TPM Jipm Seiichi Nakajima 2007 Klmanagement

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The key takeaways are the origins and development of TPM, the theoretical background of TPM, and the essence and aims of TPM.

The main topics covered include the birth and development of TPM, the status of global TPM development, the theoretical background of TPM, and the essence of TPM.

The theoretical background discussed for TPM includes self-actualizing management, Theory X and Theory Y, directive vs. participative management, and the linking pin function.

Essence of TPM

Fostering people leads to Good

Manufacturing

16 March 2007

Seiichi Nakajima
PM Award Assessor, Japan Institute of Plant Maintenance

1
Contents
1. Birth and Development of TPM
2. Status of TPM Global Development and Good Examples
① TPM of the 21st Century ② Development in Number of TPM Award winning Sites
③ WORLDWIDE TPM ④ Trends in TPM Activities in recent years ⑤ Effective Cases at
Awarded Businesses ⑥ Benefit of TPM ⑦ Why does TPM give Significant Results?
3. Behavioural Science – The Theoretical Background to TPM
① SELF-ACTUALIZING MANAGEMENT (A.H.Maslow), ② Theory X and Theory Y (Douglas
McGreger) ③ DIRECTIVE MANAGEMENT AND PARTICIPATIVE MANAGEMENT (Rensis
Likert), ④ New Management Pattern “Linking Pin Function” (Rensis Likert)
4. Essence of TPM
① The origin of TPM ② The aim of TPM ③ Definition & Basic Concepts of TPM ④ Points
in fostering autonomous staff with good morale and skills ⑤ Change Thinking and
Behaviour with TPM ⑥ Preventive Medicine in Facility=Preventive Maintenance ⑦ The
Preventive, Zero-Focused Mindset (PM) & Zero Defect (ZD) ⑧ The Basic Approach to Zero
Failure ⑨ The Principles Behind Zero Failure ⑩ Overview of the Figure-of-Eight Method
for Quality Maintenance ⑪ Step Implementation of the Active Contrivance to Zero Industrial
Accident ⑫ Essence of TPM
5. Aim to be VISIONARY COMPANY
① What is VISIONARY COMPANY ② GE Revolution by Jack Welch Jack ③ The Role of
Management (P.F.Drucker) ④ Using TPM to Make “5S Management" a Reality! ⑤ Case of
5S management satisfaction improvement with TPM ⑥ Aim to be VISIONARY COMPANY

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1. Birth and Development of TPM
1950  1951- PM (Preventive Maintenance) Introduced to Japan from the USA
 Tonen introduced US-type PM
 1958- PM (Productive Maintenance) Commenced dissemination in Japan
 Mr. George Smith visited Japan for PM training 1960- Behavior Science
1960 (Thesis publication)
 1962-Commenced Small-group activities in
Japan (Such as QC Circle, and etc.)  1962- ZD (Zero Defects)
 Mr. Philip Crosby commenced activities
 1965- Commenced Japanese-style ZD
1970  NEC commenced small-group ZD activities
●1971- Commenced Production
1 Division TPM in Japan
 Triggered by PM Award presented to Denso with TPM

1980
●1982- Commenced company-wide deployment of TPM in Japan
 Aisin Seiki won TPM Award for company-wide deployment
●1985- Commenced global deployment of TPM
 Commenced TPM training in Korea, Taiwan, Brazil, USA, and etc.
1990
●1991- Commenced Global TPM Award
 TPM awarded to overseas companies for the first time:
Belgium Volvo, Nachi-Singapore

2000  2001- 21st century TPM Proposal (Part II/III)

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at Tonen Corporation 1951

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DENSO (Nihon Denso) wining PM Award 1971
(middle: Mr. Katsuo Aoki)

(from Nihon Denso 25-nenshi)


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1982 Aisin Seiki was Awarded the PM Award for
Company-wide Deployment

President Nakai winning PM Award (September, 1982)

In the afternoon of the final day of screening, comprehensive questioning and


review were carried out, and the Hibi Project Manager, representing the panel of
judges, stated the following:
“Aisin Seiki truly implements TPM, a company-wide PM (CWPM), including R&D
and administrative divisions, that are original, rare and characteristic, and not at
all a copied version of other companies.
(From Aisin Seiki 20-year History)
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TPM Consulting in Taiwan 1986

