Success, BRC utilizes a Maintenance Assessment
Survey to help determine the areas of improvement

• Hourly and salaried
maintenance employees
complete a comprehensive
survey
• Purpose of the survey is to
measure the magnitude of
problems in 13 different
categories
CATEGORY
• Work orders
• Machine history and reporting
• Reliability engineering
• Budgets and finance
• Spare parts control
• measurement and controls
• Planning and Scheduling
• Training and development
• Facilities
• Emergency response
• Culture
• Organizational structure
• Communication

6 © Banks Roden Consulting

 As a part of the Path to Success, BRC utilizes industry benchmarks to
help determine the improvement potential and set aggressive targets

Sample Criteria World Class

• Reactive repair as a percent of total <10%
maintenance work
• Preventive/Predictive maintenance 15% - 20%
as a percent of total work
• Workable job backlog 2-3 weeks (equipment)
2-4 weeks (tool room)
• PM Schedule compliance 90-95%
• Storeroom inventory turns 3.0
• Storeroom inventory accuracy >90%
• Storeroom issued/total maintenance 40%
material purchased
• Maintenance costs as percent plant 12%
controllable costs

7 © Banks Roden Consulting

Maintenance Integrated with Operations
Maintenance
Strategy
• performance measurement
• linked to operations strategy

Proactive
Maintenance Work Orders & History
• preventive & predictive
• improved maintenance
maintenance
productivity
• decreased breakdowns
• breakdown root cause analysis
• improved productivity

MRO
• eliminate parts shortages
• minimum effective inventory

8 © Banks Roden Consulting

 As a part of the Path to Success, BRC identifies potential performance
level in the Maintenance Performance Matrix

Performance Work Orders & Proactive MRO Maintenance

Level History Maintenance Strategy
World Class • advanced WO • breakdowns • vendor managed • maintenance key
system with minimized MRO partner in
future achieving
requirements production goals
Advanced • formal WO • predominate • quick response • integration of
system – current preventive parts delivery maintenance and
requirements maintenance • high parts production
• predictive inventory turns • maintenance as
maintenance a strategic
advantage
Standard • initial phase of • established • parts availability • maintenance
WO system preventive • formal parts metrics
maintenance – inventory • maintenance tied
scheduled PM to production

Traditional • reactive • limited preventive • parts shortages • no strategy

• no formal WO maintenance • no formal parts • maintenance
system inventory viewed as a cost
center

9 © Banks Roden Consulting

Path to Success and professional project management
leads to Phase improvement in six months
• transition to less
than 50% reactive • minimal reactive maintenance
maintenance • maintenance in equipment design
• transition to

World Class 4.
• initiate complete WO control
preventive • entrenched
maintenance predictive
• initiate WO maintenance
1 system
• initiate
Advanced
predictive
maintenance 4.
• reactive
maintenance
• no formal
controls
Standard 3.

Traditional
2.

1.
10 © Banks Roden Consulting
 Foundation
• Autonomous Maintenance
• Preventive/Predictive
Maintenance
• Work Order System
• Maintenance Materials
Management
• Equipment Management
• Labor Management
• Data
Standardization/Collection/
Analysis
• Communication

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 Continuous Improvement

• Failure Rate
• MTBF (Mean Time ?
Between Failure)
• Failure Analysis
• Root Cause

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 Benefits

• Improved uptime
• Increased quality
• Improved delivery
• Improved manpower
utilization
• Reduced
maintenance costs

13 © Banks Roden Consulting

 Total Productive Maintenance
TOTAL PRODUCTIVE MAINTENANCE has five major components
• Maintenance assessment
• Planning and hands-on on-site implementation
• Computerized Maintenance Management System (CMMS) implementation
• Maintenance training
• Periodic follow-up reviews

Maintenance assessment is an evaluation of the client’s current maintenance proficiency as

compared against world class benchmarks. The client’s current maintenance performance is
placed against a matrix of maintenance performance levels. An implementation program can be
designed to raise the performance level to the next higher maintenance proficiency level in a
progression towards world class.
Implementation of the project plan based upon the output from the assessment can begun
immediately and led by professional project management.
Where appropriate, implementation or enhancement of a Computerized Maintenance
Management System (CMMS) can be accomplished.
Value-added training is a pre-requisite for success.
Post-implementation reviews are highly recommended to maintain momentum.

