How to develop an improvement masterplan

Every improvement program has to be based on a thorough analysis of a given situation and clear goals. I use the following approach in developing an effective Masterplan. In this approach a number of steps are to be made:

Step 1: Analysis of the cost structure

TPM is improving productivity and, by result, reducing costs. In order to maximise the ‘benefit / effort rate’, a global analysis of the operational cost structure is performed as a first step.

The result of this step should be a top 3 of operational problems that should be attacked first.

Step 2: Definition of goals

After developing a good insight in the operational cost structure, the 2nd step implies defining goals and targets. Usually these goals and targets can be split into two categories:

  1. Quantitative goals concerning for example set up time, breakdowns, speed losses, defects, etc. For every goal a performance indicator is defined.
  2. Qualitative goals concerning the organization. For example ownership, problem solving, multiskilling, etc.

Step 3: Development of a strategy

In the third step the necessary tools are collected, depending on the type of problems to be attacked. For example:

Goal Tool
Set up time reduction Single Minute Exchange of Die (SMED)
Standardisation of work processes 5S
Improving focus on operational losses Overall Equipment Effectiveness (OEE)
Improving production processes Total Productive Manufacturing (TPM)
Problem solving Small Group Activity (SGA)
Operational training One point lessons

Step 4: Meeting Boundary Conditions

After filling up the toolbox, the conditions to apply these tools effectively are to be met, for example organization, time, money, training etc. It is very important in this step to involve shop floor management. There are two main reasons for doing so:

  1.  to create commitment
  2. shop floor management can make the best assessment of conditions that are to be met.

Step 5: Developing a Masterplan

Again together with shop floor management a pragmatic plan is developed in which a logical sequence of steps is defined. For every step there is a check (mile stone). An important ‘rule’ in this Masterplan that no new step is started until the previous milestone has been reached.

Card: The Seven Steps of Autonomous Maintenance

Step Major activities Aims from equipment perspective Aims from human
Managers’ supervision and support
  1. Initial clea­ning
  • Thoroughly cle­an e­quip­ment and its sur­roundings
  • Remove all un­ne­ces­sa­ry mate­rials
  • Write upcoming issu­es onto four lists
  • Expose hidden de­fects by remo­ving con­tami­nants
  • Restore de­fecti­ve are­as in equ­ipment
  • Identify sou­rces of con­tamination
  • Become familiar with group acti­vity by way of easy tasks such as clea­ning
  • Group leaders learn lea­dership
  • Look at and touch every corner of equ­ipment to en­hance its care and to pro­mote curiosity and questi­ons
  • Learn “Cleaning is in­spec­ti­on”
  • Lead by staying one step ahead, compre­hen­ding TPM through prac­tice, and demonstrating with exam­ples of ma­na­gers’ models
  • Teach defects of equi­p­ment
  • Teach importance of clea­ning, lubrica­tion and ti­ghte­ning
  • Teach “Cleaning is in­spec­ti­on”
  1. Countermeasu­res to sources of con­tami­na­tion
  • Remedy sources of contaminati­on
  • Prevent conta­mi­nants from irregu­lar and unde­sira­ble dispersion
  • Improve diffi­cult clea­ning areas to reduce cleaning times
  • Prevent con­tami­nants from gene­ra­ting and ad­hering to equip­ment in order to en­hance relia­bility
  • Definitely main­tain equ­ipment clean­liness so as to im­prove main­tai­nabi­lity
  • Learn motion and working mechanism of machinery
  • Learn methods to improve equipment focused on sources of contamination
  • Encourage interest and desire to improve equipment
  • Feel pleasure and satisfaction with successful achievement of improvement
  • Teach motion and wor­king mechanism of ma­chinery
  • Teach where-where and why-why analy­ses to ex­ami­ne pro­blem
  • Assist in implemen­ting ideas for im­provement
  • Promptly respond to work orders
  1. Cleaning and lubri­ca­ti­on stand­ards
  • Conduct educa­tion for lubri­cating
  • Develop overall lubri­ca­ti­on in­spection
  • Establish lu­brica­tion con­trol sy­stem
  • Set cleaning and lubri­ca­tion stand­ards
  • Correct dif­fi­cult lubri­ca­ting areas
  • Apply visual controls
  • Definitely main­tain ba­sic equi­pment conditi­ons (cleaning, lu­brica­ting, tigh­tening) to esta­blish deteriora­ti­on prevention system
  • Set rules by on­eself and follow them
  • Know importance of fol­lowing rules and autono­mous supervi­sion
  • Encourage aware­ness of one’s own roles and team­work
  • Prepare lubrication con­trol rules
  • Provide education and practi­ce in terms of lubri­cati­on
  • Teach how to prepare clea­ning and lubrica­ting stand­ards
  • Assist actual pre­para­tion of stand­ards
  1. Overall inspec­tion
  • By each inspec­tion cate­gory:
  • Conduct educa­ti­on and prac­tice
  • Develop overall in­specti­on
  • Remedy diffi­cult inspection areas in equipment to reduce required time
  • Set tentative in­spec­ting sta­ndards
  • Detect and reme­dy minu­te de­fects
  • Thoroughly apply visual controls
  • Improve dif­fi­cult in­spection are­as
  • Maintain es­ta­blished equip­ment conditions by means of rou­tine inspec­tion to im­prove reli­a­bility fur­ther
  • Learn structure, function and in­spec­tion methods of equ­ipment to master in­spection skill
  • Master easy ser­vi­cing procedures
  • Group leaders learn lea­dership through con­duc­ting roll-out edu­cati­on
  • Learn recording, sum­mari­zation and analysis of in­spec­tion data
  • Prepare overall in­spection schedu­le, check sheets, ma­nuals, and other tea­ching materials
  • Promptly respond to work orders
  • Provide training for easy ser­vicing
  • Teach how to impro­ve diffi­cult in­spection areas by applying vi­sual con­trols tho­roughly
  • Teach inspection data h­and­ling
  1. Autonomous Mai­nte­nance stand­ards
  • Set autonomous ma­inte­nan­ce s­tand­ards and sch­edu­le to fina­li­ze acti­vities focused on e­quip­ment
  • Faithfully con­duct routi­ne maintenan­ce in ac­cordance with standards
  • Move forward ai­ming at Zero Brea­kdowns
  • Assess suc­ces­sful re­me­dies achieved in ot­her pro­cesses, and apply them to similar equi­pment
  • Totally re­view visual con­trols
  • Preserve equ­ip­ment in highly relia­ble con­di­tion along with ope­rability and maintai­nability
  • Realize an or­derly shop­floor
  • Understand equip­ment as a total system
  • Develop ability to detect signs of ab­normalities to pre­vent break­downs
  • Train knowledgea­ble ope­rators
  • Establish autono­mous supervision system con­ducted by PM group
  • Allocate inspection work
  • be­tween auto­no­mous and full-time maintenan­ce
  • Teach basic mainte­nan­ce skill and easy ma­chine dia­gnosis
  • Teach examples of bre­ak­down prevention
  • Teach particular func­tion of each piece of equip­ment to under­stand equi­pment as a system
  1. Organisation
  • Prevent outflow of de­fective products to dow­nstream pro­ces­ses
  • Prevent manu­factu­ring of defective pro­ducts
  • Attain process quality assu­rance and move forward aiming at Zero Defects
  • Assess pro­cess quali­ty
  • Attain a relia­ble pro­cess to pre­vent out­flow of quality de­fects
  • Assess quali­ty conditi­ons
  • Attain a hig­hly reliable process to prevent ma­nu­facturing of quality de­fects
  • Train knowledgea­ble ope­rators on equip­ment and quality aiming at new type of engi­neering sta­tus
  • Attain autonomous su­pervi­sion wit­hin each operator
  • Teach quality spe­cifi­cations, quali­ty cau­ses and qua­lity re­sults along with their relati­onship
  • Teach the five cri­te­ria for ease of obser­vation
  • Teach the five cri­te­ria for quality assu­rance
  • Address matters of quali­ty with coop­era­tion by all re­lated departments
  1. Autonomous mainte­nance
  • Maintain, im­prove and pass on cur­rent TPM levels
  • Calculate the Overall Equipment Effective­ness (O.E.E.)
  • Analasis of the failure of the equipment
  • Predict ab­norma­lities to pre­vent break­downs and quality de­fects prior to occurrence
  • Attain Zero Ac­cidents, Zero Break­downs
  • Move forward aiming at higher level of produc­tion technology
  • The O.E.E. shows the week spots of the equip­ment
  • Firmly establish self-su­per­vision to be able to deve­lop factory’s strate­gy by SGA groups them­selves without ma­na­gers’ detai­led in­struc­tion
  • Detect and resol­ve ari­sing pro­blems by SGA gro­ups themselves by way of short re­medial program
  • Assisting with the calcula­tion of the O.E.E.
  • Assist activities to maintain, impro­ve and hand down cur­rent TPM status
  • Encourage further im­prove­ment of tec­hnical kno­wled­ge and skills
  • Move froward toward the second genera­tion of TPM

