TPM: Focused Improvement (Kobetsu Kaizen)

1. Focused Improvement (KOBETSU KAIZEN) © Operational Excellence Consulting. All rights reserved. © Operational Excellence Consulting. All rights reserved.

2. NOTE: This is a PARTIAL PREVIEW. To download the complete presentation, please visit: https://www.oeconsulting.com.sg Learning Objectives Understand what is Focused Improvement and why it is important in TPM implementation Gain practical tips for sustaining Focused Improvement activities and the key factors for success Describe the Focused Improvement approach and the common analytical tools Acquire knowledge on how to plan and organize for Focused Improvement activities 2 © Operational Excellence Consulting. All rights reserved.

3. Contents 1 1 Introduction to Focused Improvement 2 2 What is Focused Improvement? 3 3 Planning & Organizing for Focused Improvement 4 4 The 8 Steps of Focused Improvement Common Tools & Techniques for Focused Improvement 5 5 3 © Operational Excellence Consulting. All rights reserved.

4. Overview of TPM Focused Improvement is One of the Pillars of the TPM Excellence Framework TPM Goals: Zero Defects, Zero Breakdowns, Zero Accidents Safety, Health & Environment Autonomous Maintenance Focused Improvement Planned Maintenance Education & Training Quality Maintenance Early Equipment Management Office TPM 5S & Visual Management Focused Improvement involves targeted projects to reduce specific losses. 4 © Operational Excellence Consulting. All rights reserved.

5. The Effects of Much Conventional Improvement Activity are Transitory Output Event #3 What Standard should be Event #2 Maintenance What Standard should be Event #1 Maintenance What actually becomes the Standard when people do not sustain the changes Work Standard Time There was a strong tendency for improvements not to be capable of being maintained or properly established. 5 © Operational Excellence Consulting. All rights reserved.

6. To Keep Companies’ Results Perpetually Trending Upwards, Two Abilities are Needed: the Ability to Maintain and Improve Next Innovation Output What the Standard becomes Gradually Productive Potential of Underutilized People Improve the Standard: Focused Improvement New Standard Maintain the Standard: Autonomous Maintenance Innovation Current Work Standard Time In TPM, activities are organized to ensure that the benefits of Focused Improvements are upheld, principally through Autonomous Maintenance. 6 © Operational Excellence Consulting. All rights reserved.

7. Focused Improvement Aims to Increase Production Efficiencies by Eliminating the 16 Big Losses Equipment Losses Manpower Losses 1. Management Loss 1. Breakdown Loss 2. Motion Loss 2. Set Up & Adjustment Loss 3. Line Organization Loss 3. Tool Replacement Loss 4. Logistics Loss 4. Start Up Loss 5. Measurement & Adjustment Loss 5. Minor Stoppage & Idling Loss 6. Speed Reduction Loss Manpower Losses 7. Defect & Rework Loss 1. Yield Loss 8. Shutdown Loss 2. Energy Loss 3. Tool & Jig Loss Note: Refer to the Appendix for definitions on the 16 big losses 7 © Operational Excellence Consulting. All rights reserved.

8. Difference Between Autonomous Maintenance and Focused Improvement Autonomous Maintenance Focused Improvement Prevents accelerated deterioration of machine parts Addresses the 16 big losses § § Addresses specific equipment-related losses that reduce Overall Equipment Effectiveness (OEE) § Provides the underpinning to uphold the benefits of Focused Improvement over the long term § 8 © Operational Excellence Consulting. All rights reserved.

9. The Distribution of Maintenance Work vs. Improvement Work Depends on the Job Functions Innovation Top Management Improvement Middle Management Supervisors & Team Leaders Maintenance Frontline Workers Focused Improvement activities cut across all job functions. Source: Adapted from Masaaki Imai 9 © Operational Excellence Consulting. All rights reserved.

10. Focused Improvement is a Cross-functional Management Activity Improvement Management Maintenance Management Improvement Maintenance Policy deployment Routine (daily) management Line organization Quality Cross-functional management Cost Delivery Small-group activities Individual suggestions Source: Adapted from Masaaki Imai 10 © Operational Excellence Consulting. All rights reserved.

11. How Focused Improvement Fits with the Other TPM Pillars TPM Goals: Zero Defects, Zero Breakdowns, Zero Accidents Planned Maintenance Quality Maintenance Early Equipment Safety, Health & Management Environment Office TPM Focused Improvement Autonomous Maintenance Education & Training Focused Improvement should be implemented after companies have attained a basic level with Autonomous Maintenance & Planned Maintenance. 11 © Operational Excellence Consulting. All rights reserved.

12. Focused Improvement What is Focused Improvement? § Focused Improvement is also called “Kobetsu Kaizen” in Japanese § The implementation strategy of Focused Improvement is to prioritize the most important losses and then eliminate them § It is based on the system thinking approach that focuses on improvement of the whole system with the cumulative effort of a team 12 © Operational Excellence Consulting. All rights reserved.

