Henkel

By Gordon Hill, TPM Facilitator

1.0 Background issues

Henkel Consumer Adhesives is famous for producing the world's biggest-selling adhesive brands, including Unibond, Pritt, Loctite, Solvite and Copydex. The site in Winsford, Cheshire, manufactures 28 000 tonnes of home improvement products each year. With over 900 product types, its famous Pritt glue stick has 80 per cent market share and enough Solvite wallpaper paste is bought each year to paste a roll of wallpaper thirty times around the world!

Its parent company, Henkel, employs 55 000 staff in eighty countries and manufactures 11 000 products with an annual turnover of £7 billion.

In 1996, an audit of the maintenance function at the Winsford site was commissioned by Operations Director, Mark Hamlin, and Engineering Manager, Mike Williamson. As a result, a Computerized Maintenance Management System (CMMS) was introduced to manage the data necessary to evaluate production effectiveness. As no off-the-shelf database system had the functionality Henkel was looking for, the company decided to develop its own system using Microsoft Access.

With a background in computer systems, Business Process Manager, Gordon Hill, was seconded into the Engineering Department as full-time TPM Facilitator, with the objectives of managing the introduction of Total Productive Maintenance throughout the plant and developing the CMMS.

The focus of TPM made Henkel re-evaluate the way in which data was collected. They discovered that most of the information was not only already available, but often duplicated in a series of forms which all ended up in different places, some never being used.

One of the first things Gordon Hill did, therefore, was to develop one all-inclusive input form containing all the necessary data required for the CMMS. Each form has a workings section for individual operators to calculate their shift Overall Equipment Effectiveness (OEE), involving them in the process of data collection and processing and therefore giving ownership for the quality of the information.

The database system played a big part in the flow of information. The results of OEE data input into the CMMS are fed back to team leaders each morning. The question is then asked each day: 'Did we achieve the production plan?' But whereas before the answer Yes or No would simply be collected for discussion at a weekly management meeting, this time if the answer is No, the next question will be 'Why? Why? Why?'. If the answer is Yes, then follows, 'At what cost?'

Effective communication between the shopfloor and the maintenance function at Henkel was hampered by an over-complex organization structure. The structure of the management team was therefore reduced from seven layers to four and the Operations Manager united the two functions of

On the shopfloor, production teams were organized by process rather than function. Each team became multi-functional, including members from planning, materials movement, warehousing and, of course, maintenance. The core team was then supported by a number of key contacts from Quality, Engineering, Design, Finance, Purchasing, R&D and Marketing.

Existing supervisors were developed into ten team leaders, where each team leader is an integral part of the production team rather than simply being another layer of management. Each team was then given a deputy to support the team leader and to act as the team's trainer. Together the teams and their key contacts can now focus on the elimination of losses across the

Says Gordon Hill: 'Many initiatives have made attempts at improving productivity, but only one, TPM, provides a pragmatic approach that can be understood by everyone at the grass-roots level: namely a continuous drive to increase OEE.' Henkel found that another of the big strengths of OEE is that it gives the ability to measure the cost of poor quality in monetary terms.

Continues Gordon: 'The OEE is at the heart of TPM. Many companies believe that TPM is limited to being a maintenance department-driven initiative. It can be, but it is much more effective to use TPM as a holistic approach to equipment and operational effectiveness, involving finance, operators,

With the concept of the CMMS established, TPM was launched, via the

1 A pilot study, supported by leading TPM consultancy, WCS International, helped Henkel to understand the impact and scope of TPM on

2 This was followed by a number of awareness presentations for all 240

3 WCS then conducted key contact training for a number of middle managers to give them a more in-depth understanding of TPM and to gain their personal input and commitment to the process.

4 Finally, staff directly involved in the pilot project attended a four-day hands-on workshop to experience everything that the teams would cover in the following months. This gave a clear focus for future TPM activity.

5 The pilot was concluded with a feedback presentation at the end of 1997 and, because of the significant and measurable improvements achieved, it was agreed that TPM would go live across the site in July 1998.

A condition appraisal, refurbishment and asset care routine was implemented for each piece of machinery by the end of October 1998, followed by the in-house retraining of all operators. Maintenance fitters meanwhile completed cross-craft training in order to improve the flexibility of the maintenance department by removing 'mechanical' and 'electrical' barriers.

A range of best practice routines were developed by the teams via the introduction of single-point lessons (SPLs) for each machine and will be rolled out across the site in the early part of 1999. The SPLs act as highly visual and simple to understand training aids and are particularly invaluable for Henkel due to seasonal peaks of temporary staff.

The SPLs are used in conjunction with a four-sector competency wheel so that the aptitude of each staff member for each SPL for each machine is monitored and developed in the form of a training matrix. Flexibility is a key factor, so every operator has a training plan that ensures capability and competence across a number of lines.

