ID 8458
Herrmann, Norman: Factors Affecting the Implementation of a Total Productive
Maintenance System (TPM) - A Case Study
Hamburg: Diplomica GmbH, 2004
Zugl.: Fachhochschule Aalen, Diplomarbeit, 2004
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- 1 -
NAME Norman
HERRMANN
DEGREE
BA (Hons) International Business
Administration
SUPERVISOR
Mr. Chia Fah Choy
TITLE
Factors affecting the implementation
of a Total Productive Maintenance
System
DATE
April
2004
CAMPUS
Stamford
College,
P.J.
STUDENT No 03953196
Dissertation submitted in partial fulfillment
of the requirements of the
BA (HONS) INTERNATIONAL BUSINESS ADMINISTRATION
of Northumbria University
- 2 -
DECLARATIONS AND WORD COUNT
I declare the following:
(1) that the material contained in this dissertation is the end result of my own work
and that due acknowledgement has been given in the bibliography and references to
ALL sources be they printed, electronic or personal.
(2) the Word Count of this dissertation is
10.092
(3) that unless this dissertation has been confirmed as confidential, I agree to an
entire electronic copy or sections of the dissertation to being placed on Blackboard, if
deemed appropriate, to allow future students the opportunity to see examples of past
dissertations. I understand that if displayed on Blackboard it would be made
available for no longer than five years and that students would be able to print off
copies or download. The authorship would remain anonymous.
(4) I agree to my dissertation being submitted to a plagiarism detection service,
where it will be stored in a database and compared against work submitted from this
or any other School or from other institutions using the service.
In the event of the service detecting a high degree of similarity between content
within the service this will be reported back to my supervisor and second marker,
who may decide to undertake further investigation which may ultimately lead to
disciplinary actions, should instances of plagiarism be detected.
SIGNED:
DATE:
07
th
of April, 2004
- 3 -
STUDENT NAME
Norman HERRMANN
DEGREE
BA (Hons) International Business
Administration
DISSERTATION SUPERVISOR
Mr. Chia Fah Choy
DISSERTATION TITLE
Factors affecting the implementation of a
Total Productive Maintenance System
DATE April
2004
KEYWORDS TOTAL-PRODUCTIVE-MAINTENANCE
ORGANISATIONAL-CHANGE
IMPEDIMENTS-TO-IMPLEMENTATION
KEY-SUCCESS-FACTORS
ABSTRACT
Modern manufacturing requires that organisations that want to be successful and to
achieve world-class manufacturing must posses both effective and efficient
maintenance. One approach to improve the performance of maintenance activities is
to implement a Total Productive Maintenance (TPM) system.
The aim of this dissertation is to prove that the introduction of a TPM system is by no
means an easy task, because there are several barriers that encumber the
implementation process, the driving forces to success have to be identified and well
understood, and a process of organisational change has to be managed
successfully.
The study analyses impediments, barriers and obstacles to the implementation
procedure and discovers key success factors concluding with a conceptual
framework for a successful TPM implementation.
The dissertation also examines the challenge of managing change within the TPM
context and identifies that such a TPM journey requires employee and management
commitment to be successful.
- 4 -
Through a case study of implementing TPM in an automotive supplier company, the
practical aspect within and beyond basic TPM theory and problems encountered
during the implementation are discussed and analysed.
The paper concludes that the implementation of TPM is definitely not an easy task,
which is considerably burdened by organisational, behavioural and other barriers,
and necessitates the difficult mission to change peoples' mindsets from a traditional
maintenance approach.
- 5 -
ACKNOWLEDGEMENT
I would like to use this part to express my gratitude to all persons who
contributed to the fulfillment of this dissertation. First I want to thank my family
for their financial and mental support all the years. Furthermore, I appreciate
and recognize the cooperation with Contitech Mexicana S.A. de C.V. and
thank all the staff members who were involved in the focus group discussion
in particular the former Managing Director Mr. Jens P. Mehl. Moreover, I
thank my supervisor Mr. Chia Fah Choy for guiding me through my
dissertation and Prof. Dr. Susanne Kinzler for her support and help in behalf
of the Aalen University of Applied Sciences in Germany.