Seminar at China Productivity Center 1986 At China Productivity Center 1988

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2-1 TPM of the 21st Century (Level 1,2,3)

A Conceptual View of the TPM Levels

Creative TPM

Ground-Breaking TPM

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2-2 Development in Number of TPM Award winning Sites
Award for World-class TPM
Achievement

Advanced Special Award for TPM


Achievement
overseas
200 Special Award for TPM
Achievement 185 17
177
172 1 2 1 7
180 1
168
Award for Excellence in Consistent 1
2
163 21

120
TPM Commitment, 1st Category
152 15
12 17 3 18 2
1 114
160 17

Award for TPM Excellence, 1st 1 1 15


96
Category
135 11 5 42
28
105

140
6 47
27 52
Award for Excellence in Consistent 34 40 90
33
83
120 TPM Commitment, 2nd Category (Average for 1991-2002 - 118.4)
22 109 79 83
91 8 75
Award for TPM Excellence, 2nd 4
100
Category 64
19 27
54 60
Trend in number of Award winning
62 13 104
80 108

sites outside Japan 6


83
95
87 45
90
51 5 87 41 88
60 41 42 99

62 56 30
(Average for 1981-1990 – 18.6) 29 1 3 45
61 22
16 16 22
40 (Average for 1971-1980 - 3.2) 31
4
14
9 2 15
7 10 8 12 8 14 32 25 3 1 1
3 2 6 3 5 2 2 1 1 6
3
20 2 1 7 10
15
22

2
1
5
6 2
22 22 25
1
22
4

5 20 1 17 17
6 2 9 15 16 16 16 16 2
7 7 9 7 8 10 9 7
4 6 4 6 6
1 1
0 0 1
1971 72 73 74 1975
75 76 77 78 79 1980
80 81 82 83 84 1985
85 86 87 88 89 1990
90 91 92 93 94 1995
95 96 97 98 99 2000
2000 2001 2002 2003 2004
2005
2005

