Total Preventive Maintenance Vol-11

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TPM Volume-11

Total Preventive Maintenance


Oil Control II
2020a Edition

Koichi Kimura

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https://creativecommons.org/licenses/by/4.0/legalcode . This work consists of 43 pages. The Factory Management Institute.
Author: Koichi Kimura. Japan March-2020. Translation, Adaptation & Edition: Eduardo García. The Netherlands March-2020
Total Preventive Maintenance, volume XI - Koichi Kimura Page 2 of 43

Sensei Koichi Kimura: International Consultant of the TPS (Total


Productive System), TQM, TPM (Total Productive and Total Preventive
Maintenance), Kaizen and Factory Management. Expert in the
introduction and fixing of these ones through personal growth and
assistance to the management for the change organization.

Sensei Koichi Kimura worked in Production Gemba for more than 45


years during which he developed the JIT production system as supplier
for Toyota, Honda, etc. in SUMITOMO Corp. from the position as young
engineer, to General Manager passing throughout internal & external
consulting.

At time of publication and over the age of 75, he continues working on


the dissemination of original Japanese methods and more knowledge
even the one learned from the pioneers and, continues working as
international consultant for the last 23 years in more than 11 countries,
training clients, as a lecturer and writer. Even now, experimenting and
researching innovative methods and growing in the field of Production
Management and Corporate structuration.

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Título de la Versión Española:


Factory Management - TPM Mantenimiento Preventivo Total. Volumen 11 -2020a
El control de la lubricación II

Title of English Version:


Factory Management - TPM Total Preventive Maintenance. Volume 11 -2020a
Oil Control II

Autor/Author:
Sensei Koichi Kimura – JAPÓN/JAPAN © 2020
https://jp.linkedin.com/in/kouichi-kimura-2ba37152/en

Traducción, Edición y Adaptación de la versión española:


Edition and Adaptation of the English version:
Sensei Eduardo L. García – The Netherlands © 2020
https://es.linkedin.com/in/edulgg

El Documento ha sido editado para su impresión en Doble Cara sobre DIN-A4 +


Encuadernación
This Document has been edited to Double-Side Printing over DIN-A4 + Bookbinding

“Factory Management Institute” es una organización en período de constitución a la fecha de la


publicación de este trabajo: 23 de Julio de 2020. www.factorymanagementinstitute.com

“Factory Management Institute” is an Organization in the Period of Incorporation at the date of


publication of this work: July 23nd, 2020. www.factorymanagementinstitute.com

Nota Legal: Las marcas registradas mencionadas en este texto son propiedad de sus respectivos
dueños.
Legal Notice: Trademarks mentioned in this text are the property of their respective owners.

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Content

I. Introduction ......................................................................................................................... 7

5Ss and maintenance room............................................................................................................. 7

II. COVID-19 ............................................................................................................................. 9

A. Acceleration of Telework .......................................................................................................... 10


Production-Gemba and Office-Gemba. ........................................................................................ 10

B. Troubles & problems ................................................................................................................. 11

C. World chaos .............................................................................................................................. 11


Ego of large countries.................................................................................................................... 11
US- China conflict .......................................................................................................................... 12

D. An eerie era ............................................................................................................................... 12


Fear correctly ................................................................................................................................ 13

III. Control of lubricating oil. .................................................................................................... 15

A. Machine & Equipment Management ........................................................................................ 15

B. What is the purpose of TPM?.................................................................................................... 15

C. Maintenance tribology .............................................................................................................. 16


Tribology........................................................................................................................................ 16

D. Damage to machine .................................................................................................................. 17


Firstly, the damage place. ............................................................................................................. 17
Control of lubricant oil .................................................................................................................. 18

IV. Whole life of machine & equipment ................................................................................... 23

V. Teaching the company ....................................................................................................... 25

A. Something strange. ................................................................................................................... 25


1) His target was to recover the profit and sales expansion based on the cost competitiveness.
26
2) Not possible to feel the enthusiasm in Gemba. .................................................................... 26
3) Many Mudas in process. (Such re-inspection by inspectors, excess or obsolete materials &
finished goods.) ............................................................................................................................. 27
4) I hadn't seen the face of this president................................................................................. 27
5) Middle & Long-Term plans. ................................................................................................... 27
6) Strange annual profit plan… .................................................................................................. 29

B. Cost reduction for this company. .............................................................................................. 29


7) Outsourcing policy................................................................................................................. 30

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C. Break-even point (BEP) investigation. ....................................................................................... 39


1) Regrettable thing and Education of BEP. .............................................................................. 39
2) Imperial conference .............................................................................................................. 42
3) Small project for re-setup of production lines. ..................................................................... 42

VI. Next Lecture....................................................................................................................... 43

Icons:
Notes: Going and Comeback to the main theme.

Third level of the Issue, in order to provide more clearness to the structure of the text.

Lower levels of the Issue, commonly 6th or 7th And, pointing out necessary explanations about
pictures or graphs.

UPDATING TABLE:
Date, Version-Previous & V-Next Chapter (I..XX...) Chapter Point.- sub-point :
(Updating)

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I. Introduction
In this description, I explained the bus tub curve.

And, before this period which is "Wear Failure Period" comes, we must make efforts to extend the
"Accidental Failure Period" in which operation is stable by exchanging the expendable parts and
maintenance.

In somewhere I have written that a machine doesn't take age even though to be used very long
years. This is one part of dialogue with my old Toyota friend. Why a machine doesn't take age?
Because it is possible to exchange the part where to be damaged or worn. And in the combination of
maintenance and Kaizen, it is possible to use the machine in very long "Accidental Failure Period".

I also explained the concept of tribology.

I wrote before that it is said that 60% occurrence of failures in moving parts of machine are caused of
the problems of lubricants, including lubricant supply.

And when looking the machine failure in overall machine, more than 25% number occurred, more
than 27% of machine stop and more than 30% of loss amount are caused of lubricant troubles.

Yes, lubricant control is very important and essential factor for TPM. However, it is true that the
systematic oiling is disregarded.

When visiting and looking at the maintenance of machines, I always can find the lack of lubricant
control condition which are 5Ss of Oil storage, lack of oiling standard (not correct and/or hackneyed),
no keeping the standard (even though the standard is made).

5Ss and maintenance room.

In this description, I didn't write about this theme. Because in somewhere I might have written it.

But once again I ask you to implement 5Ss in a maintenance room which is the stronghold of
maintenance activity.

I introduce one episode.

When I made a conference in a company, I was required to make a suggestion about Kaizen. Their
problem is to promote Kaizen in Gemba. And one of question was how to systemize Kaizen activity.
Then I taught 2 things and one is data gathering system and another one is suggestion scheme.

One year later once again I had an opportunity to visit this company. And I could look at the situation
of Kaizen implementation. However, it was a miserable state. I found that a suggestion box became
the nest of cockroach and there were the discoloured papers in it.

According to the managers, Kaizen suggestions don't come out as expected and the voice of Gemba
was that they cannot come up with Kaizen idea. By the way this company was in the middle of TPM
campaign. (I therefore was invited by this company.) Then when making factory tour, we stopped at
the maintenance room. It was a chaotic area. It was anyway chaotic. Nude posters, tools scattered,
unreadable oil cans and oil servers, a bottle of Coca-Cola… And particularly it was dirty. Is
maintenance room a dirty place in the first place? Their excuse was the use of oil and scattering chips

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and I lost word. Of course, I denied their excuse. Dirty maintenance room cannot make reasonable
maintenance in production Gemba and also very unreliable.

Unreadable oil cans and oil servers, how can they supply correct oil in correct position? And, then I
suggested the managers to create 10 thousand Kaizen suggestions in this maintenance room in to
implement 5Ss.

10 thousand Kaizen ideas!? …The managers were surprised. And they said that it is impossible in
unison. But I told them as next:

― In Kaizen (Kaizen ideas) there are 3 ranks.


• Excellent (effect to the Gemba); Better effect to be expected;
• Good (effect to Gemba); Also, better effect to be expected;
And,
• The effect to be better than nothing.

― When you imagine Kaizen, you always expect or imagine "Excellent or Good". But it is wrong.
Rather than the expectation of these, you should encourage the ideas of "Better than nothing".

― 10 thousand ideas in maintenance room, it is easy.

― Remove "Nude poster" with the title of "Better working environment". Then, it is one Kaizen
suggestion.

― Deciding the location and correct putting method for one tool. This is one Kaizen suggestion.
Deciding the location of ash tray and regulation of ash Katazuke. This is one of Kaizen idea. Putting
Kanban board of ash tray regulation also additional Kaizen idea.

― In this maintenance room, there are many tools, oils, lubricants, machines, … And if you suggest
ideas for one by one, it is easy to create 10thousands ideas.

Anyway, it is good chance to implement 5Ss and Kaizen suggestions as a maintenance team in TPM
Campaign.

Koichi Kimura
International Consultant
Factory Management Institute

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II. COVID-19
Before going to the theme, I would write about some miscellaneous thoughts. But dropping in the
way. Therefore, no necessary to read, if you don’t want.

In previous description, I have written the Japanese Era Name. Thus, now the era name is "REWA".

As I wrote before, since the Meiji era, the system was changed to one region of Emperor and one era
name. But before Meiji, era name was changed more than once in same Emperor when occurring
disasters and epidemics for playing people's well-being and peace.