The SPLs will be launched through the personnel function, and so TPM is becoming a significant part of the Human Resources Department, as well as the Finance Department. Not only will the SPL and training matrices go towards the company's Investors in People accreditation, but they will play a significant part in evaluating competency levels when the pay structure is reviewed later in 1999.

TPM Facilitator, Gordon Hill, planned and prepared each SPL with the TPM teams, with meticulous attention to detail, prior to the introduction of the full set of documents to the shopfloor. An excellent example of heeding the adage 'Failing to prepare means you are prepared to fail', Gordon Hill and his shopfloor colleagues have invested a great deal of time to ensure that Henkel gets it right first time, every time.

Quotable quote

The OEE calculation is without doubt the single most impressive feature of TPM. For the first time it was possible to measure the total cost of non-conformance in a simple and straightforward way.

Gordon Hill, TPM Facilitator

3.0 Benefits

Team focus

The two teams in the pilot study, conducted in the summer of 1997, realized valuable improvements after just four months.

The Fischbach team began with an OEE of 45 per cent, which they improved by 6 per cent to 51 per cent. An improvement target of an 80 per cent l^est of best' OEE has been set, which has a projected cost saving of £45 000 per annum.

Meanwhile, the CTA team raised their OEE from 37 per cent to 46 per cent. The best of best for this team shows that 74 per cent is possible. When realized, this will result in a reduced operating cost of £44 000 per annum.

When extrapolated across the site, realistic improvements in OEE have the potential to make a significant impact in reducing costs.

Although only in its early stages, the introduction of a TPM culture at Henkel and use of the OEE measure throughout the plant has already given the company some valuable benefits.

The introduction of the CMMS means that valuable data can be recorded, from machine speeds and product information to shift patterns and planned vs. actual stoppages. A detailed 'six losses' report is produced on a daily, weekly and year-to-date basis, highlighting every single loss, however small. Says Gordon: 'A loss of two minutes may seem insignificant in itself, but not when records show it is happening 500 times a week!'

The report is used to illustrate the most common losses both across the plant and by machine, giving focus and direction to TPM improvement teams and allowing detailed attention and action to take place. It also gives target OEE for specific improvements relating to individual losses, and thus projected forecasts of cost savings are generated. This is then approved by the Finance Department as a recognized cost-reduction programme.

Benefits

• Two TPM projects, launched in November 1998, are already projecting a manufacturing cost reduction of 20 per cent per annum.

• Every line in the factor)' now has an OEE benchmark.

• Every line now has improvement targets.

• Every project on each line now has its own set of improvement values with respect to availability, performance and quality rates.

• There is an awareness regarding the issues affecting the productivity of each line.

• The data emanating from the OEE module of the CMMS is helping to drive the company's continuous improvement projects.

• Henkel now has the ability to analyse production problems on a daily, weekly and year-to-date basis, allowing trends to be pinpointed and opportunities for improvement to be mastered.

4.0 The future for TPM

Although only in their first year of implementing TPM, the programme has already realized tangible financial results. Good and consistent planning means that the future will be based upon firm foundations and a determination to move forward to realize the full potential of a site-wide TPM and continuous improvement programme.

RHP Bearings

By Danny McGuire, General Manager, and Kevin O'Sullivan, TPM Facilitator

1.0 Background issues

RHP Bearings in Blackburn, which manufactures cast iron bearing housings for a variety of uses from agricultural machinery to fairground rides, is one of seven RHP manufacturing sites in Europe owned by Japanese group NSK, the world's second largest bearings manufacturer. NSK acquired RHP in 1990, when the Blackburn site was under the imminent threat of closure because of high costs and the subsequent lack of competitiveness.

Employing 93 staff and producing 220 product types, RHP Bearings Blackburn has turned its fortunes around through the efforts of its workforce and the support of NSK. Total Productive Maintenance (TPM) was introduced to the site in 1993 and has since become the driver of all continuous improvement activities. As a result, RHP Bearings has reduced unit costs, increased productivity and attracted capital investment to the site - all under a no-redundancy agreement.

The site is now so flexible in terms of customer response that it can turn a product around in less than two days, compared to two weeks in the early 1990s.

The company's rise from the ashes towards becoming a world-class organization has been recognized by a series of prestigious awards, including Investors in People, the Business Environment Association, North West Quality Award and ISO 14001 environmental status (one of the first iron foundries in the world to achieve it). The site has also been used as a case study visit for last year's TPM5 Conference. All this has been achieved through the rigorous implementation of the TPM methodology.