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2.③ 2-3 Worldwide TPM

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2-4 Trends in TPM Activities in Recent Years
1. General Trend
1) The number of overseas award winners have increased to double of that of Japan.
2) There is an increasing trend of companies mounting challenges for higher-level awards (Part
II/III).
3) Trend of past award winners re-implementing the project.
2. Distinctive TPM Activities
1) Cases of TPM deployment via autonomous management systems…Mini-company
management systems, store management systems
2) Cases of Innovative/Original (Part II/III) TPM activities
Development of new products and new production methods aiming for the No.1 position in
industry and the No.1 position in the world, Structuring of the mother factory
3) Kobetu-Kaizen…Dissemination of “innovative COS reduction” (Koichi Nakazato), PM
analysis/Analysis on why/IE method utilization
4) Jishu-Hozen…Original new step deployed in Part II/III (quality maintenance, plant
maintenance, operation management, and etc.)
5) Keikau-Hozen…CBM (Predictive maintenance)/Dissemination of RCM, efficacy for shut down,
zero malfunction line structure
6) Quality-Hozen…Dissemination of “8-character deployment” (Yoshifumi Kimura), partial
introduction of “Double 8-character deployment,” zero defect line structure, quality
engineering, utilization of Six Sigma
7) Early Management…Establish DR (Design Review), concurrent development of products and
equipment, achievement of vertical start-up, in-house development of a compact injection
molding machine
8) Training & Education…Introduction of the CUDBAS method (Curriculum Developing Based
on Ability Structure), nurturing operation engineers, certified equipment maintenance
engineers and autonomous maintenance engineers
9) TPM in Administrative and Support Dept. …Computerization of production management
systems, introduction of TPS (JIT), introduction of SCM activities, reduction in purchasing,
distribution and inventory loss, shorten period for monthly closing (to 1-2 days)
10) SHE…Introduction of step deployment active contrivance to zero industrial accidents, zero
accident line structure, recycling of industrial waste
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2-5 Effective Cases at Awarded Businesses (FY 2006/Domestic)
1. Management Index Recurring income 28.6-fold (’02: \8 million’05: \229 million): Sambo Copper Alloy
(Cont. 1)
Net income on sales 3-fold: Konica Minolta Supplies Manufacturing Kansai (Category 1)
Factory income 2-fold: Toppan Saga Yoki (Special)
2. Productivity (P) Productivity 1.7-fold: Konica Minolta Supplies Manufacturing Kansai (Category 1)
Overall equipment efficiency 93%: Toppan Saga Yoki (Special), 92%: TOTO Nakatsu
(Special), 85%: JIDECO Niigata (Category 1)
Malfunction case/0 per month/262 cases: Shikishima Baking Pasco, Tokyo Tama (1)
3/123 cases: Toppan Saga Yoki (Special) 15/175 cases: Sambo Copper Alloy (Cont. 1)
3. Quality (Q) Zero defect delivery: JIDECO Kikukawa (Category 1), Carry-in zero defect case: Mitsuba
Akagi (Cont. 1)
Zero claim cases: TOTO Nakatsu (Special)
4. Cost (C) Production cost 1/5: Hamada Kogyo Silicon Wafer Operation (1)
Chip production COS approx. 1/2: Sharp LSI Operation HQ Fukuyama No.3 Factory
(Category 1)
5. Delivery (D) Delivery date observance100%: Mitsuba Akagi (Cont. 1), Delivery date observance 100%:
JIDECO Kikukawa (Category 1)
Production Lead time 1/2: Kanbe Toppan (Cont. 1),
In-process inventory 1/4.5: Toppan Saga Yoki (Special)
6. Safety/Health/Environment (S) Zero accident requiring absence continued for 8 years: Gosho Works Miharu
(Category 1)
Zero labor accident: Konica Minolta Supplies Manufacturing Kansai (Category 1), JIDECO
Niigata (Category 1)
JIDECO Fukushima (Category 1), Showa Denko Shiojiri (Category 1), Showa Denko
Tokuyama (Category 1), Suntory Yamasaki (Category 1), Technohama (Cont. 2)
Recycling rate100%: Calbee Hokubu Company (Special)
7. Moral (M) Improvement proposal cases 7.9/mo./person: Technohama (Cont. 2), 5.2
case/mo./person: Sanwa Aluteck (Category 2)
Certified Jishu Hozen Engineer accumulated total 116 persons (Passing rate for our
company 90%, National average 60%): Sendai Nikon (Special)
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2-6 Benefits of TPM

Average Cost-Benefit of TPM by Industry

Amount saved through TPM


Plastic Amount invested in TPM
Products

Chemicals

Semi-
conductors

Automobile
Components

0 10 20 30 40 50 60 70 80 90 100 110 120 130 140


Units ¥100M

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2-7 Why does TPM give Significant Results?
SEIICHI NAKAJIMA

 TPM is being deployed globally, reaching beyond differences


in race, manners, custom, culture, and etc.

 All companies introducing TPM have achieved wonderful


results.

 “The making of a product” is “the making of people”


 Manufacture well-selling products
 Innovate manufacturing facilities, technology and
systems are all achieved by “autonomous individuals
with good morale and skills”

 It is certain that this is based on the principle common to


human beings, in other words, on “behavioral science,”
research on “why people work”
Charging self-implementation requirement/
Total-worker-participation type management (=TPM)

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3-1 SELF-ACTUALIZING MANAGEMENT
Behavioural Science – The Theoretical Background to TPM

•Work is a type of psychological therapy Human behavioural factors – A H Maslow’s


for satisfying our desire for self- 5-stage hierarchy of human needs
actualization.
• People and work are in a cyclic Self-fulfillment needs
(using one’s talent)
relationship; people grow and develop
through their work, bringing prosperity Ego or esteem needs
(self-respect)
to their companies, and that prosperity
lead s to further individual development. Social needs
(a sense of belonging)
• When people find a purpose in life
Safety needs
through their work, they become ever (job and income security)
more passionate about it.
Physiological needs
(Based on AH Maslow’s writings on self-actualizing (sleep, food, etc.)
management)

The Theoretical Background to Team Activities (QC


Circles, ZD Groups, Jishu Kanri, etc.)