- 6 -
TABLE OF CONTENTS
Title page
01
Declaration and Word Count
02
Abstract 03
Acknowledgements 04
Table of contents
05
List of figures
09
CHAPTER 1: INTRODUCTION
10
1.1 Importance of TPM
10
1.2 Problem statement and objectives
11
1.3 Research methods
12
1.4 Structure of the study
13
CHAPTER 2: LITERATURE REVIEW
14
2.1 Defining TPM
14
2.2
Basic
concept
14
2.3
Performance
measurement
17
2.4 New roles of operators and maintenance staff
19
2.5 The JIPM's 12 steps to implement TPM
21
2.6 The connection between TPM and TQM
23
2.7 TPM in the view of change
25
CHAPTER 3: METHODOLOGY
29
3.1 Company profile and TPM background
29
3.1.1 General information about the company
29
3.1.2 CME: The plant of the focus of this study
30
- 7 -
3.2 Explanation, justification and limitations of selected
methods
32
3.2.1 Focus group discussion
32
3.2.1.1 Data collection procedure
33
3.2.1.2 Data evaluation
34
3.2.2
Participant
observation
35
3.2.3
Document
analysis
36
CHAPTER 4: FINDINGS AND ANALYSIS
37
4.1 Impediments to the implementation of TPM
37
4.1.1 Behavioural barriers
37
4.1.2 Organisational barriers
41
4.1.3 Other obstacles and barriers
45
4.2 Key success factors for implementing TPM
49
4.2.1 Management commitment
49
4.2.2 Training and Education
50
4.2.3
Communication
51
4.2.4 Award and recognition
52
4.2.5
TPM
Committee
53
4.2.6 Measures of performance
53
CHAPTER 5: CONCLUSIONS
56
5.1 Assessment of research objectives
56
5.2 Implications of this study
57
5.3 Limitations and suggestions for further research
59
- 8 -
References
60
Bibliography
63
Appendices
64
A Origin and diffusion of TPM
65
B Short Statement of Learning
66
C Focus group discussion guide
67
D First page of focus group transcript
73
E Company contacts
74
Last Page
75
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LIST OF FIGURES
Figure 2.1: Five pillars of TPM
16
Figure 2.2: Implementation gaps and impediments
28
Figure 4.1: Affinity diagram: Barriers to TPM implementation I
37
Figure 4.2: Matrix diagram: Barrier-outcome relation I
40
Figure 4.3: Affinity diagram: Barriers to TPM implementation II
41
Figure 4.4: Matrix diagram: Barrier-outcome relation II
44
Figure 4.5: Barriers to TPM implementation III
45
Figure 4.6: Matrix diagram: Barrier-outcome relation III
48
Figure 4.7: Cause and effect diagram: Successful TPM implementation 55
- 10 -
CHAPTER 1: INTRODUCTION
1.1 The importance of TPM
Through the rapid innovation of new technology, manufacturing
systems are increasing in complexity and often are not meeting customer
expectations in terms of performance and effectiveness. Many systems are
operating at less than full capacity what leads to low productivity compared to
factory operations cost, which are high. Given the introduction of more
robotics and automation, the growing application of computer-aided devices,
etc., maintenance costs are likely to be even higher in the future when
continuing with traditional practices.
The costs of sustaining operation, maintenance and support are mostly
invisible; hence they have a considerable influence on the cost of many
products and very often are the reason that production costs are higher than
initially anticipated. According to the study conducted by Mobley (1990), cited
in Chan et al (2003), from 15% to 40% with an average of 28% of total
production cost can be attributed to maintenance activities.
Taking into account the increasing international competition worldwide
all these facts have indeed an impact on a company's profits and competitive
position in the marketplace.
Because of this, maintenance activities must no longer be considered
as a support function, non-productive and without adding much value to the
business. Various organizations have shown that an effective maintenance
strategy can provide competitive advantage through its total productive
maintenance (TPM) program.
- 11 -
1.2 Problem statement and research objectives
One approach to improve the performance of maintenance activities
and to strive for world-class manufacturing is to implement and develop a
Total Productive Maintenance (TPM) system. However, according to Bamber
et al (1999), it is proven that many organisations are failing to successfully
implement such a program. Furthermore, Cooke (2000) argues that, the
implementation of TPM is a difficult process, which is heavily burdened by
political, financial, departmental and inter-occupational barriers. Davis (1996)
discovered that, one of the main reasons companies fail with TPM is because
the company is not serious about change. There must take place a
fundamental change in the culture of the organisation. Along with Ghobadian
and Gallear (2001), the introduction of quality initiatives like TPM is not
without difficulty and the sheer scale of change inherent in moving away from
the conventional management model towards TPM contribute heavily to this
difficulty.
The aim of this dissertation is to provide companies who intend to
implement a TPM program with important information regarding the
implementation process. The objectives are to bring out the degree of change
included in a TPM system and to demonstrate how the process of change can
be managed effectively. Moreover, barriers, obstacles and impediments to the
implementation will be discovered and based on them the key success factors
and driving forces are developed. The last objective involves the conception
of a conceptual framework to the execution of TPM, considering all important
factors and issues developed in the earlier stages of this dissertation.
