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Relative loss analysis in small scale industries within the proposed
1.
INTERNATIONAL Production Technology
and ManagementTECHNOLOGY AND International Journal of JOURNAL OF PRODUCTION (IJPTM), ISSN 0976 – 6383 (Print), ISSN 0976 – 6391 (Online) Volume 4, Issue 1, January – April (2013), © IAEME MANAGEMENT (IJPTM) ISSN 0976- 6383 (Print) ISSN 0976 - 6391 (Online) Volume 4 Issue 1 (January - April 2013), pp. 01-10 IJPTM © IAEME: www.iaeme.com/ijptm.asp Journal Impact Factor (2013): 4.3285 (Calculated by GISI) ©IAEME www.jifactor.com RELATIVE LOSS ANALYSIS IN SMALL-SCALE INDUSTRIES WITHIN THE PROPOSED MARATHWADA AUTO CLUSTER IN INDIA 1 2 Abhay B. Kulkarni and Dr. B. M. Dabade 1 Assistant Professor, Jawaharlal Nehru Engineering College Aurangabad, India 2 Professor, S.G.G.S. Institute of Engineering and Technology, Nanded, ABSTRACT In today’s competitive manufacturing environment organizations focus on preventing all the 16 losses described in the total productive maintenance (TPM) philosophy. This paper aimsto provide some insights on the relative scale for assessment of these 16 lossesin the small-scale industries within the jurisdiction of the proposed Marathwada Auto Cluster in India. Using a case study based on survey methodology is this paper conductsrelative loss analysis in small-scale industries in order to aid improving the effectiveness and efficiency in proposed auto cluster. Specially, the insights gained from this study are expected to assist managements of manufacturing organizations in prioritizing training and other TPM issues. Keywords: Total productive maintenance, losses, survey, small-scale industries, automobile industry I. INTRODUCTION Total productive maintenance (TPM) can be described as management philosophy based on zero-loss concept. In 1961 Japan Management Association (JMA) established plant maintenance committee. In 1969 this plant maintenance department was dissolved and Japan Institute of Plant Engineers was (JIPE) was established [1], [2]. In 1971 concept of TPM is proclaimed [3]. In fact Nippon Denso Co. in Japan was the first company who implemented successful program of total productive maintenance in 1971. Seiichi Nakajima, that time vice-chairman of the Japanese Institute of Plant Engineers known as father of TPM promoted concept of TPM throughout Japan in those days.In 1981 Japan Institute of Plant Maintenance (JIPM) was established as charitable corporation [4], [5], [6]. TPM club of India was 1
2.
International Journal of
Production Technology and Management (IJPTM), ISSN 0976 – 6383 (Print), ISSN 0976 – 6391 (Online) Volume 4, Issue 1, January – April (2013), © IAEME established in 1998 as joint venture between JIPM and Confederation of Indian Industry (CII). In 2004 Japanese government passed new legislation regarding overseas operations of non-profit corporations. In effect JIPM Solutions (JIPMS) a TPM consulting company was born in a 2005 split of Japan Institute of Plant Maintenance under order of the Ministry of Economy, Trade and Industry, Japan. As a result consulting, publishing and seminar services are associated with JIPMS. Now obviously TPM club of India is joint venture of CII and JIPMS. In period of last decade and half TPM club of India has been key instrument to inculcate TPM philosophy in Indian industries. Though long way still to go on implementation part of TPM in Indian industry but on awareness part it has already made significant impact on almost entire Indian industries. Most of the prominent automobile manufacturers and their primary vendors have adopted the total productive maintenance (TPM) philosophy. In contrast these manufacturers’ secondary vendors, which are considered sub vendors in small-scale industries (SSIs) have only started or partially implemented TPM. This study performs relative loss analysis in the jurisdiction of Marathwada Auto Cluster in India. This auto cluster was recently (on 31st August 2012) established by Ministry of Commerce and Industry in India in the Maharashtra under the Industrial Infrastructure Up-gradation Scheme (IIUS) of the Department of Industrial Policy and Promotion. The primary objective of the IIUS is to improve the recognition and credibility of domestic manufacturers in international markets. The scheme will emphasizes conducting