Total Productive Maintenance, SIX SIGMA, BALANCED SCORE CARD

Total productive maintenance (TPM)

 

Total productive maintenance (TPM) originated in Japan in 1971 as a method for improved machine availability through better utilization of maintenance and production resources.
Whereas in most production settings the operator is not viewed as a member of the maintenance team, in TPM the machine operator is trained to perform many of the day-to-day tasks of simple maintenance and fault-finding. Teams are created that include a technical expert (often an engineer or maintenance technician) as well as operators. In this setting the operators are enabled to understand the machinery and identify potential problems, righting them before they can impact production and by so doing, decrease downtime and reduce costs of production.


TPM is a critical adjunct to lean manufacturing. If machine uptime is not predictable and if process capability is not sustained, the process must keep extra stocks to buffer against this uncertainty and flow through the process will be interrupted. Unreliable uptime is caused by breakdowns or badly performed maintenance. Correct maintenance will allow uptime to improve and speed production through a given area allowing a machine to run at its designed capacity of production.

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Six Sigma

Six Sigma is a set of techniques and tools for process improvement. It was introduced by American engineer Bill Smith while working at Motorola in 1986.[1][2] Jack Welch made it central to his business strategy at General Electric in 1995. A six sigma process is one in which 99.99966% of all opportunities to produce some feature of a part are statistically expected to be free of defects.

Six Sigma strategies seek to improve the quality of the output of a process by identifying and removing the causes of defects and minimizing impact variability in manufacturing and business processes. It uses a set of quality management methods, mainly empiricalstatistical methods, and creates a special infrastructure of people within the organization who are experts in these methods. Each Six Sigma project carried out within an organization follows a defined sequence of steps and has specific value targets, for example: reduce process cycle time, reduce pollution, reduce costs, increase customer satisfaction, and increase profits.

 

The term Six Sigma (capitalized because it was written that way when registered as a Motorola trademark on December 28, 1993) originated from terminology associated with statistical modeling of manufacturing processes. The maturity of a manufacturing process can be described by a sigma rating indicating its yield or the percentage of defect-free products it creates—specifically, to within how many standard deviations of a normal distribution the fraction of defect-free outcomes corresponds. Motorola set a goal of "six sigma" for all of its manufacturing.

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Balanced scorecard

Balanced scorecard is a strategy performance management tool – a semi-standard structured report, that can be used by managers to keep track of the execution of activities by the staff within their control and to monitor the consequences arising from these actions.

The phrase 'balanced scorecard' primarily refers to a performance management report used by a management team, and typically this team is focused on managing the implementation of a strategy or operational activities – in a recent survey 62% of respondents reported using Balanced Scorecard for strategy implementation management, 48% for operational management. Balanced Scorecard is also used by individuals to track personal performance, but this is uncommon – only 17% of respondents in the survey using Balanced Scorecard in this way, however it is clear from the same survey that a larger proportion (about 30%) use corporate Balanced Scorecard elements to inform personal goal setting and incentive calculations.

The critical characteristics that define a Balanced Scorecard are:

·         its focus on the strategic agenda of the organization/coalition concerned;

·         a focused set of measurements to monitor performance against objectives;

·         a mix of financial and non-financial data items (originally divided into four "perspectives" - Financial, Customer, Internal Process, and Learning & Growth); and,

 ·         a portfolio of initiatives designed to impact performance of the measures/objectives. 

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