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3-2 Theory X and Theory Y
Self-Actualizing Management =Theory Y

Theory X Theory Y
(The traditional view of direction and and control) (The integration of individual and organizational goals)

① The average human being has an inherent ① The expenditure of physical and mental effort in
dislike of work and will avoid it if he can. work is as natural as play or rest, and the average
② Because of this human characteristic of dislike of human being does not inherently dislike work.
work, most people must be coerced, controlled, ② Man will exercise self-direction and self-control in
directed, and threatened with punishment to get the service of objectives to which he is committed.
them to put forth adequate effort toward the ③ The most significant rewards, e.g. the satisfaction
achievement of organizational objectives. of ego and self-actualization needs, can be direct
③ The average human being prefers to be directed, products of efforts directed toward organizational
wishes to avoid responsibility, has relatively little objectives.
ambition, and wants security above all. ④ The average human being learns, under proper
conditions, not only to accept but to seek
responsibility.
(The Theory X culture must be ⑤ The capacity to exercise a relatively high degree
changed to a Theory Y culture) of imagination, ingenuity and creativity in the
solution of organizational problems is widely, not
narrowly, distributed in the population.
⑥ Under the conditions of modern industrial life, the
(from The Human Side of Enterprise, by Douglas
intellectual potentialities of the average human being
McGregor)
are only partially utilized.

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3-3 DIRECTIVE MANAGEMENT AND PARTICIPATIVE MANAGEMENT
<Participative Management = Self-Actualizing Management = Theory Y>

Type of
Features Results
Management
Management by direction and control  High short-term
(obedience based on fear) productivity
Directive
 Lack of trust
(Theory X)
 Low long-term
productivity
Participative Management by self-determination and
(Team-Based self-control High level of

Activities) 1 The principle of supportive relationships trust

2 Group decision-making and problem-solving  High long-term


3 Setting stretching targets productivity
Self-actualizing
management
(Theory Y)
(Based on Rensis Likert’s writings on behavioural science in management)

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3-4 New Management Pattern “Linking Pin Function”
SEIICHI NAKAJIMA

Linking Pin Function TPM

Factory General Manger Factory TPM Steering


Committee

Department Manger
Department TPM
Meetings
Area Manger
Area TPM
Meetings
Line Manger

Team Leaders

Shop-Floor Teams
(PM Circles)
General Employees

(New Patterns of Management by Rensis Likert, 1964)

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SEIICHI NAKAJIMA
4-1 The Origin of TPM

PM ・Eupsychian Management
by A.H. Maslow
(Preventive Maintenance) PM ・The Human Side of Enterprise
(Productive Maintenance)
・Prevention by Douglas McGregor
・Zero Breakdown ・Productivity ・New Patterns of Management
・Cost Down by Rensis Likert

etc.

Small Group ZD
Activity (Zero Defect)

・QC Circle etc. Do it right the first time

TPM
Behavioral Science
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4-2 The Aim of TPM
Improve the company by improving its people and its equipment

---- Develop people with the skills required for


today’s highly-automated factories----
Improving the
People 1. Operators: Do Jishu-Hozen (AM)
2. Maintenance staff: Do advanced, specialised maintenance
3. Production engineers: Plan maintenance-free equipment

+
Improving the 1) Raise OEEs by improving the equipment currently in use
2) Design new equipment for minimum life-cycle cost and
Equipment vertical startup

Improve The Company


Copyright 2007 JIPM-Solutions
SEIICHI NAKAJIMA
4-3 Definition & Basic Concepts of TPM
Definition of Company-wide TPM Basic Concepts of TPM
1. Aiming to create corporate culture that optimizes 1. Create a profit-making
efficiency of production systems (Overall corporate culture
 Pursuit of economy,
effectiveness), zero accidents, zero
defects, zero failures

2. Structure with an actual scene/actual thing a 2. Preventive philosophy


system that takes preventive action against loss (preventive action)
 MP-PM-CM
such as “Zero accidents, zero defects, zero
failures” targeting the overall lifecycle of the 3. Participation of all
production system, members (Management
participation/Respecting
people)
3. In all divisions including production, development  Overlapping small
group, Jishu Hozen by
Sales and administration divisions, operators