strategic interventions to convert static local efficiency into dynamic competitiveness through the following ways -promoting innovation and collective learning -creating suitable, customized, infra structural support and service networks -promoting product design and development through focused support and partnership with specific R&D institutions -assisting manufacturers in setting up /or developing common facilities such as testing, design, information dissemination and -assisting appropriate technology transfer, information sharing and quality improvement. All the auto components manufacturers in this cluster as well as rubber and polymer manufacturing associations have cooperated or expected to cooperate in the promotion and development of this cluster. Renowned institutions including engineering colleges, R&D institutes, banks, financial Institutions and various government agencies are also involved in IIUS. This paper estimates relative losses as defined in TPM way in SSIsin order to provide insights on how to minimize such losses. II. LITERATURE REVIEW TPM is basically maintenance, management, culture and improvement [7]. TPM focus on self-managing abilities in people and practices. According to Ben-Daya and Duffuaa [8] TPM has identified strong link between quality and equipment maintenance. Aim of TPM is to increase profitability by elimination equipment breakdowns, by 2
3.
International Journal of
Production Technology and Management (IJPTM), ISSN 0976 – 6383 (Print), ISSN 0976 – 6391 (Online) Volume 4, Issue 1, January – April (2013), © IAEME reduction in setup times, by eliminating minor stoppages, up keeping the speeds and improving the quality thus finally improving overall equipment effectiveness (OEE) [9]. Frequent equipment failures, more idling of the instrument, minor stops are common in Indian manufacturing nvionment [10].To achieve overall equipment effectiveness, TPM works to eliminate the “six big losses” defined by Nakajima [11], namely: a) equipment failure; b) setup and adjustment; c) idling and minor stoppages; d) reduced speed; e) process defects; f) reduced yield. However, in today’s competitive manufacturing environment, organizations as part of TPM initiatives focus on reducing all the 16 types of losses, described as follows [12], [13]: 1. equipment failure losses: These are due to time lost in breakdown maintenance 2. set-up and adjustment losses: This is due to time lost in setting the machines 3. tool change losses: these are due to time lost in replacement of grinding wheels, press tools, cutting tools, milling cutters and similar reasons 4. start-up losses: it is due to time lost in stabilising the manufacturing processes to smooth production 5. minor stoppage losses: these due to small interruptions in the process such as limit switches not working, scrap stuck up in jaws or similar problems 6. speed losses: these are because of time lost as equipment not running as per standard speeds and feeds 7. defect losses: these are due to rejections and reworks of products 8. shutdown losses: these are due to time lost in preventive maintenance, planned maintenance and autonomous maintenance 9. management losses: these are due to time lost in getting material, tools, drawings, measuring instruments, work instructions 10. motion losses: these are losses due to avoidable movements; particularly of man and material 11. line organization losses: these are due to bottlenecks at some machines, time lost for waiting of next operation 12. line organization losses: these are losses due loading, unloading, shifting of the materials 13. measurement and adjustment losses: These are due to time lost in inspection of parts and necessary adjustments 14. yield losses: these are volume losses due to difference in weight of raw material and finished product 15. energy losses: these are due to input energy not used effectively, these are due to wastage of electricity, fuel 16. die/jig/tool losses: these are extra expenses needed for replacement of dies, jigs, tools that have broken or aged beyond service life or breakage In Indian industries typically 8-pillar approach is used for planning and implementation of TPM. Implementation of TPM process starts with Japanese 5Ss housekeeping principles.The five principles popularly known as 5S’s, come from the first five letters of 3
4.