Unfortunately, from the beginning of this new era name, Japan was attacked and damaged by big
disasters and currently is been attacking the epidemic of COVID.

This epidemic is very serious and more serious than recent others include the economical epidemic
of Financial Crisis of Lehman.

At the Lehman's, the world financial system was damaged and expanded the influence to Gemba.
But this COVID directly attacked Gemba. And all of Gembas, manufacturing sector, service sector,
tourism sector, and all of office Gembas were attacked. And this disaster influence would be
continuing long term (more than 3 years in a passage).

After this disaster (no, during this disaster), something of social system would be changed in the
world dramatically. When looking at the world history, such disaster became the trigger of social
change.

For instance, and according to a history book, there was a miserable disaster at 14th century, in
Europa. Yes, it is plague (Black Death). And this epidemic of plague killed more than 25million people
in Europa. And, after this disaster, the Reformation was happened. Also, The Renaissance which
ignited people's "inner consciousness" with culture and art raised.

This is related to the fact that the nation, religion, and culture at the time could not cope with mass
deaths, and proves that the unprecedented disaster caused social change. In this book there was a
word which is "memento mori1”.

At that time (14th century in Europa), people felt a death closely, because cities overflowed with
corpses. And, this “memento mori” became a trigger of social change.

Now again this word was close by the persons who are old persons and/or the persons who have
underlying medical problems even though people don’t know this word.

It might never reach the death toll to be same level as the plague of 14 century in Europa. But we
feel death closely because of daily news with internet.

We saw the scenes of Wuhan hospital, Italy, UK. Also, we saw the scene of refrigerator trucks of
corpses in New York, vast burial ground in Brazil. And because of the improvement of Internet, we
are in circumstances of looking and feeling death inevitably. This impact might be same to the
epidemic of Black Death.

1
Memento mori. Memento Mori is a Latin phrase that means "don't forget to die (someday)" or "don't forget
death". Widely used as a motif in art works. Wikipedia: https://en.wikipedia.org/wiki/Memento_mori
https://es.wikipedia.org/wiki/Memento_mori

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Many times, I wrote that in a decade working circumstances would change dramatically. However, it
might be true that this COVID has the power of accelerating the changing society.

A. Acceleration of Telework
Unfortunately, the trend of telework or remote work of Office-Gemba might accelerate.

There are good points and bad points.

For instance, how about Online learning? …Online learning also will have the citizenship in the world.
However, this method also has both sides.

I think Online learning is not a suitable education for children, even though it is necessary as an
emergency countermeasure. Because the teaching with through internet is biased to teach just
knowledge (Leftware2 in brain). But this is because the awareness and learning that arises from the
existence of a place called school should also be important. Learning about plants and insects on the
screen of a computer does not give children an idea of nature. Just as it is necessary to put children
in a natural place to know nature, the place of school cannot be replaced online. And it is not
possible to bring up the rich sensitivity and emotion (Rightware).

Production-Gemba and Office-Gemba.

We notice that some jobs are suitable for telework and some are not. Of course, teleworking cannot
be applied to manufacturing sites, face-to-face service industries, and transportation-related work.
The same goes for public services such as police office, fire departments and essential working
Gemba such hospitals, nursing, childcare etc.

On the other hand, even within the company, telework is likely to be established in a job system
which employees can take on the task as a contract business. From now on, the style of work that
should be called a “craftsman” that surely realizes his/her contracted work may be increase rapidly.

Again, business form & type will change very rapidly, because of the improvement of ICT and the
accelerated with such pandemic.

Telework may be a good trend. But I like the form of small group telework (satellite office work)
rather than single home telework.

2
Leftware & Rightware: Concepts associated to Left and Right brain hemisphere respectively, explained in
Factory Management I lecture:
https://archive.org/details/FactoryManagement1TheCorporateConstitutionAndManagementFramework
https://archive.org/details/GestinDeFFbrica1
Videos: eeOS
How to build the enterprise excellence Operating System: https://www.youtube.com/watch?v=CFoQoBkBjV4.
Cómo construir el Sistema Operativo de la empresa excelente: https://www.youtube.com/watch?v=GtxIrtjsQ9s
Books:
The System of Excellence: https://www.amazon.com/dp/B077SGKSB1.
El Sistema de la Excelencia: https://www.amazon.es/dp/B0744PTWF4

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How can we cope with in such hectic circumstances? …In such an era, we have no choice but to
jointly create and accumulate what we can trust and believe, and what we really want to protect.
Instead of protecting the traditional corporate form, we will create a form of labor that can be
serious. One of important form is to coexist with nature, society and people. We have to interact
with people to create a new common world. Of course, how to maintain contact with people must be
carefully considered. But our spirit can't be shut up. Rather than shutting down in an attempt to
protect the existing society, we step forward to introduce a new society.

What is needed now is the above kind of spirit.

B. Troubles & problems


How we can promote Kaizen? …New idea of Kaizen is the implementation of awareness which is able
to be perceived in Rightware. And it is not possible to bring up the sensitivity in no visiting Gemba.
And it is the meaning of deterioration of Kaizen mind. Meeting in telework and isolated work
become popular. But (for instance) a meeting requires to create a various opinion. Then telework
meeting is required the methods to complement this deficiency. The opportunity of making idle talk
will decrease. Of course, PC has the function of Chat. But it is required to make face-to-face chat. Idle
talk is one of vitamin for job.

I have written in Factory Management-1 about the importance of using Rightware for the job.

Now telework is one of big trend. And it promotes the job style which can be done anywhere with
minimum condition (circumstances of ICT). And it can give the opportunity of bringing up Rightware,
if it is possible to choose the suitable place (such beautiful countryside). On the other hand,
unfortunately homeworking and isolated working style will increase. And in these cases, telework
may be the cause of disturbing Gemba Kaizen.

A Psychiatrist sounds the alarm on home telework about the mentality equilibrium sense

C. World chaos
This COVD pandemic has the power of causing the chaotic world of century. And this disclosed (or
now still is disclosing) the social contradictions which are social disparity, income inequality, gap
between rich and poor, racism, ego of the large countries, reaction of globalism & populism,
domestic first principal, exclusionism. These were covered when the economy was well by it. But
when the economy was destroyed in the world, potential inconvenient truths were revealed.

We are in an era where we do not know what will happen and how we will develop. New viruses may
occur repeatedly. And the second wave of COVID might be stronger and danger than first.

Ego of large countries

At present (unfortunately) the situation is no world leader. For instance, G7 or G20 fell into a
dysfunction. While the no world leader will progress in the future, there is no doubt that
international cooperation will be weakened and geopolitical conflicts will increase.

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And the first problem facing the international community is the gap widening (gap between rich and
poor, social gap, racism). Many workers and middle classes will explode their anger to the
governments and leaders. The economy is shifting from physical store sales and the real economy to
virtual and digital, and many unresponsive workers will lose their jobs.

US- China conflict

In the geopolitical conflict, the most concerned is the conflict between the US and China.

Unfortunately, US failed the initial response to COVID and searching the excuse to China. And the
division of supply chain will be accelerated. Enclosure of the supply chain of allies unit will be
progressed. In other words, each country's strategic priorities and global supply chains will become
more locally rooted, changing the flow of globalization. An immediate concern is the development of
Vaccine and supply. At present more than 140 of vaccine development plans are being progressed by
countries with no corporation. Moreover, WHO might be fell into dysfunction. And the problem
called "vaccine nationalism" might be occurred.

D. An eerie era
Why does this pandemic cause the worldwide panic, tension and economical and social chaos? …It is
fear.

Now from where a fear does come? …A fear comes from 3 elements and these synergistic effects.

One is the actual harm (death): As I wrote before I felt my feeling of Memento Mori. A popular
actors and actress died with the Cytokine storm (Immune runaway). And, we saw many cases of
medical collapse. And, no one will be afraid if there is no such person.

Other one is the unpredictability: The new coronavirus has a great characteristic that it can be
transmitted by asymptomatic infected people. And most of the people don't know if they are
transmitted. They don't know if it will be transmitted to other persons. We can't predict. Some
people are asymptomatic, and even if they finish without symptoms, there is a fear of Cytokine storm
that some people become so serious that they die within 10 days.

Into where are we? …Are Tokyo or Beijing in 2nd wave? …What is next? …May the second wave be
changed and stronger? …The victims are increasing in South America and Africa.

And last one is the control inability: When can we gain effective vaccines? …Currently, research on
therapeutic drugs in existing medicines is underway. However, there is no specific curatives, and also
it is said that it will take at least a year to develop a vaccine.

What this means is that there is no way to control the symptoms. In other words, it fulfils the fear-
causing condition of "uncontrollability". Even US & Europa cannot control it.

A fear is possible to express as next:

𝐹𝑒𝑎𝑟 = 𝐴𝑐𝑡𝑢𝑎𝑙 ℎ𝑎𝑟𝑚 𝑥 𝑈𝑛𝑝𝑟𝑒𝑑𝑖𝑐𝑡𝑎𝑏𝑖𝑙𝑖𝑡𝑦 𝑥 𝐶𝑜𝑛𝑡𝑟𝑜𝑙 𝑖𝑛𝑎𝑏𝑖𝑙𝑖𝑡𝑦

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The characteristic of COVID shows that it is causing fear to people because it is an unknown virus that
is very unpredictable and uncontrollable.

