OVERVIEW OF TOTAL PRODUCTIVE MAINTENANCE (TPM)

1. Stowe Consulting Company OVERVIEW OF TOTAL PRODUCTIVE MAINTENANCE (TPM)

2. DEFINING TPM Total Productive Maintenance (TPM) is the process of MAXIMIZING EQUIPMENT EFFECTIVENESS through the EQUIPMENT LIFE CYCLE by coordinating all stakeholders (including those who design, use, and maintain equipment) by involving everyone in the company through TEAM BASED ACTIVITIES with the goal of achieving ZERO LOSSES.

3. OEE = AVAILABILITY x PERFORMANCE x QUALITY Running Time Actual Output Good Output Net Operating Time Target Output Actual Output OVERALL EQUIPMENT EFFECTIVENESS (OEE) OEE = AVAILABILITY x PERFORMANCE x QUALITY + Breakdowns + Minor Stoppages + Defects & Rework + Set-ups + Idling + Start-up & Adjustments + Reduced Speed & Yield Loss + Other changes (Tools, etc)

4. CALCULATING OVERALL EQUIPMENT EFFECTIVENESS (OEE) Availability: Running Time: 750 minutes 960/750 = .78125 Net Operating Time 960 minutes Performance: Actual Output 15,500 pieces 15,500/22,000 = .7045 Target Output 22,000 pieces Quality: Good Output 13,400 pieces 14,000/13,400 = .9571 Actual Output 14,000 pieces AVAILABILITY x PERFORMANCE x QUALITY = OEE 78.15% x 70.45% x 95.71 = 52.69%

5. PRODUCTIVE MAINTENANCE PRODUCTIVE MAINTENANCE (Profitable PM) are those activities that assures that equipment is optimally maintained so as to assure it can meet demand in terms of speed, quantity, quality and cost. It includes: BREAKDOWN MAINTENANCE: Responsive maintenance for breakdowns Planned repairs Unplanned repairs PREVENTIVE MAINTENANCE: Preventing Breakdowns by Early Intervention Daily Cleaning, Inspection and Basic Maintenance Deterioration Inspection Rebuild / Overhaul CORRECTIVE MAINTENANCE Ensure safety Preventing breakdowns by machine improvements Facilitate inspection, repair, and use Document machine activities Continuous Improvement BUILDING MAINTENANCE FREE EQUIPMENT Design of safe, easy and inexpensive machine Equipment specification and design for maintenance free or easy repair

6. SIX BIG LOSSES OF MACHINE PERFORMANCE • BREAKDOWNS • SET-UP AND ADJUSTMENT LOSS • IDLING AND MINOR STOPPAGES • REDUCED SPEED • DEFECTS AND REWORK • START-UP AND YIELD LOSSES

7. COMMON REASONS FOR BREAKDOWNS FILTHY EQUIPMENT INCONSISTENTLY CLEANED OIL, LUBRICANT, HYDRAULIC LEAKS & AIR LEAKS ROTATING / MOVING PARTS ENCRUSTED WITH CHIPS, COATING, RAW MATERIAL WIRES & HOSES TANGLED MECHANISMS HIDDEN BY BIG COVERS DISCORGANIZED, SCATTERED, CLUTTERED PARTS, TOOLS & SUPPLIES NO DESIRE TO CHANGE THE STATUS QUO

8. EIGHT TOP TPM STRATEGIES • FOCUSED CONTINUOUS IMPROVEMENT • AUTONOMOUS MAINTENANCE • PLANNED MAINTENANCE • TECHNICAL TRAINING • EARLY EQUIPMENT MANAGEMENT • QUALITY BASED MAINTENANCE • INCREASED ADMINISTRATIVE SUPPORT SYSTEM • SYSTEM TO MANAGE SAFETY AND ENVIRONMENTAL PROGRAMS

9. REASONS WHY TPM DOESN’T HAPPEN RESISTANCE ON THE PART OF MAINTENANCE AND/OR OPERATORS IGNORING OR MINIMIZING THE PROBLEM “It isn’t that bad.” FAILING TO UNDERSTAND GRIT, DIRT & IMPROPER LUBRICATION SHORTEN EQUIPMENT LIFE FAILING TO UNDERSTAND ELIMINATING MINOR DEFECTS YIELD BIG PROFITS FAILING TO START IMPROVEMENTS WITH RESTORATION FAILURE TO SUSTAIN THE EFFORT LONG ENOUGH TO CHANGE THE CULTURE

10. TPM AND TEAMWORK • The heart of TPM is the creation of a team made up of maintenance people and operators that work together to assure optimal machine performance. • First, the company, as demonstrated by management must commit to making TPM a part of it’s culture. • Second, the maintenance people need to commit to and become a cohesive team committed to TPM. • Third, the maintenance people need to commit to training and supporting operators as they learn new skills and sharpen existing ones. • Fourth, each machine will need a team made up of its operators and its assigned maintenance people that learns how to work together to create a TPM program for that machine. • Fifth, at each level a program for orientation and training of new personnel (including management) needs to be established. • Sixth, a machine design and specification team needs to be created when it becomes time to prepare for machine replacement or process improvement.

