Optimizing OEE,productivity and production cost for improving sales volume in an automobile industry through TPM: a case study

The aim of this paper is to investigate how increase in sales volume has evolved by improving overall equipment effectiveness (OEE) of machines, plant productivity and production cost through total productive maintenance (TPM) initiatives in a reputed tractors manufacturing industry in India. In the present scenario of global competitive market, the manufacturing industry needs to improve their operational performance for surviving and prospering. TPM is practised by industry as a business tool for rapid and continuous improvement in its manufacturing capabilities. OEE offers a powerful control tool to overcome production deficiencies and operational performance constrains. Productivity and manufacturing cost are also crucial operational measures to analyse the manufacturing performance. In this study, evaluation and analysis of the methodology adopted for improving sales volume through TPM initiatives was carried out using an interactive research approach. The industrial example on the application of OEE tool demonstrates that it has a remarkable potential to enhance the equipment effectiveness. The empirical findings of the study reveal that augmented OEE and productivity, and reduced production cost resulted to double the sales revenue and triple the profit within a period of three years. The industry also achieved notably tangible and intangible benefits with the TPM implementation.     

Antecedents of effective performance measurement system implementation: an empirical study of UK manufacturing firms

This paper examines the antecedents to effective performance measurement system (PMS) implementation. There have been only a few studies which have investigated this topic, and to-date there is no consensus about what factors are significant. Using empirical data collected from 349 UK manufacturing firms, we identify six potential factors from an item pool derived from an extensive literature review. Subsequent regression analysis reveals that all six factors have a significant influence on PMS implementation effectiveness. We characterise these factors into two sub-sets, with the technical sub-set accounting for most of the variance in the dependent variable. We also demonstrate that ‘softer’ social factors additionally have a significant, albeit comparatively small, effect. These, we argue, are essential in order to bind an organisation’s approach to performance measurement into one cohesive whole. Our findings provide managers with a clearer view of the factors which may influence the effectiveness of their PMS implementation. Moreover, we anticipate that the findings should provide empirical stimulation of an important debate about how to ensure that organisations can implement PMSs that are adequate for their purposes. As such, while the findings have current utility, their additional value is in providing a platform for subsequent research.     

精益生产管理提升钢铁企业竞争力

精益生产作为一种先进的生产组织方式,在很多企业被用于流程优化,从而实现成本最低化和利润最大化。本文针对国内钢铁行业的现状,以某一国有大型钢铁企业T公司为研究对象,面对企业管理效率低下、职工素质不高、竞争意识淡薄等问题,从重塑企业文化、推行5S管理、全面生产维护(TPM)、全面质量管理(TQM)4方面实施精益生产,并对该企业取得的成效进行总结,提出建议,为同类企业推行精益生产提供参考。     

Application of interpretive structural modelling for analysis of factors influencing lean remanufacturing practices

The contemporary manufacturing scenario witnesses the adoption of lean remanufacturing concepts in a concerted manner. Lean remanufacturing is a newly evolved manufacturing process concerned with manufacturing and remanufacturing of products to effectively utilise available energy and resources, while reducing wastes in the process and thereby increasing efficiency. The advantages include process streamlining coupled with end-of-life decisions. A structural model needs to be developed to clarify the interrelationships among factors influencing lean remanufacturing practices. In this study, interpretive structural modelling method has been used to develop the structural model depicting interrelationships and most dominant and least dominant factors. Twenty factors are being identified based on expert opinion from 35 Indian automotive component remanufacturing organisations. The identified most dominant factors include a strong top management commitment with proper strategy selection, long-term vision and participation and a strong understanding of the current product and process designs. MICMAC analysis has been conducted to categorise the factors. The inferences based on the study have been derived. The novel aspect of this study is that it presents the development of structural model to identify the most dominant factors influencing the implementation of lean remanufacturing principles.     

Establishment of critical success factors for implementation of product lifecycle management systems

The present study has been undertaken with the purpose of investigating the critical success factors for the implementation of product lifecycle management (PLM) systems in manufacturing companies. Two exploratory case-based studies were conducted followed by a generalised study to establish the critical success factors for PLM systems’ implementation in manufacturing firms. Hybrid multi-criteria decision-making methods were employed to identify the causal factors and prioritise them for the implementation of PLM systems in an automotive and aerospace firm. The priority of the factors has also been confirmed by executives from broader PLM domain through a confirmatory t-test. The identified critical success factors can be utilised as directive guidelines by manufacturing organisations for the successful implementation of PLM systems. Most researchers have studied only the technological aspects of PLM, while very few have discussed the success factors to PLM implementation. The present study is highlighting PLM as a management concept, supporting PLM systems implementation in organisations, and discussing the critical success factors for effective PLM systems implementation.     

