There are three key principles behind the TPM3 approach, these are:
A comprehensive world-class operating system starts with clear performance management. Success can only come when a company defines its overall aspirations and then identifies the performance measures that most powerfully bring about the realisation of each goal.
It is important to note that the aspirations should not only be strictly financial. Goals in market growth, productivity, quality, customer service, safety and environment, and organisational empowerment should also be considered. Companies can then cascade each of these high level imperatives through the organisation finding the most appropriate translation for them at every level down to the shop floor. By making these aspirations tangible at all levels, the company can then make the most significant connection; the link between performance and fiscal results. Simply put, if the performance improvements are not showing up on the company’s income statement, then are not really improvements.
One of the most powerful tools for asset intensive companies is overall equipment effective (OEE), a lever to improve asset effectiveness. Through measurement and analysis of OEE the root causes of production and equipment related losses can be identified. The translation to value is then made by Pareto analyses, which identify a tangible set of improvements to boost equipment usage, reduce costs, improve quality and generate real value. Best-in-class OEE is greater than 80% for batch processes, and 95% for continuous processes industries, however from our experience many companies are significantly below these standards. Through the realization of this “hidden” capacity many companies are able to show significant financial impacts as well as delay expensive capital investment decisions.
For any improvement program to deliver sustainable result there must be a supporting cultural change within the workplace. We believe that this should start from addressing the fundamental problem of asset ownership, from our experience many of the root causes of equipment failure can be traced to a basic Lack of Understanding of Desire to Care. We believe that for any asset improvement program to be sustainable in the longer term the company must promote a sense of “ownership” amongst all employees so they become committed to caring for their plant, equipment, processes and decisions, along with practicing “prevention at source” for many of the minor defects that contribution to accelerated / early deterioration of equipment performance. Additionally we find that a key by product of the promotion of Workplace Ownership is significantly improved communications between shifts, since everyone has a common sense of purpose aligned to achieving the improvement objectives
Formal Continuous Improvement
Finally any company embarking on a journey to Operations Management Excellence must realize that the step change improvements realized during the early phases of any improvement program will not be sufficient to achieve world class manufacturing standards. Indeed truly world class operations are those that continuously drive to improve performance and eliminate losses / waste from every aspect of their business. This means institutionalizing a formal continuous improvement culture by creating an environment where all employees participate at least 10% of their normal worktime in formal improvement activities. These activities should be both Area based workplace improvements as well as Cross-functional teams aimed at addressing those problems that cut across traditional functional boundaries.