International Journal of
Production Technology and Management (IJPTM), ISSN 0976 – 6383 (Print), ISSN 0976 – 6391 (Online) Volume 4, Issue 1, January – April (2013), © IAEME the five Japanese terms, namely Seiri(organisation), Seiton(neatnes), Seiso(cleaning), Seiketsu( standerdisation), and Shitsuke( discipline). All the TPM pillars are on the firm base of 5Ss.The 8-pillars and their objectives in implementation of TPM are as follows: 1) Kobetsu Kaizen or Focused Improvements ( KK ) : To monitor and reduce losses resulting in effective utilisation of machines, men, material, energy 2) Jishu-Hozen or Autonomous Maintenance (JH): To take care of machines /by operators themselves, to inculcate culture of clean, lubricate, inspect and retighten ( CLIRt) in the shop, to bring ownership of machine operator 3) Planned Maintenance (PM): To ensure the equipment function at its optimum level To plan for preventive maintenance and to ensure equipment condition at its best at minimum cost 4) Quality Maintenance (QM): To produce defect free product and install sustainable systems for defect prevention 5) Development Management (DM): a) New product development in minimum lead time with goal of the product should be OK ; right at first time. b) To develop new machine free from losses, defects and unnecessary cost 6) Education and Training (ET a) To plan and prepare training matrix for all the employee b) To identify needs of training c) To train staff and workers to nurture attitude and improve the skills needed 7) Office TPM (OTPM): To implement five s and TPM in all the departments so that synergistic results are obtained. 8) Safety, Health and Environment (SHE): a) To reduce number of accidents b) To create safe, healthy, fearless working conditions c) To ensure clean and green working environment A KK committee is formed with plant head as chairman and 5-8 members representing different department heads. Number of members in the committee may vary as per size of the organisation. This KK committee considers all the 16 losses as discussed above and prepares or estimates entire loss structure in the company. Generally equipment failure loss is worked out in PM pillar and defect loss is monitored in QM pillars. All other losses are monitored in KK pillar with systematic efforts for elimination or reduction. Losses are further specified machine wise; department wise etc. and further to those priorities are decided. Accordingly project teams are assigned to work on specific losses. Remaining losses may be addressed by KK committee. The KK committee has following tasks: a) recording, categorizing and analysing 16 losses machine-wise, department-wise, unit-wise and company-wise b) calculation and analysis of overall equipment effectiveness (OEE) c) based on business needs set priorities for losses d) develop master plan for KK pillar e) select Kaizen ( continuous improvement) themes based on lossesmonitor the Kaizen and OEE 4
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International Journal of
Production Technology and Management (IJPTM), ISSN 0976 – 6383 (Print), ISSN 0976 – 6391 (Online) Volume 4, Issue 1, January – April (2013), © IAEME Figure-1 A typical 8-pillar approach for implementation of TPM (as suggested by JIPM and TPM club of India) Hence it is quite evident that estimation, analysis and reduction or elimination of 16 losses is of prime importance as a part of implementation of TPM. Given the significant amount of expertise involved in TPM activities, training initiatives in SSIs are important. For these training initiatives and further implementation of TPM in SSIs loss-related data are needed. III. RESEARCH METHODOLOGY In the prevailing highly competitive business environment, manufacturers are more quality conscious and thus more concerned about quality losses than other equipment-related losses or defects. This tendency was observed in the response of small and medium industry (SMI) manufacturers when they were asked to classify their equipment losses into six broad categories [8]. It was observed that most of them were mainly took care for reducing defect losses. However a very little initiative was observed towards the recording and reduction of other losses [14]. Many enterprises measure downtime in one way or another. In most cases, downtime is measured in an ad hoc and is often recorded as repair time. Minor stoppages are, in many cases, not considered and neither are speed losses. Furthermore many companies are not aware of and do not address for performance losses [15]. 5
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International Journal of