A President has told to his people that this (COVID-19) is just an influenza and no necessary to fear so
much. And when considering calmly, every year 250~600 thousand people died with influenza. At
first glance, his assertion is correct. Of course, it is wrong, even though there is a past data (which are
the results of 250~600 thousand victims.). He believed that this COVID also same as past influenzas.

We learn from the past. And we call such attitude as scientific. A science is based on learning from
the past. A scientist is the expert of past, but not future and unpredicted thing and a science is weak
against inexperienced disaster.

Therefore, we need to take the attitude of "fear correctly".

Fear correctly

Having scientific and humble eyes and making effort to investigate unknown disease. But experts are
not "experts of future".

A time to be difficult to anticipate damage.

Setting aside the assumptions from the past. Therefore, maximum action quickly. Consequently,
don’t be afraid to the over action.

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III. Control of lubricating oil.

A. Machine & Equipment Management


Again, TPM is one part of Machine & Equipment Management.

The region of Machine & Equipment Management is a little wide and includes Production planning,
Safety, Workability (including the surrounding circumstances), Law, IoT, Total Production flow,
Energy, Quality & reliability, Contamination prevention (including hazards waste), Environmental
hygiene, Disaster prevention, Skill control, Standardization and Machine constitution (including
Peripheral devise & equipment), its construction (including spare parts) and TPM.

B. What is the purpose of TPM?


Long days ago, and at least before the collapse of Japanese Bubble- Economy (1986~ 1991) a word
was a mainstream in Japan.

The word is "Scrap and Build (Japanglish; Japanese English)"

“The original meaning of Scrap and Build is ‘Achieve high efficiency of production facilities by
replacing old production facilities with new facilities by abolishing old and inefficient factory
facilities’ .”

Wikipedia

Then the trend of production Gemba was to dispose (a little) old type machine and replace to new.
And production engineer sought new machines in collected catalogues and competed to buy. And
production engineer misunderstood his job and became a (so called) catalogue engineer.

In that trend, a company took (and is taking) a different way which giving importance to using old
type machines with well maintenance and Kaizen. The company is Toyota.

As I wrote in Making Stream of Production3, Toyota almost makes his machines by himself and
continuing to give Kaizen and well maintenance.

Now that the bubble economy has collapsed and the economy has transitioned to a low-growth
economy, we have changed from the era of disposable equipment to the era of how well we
maintain existing equipment and continue production.

Machine & Equipment Management is "management to efficiently utilize the functions and
performance of the facility from the planning of the facility installation to operation, maintenance,
and disposal."

Its region is Whole life of machine & equipment.

3
Making the stream of production:
English: https://archive.org/details/makingstreamofproduction13_202001/mode/2up
Spanish: https://archive.org/details/establecerlacorrientedeproduccion13_202001

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C. Maintenance tribology
By the way, I wrote before that it is said that 60% occurrence of failures in moving parts of machine
are caused of the problems of lubricants (including lubricant supply).

And when looking the machine failure in overall machine, more than 25% number occurred, more
than 27% of machine stop and more than 30% of loss amount are caused of lubricant troubles.

Then the lubricant oil control is very important and essential factor of Preventive Maintenance.

Now recent year the word of maintenance tribology is becoming popular for preventive
maintenance.

What is maintenance tribology? …I think that there are many people who do not really hear
maintenance tribology, but if tribology is replaced by "lubrication and friction", it may easy to
understand.

Maintenance tribology is basically a combination of maintenance and lubrication, but more than just
a combination.

The two main points of the concept of maintenance tribology are as follows:

• One of them is that it is based on reliability engineering. It is an important element in


maintenance tribology to develop logical maintenance based on reliability engineering,
rather than performing maintenance indiscriminately.
• The second way of thinking is to make effective use of tribology for maintenance.

Tribology is a powerful tool for maintenance, but at the moment it is hard to say that the results of
tribology are being effectively utilized for maintenance.

The most important part of maintenance tribology is activities to effectively utilize the results of
tribology for maintenance.

As mentioned earlier, it is easily imagined that the use of tribology (lubrication technology to friction)
reduces maintenance costs due to the fact that lubrication problems account for 25% or more of all
problems (60% of failures that occur in the moving parts of machine tools).

Tribology

Again, when looking a book of Machine & Equipment Maintenance, sometimes we can see the word
of "Tribology4".

When I was young, there wasn’t this word. But at present this word is used very naturally. I think you
may know it. But just to be sure:

“Tribology is a field of science and technology about contact surfaces that interact with each
other when two objects move relative to each other so that they slide with each other, and
related practical problems”.

4
https://en.wikipedia.org/wiki/Tribology
Fifty years of tribology: http://www.eng.cam.ac.uk/news/fifty-years-tribology

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Wikipedia

The origin is τριβω, which means “rubbing” in Greek. Arnold J. Sommerfeld (German physicist), the
creator of fluid lubrication theory, presented important research in its early days.

The term was proposed in a report (Jost Report by Peter Jost5) that estimated damage due to friction
and wear, which was later compiled in the UK in 1966, which prompted development.

People involved in tribology are called “Tribologists”.

D. Damage to machine
The next graph is about an investigation result of damage to machine & equipment. Please look at
next graph:

Firstly, the damage place.

Looking at the proportion of mechanical elements that actually suffered damage, as shown in above
Figure, mechanical elements closely related to tribology, such as rolling bearings, guide surfaces /
sliding surfaces, gears, seals, and sliding bearings, are ranked high. These elements are called
triboelements (T).

And next Fig. shows the results of a survey on what kind of damage occurs to mechanical equipment.

Also, next graph shows the Degradation mode of equipment with high frequency of degradation.

5
https://en.wikipedia.org/wiki/Peter_Jost

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Degradation mode of equipment with


high frequency degradation
0 50 100 150 200 250 300
Wear 253
Leakage 146
Other 104
Fatigue 89
Corrosion 86
Vibration 76
Disconection 57
Insulation Deterioration 50
Burning 48
Breakage 47
Element Deterioration 47
Clogging 44
Defective Conductor 38
Loosening 38
Abnormal noise 34
Poor accurancy 30
Oil deterioration 25
Large Friction 17
Drop out 15
Erosion 13
Fretting Wear 11
Yielded 8
Stress Corrosion Cracking 7
Creep strain 7
Buckling 6
Fever 5
Peeling 5

As you can see that these types of damage are called degradation modes. Of the deterioration modes
that occur in mechanical equipment, wear, leakage, fatigue, oil deterioration, and other modes that
are very closely related to tribology are ranked high, and tribology has a very deep relationship to
damage to mechanical equipment.

Considering that maintenance has a main theme of delaying the occurrence and growth of damage
to mechanical equipment, from this, it is clear that tribology has a close relationship with
maintenance, and maintenance cannot be discussed without tribology.

I would pick-up Maintenance Tribology later and now I wish to complete the theme of "Control of
lubricant oil" which is one of essential theme of Maintenance Tribology.\

Control of lubricant oil

Again, what Lubricant Oil Control is. As I described in TPM-10, there are 6 points:

1) According to the application.


2) Use clean and correct lubricating oil.

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3) Oiling into mouth decided.


4) at the timing decided.
5) Just quantity decided.
6) Onto friction surface certainly.

Let's look at one by one.

1) According to the application;


&
2) Use clean and correct lubricating oil; … I introduced next table:

Lubrication Oil (From the Website of Japanese Lubricating Oil Company)


Type Purpose
Spindle Oil Spindle oil is generally used in high speed rotating parts such as light load machines,
small electric motors, and spinning machines. The characteristic oil is that it has low
viscosity and low load.
Dynamo Oil Spindle oil Dynamo oil is mainly used for large motors, generators, blowers and
ventilators that rotate at high speed.
Turbine Oil Used for lubrication of high-speed bearing parts of various turbines. It is also used for
lubrication of hydraulically operated parts of various machines such as compresors.
There are two types of turbine oil: non added turbine oil and added turbine oil.
Unadded turbine oil is characterized by excellent water separation. On the other hand,
added turbine oil is characterized by its excellent oxidation stability, de properties, rust
prevention and water separation.
Machine Oil Machine oils are widely used among lubricating oils and are characterized by that they
contain no additives. Generally used as lubricating oil for bearing rotating friction
parts of various machines. One of the features is that the varies depending on the type
of crude oil. Lubricants are classified into normal grade lubricants.
Cylinder Oil Cylinder oil is mainly used for cylinders and valves of steam engines. Cylinder oil has a
high viscosity and is used as an oil for parts with high temperatures and loads.
Gear Oil Gear oils are mainly used in various gears as lubricants for reducing friction and
cooling of reduction gears such as general machinery and rolling mills. There is a type
with an extreme pressure agent added and a type with no additive. Extreme pressure
agent added type is added with abrasion resistance and seizure resistance. On the
other hand, the characteristics of the extreme pressure agent free type are excellent in
oxidation stability, water separation, defoaming and rust prevention.
Bearing Oil As the name implies. bearing oil is used for lubricating the bearings of machines. Has
|rust prevention properties that prevent rust.
Compressor Oil Compressor oil is used for lubrication of compressor cylinders and bearings. Types a
divided into reciprocating type and screw type. It is characterized by extremely low
carbon generation and excellent oxidation stability and rust prevention. The screw
type is also characterized by excellent oxidation stability, rust prevention and water
separation
Sliding Surface Sliding surface oil is commonly used to lubricate sliding guideways on machine tool
Oil the types of sliding surface oil are classified into those that are dedicated to guideway
and those that are also used as hydraulic oil. It features excellent resistance t vibration
phenomena generated on the sliding surface. rust prevention, and oxidation stability.
Refrigerator Refrigerator oil is mainly used for lubrication of refrigerators. When mineral oil-based
Machine Oil lubricating oil is cooled, the minimum temperature at which it flows is low. So, it is
characterized by good stability to refrigerants such as ammonia. Refrigerator oils are
divided into mineral oils and synthetic oils such as alkylbenzenes.
Hydraulic Oil The hydraulic oil is based on turbine oil and contains additives. It is used as hydraulic
oil for hydraulic media and hydraulic pumps. Generally, hydraulic oils are
characterized by low viscosity. It is also characterized by excellent oxidation stability,
water separation, defoaming, and rust prevention. In addition, there are types that
exhibit viscosity. temperature characteristics. wear resistance. fire resistance. etc., so