Integrating Six Sigma Culture and TPM Framework to Improve Manufacturing Performance in SMEs

Worldwide, small and medium enterprises (SMEs) have been accepted as the engine of economic growth, especially in the emerging economies, and for promoting equitable development their contribution as a component to nation's infrastructure is relatively high. Global competition forces SMEs to improve their competitiveness by enhancing their manufacturing performance. Hence, they have to pay attention to the reliability of their production processes as well as their commitment to quality management practices. In present times, because of automation and large‐scale mechanization, higher plant availability, better product quality and longer equipment life had assumed considerable significance among the SMEs. In order to meet the above challenges, adoption and practice of proactive maintenance strategies along with execution of best management practices, i.e. lean Six Sigma (LSS), has become essential for organizations to bring down maintenance and production costs. As evident from literature, both total productive maintenance (TPM) and Six Sigma are key business process strategies employed by SMEs to enhance their manufacturing performance. However, whilst there is significant research information available on implementing these systems in an independent manner, there is little information available relating to the integration of these approaches to provide a unified and highly effective implementation framework. The purpose of this paper is thus to develop an integrated model based on Six Sigma and TPM framework focusing on adding performance indicators. The goals of the study were achieved by utilizing various tools such as ‘brainstorming sessions, pareto analysis fish‐bone diagrams, histograms, FMEA, box plots, control charts and process capability plots for analysis’. While implementation of such twin framework requires greater management commitment in terms of training, resources and integration, they are also expected to provide higher levels of equipment and plant performance as evident from the results. The results show significant improvement in OEE level (Before 50, 54 and after 76, 83 for M/C –I and M/c‐II), reduction in rework (from 22% to 10%), reduction in maintenance versus operation cost (from 30% to 10%) and reduction in defect rate (from 24.82% to 5%) and average outgoing quality level (from 30% to 5%). The substantial improvement in sigma level from 2.16 and 2.64 to 4.01 and 4.12 for M/C –I and M/C‐II resulted in financial savings of approximately $2 m per annum. Copyright © 2013 John Wiley & Sons, Ltd.     

The impact of lean methods and tools on the operational performance of manufacturing organisations

Evidence suggests that lean methods and tools have helped manufacturing organisations to improve their operations and processes. However, the real effect of these methods and tools on contemporary measures of operational performance, i.e. cost, speed, dependability, quality and flexibility, is still unclear. This paper investigates the impact of five essential lean methods, i.e. JIT, autonomation, kaizen, total productive maintenance (TPM) and value stream mapping (VSM), on these measures. A linear regression analysis modelled the correlation and impact of these lean practices on the operational performance of 140 manufacturing organisations around the world. In addition, structural equation modelling (SME) was used to cross verify the findings of the regression and correlation analyses. The results indicate that JIT and automation have the strongest significance on operational performance while kaizen, TPM and VSM seem to have a lesser, or even negative, effect on it. This paper provides further evidence regarding the effects that lean practices have on the performance of organisations and thus the research offers companies, and their managers, a better understanding of the relationship between the lean strategy and the performance of their operations.     

Competence understanding and use in SMEs: a UK manufacturing perspective

The paper seeks to address the neglected area of competency research that is the understanding and application of core competency concepts within small and medium sized enterprises (SMEs). There is little doubt that SME manufacturing organisations can possess core competencies, however it appears from the literature that this issue has not yet been adequately addressed nor is there a clarification with regards to the nature of these competencies. This paper presents the results of an exploratory research study conducted with UK SMEs. The organisations involved were diverse and included a medical products manufacturer, automotive supplier, large metal fabrication and electromechanical capital equipment integrator. This research provides an insight into how competency concepts are perceived and understood amongst SME manufacturing firms and also whether these organisations use competence concepts. The research findings are important for both practitioners and academics, indicating an apparent lack of connectedness between research into competence and its ‘real world’ understanding and practical use within manufacturing SMEs.     

