Getting Lean & TPM to Work · two-day Getting Lean & TPM to Work (TPM3) workshop. The second component is the TPM 3 Introduction Strategy half-day planning workshop and is extremely

Getting Lean & TPM to Work (the TPM3 Way)


Author: Ross Kennedy – President & Managing Director

CTPM The Development of the TPM3 Way The Australasian workplace culture is quite different to that of Japan where Lean was originally developed by Toyota. As such the traditional approach of introducing Lean through the application of the various Lean tools of 5S, Visual Factory, Value Stream Mapping, Quick Changeovers, Problem Solving etc often does not sustain once the initial support and focus wanes.

Toyota Way Philosophy – 14 PrinciplesVisual Management – 5S

Stable and Standardized Processes – Reliable Equipment / TPMLeveled Production - Flow

Just-in-TimeRight part, right amount, right time

• Takt time• Continuous flow• Pull system• Quick Changeover• Integrated logistics

Quality(In-station quality)Make problems visible

• Automatic stops• Andon• Person-machine

separation• Error proofing• In-station-quality

control• Solve root cause

of problem (5 Why’s)

Best Quality – Lowest Cost – Shortest Lead Time – Best Safety – High MoraleThrough shortening the production flow by eliminating waste

The LEAN House

People & Teamwork*Selection *Rigid decision making*Common goals *Cross-trained

Waste Reduction*Go to workplace *Eyes for waste*5 Why’s *Problem Solving

Continuous Improvement

Fig 1. The Toyota Way

We have found the Lean House (see Fig 1) as described by Jeffrey K Liker in his book The Toyota Way – 14 Management Principles of the World’s Greatest Manufacturer provides a comprehensive outline of creating Lean but lacks a clear pathway to achieve and sustain the journey. It also does not address some of the specific challenges we have found in the Australasia workplace culture. These challenges include the need to: • Break down barriers and build relationships between Production & Maintenance and

Management & Shopfloor

• Understand the entire equipment & process losses within the plant along with whether they relate to technical or people issues

© Copyright 2009 CTPM Australasia web: www.ctpm.org.au 12 February 2009 1


• Improve equipment performance to allow time for operator development through synergistic Area Based Teams

• Improve Communications between shifts to promote sharing of learnings

• Establish agreed standards across all shifts to reduce variation in operation and sustain improvements

• Establish stability of the production plan though Flow logic to promote and enable Formal Continuous Improvement

• Train the operators to identify at the earliest possible time safety, quality and equipment problems at the source

• Change the equipment so it easy for operators to find the problems • Create a maintenance support capability that can respond to small problems and issues

identified by the operators to encourage operators to continue to find problems • Address production planning & scheduling issues which may impact on the smooth flow

of materials throughout the plant or impede equipment performance improvement activities

• Reduce any complexity (product rationalisation, process simplification etc) causing higher costs

• Improve processes in order to reduce waste and improve customer service

• Create the capability to support a 25% - 50% OEE improvement (increased throughput) within the supply chain

As such, to assist with the Lean & TPM journey in Australasia we have developed the TPM3 framework incorporating 10 integrated Improvement Activities supported by a Leadership base of Philosophy, Operations Vision and Goal Alignment of Performance Measures so as to address all the above challenges and produce significant sustainable benefits for all employees, shareholders and customers.

Fig 2.

© Copyright 2008 CTPM Australasia – No copies without express written consent

P = Production Activities S = Support Activities CF = Customer Focus Activities PD = People Development Activities

TPM3 Framework for Business Improvementincorporating 10 Improvement Activities supported by the Leadership base

Cross-functional Teams Area Based Teams

2. Focused Equipment & Process Improvement

4. Operator Equipment Management

3. Work Area ManagementP

6. New Equipment / Product / Area

Management 7. Support Department Improvement

5. Maintenance Excellence ManagementS

9. People & Leadership DevelopmentPD8. Value Stream ManagementCF

Philosophy, Vision & Alignment

1. Safety & Environment Management10. Process Quality Management



The Strength of the TPM3 Way

© Copyright 2008 CTPM - No copies without express written consent

Fig 3.The Need for Breakthroughs and Sustained Formal

Continuous Improvement that will develop the skills and abilities of our workforce