4. Principle of actual scene


4. Participation of by all members of the company, and actual thing
from top management to frontline staff,  “What should be” for
facilities and work,
visual management,
clean workplaces
5. Achieve zero loss with overlapping small-group
activities. 5. Renewing common sense
 Continued evolution and
growth of views and
thinking
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SEIICHI NAKAJIMA
4-4 Points in fostering autonomous staff with good morale and skills

… Sense of achievement with self-direction and


Good morale self-control,
Successful experience, satisfy self-fulfillment

… Enhance problem-finding, improvement,


Good skill problem-solving capacities with training
programs and OJT experience,
Acquiring official certification

… Continue TPM (self-fulfilling


Good workplace management/Participating management)
TPM as a routine of corporate culture

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4-5 Change Thinking and Behaviour withSEIICHI
TPM NAKAJIMA

1. Policy and Target: - In line with the policies and targets of the superior, members of
each corporate strata establish high targets, and self-controlled activities to achieve targets
(self-directing/self-control)
2. Jishu-Hozen (Autonomous Maintenance): - Protect your own facility
(self-control/participating management)
1) Voluntarily take action without being instructed by superiors such as with tag attachment and
detachment at malfunction area, measures for sources of problems and hard-to handle areas, visual
control, KAIZEN with Jishu-Hozen work time reduction.
2) Determine and implement standards such as tentative Jishu-Hozen standards and create
autonomous inspection check sheets.
3) Attend inspection skill training and enhance equipment knowledge, and perform general inspections
to extract and restore minor equipment defects.
4) Record malfunctions, minor stoppages, setup times and display target values and performances on
the activities board.
5) Create ONE/POINT/LESSON and share information and improve skills.
6) Hold meetings with members of the circle and execute role sharing and measure proposals.
7) Superiors will execute step examinations for each step, and staff members will have a sense of
achievement and satisfaction from self-determination.
3. Kaizen: - Establish targets for the elimination of losses by each corporate strata, and
derive a sense of achievement through improvement activities.
4. Training&Education: - Prepare training rooms, learning and practice tools, hold
lectures and drills for maintenance and operation skill enhancement. Furthermore,
participate in external training programs and encourage the targeting of official certification
for HR development.
5. Improvement Case Presentation Sessions: - Internal and external
presentation sessions will be a place for exchange and self-fulfillment.
6. Judgment/Recognition: - The best opportunity to satisfy self-fulfillment.
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F-Tagging

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Initial
Cleaning
and
Inspection

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TPM Award Onsite Assessement

・Kubota Corporation ・ADEKA Corporation


Okajima Plant (old Asahi Denka Co., Ltd)
Akashi Factory
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SEIICHI NAKAJIMA
4-6 Preventive Medicine in Facility=Preventive Maintenance

Preventive Medicine

Daily Physical Early


Prevention Check up Treatment

Prevent Measure Recover


( degradation ) ( )
degradation ( )
degradation

Daily maintenance Inspection Preventive repair


Cleaning, lubrication,
( Tightening, check ) (Diagnosis) (Early exchange)

Preventive maintenance

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日本の設備管理発展史
1950年以前 1950年代 1960年代 1970年代 1980年代 1990年代


後 予防保全時代
保 総合的設備管理(TPM)時代


生産保全時代
4-7 The Preventive, Zero-Focused Mindset
Working profitably = cause control + process control
(The philosophy of prevention – stop problems happening in the first place)

Breakdown

Process
Systems that do not allow breakdowns to happen
= result
‘Deterioration Control’
Causes e.g. Jishu-hozen systems, keikaku-hozen systems
Deterioration

Quality defects

Process
= result Systems that do not allow quality defects to happen
‘Variation Control’
Variation Causes e.g. Hinshitsu hozen systems

Accidents = Process
result Systems that do not allow accidents to happen
‘Risk Control’
Risks Causes e.g. Safety systems

Sales = result
Process

Systems for profitable business


‘Management of Latent Demand’
Latent demand and e.g. Sales proposal systems,
Causes developmental sales systems
dissatisfaction

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4-8 The Basic Approach to Zero Failure

 Equipment does not go wrong by itself:


people make it go wrong;
 By changing the way people think and act,
equipment can be made completely failure-
free;
 People must stop thinking about equipment
as something that goes wrong, and start
thinking about themselves as agents who
can stop it from going wrong, and eventually
get rid of failure for good.

