NATIONAL INSTITUTE OF TECHNOLOGY

JAMSHEDPUR - 831014

Project Title:
IMPROVEMENT OF OVERALL EQUIPMENT PERFORMANCE
AND COST EFFICIENCY IN A SOFT-DRINK PLANT.

Under the Guidance of: Submitted by:

Dr. Malay Niraj Gopal Agrawal [2015UGME062]
Mechanical Engineering Department Randeep Kumar [2015UGME063]
NIT JAMSHEDPUR Rajan Raj [2015UGME064]
INTRODUCTION
In today’s industrial scenario huge losses/wastage occur in the manufacturing shop floor. This
waste is due to operators, maintenance personal, process, tooling problems and non-
availability of components in time etc. Other forms of waste includes idle machines, idle
manpower, break down machine, rejected parts etc. are all examples of waste. The quality
related waste are of significant importance as they matter the company in terms of time,
material and the hard earned reputation of the company. There are also other invisible wastes
like operating the machines below the rated speed, start up loss, break down of the machines
and bottle necks in process. Zero oriented concepts such as zero tolerance for waste, defects,
break down and zero accidents are becoming a pre-requisite in the manufacturing and
assembly industry. In this situation, a revolutionary concept of Total Productive Maintenance
(TPM) has been adopted in many industries across the world to address the above said
problem.
We are focusing on implementation of TPM program, because in company they already
have 5S, which is the fundamental of all more complex techniques. Moreover, for edible
products’ companies, cleanness on the workstation is very important; because they have to
fulfill certain standards, so company have to implement this TPM tool for continuous
improvement.
TPM concept is the aspects of enhancing the overall effectiveness (efficiency) of factory
equipment, and providing an optimal group organizational approach in the accomplishment of
system maintenance activities. Both the equipment and the organizational sides of the
spectrum need to be addressed in fulfilling the objectives of TPM. Many systems in use today
are not performing as intended, nor are they cost effective in terms of their operation and
support. Manufacturing systems, in particular, often operate at less than full capacity,
productivity is low, and the costs of producing products are high. In dealing with the aspect of
cost, experience has indicated that a large percentage of the total cost of doing business is due
to maintenance – related activities in the factory; i.e. the costs associated with maintenance
labour and materials and the cost due to production losses.
Implementation of such technique helps in better organization of time in company,
greater order and cleanness. If we will introduce this we will have better efficiency of
machinery and equipment. Research problem here is the issue of the problem of wastage and
losses in the manufacturing company.

PROJECT OBJECTIVE
[1] To reduce maintenance related costs through implementation of TPM tools, in a
Soft-Drinks Plant.
[2] To use data analytics, lean strategy to increase the Availability function of OEP in
the Soft-Drinks Plant.
[3] Too calculate a stimulated comparison data based on the above amendments.
 CASE STUDY
CHARACTERISTICS OF THE PROJECT OBJECT: Soft Drink Bottling Industry
Most soft drinks are made at local bottling and canning companies. Brand name franchise
companies grant licenses to bottlers to mix the soft drinks in strict accordance to their secret
formulas and their required manufacturing procedures.
Soft drink bottling or manufacturing involves five major processes, each with its own issues that
must be evaluated and controlled:
1. Treating water
2. Compounding ingredients
3. Carbonating product
4. Filling product
5. Packaging

The product oriented layout in a soft drink bottling industry:

ANALYSIS OF LOSSES:
The most important losses which make projects cost in-efficient are:
- Failure losses
- Setup and adjustment losses
- Start-up losses
- Minor stoppage and idling losses
- Speed losses
- Defect and rework losses
Company has a lot of problems on their production lines and because of that a lot of wastes in
their processes are present: overproduction, all kinds of waiting, unnecessary transport and a lot
of storage before project implementation. The following problems were identified to be highly
prevalent in the industry:
 Production staff themselves trained and demarcated skill level of machine operators,
 Machine condition assessment performed by the service had little meaning,
 Relies on a centralized technical team system of supervision for production machines,
 Participation of all in the preventive work carried out by the maintenance was small.
 Lack of time to take action to eliminate the root causes of defects and failures,
 Did not use fully the indicators and analysis of the situation and condition of the
equipment.
Moreover, there were a lot of financial losses according to production lines stoppages, because
of stoppages are shown on chart 1.