Production Technology and Management (IJPTM), ISSN 0976 – 6383 (Print), ISSN 0976 – 6391 (Online) Volume 4, Issue 1, January – April (2013), © IAEME The measurement inconsistencies in the context of our study are worse than those in above mentioned previous studies. Companies within SSIs work with many contract workers and are run in a proprietary way. Consequently we encountered significant difficulty in obtaining data on the 16 losses for these SSI companies. Similarly such data for many of the companies in medium and large scale industries are not available. Therefore we decided to collect the required data using survey questionnaire where respondents answer questions using a Likert-type scale (1= minimum relative loss to 5 = maximum relative loss).This questionnaire was developed following our discussions with entrepreneurs (CEOs of SSI) and industry experts. To reach more number of respondents in short time we decided to collect the data through e-mails. To ease the respondents to reply a template containing the questionnaire was sent as attachment to the e-mail. In the covering note written in e-mail the research purpose was clearly mentioned and the process of replying the mail using template was described. The list of SSIs for data collection was obtained from source at Marathwada association of small scale industries and agriculture. (MASSIA) We used a grounded theory approach in this study. A grounded theory project typically does not begin with a theory from which hypotheses are deducted rather, it starts with a field of study or a research question and what is relevant to this field or question emerges during the research process [16]. We also constructivism approach which falls under the broader interpretative perspective. Constructivism examines the meanings individuals create to describe the world around them. Meaning occurs as a result of the individual’s interaction with the world and particular biases of that individual [17]. In developing the survey questionnaire, which contained both open-ended and close-ended questions, we conducted an extensive literature study sought the advice of two industry experts. The questionnaire was consisting broadly five sections. First section was related to primary information regarding the respondent and his SSI. Second closed-ended question was to get data regarding number of machines and duration of use. The third section was related to number of modifications in the equipment or machine done. The fourth section was related to this study regarding the losses and last section was consisting open-ended question related to details of modifications of equipment or machine.From the responses to section one, two and three we could judge the reliability and validity of the data in qualitative manner. The questions in section four measured the 16 losses through a Likert-type scale (1 = minimum relative loss to 5 = maximum relative loss). Since the scope of study was limited a specific geographic area, under Marathwada Auto Clusterwe mailed the questionnaires to the various SSIs in the area. However, in order to richer data, we also mailed the questionnaires to SSIs from nearby areas of Maharashtra state (in the cities Pune and Nasik) comprising10% of our sample. We have two main reasons for selecting a small sample for our study. First, a small sample that has been systematically selected for typicality and relative homogeneity provides far more confidence that the conclusions adequately represent the average members of the population than does a sample of the same size that incorporates substantial random or accidental variation. Second, purposeful sampling can be used to adequately capture the heterogeneity in the population [18]. We mailed the surveys to a total of 53 SSIs, of which 4 declined to participate for a reason. Through reminders and follow-ups by mail and phone from the remaining 22 out of the 49 remaining SSIs eventually returned the completed questionnaires by e-mail ., yielding a response rate of 44.9%, which is slightly less than adequate rate of 50% [19]. A few questionnaires were incomplete, and the unanswered data was confirmed. As mentioned 6
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International Journal of
