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Productivity Improvement with Equipment Owner TPM Management at Toyota Manufacturing USA: Highly Reliable Production System for Expanding Global Production

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The equipment reliability plays a critical role in business success because degradation in equipment condition negatively impacts plants’ output. When Toyota Motor Corporation operates overseas plants, equipment reliability management is one of the most important hurdles for global production which has to be overcome. It is important to develop an equipment reliability management program to minimize support from Japan to let overseas plants become self-reliant.This article explains how the Advanced TPS can be applied specifically to the equipment reliability process with equipment owner Total Production Maintenance (TPM). This business process focuses on managing equipment reliability to meet the business goals of Toyota Manufacturing USA.
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Sustainability in Environment
ISSN 2470-637X (Print) ISSN 2470-6388 (Online)
Vol. 6, No. 2, 2021
www.scholink.org/ojs/index.php/se
31
Original Paper
Productivity Improvement with Equipment Owner TPM
Management at Toyota Manufacturing USA:
Highly Reliable Production System for Expanding Global
Production
Hirohisa Sakai1* & Pengjiu Li2
1 Toyota Motor Corporation, 1, Motomachi, Toyota-shi, Aichi-ken, 471-8573, Japan
2 Toyota Motor Manufacturing, Texas, Inc., 1 Lone Star Pass, San Antonio, TX 78264, U.S.A
* Corresponding Author: h_sakai@mail.toyota.co.jp, sakai1188295@gmail.com
Received: March 7, 2021 Accepted: March 20, 2021 Online Published: March 23, 2021
doi:10.22158/se.v6n2p31 URL: http://dx.doi.org/10.22158/se.v6n2p31
Abstract
The equipment reliability plays a critical role in business success because degradation in equipment
condition negatively impacts plants’ output. When Toyota Motor Corporation operates overseas plants,
equipment reliability management is one of the most important hurdles for global production which has
to be overcome. It is important to develop an equipment reliability management program to minimize
support from Japan to let overseas plants become self-reliant.
This article explains how the Advanced TPS can be applied specifically to the equipment reliability
process with equipment owner Total Production Maintenance (TPM). This business process focuses on
managing equipment reliability to meet the business goals of Toyota Manufacturing USA.
Keywords
Equipment Reliability, Advanced TPS, Equipment Owner
1. Overseas Plant Challenge
Toyota Motor Corporation (Toyota) set the standard in manufacturing industries for producing products
in the quickest and most efficient way because of the Toyota Production System (TPS) (Shigeo &
Andrew, 1989). When Toyota builds an overseas plant, the TPS has been implemented to optimize the
production process. It has successfully reduced manufacturing lead times, reduced work in process, and
improved work environment and manufacturing operation. Yet the overall plant performance continues
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to face a major challenge due to poor performing equipment (either not meeting capacity requirements
or overspending in maintenance to achieve required performance levels). When the authors compare
equipment performance and maintenance costs to Japan plants, the authors recognized that there is a
huge opportunity to improve at equipment management process and control (Womack, Jones, & Roos,
1990).
At the plant start, the equipment performance management relays on reactive work requests and
time-based Preventive Maintenance (PM) suggestions from the Original Equipment Manufacturer
(OEM). The original way of thinking about equipment reliability simply has meant adding more PM to
equipment with issues, ordering more spare parts for critical equipment because of long lead time. The
result was spending too much money on the known issues but still suffered with other acute reliability
issues. The maintenance budget continues to rise and reliability decreases.
The equipment reliability process is based on know-how from different resources, including equipment
co-operational suppliers and skilled engineers and team members. In plants overseas, these resources
are not always readily available. Managing equipment performance in overseas plants to meet business
goals and market demand (quality, availability, safety, environmental integrity and cost per unit) is
challenging. It is important to develop an equipment reliability management program to minimize
support that comes from Japan to let each of the overseas locations become self-reliant. Luckily, the
business model of TPS can be utilized to greatly improve equipment reliability management.