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they can be used properly depending on the type of hydraulic pump and operating
conditions. The types of hydraulic oils include general hydraulic oils of the R & O type.
low pour point oils with high viscosity index. wear resistant fluids, and flame-retardant
oils

3) Oiling into mouth decided;

Omit. Please, look at the instruction manual.

4) At the timing decided.

It is important to share when "when necessary", but for that purpose it is necessary to set
the oiling cycle.

Normally, it should be set it by referring to the instruction manual, but if it is not listed in the
instruction manual, it should be reasonably decided the standard and then decided by trial
and error. In that case, I think it is better to set it while checking the condition of the oil film
of the lubricating oil. In this case, setting a little shorter than the possible cycle and gradually
lengthening this cycle will prevent the risk of "out of oil".

Of course, timely oiling not only involves deciding the cycle and supplying the lubricating oil
at that time, but "it is necessary to reliably perform oiling and inspection at the beginning of
every day."

And it is required to implement the "scientific experience".

5) Just quantity decided.

Suitable amount of lubricant supply is required. Because too much or too little oil quantity
can cause poor lubrication.

• If too much: This may cause oil leakage, or depending on the lubrication method, the
deterioration of oil may lead to a decrease in viscosity and cause poor lubrication.
• If too little: An oil film will not be formed on the friction surface, causing "galling" or
"burning".

The appropriate amount of lubrication is determined according to the sliding parts, rotating
parts of the equipment, movement conditions and lubrication method.

Determined!? …Determined in the instruction manual? …No, I haven’t seen such convenient
description in it.

Unfortunately, it is necessary to determine by yourself even though such data is in the


instruction manual.

Circulation lubrication and Total loss lubrication

The lubrication method varies greatly depending on whether circulation is to reduce


friction or wear or lubrication for cooling.

In the case of "Total loss type" lubrication, it is sufficient to supply the amount of
supply necessary for optimal lubrication activity, and in the case of the "Circulation
type", it is sufficient to supply the amount of lubrication based on the cooling effect.

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Now in here I describe the case of "Total loss lubrication".

How to decide the suitable quantity? …The formula for the amount of lubrication is shown
below for reference. The calculation formula differs depending on the type of lubrication
point, so use the appropriate calculation formula. However, It is impossible to accurately
obtain the required amount of lubrication with using the calculation formula.

This is because of depending on various conditions such as bearing material, surface


roughness, rotation speed, load, operating conditions, ambient temperature, and type of
lubricating oil, seal condition, new machine, or machine used.

Then finally you need to decide it based on scientific experience (try and investigation and
record)

The "Management Guide for Lubrication" published by the Japan Management Association is
defined as follows.

"If you give the necessary oil film between the two sliding surfaces first, then you can
replenish the amount of leakage from the shaft end to obtain good lubrication
performance."

It recommends to "determine the required amount of lubrication in advance using a


calculation formula and determine the amount of lubrication with reference to the amount
and experience values after machine trial operation".

Now calculation formula. It is for your reference:

Supply point Formula

Anti friction
Q = 0,1⁄25,4 x bearing diameter x number of rows x K
bearing

Plain bearing 𝑄 = 0,15⁄ 25.42 x rotating shaft diameter x bearing length x K

Plane
𝑄 = 0,01⁄25.42 x length x width x K
lubrication

Cylindrical
lubrication 𝑄 = 0,15⁄25.42 x diameter x length x K
surface

Chain 𝑄 = 0,01⁄25.42 x length x width x K

Ball bearing
𝑄 = 0,03⁄25.4 x length x row x K
way

Gear 𝑄 = 0,3⁄25.42 x pitch diameter x tooth surface width x K

Cam 𝑄 = 0,08⁄25.42 x contact circumference x width x K

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𝑨𝒏𝒕𝒊𝒇𝒓𝒊𝒄𝒕𝒊𝒐𝒏 𝒃𝒆𝒂𝒓𝒊𝒏𝒈 = 𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑟𝑜𝑤𝑠 = 𝑏𝑎𝑙𝑙, 𝑟𝑜𝑙𝑙𝑒𝑟 𝑜𝑟 𝑛𝑒𝑒𝑑𝑙𝑒 𝑏𝑒𝑎𝑟𝑖𝑛𝑔𝑠

𝑷𝒍𝒂𝒏 𝒍𝒖𝒃𝒓𝒊𝒄𝒂𝒕𝒊𝒐𝒏 = 𝐿𝑒𝑛𝑔𝑡ℎ 𝑖𝑛𝑐𝑙𝑢𝑑𝑒𝑠 𝑠𝑡𝑟𝑜𝑘𝑒 𝑙𝑒𝑛𝑔𝑡ℎ

𝑐𝑚3
𝑸 = 𝑅𝑒𝑞𝑢𝑖𝑟𝑒𝑑 𝑙𝑢𝑏𝑟𝑖𝑐𝑎𝑡𝑖𝑜𝑛 𝑎𝑚𝑚𝑜𝑢𝑛𝑡
ℎ𝑜𝑢𝑟

𝑲 = 𝐿𝑢𝑏𝑟𝑖𝑐𝑎𝑡𝑖𝑜𝑛 𝑐𝑜𝑛𝑠𝑡𝑎𝑛𝑡 𝑛𝑢𝑚𝑏𝑒𝑟 (𝑠𝑒𝑒 𝑔𝑟𝑎𝑝ℎ)

𝐷𝑖𝑎𝑚𝑒𝑡𝑒𝑟, 𝐿𝑒𝑛𝑔ℎ𝑡 𝑎𝑛𝑑 𝑊𝑖𝑡ℎ 𝑢𝑛𝑖𝑡 𝑖𝑛 𝒎𝒎

The constant is doubled for every 10 times speed increase rate6.

Again, the important things are to gain the scientific experience and decide the suitable
standard for both Timing and Supply amount".

6) Onto friction surface certainly.

Omit…

6
Graph, tables and formulas from the "Guide for Lubrication Management" published by Japan Management
Association": https://www.jma.or.jp/en/

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IV. Whole life of machine & equipment


By the way, I wrote the word of "Whole life of machine & equipment" in before page and said that
the region of Machine & Equipment Management is from the planning of the facility installation to
operation, maintenance, and disposal.

And when looking at the whole life from TPM, the famous Bus tub Curve would be helpful.

Please look at next picture.

There are THREE failure periods which are Initial Failure Period, Accidental Failure Period and Wear
Failure Period. And as you understand, the failure rate tends to increase in "Wear Failure Period"

Obviously, if the machine runs for a long time, internal parts will start to wear and fatigue. The period
when failures increase due to the life of the machine is called "Wear Failure Period".

And before this period comes, we must make efforts to extend the "Accidental Failure Period" in
which operation is stable by exchanging the expendable parts and maintaining.

Whether the time for failure due to deterioration or wear of parts comes earlier or later depends on
how the machine is used.

How to delay this failure period is a showcase for the technicians who perform maintenance, so
periodic inspections are essential tasks.

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And, most important factor is lubricating oil control.

I would write this theme including Tribology a little more in next description.

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V. Teaching the company


I'm writing one case of a middle-class industrial company. And with through this case, I write my
method of new system introduction & stability.

This company wished to improve (reduce) production cost for recovering profit and ROE. But this
company (he) took strange direction.

His wishes were to recover the profit. And he knew the necessity of sales expansion, and wished it.
Then he wished the cost reduction of production Gemba.

He believed the importance of QCD (Quality, Cost and Delivery).

Quality? …Yes, it is essential, but is very basic condition for a business. And, the quality issue was
covered with heavy quality assurance tactics. However of course it was never sufficient to the
survival of this company.

Delivery? …He covered this issue with having heavy inventory, which caused the excess and
obsolescence material and products and dispose losses.

Another one of concern was his market position. His market position (share) of relevant products
were fourth or lower.

Quality is of course important. However, it is very natural thing to make business nowadays and even
though it was improved, it might not be affected to the future growth.

To keep the customers order, his measures was the quick response of delivery, based on the heavy
inventory.