Time

Perf

orm

ance

Breakthrough

Breakthroughs = Cross-functional Team improvement focusing on key improvement drivers and developing Problem Solving skills

Formal Continuous Improvement = Area Based Team improvement focusing on Prevention at Source abilities of our workforce and enhancing Problem Solving skills

Key Improvement Drivers = Lead Time for Value Streams / ProcessesOverall Equipment Effectiveness

TPM3 is based on team improvement recognising the need for both Cross-functional Teams and Area Based Teams. The Cross-functional Teams focus on breakthroughs using effective Problem Solving and a range of ‘drivers’ to allow prioritising of opportunities; and Area Based Teams focus on sustained formal continuous improvement to develop the Prevention at Source abilities and further enhance the Problem Solving skills of all employees. Cross-functional Team activities provide the breakthroughs in performance that are then underpinned by ongoing Area Based Team activity to develop the skills and abilities of all employees. Area Based Team improvement is about engaging everyone to systematically look at their workplace and identify and eliminate any imperfections or defects that can ultimately lead to poor performance and hence increased costs and frustrations. By providing everyone the opportunity and encouragement to not only ‘remove’ the imperfections or defects but to find out where they are coming from and implement changes to ‘avoid’ their reoccurrence, significant savings and performance improvement can be achieved along with a high degree of ownership to the solutions by the people who do the work. This approach of engagement is referred to as ‘pull’ culture change.

Key Features of the TPM3 Way • Provides rapid returns on investment through strategically driven cycles of ongoing improvement

activity supported by key performance measures which act as ‘drivers’ for improving overall company performance;



• Progressively engages all employees so they can achieve and have ownership to the improvements generating a significant positive impact on safety and morale;

• Focuses on equipment and process performance recognising that if your equipment and processes aren’t working well, frustrations run high and attempts to create Flow and reduce Waste in the Value Streams through Lean thinking becomes unsustainable;

• Promotes a positive behaviour change of the whole workforce with significant benefits for Customers, Employees and Shareholders; and

• Takes the mystery out of integrating all the principles, tools, and concepts from Lean, cutting through all the confusion and providing an approach that works.

The TPM3 Approach Although each approach needs to be tailored to specific site requirements, we have found that the typical sequence for introducing the Production, Support, Customer Focus and People Development improvement activities of TPM3 is outlined in Figure 4.


Fig 4. Typical Sequence of the TPM3 Improvement Activities2 3 4 5 6Cycle 1

ProductionMicro

FE&PIsMicro

FE&PIsMacro &

MicroFE&PIs

MicroFE&PIs

MicroFE&PIs

OEE Improvement throughLoss Focus

MacroFE&PI

Focused Equipment & Process Improvement

Operator Development throughWork Area & Equipment Focus

WAM WAM &OEM-1

WAM &OEM-2

WAM &OEM-3

Work Area Management / Operator Equipment Management

Customer FocusMicroFPIs

MicroFPIs

Macro &MicroFPIs

MicroFPIs

MicroFPIs

Lead Time Reduction throughValue Stream Focus

MacroFPI

Focused Process Improvement

People & Leadership DevelopmentPSS

E&T Education & Training TeamsPeople & Leadership Development Leadership Team

People Support Systems Teams

People Development

New Equipment / Product / Area Management as required Support Dept Excellence LT

SupportMaintenance

Maintenance Excellence Leadership Team

Work Area Management TeamsMaintenance Improvement Teams

WAMMITs

Support DeptWork Area Management TeamsSupport Improvement Teams

WAMSITs

Work Area Management TeamsWAM

To allow a strategically driven gradual roll-out of the improvement activities to different areas of the business / site we have developed a 3 phase pathway as outlined in Figure 5.




Fig 5.

Key Phases of the TPM3 Journey

Awareness & Preparation (2-4 weeks)Create common vision and agreement of way forward

Demonstration & Learning(6-12 months)Introduce the Production and / or Customer Focus Activities to several (typically 4) pilot areas along with appropriate Support and People Development Activities to gain a greater understanding of the issues and have a positive impact on performance

Implementation(3-5 years)Cascade TPM3

throughoutthe business / site

Awareness & Preparation Phase This phase consists first of a two-day Getting Lean & TPM to Work (TPM3) workshop for decision-makers and key employees. Although TPM3 may seem a very bottom-up approach to improvement, for it to sustain it must be led by management. For this reason one of the initial key success factors for TPM3 is the establishment of a Business Improvement Leadership Team for multi-site situations and / or a Site Leadership Team for single site operations which would normally include:

• General Manager / Site Manager (leader / sponsor); • Operations / Production Managers (champions); • Maintenance / Engineering Managers (co-champions); • Technical / Quality Manager; • Human Resources / Training Manager; • Accountant; along with a designated • TPM3 / Lean / Improvement Manager or Co-ordinator.