2. Advanced TPS for Maintenance Management
The TPS is frequently modeled as a house with two pillars. One pillar represents Just-in-Time, and the
other pillar represents the concept of Jidoka. Jidoka is “Building in Quality” at the process and
Just-in-Time is building what is needed, when is needed in the amount needed. Toyota has always had
the philosophy of stopping the line when the defects are found; this can be done by anyone who sees a
discrepancy with a known standard (what should be happening within a process). The lines can also be
stopped by machines which are called “poka-yoke” (fail-safe devices), in order to ensure a defect is not
passed on. One way Toyota looks at this perspective is to ensure that Jidoka is within each process on
the line through a process called “Jikotei Kanketsu” (JKK), literally meaning—“Building in Quality
with Ownership”. Ownership is defined in JKK as understand all the “Necessary Conditions” and
“Process Criteria” so that zero defects are passed on. If team members understand these perspectives
then they are more apt to understand when the process is not to standard and to be able to
countermeasure the discrepancy through problem solving or “Plan, Do, Check and Action” (PDCA)
thinking (Williamson, 1997, Rodrigues & Hatakeyama, 2006). Originally these concepts are focused on
utilizing these concepts in manufacturing quality control process. After the authors study deeper into
these concepts, the authors found that they fit very well with equipment reliability management process.
By utilizing Advanced TPS thinking, the authors have raised the standard of maintenance management
to match manufacturing in order to achieve optimal performance of equipment that directly contributes
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to achieving company goals.
2.1 Just-in-Time
The essential of Just-in-Time is “The Right Work at the Right Time”. There is a huge opportunity to
eliminate waste when implementing the TPS concept through proactive equipment reliability process.
By closely reviewing the original PM setup and equipment failure history, maintenance work is found
to be wrong. The wrong work is a combination of work done that is too much too early, or too little too
late. Either way there is a significant negative impact to the plant due to downtime or maintenance cost
(labor and parts). In a reactive environment, the focus of maintenance work is repairing failed
equipment. In a proactive environment, the focus on maintenance work becomes inspection of
equipment heath to enable proactive intervention prior to failure. To transit to a proactive equipment
reliability program, effective work of identification capabilities is needed.
The right work is the minimum amount of work necessary to ensure the equipment provides the
necessary level of performance. Since there are many operational factors contributing to equipment
failures, even the OEM cannot provide a fully accurate maintenance frequency. It is important for
plants to identify the correct maintenance frequency based on the Condition-Based Maintenance
(CBM). Other techniques such as equipment heath monitoring are installed to allow us to intervene
prior to loss of equipment function. The authors also utilize communication within plants to identify
new failure patterns. Work identification is the cornerstone of reliability improvement and represents a
fundamental shift from conventional time-based maintenance (TBM) to an equipment reliability
approach to maintenance. The Point of Failure (PF) curve in Figure 1 shows how equipment
deteriorates over time, or cycles, and where team members can provide an additional line of detection
should failure initiate between Predictive Maintenance (PdM) collection dates (Okogbaa, Huang, &
Shell, 1992). Most cases when a team member is able to identify the function issue at Stage 3, the time
loss is inevitable. It is important to identify the deviation of equipment health condition at Stage 1. One
important note is the time span of each stage can vary on the same equipment due to operational
conditions that change and other variables. An appropriate change management implementation
approach must be used. The method is to follow up and define special maintenance frequency after
each change point.
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Figure 1. Equipment Health Condition Based on Different Type Maintenance Work
Result/Cost
Maintenance Work Category
High cost due to
downtime and repair
Extra cost due to
uncessary part and labor
of extraP M
Optimal cost for
equipme nt reiabil ity
PM PM PM PM
PM
PM PM PM PM PM PM PM
PM PM PM PM
Equipment
fai lure
Equipment HealthC ondition
Equipment Health Condition
Equipment Health Condition
Time
Time
Time
Too little
Too late
Too much
Tool early
Just-in-time
Figure 2. Time based PM vs Just-in-Time PM
The authors can utilize this equipment health condition pattern to exam how maintenance work is set
up, as shown in Figure 2. When the maintenance work schedule is inadequately set, with some
disturbance from various changed operational conditions or deviation from standard on previous
maintenance work performed, equipment failure can occur between regularly scheduled maintenance
activities. Or, the opposite may be true, in that some of the equipment has extra maintenance work
planned. This ends up with adding an extra labor and material cost. Besides the cost, it also creates a
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negative impact to wrench time. In a highly automated plant with Just-in-Time delivery like Toyota, the
wrench time is limited because all equipment needs to operate together. If too much wrench time is
spent on unnecessary maintenance work, some necessary work will be cut off or postponed. This could
affect other equipment reliability and even lead to equipment failure. Another common reason for extra
maintenance work is because the work is not set up properly. For example, a contact surface under
heavy load may not retain lubricant very well. Performing extra lubrication PMs can improve the
condition slightly but adds cost (labor and grease cost). An auto greaser can greatly reduce maintenance
work and increase the equipment lubrication condition significantly which improves equipment
reliability. All maintenance work should be tied to a failure mode (root cause). Understanding the
function of each piece of equipment (down to the component level) and its performance requirements
can have a profound effect on how that equipment is operated and maintained, thus affecting the overall
reliability of the equipment. This can be a challenging task and needs to involve an equipment expert
because they know best what the equipment must do to achieve the operating targets. This is the key to
Just-in-Time maintenance. The maintenance team member conducts the work each time and feeds back
the equipment condition to the planner to adjust the maintenance work frequency and improve
maintenance method. If there is a known change point, proper maintenance work needs to be scheduled
to check and correct equipment condition.