Chart 1. Losses in Production

20
18 19
16 18
17 17
14 15
12 14
13 13
10
8 10
9
6 8
7 7
4 6 6 6 6
5 5 5 5 5
2 4 4
0
Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8

Reported Faults Unplanned repair orders Planned repair orders

Every single fault and unplanned repair order means production inefficiency, reduced number
of produced tones of products and additional costs for company. A schematic data of cost
linked to the repairs has been shown in Table 1:
 Cause Cost [rupees/intervention] Cost [rupees/week]
Unplanned repair orders 15k 255k
Planned repair orders 5k 85k
Reported faults 30k 510k
Cost of production stoppage
[rupees/h] 35k

Table1. Causes and costs of losses

(Source: Own elaboration for representation)
When we have costs of all machines faults forming at the level, we can calculate the total cost
of stoppages of machines per month and per year. According to the table 1 total cost of
maintenance per month is nearly equal to 575k [rupees/month] plus every 35k [rupees/h]
when production stops.
hours
production lost in quality world class
no of actual installed planned down loss of Standard of
week production capacity hours time production Availability Availability
1 24549 25000 394 66.75 0 83.84 90
2 26411 25000 404 29.25 0 92.75 90
3 23187 25000 388 45.75 0 88.20 90
4 19357 25000 342 93.25 0 72.73 90
5 28791 25000 412 40.50 0 90.16 90
6 24899 25000 410 52.75 0 87.13 90
7 23323 25000 374 70.50 0 81.14 90
8 25025 25000 406 32.25 0 92.06 90
Average Value 53.875 0 86.01 90
Table2. Data collected from Industry

As is evident from the Table2, ‘Availability’ values affect the actual production significantly.
And down time is the major factor determining availability.

MEASUREMENT OF OVERALL EQUIPMENT PERFORMANCE

Overall Equipment Performance - It is based on availability, performance efficiency and the
rate of quality product.

OEP = (Availability) * (Performance efficiency) * [rate of quality produce]

  Loading time - down time 
Availability =   x 100
 Loading time 
Loading time = the time for which m/c has to be operated per day.

Theoretica l cycle time x processed amount

Performance Efficiency =
Loading time - idling and minor stoppage

Processed amount - Defective amount

Rate of quality =
Processed amount
Over all equipment performance is intended to minimize life cycle cost that includes
initial cost and lifetime operating and maintenance cost.

We plan to enhance Availability through Implementation of TPM and then calculate a

simulated Availability and relevant data to provide an insight of possible benefits of
implementing TPM.

PLAN AND PROGRAM OF TPM IMPLEMENTATION IN GIVEN COMPANY

Accepted area for the implementation of the TPM:
 AM – Autonomous maintenance of machinery,
 PM – Properly planned Preventive actions of maintenance services.

Goal of TPM implementation project is to engage machine operators in a process of thorough

cleaning, changeovers, regulations, current inspection of the technical condition and
maintenance. Also maintenance technicians undertake repairs of reported faults but mainly
operate in the area of preventive maintenance of specialized equipment and priorities are: zero
accidents, faults and defects of quality. Below in the sections is presented the work program for
the implementation of TPM in the company:

1) AM – Autonomous Maintenance of machinery:

- Conduct training programs and workshops of AM
- Implement visualization
- implement individual responsibility for the machine
- Skill matrix based on Trainings provided to operators of machines

2) Specialized Equipment Maintenance.

3) Predictive Maintenance - service tailored to the needs.

IMPLEMENTATION OF PROJECT
1) A M – AUTONOMOUS MAINTENANCE OF MACHINERY:
 Firstly in TPM implementation there is need to conduct workshops of AM which have in
their program:
o familiarize operators with TPM program,
o very thorough cleaning of machines,
o accurate assessment of the equipment technical conditions,
o removal of simple faults,
o creating ideas to improve,
o assessment of service skills

 Then it is necessary to implement Visualization on every production line where we can

find Autonomous Maintenance boards and visualization of the descriptions on the work
positions.
o On the visualization boards, worker can find organizational structure of
Maintenance Department and particular person which is responsible for specific
production line. There also maintenance employee put efficiency of line, capacity
per shift, One Piece Lessons, instructions of machines and maintenance goals.
Visualizations of workstations were also implemented, where it was needed.
That process focused on control points for example level of oil, feedstock or
pressure point to allow machine operator for control of situation. Moreover,
places where dirt is often collected and places of fabrication were marked,
thanks to that operator know where and how to response. Those visualization
tools helps to eliminate waste of time spending on looking for norms for
particular machine, necessity to call maintenance technicians for simple cleaning
or repair and increase safety of production area.
 o Implementation project also assume simple improvement in the form of labels
for every production line which would tell if line is working (EFFICIENT)/have
fault but working (FAULT)/is in the state of quick repair/is broken
(FAILURE)/temporarily not working. According to that operators constantly
visualize the condition of the machine.