It is essential that the Leadership Team have a reasonable level of Lean & TPM (TPM3) education in order to establish a common vision for improvement before developing their TPM3 Introduction Strategy or commencing any improvement activity. We therefore strongly recommend that all Leadership Team members attend a public or specially tailored in-house two-day Getting Lean & TPM to Work (TPM3) workshop. The second component is the TPM3 Introduction Strategy half-day planning workshop and is extremely important in order to finalise the objectives and ground rules for the Demonstration & Learning Phase. A key part of this workshop is to reach consensus on the selection of the Pilot Areas such that sufficient Defined Production Areas and / or Value Streams are chosen to ensure an impact on the business. To assist this process a high level Flow Chart of the production process including all key equipment and a high level Flow Chart of the Value Streams including all product families are created outlining where OEE and



Lead Time can be measured and where there are at least 4 permanent employees per shift (Defined Production Areas). By identifying which Areas are causing the most pain (low OEE, long Lead Times, high safety problems, high cost etc), pilot areas can be chosen that will have a significant impact on business performance (basically it is using the old 80:20 rule where 20% of the Defined Production Areas or Value Streams are probably causing 80% of the pain). The next most neglected area that causes the most problems is not having some clear policies or guidelines established and not being able to communicate clearly to everyone why TPM3 (or you may wish to give it some other name) is being introduced and why the pilot areas have been selected over other areas. The Leadership Team and the TPM3 / Lean / Improvement Manager or Co-ordinator need to attend and participate in the TPM3 Introduction Strategy planning workshop. The workshop will finalise the following key issues (some of these would already have been discussed during the 2-day Getting Lean & TPM to Work (TPM3) workshop):

- Selection of the Pilot Areas (initial Defined Production Areas and Value Streams) - Structure & Roles for Improvement - Policies & Guidelines for Improvement - Scheduling of Improvement activities - Monitoring Improvement progress - Measurement definitions - Baseline for Goal Aligned Performance Measures - Communication Strategy to support Improvement

The final component is briefing sessions for all employees to address the following questions:

• What is Lean & TPM (TPM3) and why are we introducing it? • What will it mean for employees? (by addressing the “what’s in it for me”) • How is TPM3 going to be introduced? • Who is responsible for the introduction of TPM3? • When will employees get involved? • When can employees expect to see the impact of TPM3? • What are the initial key milestones for something to happen?

Demonstration & Learning Phase The first component is the one-day TPM3 Awareness workshop for all employees who did not attend the two-day Getting Lean & TPM to Work (TPM3) workshop and are involved in, or associated with, pilot area teams. Our experience is that employees who do not receive the Awareness training tend not to fully understand what is involved in progressing the Lean & TPM (TPM3) Journey and what the benefits for them personally will be, and hence may not fully support the improvement journey. This will be reflected in either their attendance (or lack of) at meetings or their ability to complete their allocated tasks. The Awareness training can be provided over 1 full day or 2 half-days however logistics implications may need to be considered. The next component is kicking off your pilot area teams. It is normally recommended that you start with a Cross-functional Macro Focused Equipment & Process Improvement (Macro FE&PI) team in several Defined Production Areas and / or a Cross-functional Macro Focused



Process Improvement (Macro FPI) team in several Value Streams in order to have an impact on the business and address a number of critical issues: • To establish a Baseline or “stake-in-the-ground” for each pilot area by documenting current

performance and establishing an ongoing measurement system • To understand in detail the extent and reasons for the equipment & process losses occurring in

each pilot area • To educate both management and workforce in the usefulness of the measures of Overall

Equipment Effectiveness (OEE = A x R x Q) and Lead Time as the “drivers” for focusing improvement activities