Card: The 7 Deadly Losses

Yellow Card: The basis of every improvement strategy – fighting the 7 deadly losses
Never stop fighting:
The 7 Deadly Losses

  1. Defects
  2. Waiting
  3. Checking/testing
  4. Rework
  5. Stock – Over-production
  6. Over-processing
  7. Transport – Movement


Quick Scan Stock

Use the following quick scan to find out what’s going on in the warehouse and eliminate the losses you’ll discover!

Customer demand

  • How many SKU?
  • How many SKU make 80% volume?
  • Re-Ordering frequency?
  • What is customers demand of delivery time?
  • What is quantity demand?

Out of Stock

  • How many Out of Stocks?
  • At which SKU?
  • Is this Random – clustered – Seasonal?
  • What is out of stock Value (material)
  • What are its direct costs (administration, extra transport)
  • What are its indirect costs (lost sales, extra cost of emergency and crash scenario’s, destruction/landfill)

Manufacturing capability

  • Design capacity equipment?
  • Current capacity?
  • Changover-time?
  • How many FTE on equipment?
  • How many FTE on planning?
  • How many FTE on handling?

Raw materials

  • How many different raw-material?
  • How many make 80% of used volume?
  • Delivery time?
  • Are there large fluctuations in demand i.e. due to seasons?
  • How many suppliers?
  • How many deliver 80% of volume?
  • How many shipments are received per supplier per day/week?
  • How long from receiving until stored and booked?
  • Is there a return flow from the factory to supplier of store?
  • What is raw material stock value in Money and Time?

Special conditions

  • How many articles require special handling/storage conditions (temperature controlled, etc)

Supplying from store

  • Who orders raw material from store?
  • How is this done?
  • How many deliveries from store to shopfloor a day?
  • To how many locations?
  • How long does it take from ordering to supplying to shopfloor?

Handling administration

  • How are store data treated?
  • What is the signal to reorder?
  • How is being ordered? By whom?
  • How long does the processing of óne order take? (In- and out?)
  • How long between ordering and payment of invoice?