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4-9 The Principles Behind Zero Failure

Bring hidden equipment defects to light and nip them in the bud!
( Preventing Breakdowns )

Breakdowns are only the tip of the iceberg

Failure

- Dust, dirt, contamination by


product or materials
- Wear, looseness, slackness, leaks
- Rust, deformation, scratches,
cracks
- Excess heat, excess vibration,
abnormal noise and other
abnormalities
Hidden equipment defects
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4-10 Overview of the Figure-of-Eight Method for Quality Maintenance

1-1 Investigate quality situation 5-1 Revise QM Matrix


1-2 Identify rules and procedures 2-1 Restore
5-2 Revise standards
2-2 Check results
1-3 Assess compliance
Establish
5 Conditions
1 2
Identify Existing Restore
Situation
CHECK
Sustain Improve
(Observe rules and procedures rigorously) (Tighten up existing rules and procedures,
and replace any missing ones)

Maintain
7 Analyse 4 Eradicate
Conditions 6 Improve 3 Causes Causes
• Perform checks Conditions Investigate causes
• Monitor trends Restore and improve
(Revise the rules to ensure • Reduce number 3-1 Analyse causes Check results
they are observable) • Extend intervals 3-2 Revise standards
• Reduce times
(Make them easier
to observe)
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4-11 Step Implementation of the Active Contrivance to Zero Industrial Accident

Step 1: Current situation survey

Step 2: Overall inspection of danger factors


Measures to
solve Step 3: Create table of danger factors
problems at the
source of danger Step 4: Improvement of danger factors
factor
Step 5: Setup requirements for zero accident

Step 6: Create inspection standards, and


Safety training and drills
maintenance
Step 7: Execute safety diagnosis

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4-12 Essence of TPM SEIICHI NAKAJIMA

Overlapping small-group
organization
Good Set up Hoshin Goal/
Foster autonomous morale Evaluation of result
individual Kobetsu-Kaizen
Good skill (Focused Improvement)
with good morale
and skill Good Jishu-Hozen

The 8 Pillar of TPM


workplace (Autonomous Maintenance)
Keikaku-Hozen
(Planned Maintenance)
Zero Training & Education
Preventive action/ malfunction
Early Management
measures for sources Zero (Product & Equipment)
of problems defect Quality-Hozen
Zero Loss (Quality Maintenance)
Zero TPM in Administrative and
accident Support Departments
SHE (Safety, Health
& Environment)

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5-1 What is VISIONARY COMPANY
SEIICHI NAKAJIMA