维修管理模式对制造企业质量控制影响的实证研究

可靠的设备预防维修水平和卓越的产品质量保证能力是保障产品过程质量的关键,现有多数研究集中在质量管理模式与企业绩效的关系分析。在对过程质量控制、设备维修管理评述的基础上,探讨了设备维修管理模式与维修绩效及过程质量控制绩效间的关系。以国内制造企业的连续生产方式为研究对象,运用结构方程模型剖析了RCM、TPM、设备采购管理与和设备维修绩效、过程质量控制绩效的路径关系,发现基础维修管理活动对维修绩效有间接影响,RCM、TPM对设备维修绩效有显著影响,路径系数分别为0.346、0.717,设备维修绩效对过程质量控制绩效的影响显著,路径系数为0922。证明制造企业为提升产品质量,需要完善其设备预防维修系统。     

Structural Equation Modelling of lean manufacturing practices

The purpose of this research study is to analyse lean manufacturing practices in different industries and to identify the critical factors for its success implementation. Despite the fact that lean manufacturing has been frequently promoted as a means of improving business competitiveness, little empirical evidence exists in the literature validating its positive link with organisational performance. Lean manufacturing practices not only help in reducing the number of defects but also reduces the cost of production. For this purpose, empirical data is collected to measure the lean manufacturing practices prevailing in different industries located in Tamil Nadu, India. A Structural Equation Modelling (SEM) technique is used to build the measurement and structural models. Later, statistical estimates are used to validate the model that has been built. The data analysis helps to determine whether to accept or reject the hypothesis that has been stated based on the structural model. The result shows how lean manufacturing practices are correlated and help in improving the organisational performance among the industries being surveyed.     

Implementing visual management for continuous improvement: barriers,success factors and best practices

Visual management (VM) has become an important lean management practice for continuous improvement and has gained increasing attention from academics and practitioners. While operations management scholars have studied its benefits and functions, the factors that enable or hinder VM implementation have not been systematically investigated. Against this background, our study analyses qualitative case study data from Swiss manufacturing firms to reveal important barriers and success factors that are relevant for the implementation of VM. Moreover, for each success factor, we present several best practices observed in the case companies to overcome the associated barriers. The results contribute to the emerging field of VM within the lean management literature and provide insights for practitioners how to implement VM more effectively.     

Manufacturing productivity improvement using effectiveness metrics and simulation analysis

Traditional productivity metrics, such as throughput and utilization rate, are not very helpful for identifying the underlying problems and opportunities for productivity improvement in a manufacturing system. In this paper, a systematic methodology is presented for productivity measurement and analysis at the factory level. Metrics of Overall Equipment Effectiveness (OEE) and Overall Throughput Effectiveness (OTE) are introduced and developed, respectively, for rigorous and quantitative measurement of equipment and system productivity. These metrics are integrated with computer simulation to facilitate rapid analysis of equipment and manufacturing system productivity, and the investigation of productivity improvement opportunities. The results of this research make possible the representation of factory level productivity or overall factory effectiveness by OTE, and the use of OTE for quantitative benchmarking and comparison of the productivity of various factories. A real-world manufacturing case study is reported to demonstrate how to employ these techniques to improve manufacturing productivity.     

Impact of visual performance management systems on the performance management practices of organisations

The purpose of this paper was to explore how visual strategy and performance management techniques impact performance measurement and management practices of organisations. A novel visual performance management approach is developed and implemented in qualitative case studies with seven manufacturing SMEs across Europe. The implementation cases demonstrate that visual management systems serve to support ongoing strategy development and implementation, facilitate performance measurement and review, enable people engagement, improve internal and external communication, enhance collaboration and integration, support the development of a continuous improvement culture and foster innovation. Additional explorative and longitudinal research is required to understand the long-term impact of such approaches in both small and larger organisations.     

A lean environmental benchmarking (LEB) method for the management of cutting tools

Manufacturing companies are striving hard to remain competitive hence, they rely on a number of resources to meet customers’ expectations, among which cutting tools are included. This paper addresses the problems faced in the management of cutting tools activities. Production managers have highlighted the lack of procedures containing metrics and targets that would show them whether their company is able to perform an efficient management, and if it is capable of supporting the deployment process. In this context, this paper presents a novel lean environmental benchmarking (LEB) method for performing a diagnosis of practices and performances to support the implementation of a cutting tool management strategy and/or the effective management of these assets. Strategic, technical and logistical aspects are addressed, particularly, with regard to management focused on lean manufacturing and environmental aspects. Field studies were performed in nine Brazilian companies in the metal-mechanical sector to validate the LEB method proposed. The LEB method helped the participant organisations to clarify the various activities that involved the management of their cutting tools, while the field studies indicated that all nine organisations had a great concern regarding the preservations of the environment, and also an effective utilisation of resources spent for machining components.     