• To identify possible cost-effective solutions and implement approved solutions so as to significantly improve performance of each pilot area (typically target at least a 10% to 25% improvement)

• To create a positive environment to allow employees from different departments to gain a greater understanding of each others situation and build relationships

• To create a positive environment to allow management and employees to gain a greater understanding of each others situation and build relationships

• To reduce the frustrations and free up time of all employees in each pilot area so that there will be a desire (pull) to establish Area Based Teams and introduce formal continuous improvement activities involving all employees on all shifts through Work Area Management and Operator Equipment Management in production areas and Work Area Management in office / support areas

• To provide a foundation of loss analysis to allow the Leadership Team the opportunity to create further Cross-functional Micro Focused Equipment & Process Improvement and Micro Focused Process Improvement teams to address outstanding technical related losses or wastes

• To promote learning within the workplace and to allow employees to experience the success and value of being Cross-functional Team members and develop their team working and problem solving skills.

Suggested make-up of the Pilot Area teams would be:

Macro Focused Equipment & Process Improvement Team (4-8 members)

Focus: Defined Production Area

Macro Focused Process Improvement Team (4-8 members) Focus: Value Stream

Area Supervisor; 1-2 Operators; 1-2 Maintainers (Mech & Elect); 1-2 Tech Support (analysis horsepower for the team); Leadership Team Member (Manager)

Department Head or Supervisor Sales / Order Processing Procurement Planning & Scheduling Despatch Payments Leadership Team Member (Manager)

Plus each team would be facilitated by the TPM3 Co-ordinator Our experience has been that due to the make-up of the pilot area teams, we recommend a CTPM Navigator provides facilitation / training support to each team at least at their initial 6 team meetings. This ensures each team is given expert (been there and done it before) guidance and training to achieve their mandate (maximum return for the company), and your TPM3 Co-ordinator is rapidly developed along with, in some cases, to ensure the manager on each team is properly facilitated so he/she does not dominate any meeting.



The training for each team includes a half-day kick-off workshop to help each team understand the improvement process they will be following, how the team members are to work together as a team, and an overview of the Team Member Manual which provides a detailed step-by-step process to follow, along with copies of helpful forms and templates to provide a structured approach to the meetings and activities. Further training is provided through 30 minute training sessions during each 1.5 hour meeting. Defined Production Area Focus


Typical Result: OEE = + 85%

How Best to Address the Identified LossesFig 6.

10 15TechnicalIssues

PeopleIssues

Micro, Special Micro & Mini MicroFocused Equipment & Process Improvement

Cross-Functional Teams

Work Area Management (WAM)Operator Equipment Management

(OEM Steps 1-7)

Area Based Teams

Classify Losses and address appropriately

60%

25

Macro Focused Equipment & Process Improvement10%-25% OEE Improvement with all other losses identified

eg improve OEE from 50% to 60%

Once the Macro Focused Equipment & Process Improvement (Macro FE&PI) teams have completed the 12 meeting cycle (typically within 3 months) and presented to the Leadership Team, the next cycle involves 2 streams of activity as shown in Figure 6. To address technical loss issues we recommend the use of Micro Focused Equipment & Process Improvement (Micro FE&PI) Cross-functional Teams. To address the people loss issues we recommend engaging all employees on all shifts within each pilot area through Work Area Management (WAM) by creating Area Based Teams of some 4-8 employees. A key outcome from Work Area Management (WAM) apart from creating a workplace that has ‘a place for everything and everything in its place’ is to significantly improve both communications and standards between shifts. Once initial losses have been addressed and relationships have been built between the different groups (ie production and maintenance) through the Macro Focused Equipment & Process Improvement cycle, and Area Based Teams have been established with basic formal improvement disciplines and all shifts have developed effective means to communicate with each other through the WAM cycle, we recommend the commencement of Operator Equipment Management (OEM). We see the role of an operator in a World Class workplace spanning:

• Frontline Safety (self and others in area) & Environment



• Frontline Quality (input, process and output) • Frontline Care of Equipment • Achieve the Production Plan • Formal Continuous Improvement

Formal Continuous Improvement Area Based Team activities involve ongoing 12- 14 week cycles of structured improvement with each cycle building on the learning from the previous cycles. The activities focus on improving Safety, the Work Area, Equipment Performance & Reliability, and Product Quality and initially span some 10 cycles over 2-3 years as outlined below: Work Area Management (1 Cycle then ongoing)