However, sometimes an unknown change point is introduced into equipment. The quality of each
maintenance work performed can very. These factors have a direct impact on the equipment’s health
condition. The authors need introduce another pillar of TPS, “Jidoka”, into the equipment management
process to ensure equipment reliability is maintained.
2.2 Jidoka
“Jidoka” (Ohno, 1988) plays an important role in the equipment reliability process through the whole
life of equipment, as shown in Figure 3. The first step of “Jidoka” in equipment reliability is process
that simply delivers the inherent capability of the equipment “by design” to meet the equipment
performance requirements. From design, build to buy off, the plant needs to get involved to make sure
the equipment meets all specification. Any “quality” gap needs to be corrected immediately before or
during installation.
The second step is the equipment maintenance is able to sustain the inherent capability of the
equipment. Deterioration begins to take place as soon as equipment is commissioned. In addition to
normal wear and deterioration, other failures occur. The failure happens when equipment is pushed
beyond the limitations of its design or operational errors occur. It is important that equipment is able to
autonomously detect abnormal conditions and stop. But the common standard “build in” abnormal
detection (protective system) is only to detect failure condition (Stage 4 in Figure 1). It does not help to
improve the equipment reliability because when the equipment stops, the time loss is already
happening. There is a proactive strategy to test the equipment to find the failure, which is called
detective maintenance (Cândido & Parra, 2018). The test reveals whether the equipment, component or
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protective system is in a working or failed state. Detective maintenance tasks are only applicable to
items in one of two discrete states, they are either working or have already failed. This method is great
for corrective maintenance but lacks the capability to predict a potential issue. Equipment health
condition detection methods need to be added to identify an equipment issue before it creates an
equipment breakdown to prevent time loss. Most of the equipment health monitoring can be conducted
with commercial off-the-shelf technology, such as vibration analysis, temperature monitoring, current
monitoring and grease contents monitoring. For some applications that were previously performed by
humans, automatic trend monitoring system has been developed to achieve “Jidoka”, such as chain
stretch monitoring. These predictive monitoring methods provide us important trend data to indicate
equipment health status, predict equipment lifetime and guide us to improve the maintenance work that
improves equipment condition (Okogbaa, Huang, & Shell, 1992).
Figure 3. Maintenance Jidoka through Equipment Life
The third step is to make sure each maintenance task achieves “build in quality”. In other words, the
team member is capable of conducting the maintenance work without introduce failures that could
cause equipment issue in certain defined time period (PM frequency) (Williamson, 1997). This requires
a clear job package to indicate what to check, how to check it and how to judge the result. The
standardized work is developed by the equipment expert but can be used by any team member or
contractor to conduct without mistakes. The work needs to be confirmed immediately to demonstrate it
is done properly. Sometimes follow up work is required also because equipment failure ratio follow the
“bath-tube” pattern after each change point.
3. Equipment Ownership Based upon Total Productive Maintenance (TPM)
Introducing the TPS into equipment management requires the development of equipment reliability
process and formal business process to sustain it (Sharm, 2019; Roup, 1999; Peng, 2012). The authors
utilized the TPM method with focus on equipment expert development through an equipment
ownership system to enhance the work identification process. With this right process in place, people
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ensured to doing the right things to maintain equipment in ideal condition.