 It is also important to implement individual responsibility for the machine. That means
that machine or production line will have not only maintenance technician to take care
after them but also every operator have in their responsibilities maintenance of specific
machine.
 Skill matrix in place of Demarcation: Company distinguish four levels of skill, every level
have its own color and during every shift, on the or nearby machine there is cuvette
with skill card and picture of operator which works on this shift. According to that when
something is wrong with machine we know to whom we can go.
Those skill cards were created on the base of skill matrix which was designed for every
production line. Trainings are an important part of TPM, so in next step operators are
trained by instructors of TPM. In project we also standardize the trainings of operators.
Operators' skills are developed through the program: "The Academy of Operator". There
were also developed training tools like: training program, skill card and skills matrix.
2) S E M – SPECIALIZED EQUIPMENT MAINTENANCE:
Next large step is to implement SEM. In this part will be distinguished actions which have been
taken to introduce preventive maintenance in TPM project. Firstly were defined tasks for
technicians of AM and PM.

Tasks for technicians (AM):

o provide instruction for operators
o do not perform independently regulate just supervise
o guard the course of carrying out the tasks of production
o respond to anomalies/fixes

Tasks for technicians (PM):

o execute planned repairs
o performs preventive maintenance
o measures and forecasts the component wear
o implement improvements

2) P M – PREDICTIVE MAINTENANCE:
Last step is to implement Predictive Maintenance; according to which technicians perform
periodic checks as per the developed instructions of PM. Due to the Preventive Maintenance in
the project, company can optimize expenses on maintenance in the factory by:
o constantly monitor indicators (KPI)
o conduct ongoing analysis of the costs
o monitor the extent of implementation of the budget
o achieve a failure rate of <1.5% through Lean principles
o effectively manage teams
o conduct prudent shopping of parts
o judicious employment of contractors
Figures of level of planning, loading level and types of activities unscheduled in time are on the
every board in every production line, so that employees can see the effects of TPM
implementation. It can be observed from the work time level, loading level and unscheduled
activities decreased. Thanks to that, employees have more time to their work which adds value
to the product.
SIMULATED OUTCOME AND COST BENEFITS:
Defect Analysis
Defect Cumulative percentage of hours lost
Labor issues 44.82
Change over 62.99
No space in godown 72.05
Power failure 82.14
Machinery failure 99.67
Others 100

After conducting a thorough analysis of the reasons for defects/downtime, a simulated data
was obtained presuming the most ideal condition of implementation leading to elimination of
certain reported faults and consequent reduction in downtimes. Accordingly, values for
Availability are also simulated as is presented in the below table:
No. of
week Original Availability Simulated Availability
1 83.84 83.70
2 92.75 93.06
3 88.20 91.11
4 72.73 78.19
5 90.16 91.57
6 87.13 89.05
7 81.14 85.13
8 92.06 93.67
Average 86.01 88.18

Comparision of Simulated Availability vs

100
Actual availability
90
Percentage Availability

80
70
60
50
40 Actual Availability
30
Simulted Availability
20
10
0
1 2 3 4 5 6 7 8
Week
CONCLUSION:

 After proper implementation of the program, it is expected that there is an achievable

increase in availability by 2.17% which might increase based on the depth of
implementation.
 Furthermore, assuming the ideal condition, when the unplanned repair orders could
have been planned earlier through this project implementation and reported faults
could be reduced down to the TPM standards of 1.5%, a significant cost saving of nearly
375k [Rupees/month] is predicted.
 There is also a decrease in average downtime caused due to various defects which
means a better standard work environment. Autonomous maintenance play vital role in
this to reduce mean time to repair and reduce ignored defect which caused collateral
damage.

Today, with competition in industry at an all time high, TPM may be the only thing that stands
between success and total failure for companies. It has been proven to be a program that
works. Employees must be educated and convinced that TPM is not just another "Program of
the month" and that management is totally committed to the program and the extended time
frame necessary for full implementation. If everyone involved in a TPM program does his or her
part, an unusually high rate of return compared to resources invested may be expected.

REFERENCES:
[1] S. Nakajima, (1988), Introduction to Total Productive Maintenance, Productivity press,
Cambridge, MA.
[2] Ranteshwar Singh, Ashish M Gohil, Dhaval B Shah & Sanjay Desai, (2005), “Total Productive
Maintenance (TPM) Implementation in a Machine Shop: A Case Study”.
[3] Encyclopedia of Occupational health and safety - International labour office (Chapter 65).
[4] Sorabh Gupta, P.C. Tewari & Avadhesh Kumar Sharma, (2009), “TPM Concept and
Implementation Approach”.

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