<Aim for VISIONARY COMPANY>


James C. Collins and Jelly I. Porras, professors at Stanford University, wrote in
their book that Visionary Companies are “companies with vision, future-oriented
companies, prospective companies, companies excelling in the industry, and
that have won broad-based respect from other companies in the same
industry, and continuously making a big impact on the world.”
A questionnaire survey of the CEO’s of 700 companies was carried out, and 18
companies were selected as target visionary companies for comparative
examination.
3M, American Express, Boeing , Citicorp, Ford, GE, Hewlett-Packard, IBM,
Johnson & Johnson, Marriott, Merck, Motorola, Nordstrom, P&G, Philip Morris,
Sony, Wal-mart, Walt Disney.
The book also states that there are other visionary companies that were not
included in the comparative examination, and that the above companies had fallen
into management crises in the past, but had the power to regain their footing in
spite of the adversity.
An important element of visionary companies is the fundamental principle; in
other words, fundamental value and goal (the reason for the company’s
existence) surpassing mere profit.
It states that the essence of visionary companies is that basic principles and the
ambition for advancement are disseminated to the every corner of the company.
(Cited Reference: BUILT TO LAST by James C. Collins & Jelly I. Porras Japanese version,
Nikkei BP, Ed. 2006)
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SEIICHI NAKAJIMA編集
5-2 GE Revolution by Jack Welch
 When Jack Welch assumed the role of Chairman and CEO of GE in April, 1981, the
company was ranked No.10 in the US, with $25 billion in annual sales, $1.5 billion in
profits, and an aggregated market value of $12 billion.
By 1998, Welch had increased the business to $100.4 billion in annual sales (No.5 in
the US), and $9.3 billion in profits. And the aggregated market value had exceeded
$400 billion by the fall of 1999. This marks a 4-fold increase in sales, a 6-fold increase
in profits and a 33-fold increase in the aggregated market value from 1981.
 As soon as he was appointed CEO of GE, Welch had decided to create a completely
new type of management style and declared that he would put a stop to the then
current management style exercised routinely by most managers; a dominating and
control type military system.
 Welch was confident that his job was take action that would motivate his employees.
The secret was to have the staff feel that they were given authority, in other words, to
help the staff members perceive themselves as the “entrepreneurs.” How could he
make his staff feel that they were a part of management?
Welch had come up with the answer. It was a company-program where each staff
member be his or her own boss named “workout.” (Self-fulfillment/Management
participation)
 Workout is a wide-scope system in which the bureaucracy is reduced and staff
members are encouraged to openly and honestly express thoughts and understand
one another.
Welch strongly believed that staff members with the imagination and innovation to
dramatically improve productivity were those who were actually working on the
frontline.
(Cited reference: The GE WAY FIELDBOOK by Robert Slater, Japanese version, Nikkei BP, 2000.7.)
[注:中嶋]
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5-3 THE ROLE OF MANAGEMENT
There are three tasks that management has to perform to enable the
institution in its charge to function and to make its contribution:
① Establish the specific purpose and mission of the institution.
Management exists to fulfill the mission, i.e. the various purposes, of
their organization. (CS: Customer Satisfaction, SHS: Shareholder
Satisfaction)
② Make work productive and the worker effective. Institutions in
today’s society are increasingly the means through which individual
human beings find their livelihood, find their access to social status, to
community and to individual achievement and satisfaction. (ES:
Employee Satisfaction)
③ Manage social impacts and social responsibilities, and help to
address social issues. (SS: Social Satisfaction, GS: Global
Satisfaction)

(from P F Drucker’s Essential Writings on Management, adapted by S


Nakajima)

36 Copyright 2007 JIPM-Solutions


5-4 Using TPM to Make “5S Management" a Reality!

Maximum Satisfaction
• CS (Customer Satisfaction): Satisfying QCD requirements

• ES (Employee Satisfaction): Fulfilling self-actualization needs

• SS (Social Satisfaction): Corporate social responsibility

• GS (Global Satisfaction): Conserving the global environment

• SHS (Shareholder Satisfaction): Securing profits and dividends

37 Copyright 2007 JIPM-Solutions


5-5 Volvo Gent Factory (FY 1999 World Class Award)
SEIICHI NAKAJIMA

<Case of 5S management satisfaction improvement with TPM>

- Five improvements in satisfaction with continued TPM -

By realizing an individual order production system, the


company aimed for a significant reduction in lead time with
98% of deliveries with an average of 5 days. Furthermore,
autonomous maintenance activities were expanded, cost
control was tackled by all, including operators, and
advanced simulation programs were utilized to deal with
reduction in the trial production period. These measures had
significantly improved the 5S’s: CS/ES/SS/GS/SHS
(shareholder).
With the above measures conditions for prosperity as an car
assembly factory were established.

38 Copyright 2007 JIPM-Solutions


5-6 Aim to be VISIONARY COMPANY
SEIICHI NAKAJIMA

Basis for “the making of a product” is


“the making of people”

Top management itself should lead in making


TPM (self-fulfillment/participating-type
management) the common corporate culture,
in fostering human resources and in aiming to
become a VISIONARY COMPANY (No.1 in
the industry, No.1 in the world)!

39 Copyright 2007 JIPM-Solutions


END
Thank you for your kind attention!!

40 Copyright 2007 JIPM-Solutions

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