A. Something strange.
When I joined to this company, I felt something strange:

1) His target was to recover the profit. But he desired the introduction of JIPM's TPM
2) Not possible to feel the enthusiasm in Gemba.
3) Many Mudas in process. (Such re-inspection by inspectors, excess or obsolete materials &
finished goods.)
4) I hadn't seen the face of the president in this plant. (There were some photos.)
5) There is no middle and long-term plan.
6) Strange annual profit plan.
7) Outsourcing policy.

I explain one by one.

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1) His target was to recover the profit and sales expansion based on the cost
competitiveness.

But he desired the introduction of JIPM's TPM. Why TPM? …He had known the corporate problems
which were not only the production cost, but also the sales growth. But he wished to introduce
JIPM's TPM.

Therefore, when I made a session with the directors, their requirement was just the TPM
introduction. They believed that with introducing JIPM's TPM, it is possible to reduce cost. And
initially I imagined that many losses which were losses of material, labour and LT (lead time) caused
machine troubles. But…

When looking around the factories, I could understand the causes of high cost which were mainly not
caused machine troubles. And, I suggested that TPM introduction and stability are good thing.
However, the introduction of TPM is not affect to cost reduction. But they insisted to the
introduction stubbornly.

It was indeed strange thing for me. And, I wrote that if desiring true cost reduction, it was necessary
to resolve following things:

• Reduction of material loss (in Quality cost.)


• Reform of production plan (JIT concept and eliminate excess & obsolescence)
Then…
• The project team suggested the TPM introduction concept as "JIT machine condition".

But with just above items, it wasn't possible to resolve the illness of this company which was cycle of
High Price and No Sales Growth (or Sales Decrease) caused of High Cost Constitution, Excess
Inventory (for keeping competitiveness) also poor TQM then gain High Cost (because of Material loss
and quality cost increase).

Unfortunately, I promised to help this company, although it was under the effect of the drink.

Japanese saying that: "A samurai's word is as good as his bond". Then, I suggested the introduction of
TQM after the introduction of TPM and suitable timing.

Now, with just above problems and solving, is it possible to reduce cost? …No. It is not sufficient.

2) Not possible to feel the enthusiasm in Gemba.

There were some causes… Of course, one of cause was the initial stage and failed to move to actual
practice after the stage of planning. But the reason was not just this.

By the way, are employees just the tool of getting profit? …It is correct if we were in the age of the is
“Modern Times7“ by Sir Charles Chaplin. This was accepted as the voice of management side. And, a
company is important tool for just earning cost of living. But it is also correct, even today.

This is accepted as the voice of employee side. But In the generation of Millennial and AI, the
employee's mind for work is changing.

7
Modern Times: https://en.wikipedia.org/wiki/Modern_Times_(film)

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Then it is not possible to consider corporate management without "employee engagement".

3) Many Mudas in process. (Such re-inspection by inspectors, excess or


obsolete materials & finished goods.)

I listed up this "Many Mudas in process". And although there is a difference of degree, it is,
unfortunately, quite natural thing in the world.

Unfortunately, this company mistook the direction to resolve the high cost constitution. And… This
mistake was just his company's responsibility? …Yes. It was the responsibility of top management,
particularly the president. A company directed by incompetent president ruins.

But a salvation for this company was the management team who negotiated the direction to this
president. They had normal mind.

4) I hadn't seen the face of this president.

According to the directors he doesn't reside and come to this plant normally. And he doesn't attend
the making of middle & long-term plan and annual profit plan, and just giving profit target and
authorization.

Middle & long-term plan are not made annually. But it is required to review and the correction. But
he doesn't attend to this important event.

A director told me: “Our company doesn't give the importance to such middle & long-term plan”.

Because, nowadays it is the age of speed and the business environment is changing so rapidly.
Therefore, it is no meanings to bother to make such plan.

I was surprised by the director's comment. This company is middle class scale company with number
of employees and sales amount. But even though it is a middle-class scale company, this company
hadn't understood the meaning and importance of Middle & Long-term plans.

5) Middle & Long-Term plans.

Long term strategy.

In Factory Management-2, I have introduced the case of my previous company, SUMITOMO


Wiring Systems. The long-term strategy (plan) was Strategy of Vision "12".

And the contents were: "We made the strategy of vision "12" at the year 2008 that is to
realize the goal until 2012 and the goal is: (1) Consolidated sales: 6,000 million (us dollar.)
per year. (2) Global market share: 25%.

After this SUMITOMO made next long-term strategy "Vision- II to improve QCDDM (Quality,
Cost, Delivery, Development and Management).

And now, He made long term plan (strategy) "22V-Reduction25". (I omit the detail contents).

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Therefore… I was stunned by his words.

Annual management plan (Profit plan)

The important job role of president is to make a corporate management plans which are middle &
long-term plan and annual profit (management) plan.

And he must explain his will to all employees (and for instance bank) with papers and words. It is
quite important event to appeal his strong will and requiring the all employee’s cooperation.

He escapes from his most important job role which is to take his spearheading to make such planning
and appeal.

Making or reviewing & correcting Middle & Long-term plan is important for not only a big and
medium scale companies, but also for small scale companies. It is quite true that the business
environment & condition is changing rapidly. It is never exaggerated to say that it is not possible to
predict one year later, much more not possible to predict 3 years, 5 years later. For instance, in the
past there was worldwide trouble which is Lehman Bros Bankruptcy at 2008. Lately there were
Brexit, deserter of climate change and US-China trade friction. And now COVID-19 is attacking
worldwide economy. We know very well that "No one knows what the future holds". But still making
long & middle term plan is important for a company.

These are the compass of company's future growth. And annual corporate management plan which
is made with current market situation, reviewed middle & long-term plan is concrete strategy. And,
after making this annual management plan, the president needs to explain to all employees (and
sometimes relevant bank) with his own words directly.

The timing of direct speech by president is the beginning of work of the New Year also in the
company newsletter. My previous company has many blanches and plants in the world. Therefore,
the direct speech is made with video message. Anyway, the job role of president is important.

In this company, the president neglects such important planning and also the event.

Thus, in such situation, it is understandable that so low motivation of employees. Moreover, this
company failed the initial TPM introduction activity and lost half year. But not only this thing, but
also the lack of president's job role affected to the employee’s moral.

Then, I lectured to the directors.

Please make long & middle term plan.

It is quite true that the changing business environment is rapid. And, of course, it happens the
difference and sometimes big differences. However, the occurrence of difference is important.

The plan is the scenario of gaining profit and expanding business.

Is the important thing to review why the difference occurred? …Then it is possible to improve the
skill of making plan with forecast.

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6) Strange annual profit plan…

B. Cost reduction for this company.


I described the high cost constitution of this company and also the bad cycle. And it (TPM
introduction) was not sufficient for his desire.

Again, his desire was

1) Cost reduction in production process.


2) Improvement of corporate constitution8.
3) TPM introduction (but as the means of above propositions)

Why he wished such things. As you remember the president wished to recover the profit and ROE.
And he discussed with his friend consultant. Then he decided to introduce JIPM's TPM. He believed
that it is possible to reduce cost with JIPM's TPM. Now we need to have doubts about 2 things.

Firstly, please look at next familiar figure. It is good and I like this JIPM's figure which shows the 16
kinds of losses in production Gemba and use it quite often.

8
El Sistema de la Excelencia (Español): https://www.amazon.com/dp/1521901864
The System of Excellence (English): https://www.amazon.com/dp/1973409771
Factory Management I: Español: https://archive.org/details/GestinDeFFbrica1
English:
https://archive.org/details/FactoryManagement1TheCorporateConstitutionAndManagementFramework
Factory Management II: Español:
https://archive.org/details/GestinDeFFbrica2ElDespliegueYElControlDeLaPoloticaCorporativa1.5
English: https://archive.org/details/FactoryManagement2PolicyDeploymentControl
Factory Management: III: Español:
https://archive.org/details/GestinDeFFbrica3LaDeclaracicnDeLaPolPticaYLaVision/mode/2up
English: https://archive.org/details/FactoryManagement3PolicyStatementAndVision

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This figure shows the Mudas in 3 parts. These are Mudas of Machine, Mudas of labour and Mudas of
Energy and Material.

A. One is that is it possible to reduce production cost with elimination of Muda in machine
process?
B. Another one is that is it possible to improve profit with above cost reduction?

7) Outsourcing policy.

That day the director visited my hotel with the sales department director and invite me to drink in
the hotel bar.

Then I guessed his tactic that there must be something consultation and I whispered in my mind that
I'm not going to fall for his trick and invited them to take coffee in a lounge and told them: ―I'm
sorry I cannot drink tonight because of my health regulation ―and it is true that I stop drinking every
3 days. And this day was the day of regulation.

In this way, we sat down in a sofa of lounge and ordered coffees.

Then, the director began the talking. It was indeed they were in sever trouble about: Project
continuation, Sales expansion, Prospect of profit recovery…

― Sensei, how can we do? ―the director ask me.

― How can you do? ― then I answered― I don't know and it is not my matter. The contract of my
consulting job is just TPM introduction and its stability ―I responded just a little maliciously.

― Please listen and please accept to change the contract ―beg the director―. As you said our
contract is just TPM introduction. But unfortunately, as you told us just introduction of JIPM's TPM is
not enough to recover the profit moreover expansion of sales amount.

― You suggested us to introduce TQM to resolve the quality issue and the stability of TPM.
―continued the director―. But still it is not sufficient for our aim. We are in trouble. It is very
serious.

