Lean TPM - a blueprint for change

Lean TPM - a blueprint for change - Harnessing Lean Thinking and Total Productive Maintenance

Lean TPM A Blueprint for Change 0750658576-ch000-prelims 6/24/2004 16:50 Page i This page intentionally left blank Lean TPM A Blueprint for Change Dennis McCarthy and Dr Nick Rich AMSTERDAM • BOSTON • HEIDELBERG • LONDON • NEW YORK • OXFORD PARIS • SAN DIEGO • SAN FRANCISCO • SINGAPORE • SYDNEY • TOKYO 0750658576-ch000-prelims 6/24/2004 16:50 Page iii Elsevier Butterworth-Heinemann Linacre House, Jordan Hill, Oxford OX2 8DP 200 Wheeler Road, Burlington, MA 01803 First published 2004 Copyright © 2004, Elsevier Ltd. All rights reserved No part of this publication may be reproduced in any material form (including photocopying or storing in any medium by electronic means and whether or not transiently or incidentally to some other use of this publication) without the written permission of the copyright holder except in accordance with the provisions of the Copyright, Designs and Patents Act 1988 or under the terms of a licence issued by the Copyright Licensing Agency Ltd, 90 Tottenham Court Road, London, England W1T 4LP. Applications for the copyright holder’s written permission to reproduce any part of this publication should be addressed to the publisher Permissions may be sought directly from Elsevier’s Science & Technology Rights Department in Oxford, UK: phone: (ϩ44) 1865 843830, fax: (ϩ44) 1865 853333, e-mail: permissions@elsevier.co.uk. You may also complete your request on-line via the Elsevier homepage (http://www.elsevier.com), by selecting ‘Customer Support’ and then ‘Obtaining Permissions’ British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library Library of Congress Cataloguing in Publication Data A catalogue record for this book is available from the Library of Congress ISBN 0 7506 5857 6 For information on all Elsevier Butterworth-Heinemann publications visit our website at http://books.elsevier.com Printed and bound in Great Britain Working together to grow libraries in developing countries www.elsevier.com | www.bookaid.org | www.sabre.org 0750658576-ch000-prelims 6/24/2004 16:50 Page iv Contents Foreword ix Preface xi Acknowledgements xiii List of abbreviations xvii 1 The business of survival and growth 1 1.1 The new competitive conditions 1 1.2 Silver bullets, initiative fatigue and fashionable management 3 1.3 Why programmes fail 4 1.4 The value of a compelling vision 10 1.5 Leading the improvement process 13 1.6 Lean TPM 18 1.7 Summary: The foundation for a better improvement model 21 Bibliography 23 2 Lean TPM 24 2.1 Achieving the right balance 24 2.2 The origins of Lean Thinking 25 2.3 The origins of TPM 31 2.4 In summary, what does Lean TPM offer? 36 2.5 Tackling the hidden waste treasure map 37 2.6 The integrated route map 39 2.7 Summary 47 Bibliography 47 3 The change mandate: A top-down/bottom-up partnership 49 3.1 The Lean change mandate 49 3.2 Changing the business model 53 3.3 The senior manager role 56 0750658576-ch000-prelims 6/24/2004 16:50 Page v vi Contents 3.4 The middle/first line manager role 68 3.5 Calculating the overall equipment effectiveness 74 3.6 Shopfloor team 77 3.7 Summary 82 Bibliography 83 4 Transforming the business model 85 4.1 Transformation and the business model 85 4.2 The scope of the change process 85 4.3 Change team roles 87 4.4 Setting and raising standards 89 4.5 Implementing ‘local’ policy 90 4.6 Operations team 92 4.7 Specialists 92 4.8 Facilitation 94 4.9 Summary 95 Bibliography 96 5 Process stabilisation 97 5.1 Stabilising processes 97 5.2 The recipe for low inventory, high flow and stable operations 97 5.3 Setting work standards 104 5.4 Leading the implementation of standards 107 5.5 Establishing operator asset care 109 5.6 Understanding the voice of the customer 110 5.7 Visualising the value stream 115 5.8 The process of stabilisation: The free-flowing materials map 119 5.9 Locking in the recipe for low inventory, high flow operation delivering zero breakdowns and self-managed teamwork 123 5.10 Summary 125 Bibliography 126 6 Process optimisation 127 6.1 Introduction to the challenge 127 6.2 Changing drivers 128 6.3 Springing the strategy trap 134 0750658576-ch000-prelims 6/24/2004 16:50 Page vi Contents vii 6.4 Creating flexible organisations 136 6.5 The optimisation process 137 6.6 Early Management (EM) 151 6.7 Capability development 156 6.8 Summary 161 Bibliography 163 7 Sustaining the improvement drive 164 7.1 Introduction 164 7.2 Sustainability at the management level 165 7.3 The operations level of improvement 175 7.4 Summary 182 Bibliography 183 8 Conclusions 184 8.1 Reflections 184 Index 191 0750658576-ch000-prelims 6/24/2004 16:50 Page vii This page intentionally left blank Foreword If European manufacturers are going to succeed and prosper for the future, they need to drive the necessary productivity and hence competitiveness by unlocking the potential of their biggest asset: their people. I am delighted, therefore, to support my colleagues, Dennis McCarthy and Nick Rich, in the publication of this book. I have been a long and passionate advocate of TPM since my visits to Japan in the early 1990s. As an example, I fondly remember being told by the Japanese Managing Director of a recognised World Class manufacturer and TPM practitioner that: .in the ‘50s and ‘60s we had ‘M’ for Manufacturing. In the ‘70s we had ‘IM’ for Integrated Manufacturing. In the ‘80s we had ‘CIM’ for Computer Integrated Manufacturing .He paused for a moment and then added For the remainder of this decade and 2000 and beyond, my company is going to be pursuing ‘CHIM’: Computer Human Integrated Manufacturing .We have decided to re-introduce the human being into our workplace! Today, some 12 years later, my interpretation of that powerful message is that it certainly represents a challenge for all of us to develop and harness people’s skills – not just hand/operational skills, but team-working and problem-solving skills – to deliver the techno- logical advantage that increasing speed, high precision and automation of equipment and processes will apparently give us. Perhaps naively, I think of ‘Lean’ as increasing the velocity from customer order to the receipt of the goods and payment of invoice, through the elimination of waste in all its forms. Fortunately, most of the human race abhors waste. So, if the agenda is explained clearly regarding why we need to continuously improve to drive out waste and we involve people throughout the organisation from the bottom up in that goal, then the company or enterprise stands a better chance of survival and indeed sustainable growth. Lean does not work without highly reliable and predictable machines and processes. You only get this result through 0750658576-ch000-prelims 6/24/2004 16:50 Page ix . Lean TPM A Blueprint for Change 0750658576-ch000-prelims 6/24/2004 16:50 Page i This page intentionally left blank Lean TPM A Blueprint for Change. sustainability at management and operational levels. Finally, Chapter 8 provides a summary of the key changes incorpor- ated in the Lean TPM change blueprint.