• Establish flexible team (4-8) with designated working Team Leader • Standardise Work across all shifts • Establish discipline within the workplace so that everything is orderly, neat & tidy • Improve communications across shifts

Operator Equipment Management (7 Steps over 9 Cycles) • Step 1 Identify & Rectify Equipment Defects • Step 2 Address Sources of Contamination • Step 3 Establish Perfect Lubrication and Cleaning Standards • Step 4 Understand Equipment Functioning (typically 6 modules over 3 cycles) • Step 5 Finalise Inspection Standards • Step 6 Understand Quality and Equipment relationships • Step 7 Maintain Zero Breakdowns, Zero Quality Problems, Zero Accidents

The aim of the Work Area Management and Operator Equipment Management activities is to have a positive impact on the business and address a number of critical issues: • To establish Area Based Teams with clear responsibilities and boundaries for agreed

Improvement Areas for each shift • To establish a communications Noticeboard to support sharing of information between shifts to

gain agreement and buy-in on improvements • To establish a Scoreboard for each Area Based Team to provide feedback to the team and

everyone else at site on the progress of their improvement activities • To create a positive environment to allow maintenance and production to gain a greater

understanding of each others situation and build relationships • To create a positive environment to allow management and workers to gain a greater

understanding of each others situation and build relationships • To create time and reduce the frustrations of all Area Based Team members so that there will be a

desire (pull) to support the ongoing Operator Equipment Management steps • Create a learning environment within the workplace to allow employees to experience the success

and value of being Area Based Team members and develop their team working and problem solving skills.

• Standardise practices for Work Area Management across all shifts / areas • Introduce the practice of Area Based Team self-assessments • Improve safety, productivity and morale by establishing “a place for everything and everything in

it’s place” through Work Area Management activities • Engage both the team members and the teams in working together to improve their work area and

equipment so as to reduce their frustrations



• Develop self-managed world class operators • Develop synergistic mature Area Based Teams recognising the 4 stages of team development • Provide everyone with the training, systems and opportunities to care for their own equipment &

workplace • Ensure Production and Maintenance work in harmony • Make use of equipment as a means of teaching employees new ways of thinking and working • Create a failure-free (Zero Breakdowns), trouble-free (Zero Quality Problems), safe (Zero

Accidents) workplace Value Stream Focus Once the Macro Focused Process Improvement (Macro FPI) Teams have completed the 12 meeting cycle (typically within 3 months) and presented to the Leadership Team, the next cycle typically involves 2 streams of activity similar to that shown in Figure 6 above. To address technical loss or waste issues we recommend the use of Micro Focused Process Improvement (Micro FPI) Cross-functional Teams. To address the people loss or waste issues we recommend engaging all employees within each pilot area through Work Area Management (WAM) by formally creating Area Based Teams of some 4-8 employees. A key outcome from Work Area Management (WAM) apart from creating a workplace that has ‘a place for everything and everything in its place’ is to significantly improve both communications and standards between employees. Typical Benefits from Our Approach Our experience highlights that the initial introduction of TPM3 can, within the successful completion of your first cycle of Macro Focused Equipment & Process Improvement and Macro Focused Process Improvement pilot area teams (within 3 months), have a significant bottom-line impact in the pilot areas, and if 20% of the most ‘painful’ possible Defined Production Areas and Value Streams have been chosen then significant impact on business performance. This occurs when the increased output from a typical 10% - 25% improvement, results in increased revenues from the increased output in the pilot Defined Production Areas along with a decrease in costs due to a reduction in waste and other related losses in both the Defined Production Areas and Value Streams, not to mention the improved Customer Service from the improvements to the pilot Value Streams. Overall this can also lead to a significant unit cost reduction especially if the increased output can be sold. In many cases this approach results in an annualised payback of at least 3-5 times the initial investment within the first 3-6 months. Other benefits achieved in the pilot areas during the Demonstration & Learning phase include further significant enhancements to OEE, shorter and more reliable Lead Times; increased customer satisfaction, improved levels of skills, safety and morale for employees. After 5 years these improvements can be significantly greater:



Customer Satisfaction • Reliable / On-time Delivery • Consistent Quality • Complaints Down 50-100 % • Competitive Price • Greater Confidence in Supplier