Production Technology and Management (IJPTM), ISSN 0976 – 6383 (Print), ISSN 0976 – 6391 (Online) Volume 4, Issue 1, January – April (2013), © IAEME earlier, 10% of the respondents were taken from surrounding the auto cluster. Figure- 2 shows the result of this survey. Reliability We tested the reliability of the instrument’s internal consistency. The Cronbach’s alpha was 0.98, which is far better than minimum level of 0.60 [20]. Furthermore, the split-half (odd- even) correlation was 0.90. These results show that the survey instrument is sufficiently reliable. Content validity The general idea of validity allows for gradations in the confidence readers can have on proposed knowledge claims [21]. The determination of content validity is subjective. Since we developed the questionnaire based on an extensive literature survey and following our discussion with industry experts we consider the survey questionnaire content to be sufficiently valid. A theory must be tested by replicating the findings in a second or even a third neighbourhood, where the theory has specified that the same results should occur. Once such direct replications have been made, results might be accepted as providing strong support for the theory [21]. Hence, we replicated the survey among working professionals in the medium and large-scale industries and who were referred to as "units-in-charge" in the present study. Unit In-charge is general common phrase used for section head, department head or plant head.In this second survey, the questionnaire was mailed to 67 respondents, 8 of whom informed us either by phone or by mail of their inability to participate in the survey due to professional and other reasons. Out of the remaining 59 participants, 23 eventually responded, response rate of 39 %, which is lower than the acceptable 50%. However, considering the professional scenario in the private sector in India, this response rate is quite good. Out of the 23 responses, three 3 were eliminated due to incompleteness and other reasons. The respondents in this survey were professionals from in various positions, from engineers to general manager in from different departments in different companies in different regions in India. Although the majority were from the automotive sectors, 10% were from other industries. About 80–90% of the respondents’ organizations have adopted TPM. The results of this second survey differed according to the working environment, and geographic locations. We conducted this survey in order to validate the first survey. The importance of this second survey is that most of the respondents worked for original equipment manufacturers- (OEMs) that have been implementing TPM for the past few years. In this survey, the Cronbach’s alpha and the split-half (odd-even) correlation were both 0.90, reliability. Since we used the same questionnaire, which was developed based on an extensive literature survey and following a discussion with industry experts, we consider the survey questionnaire content to be valid. The results of this survey are shown in Figure- 3. We observed similar trends in the graphs of the results from the two surveys (Figure- 4) indicating validity. The slight variation in terms of minor stoppage loss may be because minor stoppages are not accounted for separately in SSI companies. This finding is consistent with that of Ljungberg [15]. In addition, the slight variation in terms of yield loss may be because the respondents in the second survey were sub -vendors of OEMs. Generally it is observed that while assigning the work to sub-vendors, many parameters are closely monitored hence probability reduction in yield loss is more. 7
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International Journal of
Production Technology and Management (IJPTM), ISSN 0976 – 6383 (Print), ISSN 0976 – 6391 (Online) Volume 4, Issue 1, January – April (2013), © IAEME IV. RESULTS AND DISCUSSION The survey results for the survey on the SSI companies in the proposed Marathwada Auto Cluster and on the medium and large scale industry companies in the surrounding areas are shown in Figures 2 and 3, respectively. From these two figures, we can directly compare the results for the two broad industry classifications. V. CONCLUSION The survey results for SSI companies in the proposed Marathwada Auto Cluster, in India revealed that out of the 16 losses encountered during the implementation of TPM, the most significant are speed losses, defect losses, management losses, line organization losses, and measurement and adjustment losses. This finding is useful for determining priorities of training initiatives, assisting appropriate technology transfer, and developing common facilities for TPM implementation in SSI companies in the region. Similar results were obtained in the survey of medium and large scale industry companies, and thus, the results may be generalizable to other industries in India. However, further research is required to confirm this generalizability. For SSIs due to many constraints such as manpower there is little scope for data collection for all the losses hence one of the loss can be measured and with the help of these results other losses can be approximated adequately. ACKNOWLEDGEMENTS The authors would like to thank the professionals in the Marathwada Auto Cluster and nearby areas who participated in survey, as well as to the entrepreneurs and industry experts for their valuable inputs to the survey questionnaire. Figure-2Relative loss analysis of 16 losses in small-scale industries 8