IT in lean-based manufacturing industries: systematic literature review and research issues

This systematic literature review is the first to explore the role of IT in lean manufacturing contexts, characterising literature on the field, identifying and exploring the main issues approached, and identifying potential future lines of research. Grounded on an accurate screening process, 124 papers were selected for analysis from the SCOPUS and the ISI Web of Knowledge databases. The structured content analysis process highlights five key issues approached in literature: (1) software and technologies used, (2) benefits achieved through applying IT in lean manufacturing, (3) importance of IT integration, (4) IT and lean as complementary or independent options and (5) role of human resources. Despite an apparent scepticism concerning compatibility between IT and lean, claiming that IT may lead to processes’ complexity, extra tasks, resource consuming, among other issues, among other key findings, the review shows that several different IT instruments may boost improvements, acting as a facilitator in developing lean industrial environments, especially when lean-based improvement processes are introduced first, and then IT infrastructures. Because both IT and Lean may require significant investments in terms of managerial attention, employees’ capabilities and financial resources, it is important for management to balance investment decisions. Authors point to several shortcomings in literature which represent significant opportunities for further research: (1) significant lack of integrated comprehensive frameworks, (2) lack of knowledge concerning hybrid manufacturing systems, supply chains as research unit of analysis, how organisations can respond to staff resistance, and role of IT across the distinctive stages of lean maturity.     

A developed autonomous preventive maintenance programme using RCA and FMEA

Total productive maintenance (TPM) was developed in Japan in 1971 and has since been phased into many manufacturing firms to promote productivity and competitiveness. Autonomous preventive maintenance (APM) systems are very special. The fundamental pillar of TPM includes a series of important systematical first-line direct labour activities. The technical cost, human resources and management issues are all considered. Failure modes and effects analysis (FMEA) and root-cause analysis (RCA) are the most popular failure analytical methods, widely adopted over different industries. They are often used to examine the potential problems in the design and manufacturing phase, discovering possible failure causes before product design and manufacturing finalisation. This study integrates the RCA and FMEA techniques to establish an APM system that meets a company’s goal of reducing manufacturing costs and promoting employee and equipment productivity. The major contribution of this study is constructing potential equipment failure modes and their risk priority number through RCA and FMEA integration transformed into a selection of items and their APM maintenance frequencies. A strategy for deploying employee technical capability upgrade through effective training is developed. This study uses the S Company – a key manufacturer of semiconductor material – as a case study to verify the model’s applicability and suitability.     

Managing lean manufacturing in material handling operations

The problem addressed by this research is to implement lean manufacturing in a material handling system of a petroleum drill bit manufacturing company. Lean manufacturing has been mandated by higher level management as a tool to be used in waste reduction. Operational group must define the objectives of lean manufacturing and deploy the tools to specific work cells. A methodology that provides operational group with a tool to assist in defining the objectives of lean manufacturing is developed. A case study is used to demonstrate the lean implementation in material handling operations.     

Antecedents of implementation success in closed-loop supply chain: an empirical investigation

Implementation of closed-loop supply chain (CLSC) has gained increased consideration in the last few years owing to an increase in environmental concerns, product returns and scarcity of natural resources. It aids in improving environmental, economic and social performances. The purpose of this study is to examine the impact of CLSC critical success factors (CSFs) on performance outcomes. Firstly, CSFs and performance outcomes are extracted by conducting exploratory factor analysis using SPSS software. Then, the relationships between CLSC CSFs and performance outcomes are empirically tested by Partial Least Squares-Structural Equation Modelling (PLS-SEM) approach, using the data collected from 138 professionals working in remanufacturing, refurbishing and recycling operations in North American manufacturing organisations. Empirical analysis demonstrates that CSFs, ‘environmental concerns’, ‘sustainable production’ and ‘product design and collection’ have a significant positive effect on environmental performance. Results also validate the significant positive effect of CSFs, ‘demand and inventory management’ and ‘raw material prices’ on economic performance. In our knowledge, this is the first study that examines the impact of CLSC CSFs on performance outcomes. The results provide managers in manufacturing organisations with insights on most important CSFs that improve performance.