― If there is no increase of sales, as you said, no increase of labour efficiency and machine cost
reduction. And if dismiss excessive labours, the project might be collapsed and we cannot expect an
establishment of any project ―he ended.

― You could recognize that just TPM, even though JIPM's, introduction doesn't affect sufficiently to
your aim ―I said―. To recover profit, it is important and essential to eliminate Muda in process.

― However, you need to understand that there are 2 cases that Muda reduction relates to cost
reduction and doesn't relates to it ―and I detailed both of ones―. The case of material scrap
reduction and defect reduction affect cost reduction.

― But even though labour and machine efficiency are increased, there are not related to cost
reduction. And ―I continued―, if I wish to contribute to cost reduction with these, it is required to
reduce labour and machine capacity which means the dismissal and deal of some machines.

― By the way, how was the meeting with your president? ―I asked.

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The conclusion of this meeting was as next: (From the description of TPM-109)

• Conclusion by chairperson (Director):


- Continuation of this project.
- No dismissal of Gemba employees. (No leak this discussion contents regarding the part of
remark of dismissal to any persons including project members.)
- "JIT Machine condition" concept is supported. But…
- No excess machines are sold.
- Sales (including price and quality) strategy is discussed urgently.
• The president mentioned a compromise which the dismissal implementation is given the
grace period of 6 months.
- During the 6 months, sales increase should be resulted.
- The scale of sales increase should be more than the income amount by dismissal.
- The sales amount increase activity should be implemented as companywide activity.

Anyway, the dismissal was given the grace period.

This top decision wasn't opened to manager class and employees including project team and
committee.

― It is impossible to expand sales amount within 6 months. It is indeed an "impossible mission"


―said the director―. Thus, there is no way without dismissal of excessive labour capacity ―and he
continued…

― But if we do, it is the meaning of failure of the project again. And our one of aim which is to
introduce TPM also will not succeed. ―and then the director begged― Sensei we need your help.
Are there methods to resolve these difficult missions which are Profit recovery, No dismissal for
continuation of project and Sales growth?

― Before my suggestion, please let me know something ―and I detailed―. When looking around
your warehouse I saw many excess finished goods and goods of work-in-progress which have the
name tags of other company. What are these? ― And I asked another question without waiting for
the answer― Another question is why you have so many surplus machines including forklifts?

― We have surplus machines as you pointed out ―the director detailed―. The cause of these
surplus is the outsourcing policy. About 3 years ago, we took the strategy of outsourcing because of
the cost reduction strategy and also the countermeasure of internal overload.

― Initially ―the director explained―, we produced our all products in our internal production line.
But in the policy of cost reduction with using subcontract, some processes were transferred to the
subcontract. In fact ―the director recognized―, the use of subcontract is successful and we could
reduce the cost. Also, we could resolve the problems of internal overload.

Then one of the subdirectors pointed out: ― And we had begun the outsourcing of finished goods
also. The inventories of finished goods are from the outsourcing.

I shown a surprise expression on my face listening that, and I questioned: ―At present the overload
issue is resolved because of sales reduction, even if producing all internally, isn’t it? …And, one more

9
TPM-10 - Employee engagement and oil control:
https://archive.org/details/tpm10employeeengagementoilcontrol
TPM-10 - Compromiso del trabajador y control de la lubricación:
https://archive.org/details/tpm10elcompromisodeltrabajadoryelcontroldelalubricacion

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Total Preventive Maintenance, volume XI - Koichi Kimura Page 32 of 43

thing. Is the labour cost fixed cost or variable expenses (cost) for your company? Of course, fixed
cost, am I right? ―I asked.

― Of course, fixed cost without the expense of overtime work ―answered the director.

― It is indeed your company is very strange ―I shown my frustration―. You desire to reduce cost,
but as the result create big Muda caused of the cost reduction activity. I said it is strange. But I need
to paraphrase to "stupid".

― Your outsourcing policy made big mistake which doesn't realize cost reduction, but causes big
Muda. Your cost reduction way is wrong!

The subdirector shown a surprise expression and then he asked: ― But Sensei. We could realize the
certain cost reduction. And if stopping the outsourcing policy, we cannot realize the price
competitiveness. We buy and sell some products with using the subcontracts ―the subdirector
recognized.

― OK. I explain one by one. And the meaning of one by one is the case of outsourcing of production
processes and outsourcing of finished goods (like as trading company) ―I detailed.

― Firstly, please implement immediate action to stop outsourcing of production processes. These
production processes can be produced internally, aren't these? ― and the I asked again― You have
workers and machines, haven't you? …Of course, production support departments such HR,
Accounting, Production engineers, Maintenance engineers, Quality, Warehouse etc. also are included
in the workers.

― Now ―I explained―, what is "Cost"? …A cost is calculated as next: ―And I write below down on
the whiteboard at the time I speak: “Cost = Fixed cost + Variable cost” and I detailed each one.

― Fixed cost: Labour cost (Direct and Indirect), Head office, Depreciation of machine & equipment,
land & building, payment of patent and interest and etc.

― Variable cost: Material, transportation cost, outsourcing cost and other cost variable related to
sales amount.

― Subcontract also produces your products or work-in-progress with using fixed cost and variable
cost. Now you understand, I think ―and I tray to explain…

― There are big Muda in this production. These are duplicate fixed cost ―and I detailed―:
Outsourcing fixed cost plus internal fixed cost. And unfortunately, you cannot eliminate the internal
fixed cost which is labours (direct and indirect) and excess machines. Also, there are some variable
cost Mudas. For instance, transportation Muda…

― I confirm you. You cannot dismiss excess labours which are direct production workers and also
supporting staffs (office workers, supervisors, material handlers.) And, you cannot deal with excess
machines, because of the will of your president. ―Then I asked― How can you eliminate these
duplicate Fixed costs? …The answer is to stop to use subcontract for supplement some processes.

One of the subdirectors answered: ― Sir, if we stop to use outsourcing, the product's cost is increase.
And, we cannot have the necessary cost competitiveness. It is quite clear that the cost of subcontract
is cheaper than our internal production.

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―OK ―I tried to explain― Mr. Subdirector, please consider the next: Is it true that the cost
submitted by subcontract is cheaper than internal production cost? ―I asked figuratively―. You
compare the internal cost which is calculated with the hourly rate and standard hours and Variable
cost.

Then I written down on the whiteboard meantime I pointed out again: “Cost = Variable cost + Hourly
Rate x SH (Standard Hour of the product) “

― And, the hourly rate is constituted of the fixed cost such labour cost, machine depreciation and
head office expenses ―I detailed ―. This internal cost is in a sense provisional cost. And it is essential
to see and calculate as companywide situation.

― On the other hand ―I faced―, buying from subcontract is the external purchase cost and is
variable cost. And basically, the calculation method is different. If you use an outsourcing company
just because the internal cost is apparently high, you will not be able to secure enough profit to cover
the internal fixed cost…

― This means that profits that would have been gained if done internally could not be obtained, and
it is difficult to make a sufficient profit in this state ―I concluded.

The subdirector shown an expression of surprise and doubt and then I tried to explain in a better
way: ― Mr. subdirector still you seem to be not to understand well. OK. Let's consider it from the
point of view of Muda. ― And I detailed― you pay to subcontract the money of subcontract's Fixed
cost (such labour and machine) and Variable cost (Material, transportation cost) …

― If you could produce same products with "0 Fixed cost", don’t you think it is cheapest do you?
…Variable cost might be same even if using subcontract or internal process…

― And if you could produce with no cost of subcontract Fixed cost (even though the fixed cost of
subcontract is cheaper than internal fixed cost which is unneglectable), it can be calculated as
"profit” ―I continued…

― You review the outsourcing policy immediately and return the production process of outsourcing.
Above is we looked at from the point of view of Muda (duplicate fixed cost which are internal and, in
the subcontract) ...

― You have workers (production and indirect) and machines (depreciation) and expense these costs.
And, these internal fixed costs are not used. So ―I concluded―, you have excess labour capacity and
also machines.

― I think I could understand the duplicate fixed cost. But… ―the subdirector continued trying to
explain deeply despite his doubts in his assertion.

― Let's look at from the point of view of marginal profit. I believe you could understand "Marginal
profit and Break-even point".

― Marginal profit… Now let's look at from different view point which is the Marginal Profit. As you
know ― I thought that they know― Marginal profits are calculated as next: ―And I written down in
the whiteboard again―

• Marginal profit= Sales amount - Variable cost (expense)


And,
• Profit = Marginal profit - Fixed cost

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Then,
• Marginal profit - Profit = Fixed cost.

― In Japan marginal profit is called as Limit profit. Why so called? ―I asked figuratively―…Even
though at worst case, it must be required to cover and obtain the fixed cost in the sales. And, the
case of Profit = 0 is the case of Marginal profit = Fixed cost

― But it is not the worst case ―I recognize―. There is a case to accept to receive order even though
it is not possible to cover all fixed cost. Your outsourcing case is possible to calculate as next:

• Marginal profit = Sales amount - variable cost (outsourcing)

― It seems to be smaller than internal production. But actually, your situation is:

• Profit = Sales amount - variable cost - internal Fixed cost.