14 © Banks Roden Consulting

Total Productive Maintenance
MAINTENANCE ASSESSMENT
• A maintenance assessment is performed of the maintenance organizational structure, its vision, relationship
of maintenance objectives to production cost, quality, and delivery objectives, maintenance budgets and
other financial information, downtime history, data and issues, state of current breakdown maintenance,
preventive and predictive maintenance, spare parts control, work order control, empowerment initiatives, and
current IT as used by maintenance
• In addition to the management interviews, a survey is to taken to of hourly and salaried maintenance
personnel to measure the magnitude of issues in 13 different categories that can influence the effectiveness
of plant maintenance operations. The survey includes the following:
– Work Orders - Training and development
– Machine history and reporting - Facilities
– Reliability engineering - Emergency response
– Budgets and finance - Culture
– Spare parts control - Organizational structure
– Measurement and controls - Communication
– Planning and scheduling
• Information from the maintenance assessment is an evaluation of the client’s current maintenance
proficiency. This is compared against world class benchmarks. The client’s current maintenance
performance is placed against a matrix of maintenance performance levels. Based upon the organization’s
maintenance objectives a new maintenance environment is designed. Specific solutions are developed to
accomplish the new environment.; An implementation program can be designed to raise the performance
level to the next higher maintenance level
• Success story for a major steel corporation involved forming a corporate maintenance team, facilitating this
team to document and standardize best maintenance practices across the seven manufacturing plants,
performing a requirements study to select a computerized maintenance management system and other
solutions, and conducting implementation planning.

15 © Banks Roden Consulting

Total Productive Maintenance
PLANNING AND HANDS-ON ON-SITE IMPLEMENTATION
• Planning Phase An implementation program can be designed to raise the
performance level to the next highest maintenance level. A project plan is developed
including timelines, budget, and resources. This is accomplished in partnership with
the client organization. .
• The project will have as its deliverables to be the next level of maintenance
performance on the maintenance performance matrix. This level of performance will
be higher levels of proactive maintenance, higher levels of work order control, higher
levels of spare parts control as determined by the assessment phase
• Training phase – see section on Training
• The implementation phase can be led by our professional project management and
can consist of maintenance processes and if required a new CMMS or
upgrade/enhancement of an existing CMMS
• Success story for a tier 1 automotive forging components manufacturer consisted of a
complete lean manufacturing/maintenance implementation. A detailed assessment
was conducted for the manufacturing organization. Based on this assessment four
improvement initiatives were launched including productivity improvement, setup
reduction, first-time quality, and maintenance. A cross-functional Kaizen team was
formed with production hourly and salaried, maintenance, die room, engineering, and
quality representatives. Action items were developed and pursued to improve cost,
cost, quality, and delivery. Several maintenance initiatives were created and executed
as part of the productivity program. Change management was instituted to attack and
solve root causes before degradation of performance as opposed to after failure had
occurred. Savings exceeded $900,000 annually.