11. TPM AND TEAMWORK, Cont’d • Common operator responsibilites: • operating the machine correctly • cleaning the machine • checking the machine • lubricating the machine • tightening machine parts • adjusting machine parts • giving input in focused improvement • giving input in new machine design

12. TPM AND TEAMWORK, Cont’d • The Maintenance Person is responsible for: • training the operator in how to properly clean, inspect and do daily and basic maintenance • doing machine repairs • doing focused improvement • making sure the machine is properly maintained • giving input in new machine design

13. TPM AND TEAMWORK, Cont’d • The most important resources for TPM success are the commitment of the maintenance personnel and operators. • The most important tools for TPM success are visibility tools - • Ways to make things impossible to not see and, when you see them, to understand what they mean. • Some common examples: • Lock out and tag out visibility board • Yellow tags on machines where there is a problem that needs to be fixed. • “Pitch” boards in each production area ( a way of visibly keeping track of actual performance compared to planned peformance) • Activity boards (ways of visually presenting a task and progress.

14. CREATING TPM TEAMS • TPM Teams are interdisciplinary teams made up of maintenance, operators, and management that have the task of creating and sustaining a TPM program in a facility. The key steps in creating and operating a TPM Team are: • Upper management defines the team’s charter and goals • Upper management select the team leader(s) • Upper management and the team leaders(s) select the team’s members • The team chooses the first project • The team sets the project’s objectives that should reflect the team’s goals • The team develops its ability to hold efficient, productive meetings • The team plans and implements its TPM activities • Management participates in auditing TPM activities and machine Overall Equipment Effectiveness • Team creates and uses Activity Boards to document to everyone in the facility its reasons for existence, its projects, its activities, and the results • The develops one point lessons for training of operators and maintenance personnel

15. IMPLEMENTING TPM • CREATE TPM TEAM • SELECT FIRST PROJECT • SELECT PROJECT TEAM • CLEAN AND MAP MACHINE • IDENTIFY AND FIX SAFETY ISSUES • DETERMINE OEE - Overall Equipment Effectiveness (Theoretical Output / Actual Output) • BEGIN FOCUSED IMPROVEMENT INITIATIVE • Breakdowns • Set-ups and Adjustments • Reduced Speeds • Minor Stoppages • Rework and Defects • Start Up Losses • REDESIGN PREVENTIVE MAINTENANCE ACTIVITIES • IMPLEMENT AUTONOMOUS MAINENANCE PROGRAM • Cleaning • Inspecting • Lubricating, etc. • Tightening, etc. • Simple Adjustments and Repairs • IMPLEMENT SCHEDULED PREVENTIVE MAINTENANCE • Eliminate function loss • Eliminate reduction function breakdowns • IMPLEMENT PREVENTIVE MAINTENANCE MACHINE RESTORATION AND OVERHAUL • IMPLEMENT MACHINE DESIGN AND REPLACEMENT PROGRAM • RECYCLE

16. TPM STARTS WITH THE 5 WHYS • At the heart of any improvement effort is finding the root cause or the original source of a problem. One simple tool for seeking root causes is what’s called the 5 Whys. Not to be taken literally, the term describes continuing to ask the reasons until one gets to the heart of the issue. For instance, in TPM a common set of questions that make up the 5 Whys are: • Why are we having defects? • Why is there variance in what we are producing? • Why does that happen • (Machine? Fixture? Previous Process? Method? Material? Person?) • 4. Why has it been missed? • 5. Why did it take the problem to get to this point for us to address it? • 6. How are we going to fix the problem and make sure it doesn’t reoccur?