3.1 TPM Process
The basic principle of TPM is to empower employees to get involved with equipment improvement in
order to prevent unplanned equipment downtime and minimize waste (Shen, 2015; Windle, 1993;
Williamson, 1997). With the objective to lower costs and improve return on assets, the basic equipment
care philosophy is about “autonomous maintenance” (Wayne, Kennedy, & Fredendall, 1995; Cua,
Mclone, Roger, & Schroeder, 2001). While this concept of basic care is a valuable starting point
towards optimizing equipment performance at optimal cost, it falls short in the technical validity of the
equipment reliability program due to Overall Equipment Effectiveness (OEE) (Sharm, 2019). The TPM
utilizing way to make the transition from reactive to proactive is to enhance the work identification
process. Rather than relying on our current program of reactive work requests and mostly time-based
PM (Wu & Seddon, 1994; Khanlari, Mohammadi, & Sohrabi, 2008), the authors have developed a
process that is based on an understanding of the relative risk of the equipment, followed by a
technically sound failure analysis using a formal work identification methodology, to understand all the
equipment’s failure modes. Using one or more of these work identification methodologies, the authors
then define, for those failure modes that will be managed through the maintenance function, the
complete equipment reliability program, or the list of tasks that will be used to mitigate the
consequences of those failures. These TPM tasks are health based, requiring that the authors define
normal and abnormal values, and corresponding alarms. With this process the authors maximize the
extent to which our maintenance function is proactive, and the authors therefore improve the bottom
line through improved reliability. The output of this proactive process is optimal equipment reliability
at optimal cost. The core concept in TPM equipment reliability process is providing a sound technical
basis to focus on the right work at the right time.
Figure 4. TPM Process Flow
The TPM process starts with identification of equipment performance requirements based on business
goals, as shown in step 1 in Figure 4. Next, it determines the equipment that are most critical when they
fail, and where the risk is highest in terms of impact on business performance. For this equipment, the
authors establish specific performance targets. This stage focuses maintenance reliability improvements
on the performance targets of critical equipment that contribute most to the company's success, as
shown in step 2.
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The failure identification stages identify and prioritize gaps in performance by conducting specific
component level performance analyses. The failure mode and impact to business is identified for each
component, as shown in step 3 to 4. Then the authors identify all contributing factors to equipment
abnormalities, as shown in step 5. Before any improvement, the authors study the original maintenance
PM work to identify the gap between scheduled work and all potential failure causes. If work is not set
up to point to any failure mode, the authors identify them as waste, as shown in step 6 and 7. The study
includes an assessment to determine gaps between the current and future state and identifies specific
opportunities for improvement. The countermeasure or improvement plan is also included with cost
and justification.
One of the toughest challenges on the road to improved equipment reliability is to determine the
prescription of proactive work that should be done to maintain the equipment so that they deliver the
necessary reliability at optimal cost. This task is known as “work identification”, and it is the essential
element of an effective equipment reliability process. In stage 8 & 9, the appropriate work
identification strategy is followed to understand and address all causes of failure for the equipment
under consideration.
The resulting equipment reliability program includes mix of PM, detective maintenance, PdM and
some run-to-failure decisions based on their business impact. The outcome of the work identification
element is the right work at the right time (the right work defined in terms of the tasks and the timing
for conducting them). The process is self-sustaining, with opportunities to continuously improve and
evaluate the overall effectiveness of the equipment reliability process as well as revisit reliability
programs and continuously improve, as shown in step 10.
3.2 Equipment Ownership
The key element to implement and sustain the equipment reliability process is ownership from
maintenance and management. An equipment ownership system was developed to implement and
sustain TPM. Each piece of equipment in the plant is assigned to the team member who has the most
experience with it. The management of this team member and supporting engineer own this equipment
as well. This equipment ownership drives reliability from the floor level to management and who
monitors progress of reliability by establishing targets for improvements and measure progress with
Key Performance Indicator (KPI). The equipment owner is working with his management and support
to address the major issues regarding equipment reliability to achieve breakthrough performance.
This system maps the tasks required to manage and execute the equipment reliability process to the
roles required in the organization and to the responsibilities of those people associated with equipment
reliability. The goal is to ensure that improved equipment performance is achieved and sustained. The
output of the equipment ownership system is a clearly defined role with descriptions and associated
responsibilities. Everyone must focus on executing the equipment reliability process. The authors start
by analyzing the business process tasks, and then identify the duties required for each role to ensure
that optimal equipment performance is sustained. Equipment ownership system utilizes four KPI,
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including Man, Method, Machine and Material, to indicate reliability status of each piece of equipment,
as shown in Figure 5.