16 © Banks Roden Consulting

Total Productive Maintenance
COMPUTERIZED MAINTENANCE MANAGEMENT SYSTEM (CMMS) IMPLEMENTATION
• Planning Phase An implementation program can be designed to raise the performance level
to the next highest maintenance level. A project plan is developed including timelines,
budget, and resources. This is accomplished in partnership with the client organization. The
implementation plan includes scope, work breakdown structure, processes and procedures,
and risk management
• The implementation phase can be led by our professional project management and can
consist of maintenance processes and if required a new CMMS or upgrade/enhancement of
an existing CMMS
• The BRC team will conduct the project kick-off meeting, co-ordinate the project events with
the client, prepare and distribute project reports on a regular basis, anticipate problems and
expedite solutions, evaluate and maintain the quality of each event, and identify, evaluate,
and make recommendations on customer change requests
• Implementation benefits commonly run as 10% improvement in operational availability and
a 20% reduction in machine breakdown
• Success story for a large automotive assembly plant was the implementation of a top-of-
the-line CMMS software package. An implementation team was formed with the client
maintenance and production staff and our project leader. The implementation covered the
entire assembly plant and was initiated with an assessment and business case. A pilot area
was selected in the project planning and the core and steering committee teams were
formed. Hardware and software requirements were identified and procured. Equipment was
installed and data migration occurred. Users were trained and the CMMS was phased in
sequentially through the production/facility departments. The project was brought in on time
and under budget. Benefits were improved maintenance planning and scheduling,
improved spare parts management and inventory reduction, improved maintenance
productivity, reduced maintenance overtime, improved quality, increased production up-
time, and reduced premium freight. Net savings in cost avoidance for old system, reduction
in maintenance overtime, and downtime reduction was almost $500,000.

17 © Banks Roden Consulting

Total Productive Maintenance
MAINTENANCE TRAINING
• Value-added training is a critical phase of any implementation and is a pre-requisite
for success
• Training can be value added for implementation of the maintenance processes
including preventive maintenance, predictive maintenance, work order processing,
breakdown history build-up, or spare parts control.
• Training can also be instituted for learning to use effectively a Computerized
Maintenance Management System to the utmost advantage
• BRC has developed a number of courses that can be offered at your location or held
off-site to address the educational needs of your organization. We have provided
courses for a number of the computerized maintenance management, project
management, and report writer systems. Courses include:
– Maintenance management philosophy and practices
– Work orders and the work cycle
– Developing a preventive maintenance program
– Inventory control for maintenance
– Job estimating
– Project management for maintenance
– Introduction to personal computers
– Computerized maintenance management

18 © Banks Roden Consulting

Total Productive Maintenance
PERIODIC FOLLOW-UP REVIEWS
• Value-added follow-up consists of audits to evaluate the organization’s progress on
the maintenance performance matrix
• Changing priorities or management changes at companies can leave maintenance
projects stalled. We can jump-start these programs and get them up to speed.
• This initiative can be stand alone or in concert with a full-blown assessment and or
implementation

19 © Banks Roden Consulting

 Total Productive Maintenance
MAJOR CASE STUDY
• Client:: Stamping division of major automotive manufacturer
• Time Frame: Late 1980’s –mid 1990’s
• Initial Project Work scope: To assess current operations within the maintenance organization of three Stamping
Plants. To identify opportunities for reducing costs and improving productivity. To build an implementation plan for
agreed upon improvements and provide implementation assistance as requested.
• Results: As a result of the assessment and identification / implementation of improvements, the project was
“rolled out” to all nine facilities. As well as specifying, implementing and customizing a computerized maintenance
management system, the project also included the establishment of Division wide “standards” and guided the
establishment of compliance audits to perpetuate results and continuous improvement. Results were so significant
that similar efforts were subsequently expended to include the die room operations of all nine plants. Further
improvements, related to project planning principles and practices, were implemented in both the maintenance and
die room operations across the Division. These projects were coordinated with concurrent management initiatives
associated with production inventory control, a Corporate wide quality program, and lean manufacturing methods.
Incorporating TPM (Total Productive Maintenance), SMED, 5S methodologies across the Division, millions of
dollars were recovered in obsolete and redundant parts/materials, as well as quantified cost avoidance initiatives.
Cost avoidance initiatives were related to:
• preventive maintenance (more reliable lubrication, autonomous maintenance, die refurbishment)
• reduction in die change out / set up times (error proofing)
• “first hit” improvements (reduction in scrap costs)
• equipment safety modifications
• Manpower (residential, as well as contracted) productivity was increased by approximately 25% through sound
maintenance and production equipment scheduling. Enhanced preventive / predictive maintenance, work flow
control and OEM participation resulted in better equipment reliability and availability, increasing the Division’s
production capacity. The incorporated TPM methods and practices formed the basis for Division wide training and
maintenance continuous improvement.

20 © Banks Roden Consulting