Although first introduced five years ago, TPM has only become an integral part of the company culture since it was reinvigorated eighteen months ago. Until then, previous efforts to drive TPM had failed because it was largely theoretical and the workforce failed to see its relevance to the everyday running of the plant.

Then in early 1996 WCS International was brought in to do a scoping study of the plant, run a four-day workshop in conjunction with Lynn Williams of the AEEU, and to launch and support two pilot TPM projects. This time, under the leadership of Plant Manager, Danny McGuire, and TPM Facilitator, Kevin O'Sullivan, TPM was made directly relevant to the jobs of the staff.

Operators were sent off to climb over their machines and log problems through a detailed condition appraisal, to establish a foundation for future TPM improvements.

TPM was piloted on two key machines, the PGM core making machine in the foundry and the Shiftnal sphering machine in the machine shop, using a detailed seven-step TPM implementation programme:

1 Collection and calculation of Overall Equipment Effectiveness (OEE) data

2 Assessing the six losses

3 Criticality assessment and condition appraisal

4 Risk assessment

5 Refurbishment plan

6 Asset care and best practice routines

7 Regular review for problem solving

TPM is currently implemented at the site by nine different TPM equipment teams, involving 60 per cent of the workforce.

TPM is applied to machines of all ages - from new to 30 years old -ensuring that older machinery is brought up to modern specification and newer machinery is kept in 'as-new' condition. TPM can also help the running of new machines in other ways. For example, the new shot blast machine runs at an OEE of just 60 per cent due to hold-ups in other parts of the foundry process. TPM has identified the external bottlenecks to allow the machine to work to its full potential.

The cross-functional teams include operators, maintainers, quality technicians and group leaders. These core teams are supported by Kevin O'Sullivan and can also draw on the skills of key contacts from other areas. For example, Quality Associate and Toolmaker, Alan Shaw, works for four teams as a key contact because of his specialist skills.

Each team has worked hard to develop a standard TPM routine for its respective machine, using the following methods:

• Autonomous Maintenance System (AMS) boards

These mobile boards show a schematic of the machine which the operator then tags with labels to show losses affecting availability, performance and quality. The labels are then used to generate an agenda for TPM team meetings.

• TPM step notices Notices on each machine illustrate its current stage in the seven-step process.

• Mainpac database An in-house database is used to gather machine performance data and calculate OEE. The system is also used to assess the over-maintaining of machinery, where OEE results are consistently good but maintenance levels high.

• Key performance indicators Each team assesses itself according to progress and improvements in the following areas:

- Waste sand

- gas emissions

- Kaizen/continuous improvement

- Attendance

- Customer returns

- Lost time accidents

- Injurious accidents

- Audit conformance

- Product conformance

- Mainpac reports

- Activity boards

Each team has an activity board covering subjects such as milestone activities, for example schedule adherence Gust in Time), key performance indicators, training status, health and safety, today's quality actions and previous day's conformance report by production, scrap and target.

• Total Manufacturing Concept (TMC), A system which pinpoints actions for each machine, each month, under headings of Quality, Cost, Delivery and People.

• Quarterly housekeeping audits.

• Shadow boards Each area now has shadow boards for storing tools in an ordered and easily identifiable way.

• TPM for Design TPM for Design principles are applied when specifying new machines and processes.

To keep abreast of such a variety of routines, the teams have to dedicate substantial time to TPM activities, as well as flexibility to ensure that a meeting deferred is not a meeting abandoned. In spite of production pressures, TPM team members recognize that they have to 'take time to save time'.

3.0 Benefits

TPM has both a direct and an indirect effect on a production system. The direct effects are easier to assess and are directly quantifiable (see Table 11.1).

The indirect effects can be ascertained from more subjective measures, such as morale and absenteeism levels, which show themselves as an increase in the efficiency of the overall production system. Estimating cost savings involves looking at a variety of factors, from labour and materials costs to energy savings and increases in production capacity.

Indirect savings attributed to TPM include sharing of best practices, both across the shifts and with the site in general, and TPM teams solving problems that have a beneficial effect on unrelated areas, e.g. improving stock control systems.

The combination of indirect and direct effects at RHP Bearings Blackburn generated major savings. Major site-wide benefits from TPM activity were scored in the following areas:

• Unit cost reduced by 21 per cent

• Scrap reduced by 8 per cent

• Attracting increased capital investment currently at 15 per cent of turnover

• Customer returns reduced by 11 per cent

• Increased customer satisfaction

• Improved safety record

• Environmental and quality awards

• Improvement in staff morale

Table 11.1 Example of four TPM Teams

Direct TPM savings

Direct TPM savings

Table 11.1 Example of four TPM Teams

Team

Saving

Main benefits from:

Beach Boys

£50 000

Set-up reduction

0 0

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