Employee Satisfaction • Accidents Down 90-100% • Clean work conditions • Less frustrations at work • Engaged workforce • Key player in company

Shareholder Satisfaction • Capacity Up 25-100% • Productivity Up 50-100% • Total Op Costs Down 20-50% • Maintenance Costs Down 25-50% • Inventories & Stocks Down 40-60% • Greater Confidence in Company

Society Satisfaction • Reduction in industrial waste generated • Reduction in emissions • Less energy required per output due to

increased OEE • Less Greenhouse Gasses

Key Learning: Unless an improvement strategy positively impacts on all 4 areas above it will not sustain. Recommended Path Forward We suggest that you consider commencing your Lean & TPM (TPM3) journey by completing the Awareness & Preparation Phase. This would entail conducting a tailored in-house two-day Getting Lean & TPM to Work (TPM3) workshop for your decision-makers and key employees. This would be followed by an in-house TPM3 Introduction Strategy planning workshop (typically 5 hours) for the Leadership Team to determine the Defined Production Areas and Value Streams that are suitable for the pilot teams, to agree on the number of pilot teams required to have a significant impact on business performance, and to set boundaries and policies etc. At the conclusion of these initial events we would envisage you would have a critical mass of decision-makers and key employees with a sound understanding of: • what Lean & TPM (TPM3) is all about; • what makes TPM3 happen; • what is required to make TPM3 happen; and • have a realistic introduction plan to kick-off TPM3 in sufficient pilot areas to have a

significant impact on your business performance. Once the TPM3 Introduction Strategy is in place, a master plan spanning 3-5 years and a detailed schedule of TPM3 activities for say the first 12-14 week cycle of team activity can be created along with a team information sheet for each first cycle team outlining its mandate, boundaries, starting point and team members.



Why use CTPM?

• Proven Lean & TPM (TPM3) methodology suited for Australasian workplace culture

• Focus is on creating a top-down, bottom-up learning environment (pull vs push culture change)

• Our methodology is typically based on 12-week cycles of Cross-functional Team and Area Based Team activity with agreed mandates and boundaries with strategic reviews before commitment to the next cycle

• Detailed step-by-step Team Member Manuals and Workbooks provided

• Networking with other organisations through our membership base

• TPM3 Leadership / Instructor’s Program creates internal expertise for your company

• Team of experienced local CTPM Navigators who can provide Navigation, Training and Facilitation support backed by our national capability

• RTO status capable of providing Certificate III and IV qualifications in Competitive Manufacturing to all employees (production, maintenance, support staff, office staff etc) as your company progresses their TPM3 journey with potential for government funding of up to $5,100 per eligible employee

• TPM3 Milestone Assessment Process to map out and support your Lean & TPM (TPM3) Journey

• 5 Level Milestone TPM3 Excellence Award which is now internationally recognised with 22 awards covering 4 countries presented to date since its inception in 2002

• Demonstrated initial 6 months payback of at least 3-5 times the initial investment with significant paybacks of greater than 10 times after 12 months



Sample of Companies progressing their TPM3 Journey

Automotive - Holden Engine Operations (VIC) Noble Metal Processing (SA) Nylex Automotive - Fuel Tank Systems (SA) Building Industry - Boral Bricks (NSW) Hynds Pipe Systems (NZ) Midland Bricks (WA) Food - Cedenco (NZ) Coopers Brewery (SA) New Zealand Sugar (NZ) OPAC (NZ) Sanitarium (NSW) Simplot Australia (NSW, VIC, TAS) Sugar Australia (NSW, QLD, VIC) Metal Processing - Bradken Wundowie (WA) Dexion (NZ) Rondo (NSW) Mining - Banpu Indominco Coal Mine (Indonesia) Banpu Lampang Mine (Thailand) Banpu Tandung Mayang Coal Mine (Indonesia) Boral Quarries (NSW) Oz Rosebery Mine (TAS) Packaging - Carter Holt Harvey – Cartons (NSW) Paper - Norske Skog Tasman (NZ) SCA Hygiene Australasia (NZ) Shoalhaven Paper Mill (NSW) Petrochemical - CSR Ethanol (VIC, QLD) Pharmaceuticals - CSL Bioplasma (VIC) Pet Food - MARS Petcare (NZ) Refinery / Smelter - Nyrstar Port Pirie Smelter (SA) Ship Building - Incat (TAS) Service - Simplot Australia Agricultural Services (TAS) Timber - Juken New Zealand (NZ) Water Treatment - Memcor – Siemens Water Technology (NSW)