― And, your internal Fixed cost which are excess labours, excess machines support staffs & land &
building etc. (allocated to the products) are very expensive ―I continues…

― These expensive internal fixed costs can never be 0, even if these are not used for the products.
No, it is possible to 0 amount. If you could reduce in dismissal and deal machines and shrink company
scale. But not possible, isn’t it?

The Subdirector doubted for a while and then, he asked me: ― And Sensei, what is your suggestion?

― I conform you again ―and I repeated again―. You cannot dismiss excess direct labour (production
process worker), indirect labour (office staffs and Gemba such supervisor.) and reduce Head office
expenses and depreciation of machine & equipment & building and rent expenses (These costs are
allocated to the hourly rate).

― Your decision was not selling or treat excess machines, wasn’t it? …Also, you might not possible to
make downsizing your company scale which meaning is to downsize your head office and lands,
might not you? ―I asked figuratively…

― In short, you cannot treat anything internally, can you? …Then, the answer is just one. Undo the
processes which you transferred to subcontract and the products which you can make in internal
production line.

― I understand your saying ―the director said―. I've learned TOC (Theory of Constraint). TOC
teaches that the secret measures to gain profit is the maximizing Throughput. Sensei, your saying is
TOC, isn't it?

I tried to show a compromised face but, in my heart, I felt it could be acceptable to gain their
understanding with any idea. Throughput of TOC is almost same to Marginal profit ―Well, yes ―I
said.

TOC and Throughput

You know the word of TOC and Throughput. This study says one important point which is the
relation of "time concept with profit". For us (in the concept of TPS or factory management)
it is quite natural thing.

For instance, gaining $ 100 profit, one is to be needed 10 days from getting order and
production plan, purchase materials production and delivery and getting cash, and another

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one is to be needed one month (30days), which is better for a company? …The cash flow is
very much different.

In the thought of cash flow which is better internal production or outsourcing? …Of course,
internal production is better.

The case of outsourcing necessity is just next 3:

a. To supplement the function being insufficient internally.


b. Need equipment and technology not available in the company.
c. To cover fluctuations in demand. Demand fluctuates greatly and fixed resources
cannot be kept

Throughput

In somewhere, I have written this: “A scholar is such a person who write and present very
natural thing in Gemba as if new discovery”.

TOC advocate to maximize Marginal profit. And, according to a book, Throughput is


explained as next.

𝑇ℎ𝑟𝑜𝑢𝑔ℎ𝑝𝑢𝑡 = 𝑆𝑎𝑙𝑒𝑠 𝑎𝑚𝑜𝑢𝑛𝑡 − 𝑇𝑟𝑢𝑒 𝑉𝑎𝑟𝑖𝑎𝑏𝑙𝑒 𝐶𝑜𝑠𝑡

In the partial optimization, only the production efficiency of a certain process is improved,
and as a result, the production capacity of the entire factory or the overall profit may not be
achieved. Therefore, overall optimization is realized by aiming at maximizing the throughput.
"True variable costs" are only variable costs such as raw materials and transportation costs,
and do not include so-called factory costs such as depreciation costs, utilities costs, and
labour costs included in costing. And, profitability is determined based on the throughput per
unit time in the constraint process.

Why is such obviousness in the limelight? …The job of a scholar is to identify the truth. And
this advocate scholar did good job. However, it is too usual in Gemba. Therefore, I wrote the
report of Making stream of production10. Why was it necessary to use such new words
(Throughput) rather than the old word Marginal Profit?

Now, again Marginal Profit...

― I think you understand Marginal profit ― I tried to explain―. For getting your better
understanding, I give you another one of explain with using "Break-even point". I believe you know it.
Yes? ―I asked to them.

― Yes, we know it ―the director confirmed.

10
Making the stream of production lectures by Sensei Koichi Kimura:
«ENGLISH» https://archive.org/details/makingstreamofproduction13_202001/mode/2up
«SPANISH» https://archive.org/details/establecerlacorrientedeproduccion13_202001

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― But why don’t you use it before continuing outsourcing policy? ―I asked and also answered to
myself― Let's look at it and I example the break-even point chart.

Break-even point

When you make a profit plan, the break-even point chart shows the relationship that "how
much sales you make will generate a lot of profits. And, if you don't make at least this much
sales you will be in the red."

― At this moment in time I have no exact figures of your sales and construction of cost. Therefore,
please accept that my explanation is just image comparison

Then, I removed all my previous annotations on the whiteboard of the meeting room and, I start to
draw the below figure about the Break-even point.

Fig- 1: Break-even point

― Fig-1 shows your company's situation of Break-even point, sales prospects in your share in the
market, and the relation of Fixed cost, Variable cost, Sales amount and Profit. Easy? ―I asked
figuratively― …Yes, of course easy for you. In Fig-1 I assume to be profitable. Exactly I don’t know.

Then I draw the line oV [Variable cost: Outsourcing] showed in the above Fig-2. And I exposed the
next lecture…

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Fig- 2: Break-even point with the case of Outsourcing

Again:

𝑀𝑎𝑟𝑔𝑖𝑛𝑎𝑙 𝑃𝑟𝑜𝑓𝑖𝑡 = 𝑆𝑎𝑙𝑒𝑠 𝑎𝑚𝑜𝑢𝑛𝑡 − 𝑉𝑎𝑟𝑖𝑎𝑏𝑙𝑒 𝑐𝑜𝑠𝑡

And, the Outsourcing payment is Variable cost. And, this, oV is much higher than the Variable
cost (iV) of Internal manufacturing.

Then, oV > iV.

And, V is the function of Sales amount. Therefore y = Vx.

Then, above Variable cost: outsourcing has bigger angle than Variable cost Internal
manufacturing.

The important points are THREE.

One is oV > iV. Because:

𝐶𝑜𝑠𝑡 = 𝑉𝑎𝑟𝑖𝑎𝑏𝑙𝑒 𝑐𝑜𝑠𝑡 + 𝐹𝑖𝑥𝑒𝑑 𝑐𝑜𝑠𝑡

Major variable cost is material. And, it is same even if procured by subcontract or your company.
And, this Variable cost of Outsourcing is included the outsourcing's Fixed cost (even though it is
cheaper than yours).

Another point is the Break-even point moves to new Break-even point.

Because the angle of Variable cost of Outsourcing is larger than the Variable cost of Internal
manufacturing.

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And the Break-even point moved to new Break-even point which is located out of the point of Sales
prospect. Then, as the result, It should be occurred the Loss in your business.

I don’t know the exact figures. But it is quite true that your outsourcing policy harms the profit of
your company.

Finally, I need to point out one point which is the necessary consideration about the reduction of
Fixed cost, if you wish to continue the outsourcing policy. I explain it using next Fig-3.

Fig- 3: Fixed cost by reestructuring

If you wish to gain same profit in the condition of same Break-even point, Sales prospects with
keeping outsourcing, it is necessary to reduce the Fixed cost in restructuring.

In above drawing, it can be re-draw in lowering the line of Variable cost of Outsourcing to the point
where to meet the line and Sales Amount in same angle.

Then the zero point of Variable of Outsourcing to be zero is the necessary Fixed cost of After
Restructuring.

When making conversation with my Japanese friends (accounting manager experience), such
companies who misunderstand the use of outsourcing and believe the cost reduction.

Again, outsourcing must be used for next condition.

1. To supplement the function being insufficient internally.


2. Need equipment and technology not available in the company.
3. To cover fluctuations in demand. Demand fluctuates greatly and fixed resources cannot be
kept

Fixed cost reduction: To recover and increase profit or to judge the production policy, the use of
Break-even point chart is very useful and anyway it is very easy. (There is one difficulty which is to
decide & standardize the variable and fixed costs.)

After last short lecture to the directors, we continued the conversation.

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― And to recover and increase profit, it is important to reduce Fixed cost and Variable cost. Is it quite
natural? ―I asked the directors.

― Yes, it is very natural ―they replied.

― Now, how to reduce Fixed cost and Variable cost? ―I asked to the group without expecting any
answer but detailing in this way…

― Variable cost: I believe you are considering and implementing the reduction activity of variable
cost reduction such as: Scrap reduction and defect reduction in production process, VA/VE activity in
design engineering, procurement method, direct selling expenses etc.

― On the other hand, how to reduce Fixed cost? ―I answered to my self―, again, Fixed costs are:
Labour cost (Direct and Indirect), Depreciation of machine & equipment, land & building, payment of
patent and interest and etc.

― I believe you are considering the reduction of production excessive capacity in production line
employees. ―And I detailed―, reduction of production excessive labour capacity is easy as the
activity.

― On the other hand, Indirect employee such manager, supervisor, group leader, material-handler,
warehouse workers, maintenance engineer, production engineer, design engineer and office staff
(administrative departments) who are Cost allocated, moreover Office rent and utilities, PCs and
software leases, advertising, patent fee, depreciation of machine & equipment and land & building
―I tried to end up―. All of them also must be needed to reduce.

The conversation was too wide a little and I tried to finish my lecture quickly.

― If you wish to do general cost reduction, it is necessary to make another project. Then I
recommend to treat the problem in front of you. In this way, I never deny to reduce excess labour
capacity. But the true purpose should be to recover the profit. Yes? ―I asked figuratively.

― So, I recommend to do Break-even point diagnosis and to review the outsourcing policy
immediately.

― We understand Sensei ―directors agreed―. Then how about the request of consulting expansion
(expansion of consulting contract from just TPM to wider.)?