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International Journal of
Production Technology and Management (IJPTM), ISSN 0976 – 6383 (Print), ISSN 0976 – 6391 (Online) Volume 4, Issue 1, January – April (2013), © IAEME Figure-3Relative loss analysis of 16 losses in medium and large scale Industries Figure-4 Comparative study of 16 losses in SSIs and medium and large scale industries REFERENCES [1]. Kathleen E. McKone, Roger G. Schroeder and Kristy O. Cua, Total productive maintenance: a contextual view, Journal of Operations Management, 17, 1999, pp. 123- 144. [2]. Kathleen E. McKone, Roger G. Schroeder and Kristy O. Cua, The impact of total productive maintenance practices on manufacturing performance, Journal of Operations Management, 19, 2001, pp. 39-58. [3]. David Hutchins, Introducing TPM, Manufacturing Engineer, February, 1998, pp. 34-36. [4]. Hongyi Sun, Richard Yam and Ng Wai-Keung, The implementation and evaluation of Total Productive Maintenance (TPM)-an action case study in a Hong Kong, The International Journal of Advanced Manufacturing Technology, 22,2003, pp. 224-228. 9
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Production Technology and Management (IJPTM), ISSN 0976 – 6383 (Print), ISSN 0976 – 6391 (Online) Volume 4, Issue 1, January – April (2013), © IAEME [5]. Marcelo Rodrigues and Kazuo Hatakeyama, Analysis of the fall of TPM in companies, Journal of Materials Processing Technology, 179, 2006, pp. 276-279. [6]. Dr. Nguyen Dang Minh, Practical application of total productive maintenance in Japanese industrial manufacturing plants, VNU Journal of Science, Economics and Business, 27(5E), 2011, pp. 53‐65. [7]. Abhay B. Kulkarni and B. M. Dabade, Investigation for development of new tool in DFX shell through literature survey: Design for TPM, International Journal of Design and Manufacturing Technology (IJDMT), 4(1), 2013, pp. 14-29. [8]. M. Ben-Daya and S.O. Duffuaa, Maintenance and quality: the missing link, Journal of Quality in Maintenance Engineering, 1(1), 1995, pp. 20-26. [9]. Peter Willmott, Total quality with teeth, The TQM Magazine, 6(4), 1994, pp. 48-50. [10]. Gaurav Gera, Gurpreet Saini, Rajender Kumar and S. K. Gupta, Improvement of operational efficiency of equipment through TPM: A case study, International Journal of Industrial Engineering Research and Development (IJIERD), 3(1), 2012, pp. 67-73. [11]. Seiichi Nakajima, Introduction to TPM, Productivity Press, 1989. [12]. Kobetsu Kaizen Manual. Available from:http:// tpmclubindia.org /pdfs/Manual% 204% 20-Kobetsu Kaizen.pdf [13]. I.P.S. Ahuja, J.S. Khamba, Total productive maintenance: literature review and directions, International Journal of Quality and Reliability Management, 25(7), 2008, 709-756. [14]. Shamsuddin Ahmed, MasjukiHj. Hassan and ZahariTaha, State of implementation of TPM in SMIs: a survey study in Malaysia, Journal of Quality in Maintenance Engineering, 10(2), 2004, 93-106. [15]. Orjan Ljungberg, Measurement of overall equipment effectiveness as a basis for TPM activities, International Journal of Operations and Production Management,18(5), 1998, pp. 495-507. [16]. Vera Bitsch, Qualitative research: A grounded theory example and evaluation criteria, Journal of Agribusiness, 23(1), 2005, pp. 75-91. [17]. Nancy Van Note Chism, Elliot Douglas, Wayne J. Hilson, Jr., Qualitative research basics: A guide for engineering educators, Rigorous Research in Engineering Education, 2010. https://cleerhub.org/resources/8. [18]. Joseph Maxwell, Designing a qualitative study, In: BickmanL, Rog DJ. Editors. The SAGE Handbook of Applied Social Research Methods, 2nd Ed, SAGE publications, 2008. [19]. Yehuda Baruch, Books C. Holtom, Survey response rate levels and trends in organizational research, Human Relations, 61(8), 2008, pp. 1139-1160. [20]. Dinesh Seth and Deepak Tripathi, Relationship between TQM and TPM implementation factors and business performance of manufacturing industry in Indian Context, International Journal of Quality and Reliability Management, 22(3), 2005, pp. 256-277. [21]. Robert K. Yin, Case Study Research Design and Methods, 3rd Ed, SAGE publications, 2003. 10
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