Figure 5. Equipment Ownership System KPI
3.3 Man
This indicator is to judge the team member’s capability to identify work to improve equipment
reliability. The owner of the equipment can dedicate his time to learn the equipment and understand the
reality of how equipment fails. The goal is to develop the equipment owner to become an expert on
their specific equipment. With experience and training, the team member learns to manage equipment
health and learns how to maintain it to ensure optimal reliability. The knowledge from these equipment
experts is formalized and made available through the TPM process. During the development of the
TPM process, these team members will be asked to contribute their knowledge of the ways the
equipment fails and the ways that have found to detect or prevent failure. In the context of a
well-defined failure analysis, their knowledge is captured, formalized by linking proactive tasks to
specific failure modes as the TPM is defined and deployed. This knowledge is also leveraged across all
employees and even across other overseas Toyota plants.
3.4 Method
This indicator is to judge the development level of the TPM process. It is based on the development
status of the TPM packages which have defined components, failure mode and factors, PM procedures,
PM improvement, kaizen and other items required to ensure equipment reliability. With TPM packages
maintenance work can continue to improve and reduce the potential for lost time, lost knowledge, and
maintenance induced failures. It indicates the level of “right work at the right time” (preventive,
predictive, detective maintenance) utilizing a technically sound process.
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3.5 Machine
This indicator is to judge the equipment health status. The TPM package identifies the work to ensure
equipment reliability. These works (inspection, PM, health monitoring) feedback health data of the
equipment and based on this data obtained through the equipment health status.
Mean-Time-Between-Failure (MTBF) is a commonly used equipment reliability indicator which
demonstrates the result of equipment reliability management process. The authors do not use it directly
in our system, but the authors do use it as reference to ensure the reliability process is heading in the
correct direction. All the failures that have occurred are carefully studied to find out the root cause. The
authors identify or develop the proper way to prevent recurrence. These countermeasures are also used
to kaizen the TPM process so that the improved equipment reliability can be sustained.
3.6 Material
This indicator is to judge the spare part status of the equipment. Accurate part list ensures integrity of
the equipment reliability process because our TPM process is based on failure analysis of each
equipment component. Spare part management is also critical to achieve the TPS target. The essential
of this indicator is the correct part with correct amount to achieve optimal maintenance cost. The
quantity of each spare part is based on lifetime, quantity in service, lead time and cost. For overseas
plants, because many spare parts are from Japan, it is important to predict part service life to control the
order timing in order to achieve optimal cost. The part exchange history is also required for this
indicator in order to provide good reference for future equipment reliability improvement activities.
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4. Example: Equipment Ownership in Toyota Motor Manufacturing, Texas, USA
Equipment
Owner Name
and Pic
Equipment
Owner KPI
Equipment Owner
Reliability Projects
Equipment 3
months KPI
Equipment
Top Issues
TA LIFTER
Equipment
Name
Figure 6. Equipment Ownership Tracking Document
Figure 6 shows an example report of equipment owner to reflect the equipment overall health condition.
Each piece of equipment is tracked with this report to indicate improvement trend. Management
utilizes equipment owner KPIs to adjust strategy and priority to ensure the plant equipment reliability is
being improved and sustained.
5. Conclusion
The authors have confirmed the equipment owner TPM system is effective and proactive to improve
equipment reliability, thus, improving business performance over time. This method is feasible and has
a low cost. The equipment owner TPM can achieve the optimal equipment reliability, which means that
for the least possible cost, the authors achieve the level of required performance from our equipment in
order to meet our business goals (plant or company level goals).
The process is self-sustaining, with opportunities to continuously improve and evaluate the overall
effectiveness of the equipment reliability process as well as revisit reliability programs and
continuously improve. These activities optimize the effectiveness of the TPS.
This study contributes to the equipment reliability management issue and the productivity improvement
strategy by proposing how to engage employees to improve equipment performance. This study is also
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expected to contribute to the extension of TPS concept in other words Advanced TPS in real
manufacturing environment.
Acknowledgement
This equipment owner TPM process was developed at Paint Department in Toyota Motor
Manufacturing, Texas, USA. The authors sincerely express our gratitude to Rob Franklin (General
Manager), Kevin Voelkel (President) and Kirk Kohler (Vice President) for their guidance and support.
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https://doi.org/10.1007/BF00123658
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