― Sorry please let me consider ―I answered but my thinking was the way of talk in Japan and, in
such situation, it means the rejection in euphemism.

C. Break-even point (BEP) investigation.


Based on my suggestion, management team discussed the implementation of investigation about the
outsourcing products with BEP. And, they decided to do it and report to the president.

1) Regrettable thing and Education of BEP.

This was strange, because some managers didn’t know the BEP. It was fatal because managers don’t
know BEP. It is never the situation for just this company, but unfortunately is general.

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In my previous company there is the training & education course when joining the company and I
also got the accounting education and BEP.

What the profit as a Gemba is:

𝑃𝑟𝑜𝑓𝑖𝑡 = 𝑆𝑎𝑙𝑒𝑠 𝑎𝑚𝑜𝑢𝑛𝑡 − 𝑉𝑎𝑟𝑖𝑎𝑏𝑙𝑒 𝑒𝑥𝑝𝑒𝑛𝑠𝑒𝑠 (𝑐𝑜𝑠𝑡) − 𝐹𝑖𝑥𝑒𝑑 𝑐𝑜𝑠𝑡

𝐺𝑒𝑛𝑘𝑎𝑖 𝑅𝑖𝑒𝑘𝑖 = 𝑆𝑎𝑙𝑒𝑠 𝑎𝑚𝑜𝑢𝑛𝑡 − 𝑉𝑎𝑟𝑖𝑎𝑏𝑙𝑒 𝑒𝑥𝑝𝑒𝑛𝑠𝑒𝑠

• Genkai Rieki: Marginal Profit (so called Throughput in TOC);


o Genkai: Limit.
o Rieki: Profit;
• What the variable expenses in Gemba is: (Omit…);
• What the Fixed cost is: (Omit…);

What the BEP diagram is:

Expenses
, Profit
Internal Sales
Fig-1 Manufacturing Amount

Profit
Variable
cost

Fixed cost

Break-even point Sales Sales Amount


prospects

To gain and increase the profit, it is necessary to consider the improvement of Variable cost
reduction, Fixed cost reduction and the increase of Sales amount.

When making a profit plan, it is required to consider these 3 points with BEP as quite natural thing.

I had seen the profit recovery plan of this company. But unfortunately, it was an action items and
likely wish list which had no accounting background. Such low-level profit recovery action plan was
submitted as the companywide activity in this company.

Anyway, the accounting department made the lecture of BEP to all managers.

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My previous company makes the new employees’ education as a standard which might not
be a worldwide standard. And, in this education, accounting including BEP is made.

The project leader (She is an accounting staff.) made the lecture to other team members and Gemba
supervisors. At that time the outsourcing products were used as the examples of BEP with actual
figures.

And of course, they found and understood that the outsourcing policy was wrong and internal
manufacturing with current labour and machine capacity was much better profitable. Also, it was
required the sales amount increase and the efficiency increase (to support the sales increase).

Then they confirmed the direction which is "JIT machine condition" is match to the company's
concern.

Problem

When discussing it, one difficulty was highlighted again. It was the issue of standard time
accuracy. So, how to calculate the Fixed cost of BEP?

Again, Fixed cost: Labour cost (Direct and Indirect), Head office, Depreciation of machine &
equipment, land & building, payment of patent and interest and etc.

And these are allocated with the standard time as next:

𝑂𝑢𝑟𝑙𝑦 𝑟𝑎𝑡𝑒 𝑥 𝑆𝐻 (𝑆𝑡𝑎𝑛𝑑𝑎𝑟𝑑 𝐻𝑜𝑢𝑟 𝑜𝑟 𝑡𝑖𝑚𝑒)


𝐿𝑎𝑏𝑜𝑢𝑟 𝑐𝑜𝑠𝑡 = ⁄𝑒𝑓𝑓𝑖𝑐𝑖𝑒𝑛𝑐𝑦

𝐷𝑒𝑝𝑎𝑟𝑡𝑚𝑒𝑛𝑡𝑎𝑙 𝑢𝑛𝑖𝑡 𝑐𝑜𝑠𝑡 𝑥 𝑆𝐻


𝑂𝑡ℎ𝑒𝑟 𝑓𝑖𝑥𝑒𝑑 𝑐𝑜𝑠𝑡 = ⁄𝑒𝑓𝑓𝑖𝑐𝑖𝑒𝑛𝑐𝑦

And,

𝐷𝑒𝑝𝑎𝑟𝑡𝑚𝑒𝑛𝑡𝑎𝑙 𝑢𝑛𝑖𝑡 𝑐𝑜𝑠𝑡 = 𝑇𝑜𝑡𝑎𝑙 𝑜𝑡ℎ𝑒𝑟 𝑓𝑖𝑥𝑒𝑑 𝑐𝑜𝑠𝑡 𝑥 𝐶𝑜𝑛𝑡𝑟𝑖𝑏𝑢𝑡𝑖𝑜𝑛 𝑑𝑒𝑔𝑟𝑒𝑒 𝑡𝑜 𝑠𝑎𝑙𝑒𝑠

Anyway, one of serious factor was the standard time accuracy.

As I described before, this company has standard time system and each product have the standard
time. However, the accuracy to actual time was bad. Then, they needed to confirm or modulate the
relevant products standard time.

But it was quite clear that undoing relevant products to internal manufacturing is more profitable
with tentative figures and BEP (Break-even point) investigation.

They had not so long-time grace (6 months). And they needed to implement following items:

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Total Preventive Maintenance, volume XI - Koichi Kimura Page 42 of 43

1. Confirmation of standard time;


2. Re-calculation of profitability in BEP;
3. Reporting to president and getting his acceptance. (Standard departmental cost wasn’t
changed and used);
4. Line formation (layout, labours and machines, QC & inspection, material supply, supervising,
material procurement);
5. Reporting to customers with the quality assurance system;
6. Work training;
7. Machine maintenance;
8. Information to customer and planning of undoing.

2) Imperial conference

After the confirmation of the profit plan of those outsourcing products, the results were reported to
the president. With through the meeting, the plan which was the undoing of the products and parts
was accepted by the president.

3) Small project for re-setup of production lines.

The Gemba was excited and got lively, because some employees had been having the concern of
losing job for the outsourcing policy and past outsourcing.

Then management team and project team had a meeting and decided to implement the step of 8.
Establish Development & Management system of Products and Equipment of Nakajima's 12 steps
which this company's favorite.

Again, this step is to seek Development of products that are easy to produce and machines that are
easy to use.

Of course, these undone products were not new products, but experienced and well-known
products. But I dared to recommend to implement this step for a training for future.

Again 12 steps: NAKAJIMA 12 STEPS

To re-introduce these products, I recommended to use the technique of "Initial Products


Quality Control" and the committee activity.

I described Initial Products Quality Control in TPM-1 as next (From TPM-1):

R&D? …Yes I will write the new products development in the article of Initial Products
Quality Control and the Committee.

In the Initial Products Quality Control, I describe the committee activity which
includes Quality, Design engineering, Procurement, Production engineering, Sales,
Subcontract Control, Human resources, Accounting & Financing, Production Control
and of course Maintenance and Gemba for vertical start-up to eliminate the losses of
new products start in Total Preventive Maintenance.

And, the aim of this activity is same to JIPM's TPM and is: Development of products that are
easy to produce and machines that are easy to use.

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I teach this in TQM for the development of "Product design, Process design, Machine &
equipment including tools, Materials, Material plan, Human resources, Production plan, Sales
plan":

• Product design: Making quality in design with confirming customer's needs, FMEA,
Function deployment, Fish-bone- diagram, Past defect analysis & feedback.
• Process design: Layout, Work design, Line formation, Line-balance, Work element
analysis, Time study, Working standard, Material handling.
Machine & equipment including tools (to seek better workability and trouble free):
Peripheral equipment (PC, Material supply), Chute, Andon & indicator, Maintenance
system, sensor, IoT, Recording system (for data gather), easy for Seiso, oil control,
easy for setup, easy for takeout, safety devise, Poka-Yoke devise.
• Material: Function deployment analysis, Procurement plan, Supplier capacity,
Inventory, Warehouse preparation,
• Human resources: Resource planning, Skill training & evaluation, PS (Preventive
Safety) deployment,
• Production plan: Sales plan, Minimum inventory, Delivery plan,
• Sales plan: Sales amount (prospect), Visiting customer (Sales engineering),
Customer's needs, Suggestion,

As you could imagine, the activity of Initial Products Quality Control is indeed companywide
activity is required.

Therefore, I establish a committee, when I lead it. But it is also a fact that it is required a
certain corporate capacity and the history or experience. Thus, it is not possible to gain
sufficient result from the first and is required some certain experience.

Unfortunately, this company is not reached to this “certain level”.

Anyway, this company decided to review the current outsourcing policy and undo the relevant
products and work-in-progress to internal production. And the production Gemba was excited after
along days.

I will describe the activity of the project & committee and new and temporal project of Initial
Products Quality Control (IPQC).

Regarding IPQC, (in my teaching) it is the range of TQM. Then I describe it in TPM very shortly and
give the deep description in TQM.

VI. Next Lecture


I write the continuation of bus tub curve and tribology and completion of the main theme (Control of
lubricating oil).

Koichi Kimura CC4 – March-2020.

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