17. ELIMINATING BREAKDOWNS Equipment can actually have two types of breakdowns: Function Loss Breakdowns (sometimes known as sporadic breakdowns – where the equipment is unable to function at all. Function Reduction Breakdowns – where a piece of equipment experiences a a partial loss of function: - reduced speed due to wear, fatigue, etc. - produces defects due to no longer being able to hold tolerances, or a mold that has lost integrity, etc. - minor stoppages due to overheating, misalignment, warping, etc,

18. Initial Breakdown Period Wear Related Breakdown Period Accidental Breakdown Period ELIMINATING BREAKDOWNS, CONT’D Equipment doesn’t break down by itself – people break it. How? Neglecting to do what needs to be done to protect the machine from wear, breakage, misuse, and degradation (rust, untightened bolts, etc. In short, machines fail because of mis-operation and poor maintenance. Breakdowns happen in three time phases: Initial Breakdowns after installation that decrease with familiarization and breaking in; Accidental Breakdowns that occur during a machine’s general operation that remain fairly constant in number and duration; and Wear Related Breakdowns that gradually increase after a machine has experienced significant length of use.

19. ELIMINATING BREAKDOWNS, CONT’D There are two key types of deterioration: Natural Deterioration – the result of physical deterioration occurring over time even though equipment might be used correctly; and Accelerated Deterioration – artificially hastened deterioration caused by people neglecting to do something that needs to be done or by mis-operation of equipment Breakdowns and defects often occur because someone fails to notice slight problems or abnormal conditions. Some common things to watch for are: Dirt and grime Small amounts of wear, scratches Play, looseness Leaks Corrosion Deformation Cracks Vibration Excess temperature Variable raw materials Etc.

20. ELIMINATING BREAKDOWNS, CONT’D ACHIEVING ZERO BREAKDOWNS • Provide the basics through daily checks, cleaning, lubricating, and tightening • Stick to the rules - operate and maintain machines correctly • Restore deterioration – eliminate control factors that cause deterioration • Sharpen your operator and maintenance people’s knowledge and skills

21. ELIMINATING BREAKDOWNS, CONT’D PROVIDING THE BASICS INSPECTING - Develop and use a checklist of things to look at to insure proper maintenance and operation as well as to discover signs of wear or other problems, such as defects, wear, scratches, excessive vibration, misalignment etc. CLEANING – Keep dirt and grime of and away from equipment to reduce wear and use the cleaning as the time to inspect LUBRICATING – Check and properly lubricate and make sure all hydraulic and air levels are at the proper pressure. This is a major source of wear along with dirt. TIGHTENING – make sure basic machine components such as bolts, loose hoses, improper tension of belts, misaligned sprockets or other parts, etc. are checked for looseness or over tightness.

22. ELIMINATING BREAKDOWNS, CONT’D LEARNING HOW NOT TO BREAK EQUIPMENT • BE ABLE TO SPOT ABNORMALITIES • Carry out daily checks reliably identify when things are not normal • Understand the structure, function and operation of the equipment • Use your senses (sight, hearing, touch, taste, and smell to catch abnormalities • REPAIR AND RESTORE • Improve machine operation to make it easier • Correct problems and restore equipment (have operators learn how to make simple repairs by observing and practicing with maintenance people) • SET AND APPLY INSPECTION CRITERIA • KEEP EQUIPMENT RUNNING BY OPERATING IT PROPERLY • IDENTIFY PROBLEMS, TRACK DOWN AND GET CAUSES OF MACHINE PROBLEMS FIXED

23. ELIMINATING BREAKDOWNS, CONT’D LEARNING FROM BREAKDOWNS We need to study and understand each breakdown so as to learn what needs to be done in order to prevent them in the future. We must identify the root causes and eliminate them. This is another benefit of using the 5 Whys along with the question how can we prevent this from happening again

24. AUTONOMOUS MAINTENANCE Autonomous Maintenance are operator based activities that they do to help maintain their own equipment. These are activities, once learned. they can do independent of the maintenance staff. The most common (but not necessarily exclusive) autonomous maintenance activities are: Daily inspection Daily cleaning Daily lubrication, hydraulic top off, etc. Tightening and alignment Parts replacement Simple repairs Abnormality inspection, identification, documentation Precision checks Tagging of problems that maintenance needs to address

25. WHY AUTONOMOUS MAINTENANCE? • Operators are the first line of defense in TPM. Autonomous Maintenance makes sure an operator knows how to: • Properly operate her or his equipment • Quickly identify problems • Quickly fix simple problems without having to wait for maintenance • Provide information about equipment effectiveness to maintenance • Help in new equipment design and specification by providing good operator input

26. KEY STEPS OF AUTONOMOUS MAINTENANCE • Clean and Inspect the Machine, Fixtures, Tools, and Area • Identify and Fix and Safety Issues • Eliminate Problem Sources and Inaccessible Areas • Create Cleaning, Lubrication, Fluid Level, Tightening, Alignment, etc Standards • Conduct General Inspections of Machine by TPM Team • Create and Conduct Autonomous Operator Inspections • Sustain the Gains • Institute Continuous Improvement Initiatives for Machine Operation, Maintenance, and Improvement