- 12 -
1.3 Applied research methods and limitations
In order to fulfil the defined objectives both, primary and secondary
research has been conducted. With respect to the secondary research,
literature sources have been chosen so as to identify common experiences
from the implementation of TPM and special attention was given to different
implementation methodologies and reasons for failure as well as success
factors. There has also been reviewed considerable literature about change
management theory. Case studies were used to verify and develop the
findings derived from the literature review. The main databases utilised were
Academic Search Premier, Business Source Premier, Emerald and Science
Direct.
The primary research was carried out through a mixture of quantitative
and qualitative methods using focus group discussion, participant observation
and document analysis. The source is a well-known German company with
one of its manufacturing plants located in San Luis Potosi in Mexico. The
author of this dissertation was directly involved in the implementation process
of TPM in that Mexican plant. The focus group members were drawn from
former colleagues, i.e., Managing Director, Production Manager, Quality
Manager, Maintenance Chief and Line supervisors who all were involved in
the project. This group was given an agenda containing the key aspects
revealed from the literature studied, which were relevant to contribute to the
fulfilment of the dissertation's objectives mentioned above. Furthermore,
company documents including confidential audit reports and implementation
plans as well as participant observation supported the research process.
- 13 -
1.4 Structure of the study
Following the introduction, chapter 2 comprises the literature review,
which covers the theory about TPM including a definition, the basic concept
as well as the JIPM's 12 steps to the implementation of TPM and the new
organisation regarding the cooperation between the production and the
maintenance department. Furthermore, the link to TQM is described and the
influence of change inherent with TPM is set forth supplemented with findings
from change management literature.
Chapter 3 is concerned with the research methodology including the
research plan, background information about the company used for primary
research as well as explanations, justifications and limitations of selected
research methods.
The dissertation then proceeds to chapter 4 dealing with the findings
and analysis of the research results. Moreover, barriers, obstacles and
impediments to the implementation of TPM as well as the key success factors
embedded in a conceptual framework are provided.
Chapter 5 is the final part of this study and comprises the conclusions
including an assessment of the research objectives, implications of the study
and suggestions for further research.
- 14 -
CHAPTER 2: LITERATURE REVIEW
2.1 Definition of TPM
Nakajima (1988) defines TPM as a "manufacturing program designed
primarily to maximise the effectiveness of equipment throughout its entire life
by the participation and motivation of the entire workforce."
Another more detailed definition provide Maggard and Rhyne (1992)
cited in Jostes and Helms (1994) who say that "Total Productive Maintenance
(TPM) describes a synergistic relationship among all organisational functions,
but particularly between production and maintenance, for continuous
improvement of product quality, operational efficiency, capacity assurance
and safety. The essence is that production equipment operators share
preventive maintenance efforts, assist mechanics with repairs when
equipment is down, and, together, they work on equipment and process
improvements in team activities."
2.2 Basic concept
As discussed in Bamber et al (1999) various devotees of the Japanese
style TPM, such as Tajiri and Gotoh (1992) and Shirose (1992) regard Siiechi
Nakajima as the father of TPM and all agree that the concept of TPM contains
the following five elements:
(1) TPM aims to maximise equipment effectiveness (overall efficiency).
(2) TPM establishes a total (company-wide) PM system for the
equipment's entire life span encompassing maintenance prevention,
preventive maintenance and improvement maintenance.
- 15 -
(3) TPM involves every single employee, from top management to the
workers on the shop floor.
(4) TPM requires the participation of various departments in a company
(engineering, operations, and maintenance).
(5) TPM promotes and implements PM through "motivation management"
involving small-group activities.
At this point it is useful to explain the meaning of the word "total" of
TPM in more detail as it is to be seen in closely relation to the five elements
mentioned above. In the words of Nakajima (1988) there are three meanings
in the word "total" to describe the major features of TPM:
First, "Total effectiveness" indicates TPM's pursuit of economic
efficiency and profitability. (Point 1 above)
Second, "Total maintenance system" includes maintenance prevention
(MP) and maintainability improvement (MI), as well as preventive
maintenance (PM). Basically, this refers to "maintenance-free" design to the
incorporation of reliability, maintainability, and supportability characteristics
into the equipment design. (Point 2 above)
Third, "Total participation of all employees" includes autonomous
maintenance (AM) by operators through small group activities. Essentially,
maintenance is accomplished through a "team" effort, with the operator being
responsible for the ultimate care for his/her equipment. (Point 3, 4 and 5
above)
The majority of TPM experts that is Nakajima (1988), Hartmann (1992)
and Willmott (1997) assert that the full achievement of all elements of TPM
and a successful implementation demands the application of the five pillars
shown by Yeomans and Millington (1997) in Figure 2.1 below. To fall back on
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