13. Focused Improvement What is Focused Improvement? § Focused improvement includes all activities that maximize the overall effectiveness of equipment, processes and plants through uncompromising elimination of the 16 big losses § The improvement work is done by small groups of people working together § Teams are made from every level of organization, managers, engineers, staff, technicians and operators § The improvement process follows a structured approach that uses the Plan-Do-Check Act (PDCA) cycle to identify and eliminate issues in a systematic way 13 © Operational Excellence Consulting. All rights reserved.

14. Focused Improvement Objective of Focused Improvement The goal is to maximize the effectiveness and efficiencies of the lines, processes and equipment and minimize the company’s losses and waste. 14 © Operational Excellence Consulting. All rights reserved.

15. Focused Improvement Benefits of Focused Improvement § Improving efficiency by reducing defects in products, processes and system § The Focused Improvement pillar ensures that the approach taken is consistent and repeatable to assure sustainability § Recurring problems are identified and resolved by cross-functional teams § Combines the collective talents of a company to create an engine for continuous improvement § Facilitates engineers and technical staff to upgrade their analytical skills in problem solving and improving OEE 15 © Operational Excellence Consulting. All rights reserved.

16. TPM Implementation Structure with Focused Improvement as One of the Key Pillars TPM Responsible (Plant Manager) TPM Promotion Office The company should focus on these four pillars during the first three years of TPM implementation Planned Maintenance Education & Training Focused Improvement Autonomous Maintenance Safety, Health & Environment Early Equipment Management Office TPM Quality Maintenance 16 © Operational Excellence Consulting. All rights reserved.

17. Different Levels of Teams Overlap to Permit Communication and Coordination Efforts Plant Manager TPM Promotion Office TPM Steering Committee Chairperson of Focused Improvement Pillar Division Manager Area Manager Team leader and members of each Focused Improvement project team are drawn from different levels of the organization structure Department Manager Department Manager Department Manager Team Leader Team Leader Team Leader Operators Source: Adapted from TPM Team Guide, Productivity Press Development Team 17 © Operational Excellence Consulting. All rights reserved.

18. Getting Started: How to Implement Focused Improvement Select model line, process or equipment Identify & verify the 16 big losses Form project team Improve line, process or equipment reliability Implement Focused Improvement project Decide on topic and draw up action plan Increase production efficiency 18 © Operational Excellence Consulting. All rights reserved.

19. 8 Steps of Focused Improvement § The 8 steps of Focused Improvement provide a systematic approach to loss elimination Act Plan § It is based on the Plan-Do- Check-Act (PDCA) model § The process can be used to improve OEE and eliminate the 16 big losses Check Do § It is used with analytical tools (e.g. IE tools, QC tools, P-M analysis, etc.) to solve problems 19 © Operational Excellence Consulting. All rights reserved.

20. The 8 Steps of Focused Improvement 8 Consolidate Gains 7 Check Results 6 Implement Improvements 5 Plan Improvements 4 Analyze Causes 3 Expose & Eliminate Abnormalities 2 Understand the Situation 1 Select the Improvement Topic 20 © Operational Excellence Consulting. All rights reserved.

21. Example of 5 Why Analysis Why? Answer Oil leaks from the cylinder rod when activated. 1 Why is there oil on the floor? 2 Why did oil leak? The O-ring was cut. 3 Why was the O-ring cut? The rod was flawed. 4 Why was the rod flawed? Dirt in the oil abrades the rod. There are holes and gaps on the upper plate of the tank. 5 Why did dirt get in the oil? Source: OEE for Operators, Productivity Press Development Team 21 © Operational Excellence Consulting. All rights reserved.

22. P-M Analysis Basic Steps of P-M Analysis Physically analyzing chronic problems according to the machine’s operating principles 1 1 Defining the essential or constituent conditions underlying the abnormal phenomena 2 2 Identifying all factors that contribute to the phenomena in terms of the 4M framework 3 3 22 © Operational Excellence Consulting. All rights reserved.

23. How to Sustain TPM & Focused Improvement Activities § Engaging employees § Aim for early success § Providing active leadership § Share success stories § Rewards and recognition § Continuously reduce the 16 big losses § Evolving the TPM initiative over time and integration with Lean 23 © Operational Excellence Consulting. All rights reserved.

24. Critical Success Factors § Long term commitment § Measure and improve OEE § Start with 5S, then move to Autonomous and Preventive Maintenance and Focused Improvement § Launch kaizen events and build teamwork § Apply other tools as needed, e.g. SMED § Celebrate small successes 24 © Operational Excellence Consulting. All rights reserved.

25. Operational Excellence Consulting is a management training and consulting firm that assists organizations in improving business performance and effectiveness. Based in Singapore, the firm’s mission is to create business value for organizations through innovative design and operational excellence management training and consulting solutions. For more information, please visit www.oeconsulting.com.sg 25 © Operational Excellence Consulting. All rights reserved.