About CTPM CTPM was created as The Centre for TPM (Australasia) as an outcome of the first conference dedicated to Total Productive Maintenance (TPM) in Australasia held in Sydney in 1995. During the conference, there was a call from the delegates to establish a much-needed Institute for TPM to support industry, academia and government similar to those already present in Japan, USA and Europe. Responding to this call the Centre was established as a membership-based organisation to promote networking and the sharing of learning in January 1996 with its head office located in Wollongong NSW (a major coastal city some 80 kilometres south of Sydney). Its charter was to develop, promote and advance the knowledge and practice of TPM in Australasia. In March 2007 we streamlined our business name to CTPM Australasia and expanded our charter to Lean & TPM. Our Lean & TPM (TPM3) methodology has evolved into an enhanced Australasian approach to applying the principles and practices of the Toyota Production System and Toyota Way (Lean). It is based on 10 integrated improvement activities, which assist companies to develop and unleash the full potential of their People so as to maximise the performance of their Equipment and Processes as they strive to achieve Operations Excellence / World Class Performance. CTPM and its membership continue to grow. There are now some 15 Industry Groups from Manufacturing, Mining, Processing, Utilities and Service companies that are currently progressing their TPM3 / Operations Excellence journey. Over 20,000 member company employees are covered by CTPM membership. In May 2007, CTPM gained official status as a Registered Training Organisation (RTO). As a result, our clients’ employees can achieve a nationally accredited qualification in Competitive Manufacturing (Cert III & Cert IV) as they contribute to their site’s strategically driven improvement journey using our TPM3 methodology. In Australia and New Zealand, government funding of up to $5,100 per eligible employee may be available to assist with this training. CTPM is also very mindful of the need for companies to establish their own in-house capabilities to lead, manage and facilitate their Lean & TPM (TPM3) journey in order to achieved sustained success. However we also acknowledge that Lean & TPM has been developed based on over more than 30 years of practical experience and research, and as such, establishing or developing internal capabilities is not achieved just by attending one or two training courses. Proper training from a recognised authority is critical (such as the CTPM TPM3 Leadership / Instructor’s Program which was developed in November 1997 and to date, has over 300 graduates from more than 60 companies), however most of the learning comes from doing. There are very few short cuts to experience. For this reason, CTPM has developed a proven flexible Australasian methodology covering a range of educational training courses, introduction and pre-cycle planning workshops, team kick-off workshops supported by comprehensive step-by-step Team Member Manuals, a site wide assessment & planning process, the 5 Level Milestone TPM3 Excellence Award supported by our TPM3 Milestone Assessment Process (MAP), and most importantly, a full-time team of experienced Navigators to provide on-site navigation, training and facilitation support who are located in Perth, Adelaide, Melbourne, Launceston, Wollongong and Sydney in Australia, Auckland in New Zealand, Jakarta in Indonesia and Bangkok in Thailand.




About the Author Ross Kennedy B.Sc (Eng) Mech Eng, B.Comm (Mgmt), MAICD President & Managing Director CTPM Australasia A fitter and turner by trade, Ross has a Mechanical Engineering degree from the University of New South Wales and a Management degree from the University of Wollongong. He has more than 20 years of hands-on manufacturing and operational experience covering maintenance, production, operations and executive roles. In 1985 Ross developed his passion for Lean Production following his involvement in the Value Added Management (JIT) initiative by the NSW Government. Ross quickly and effectively applied the new Lean principles and practices firstly at the CMA Foam Group Lullaby Bedding Factory while Factory Manager, then CMA’s Cable Accessories Factory as Site Manager before moving to David Brown Gear Industries as Manufacturing Manger to oversee the relocation of the company from Sydney to Wollongong to a new facility set up on Lean principles and practices. In 1989 after the new facility was well established and recognised for its leading edge improvements based on Lean, Ross was invited to join the new JIT / Lean practice being established by the Manufacturing and Operations Group of Coopers & Lybrand's International Management Consulting Practice. Over the next 5 years Ross had the opportunity to work on major assignments with some of the firm’s leading Lean practitioners from USA, Canada and the UK. It was also during this time that he first came across TPM (a critical missing link in the Lean tool kit) in 1990 when he led one of the first implementations of TPM in Australasia with the assistance of John Campbell from Canada. In August 1994 Ross established his own consulting practice specialising in TPM. He organised and chaired Australasia’s first TPM conference in 1995 and, as at the request of the delegates at the conference, Ross with several colleagues founded The Centre for TPM (Australasia) or CTPM in January 1996 to provide a membership-based organisation to support Australasian industry and academia. After extensive research including a trip to Paris in 1997 to attend Europe’s first World-Class Manufacturing & JIPM-TPM Conference and associated workshops with leading TPM practitioners from throughout the world, CTPM launched its TPM3 methodology in January 1998, which is an enhanced and expanded Australasian version of 3rd Generation TPM embracing the Toyota Production System and spanning the entire Supply Chain. Since then CTPM has been involved with a wide range of leading manufacturing, mining, processing, utilities and service companies. For example from Sept 1998 to June 2003 CTPM assisted Telstra roll-out their TPM initiative to over 200 teams servicing their Copper Access Network in 16 Regions throughout Australia resulting in over $110m in savings. Ross has been actively involved with Lean since 1985, TPM since 1990 and TPM3 since 1998 and has delivered publicly over 200 papers and workshops on the subjects both within Australia and overseas. CTPM, under the direction of Ross with his team of experienced full-time TPM3 Navigators, is presently assisting many sites spanning some 15 different industry groups located in Australia, New Zealand, Thailand and Indonesia on their Lean & TPM (TPM3) journeys to Operations Excellence and World Class Performance.


A Brief Overview of our Lean & TPM Methodology we call TPM3 • An enhanced Australasian approach to applying the principles and practices of the Toyota Production

System and the Toyota Way (Lean).

• A business improvement strategy ultimately involving all employees, suppliers and customers.

• A flexible, structured and practical journey consisting of 10 integrated improvement activities, each with defined steps.

Key features of TPM3 include: • Provides rapid returns on investment;

• Initially focuses on equipment and process performance;

• Recognises that if your equipment and processes aren’t working well, frustrations run high and attempts to introduce Lean thinking becomes unsustainable;

• Progressively engages all employees so they can achieve and have ownership to the improvements

• Provides a significant positive impact on safety and morale;

• Promotes a positive behaviour change of the whole workforce; and

• Takes the mystery out of integrating all the principles, tools, and concepts from traditional Lean.

Key Objectives of TPM3 To significantly improve the Return on Investment (ROI) for the company through: • Maximising Productive Capacity by cost effectively maximising overall workplace effectiveness

through the identification and elimination or minimisation of all Losses and Wastes through ‘Problem Solving’

• Minimising Overall Costs by creating a sense of “ownership” among all employees so they become committed to developing the understanding and capability to care for, and improve their workplace through ‘Prevention at Source’

• Improving Workplace Conditions and Culture by ultimately establishing everyone's involvement in formal continuous improvement through Cross-functional Teams and Area Based Teams so as to develop and unleash the full potential of all employees and enhance their ability to take on innovation.

Some of our CTPM Success Stories There are many success stories throughout Australia, New Zealand, Thailand and Indonesia covering Manufacturing, Mining, Process, Utilities and Service companies. Some of the gains achieved include: • A telecommunications company achieved savings of $110m over a 4 year period • A coal processing operation at an open cut coal mine reduced average maintenance costs across the plant

by 50% over 4 years • A timber processing plant reduced manufacturing costs by 50% along with an 88% reduction in Lost

Time Injury Frequency Rate by 88% over 2 years • A food processing plant closed the gap to Yield Excellence by 85% over 4 years • A food processing plant closed the gap on OEE Excellence by 54% and the gap to Cost / Kg by 58% over

2 years saving over $5m • An ore processing plant at an underground metalliferous mine improved metal recovery by 3% over 1

year resulting in a $1.6m saving

Documents

Getting Lean & TPM to Work · two-day Getting Lean & TPM to Work (TPM3) workshop. The second component is the TPM 3 Introduction Strategy half-day planning workshop and is extremely