TPM at HLL Case Study 1September 1, 2014

Hindustan Lever LimitedTPM Case Study

Prepared by Ravindranath Pandya 2229

Rinku Patel 2236Alpesh Kankrecha 2217

Course: Total Quality ManagementInstructor: Mr. Bijoyen Das

SEM-V, MBA(Evening)2012-15B.K.School of Management, Gujarat University

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Company Profile: HLL

Industry Fast moving consumer goods Type Public sector Founded 1933 Head quarters Mumbai, India Key people Harish manwani(CHAIRMAN)

Nithin Paranjpe (CEO MD) Products Home and personal care, food and

water purifier Revenue Rs 25,206 Crores(2012-2013) Employees Over 65,000 direct and indirect employees Parent Unilever

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Company Profile: HUL

HUL was formed in 1933 as Lever Brothers India Limited and came into being in 1956 as Hindustan Lever Limited through a merger of Lever Brothers, Hindustan Vanaspati Mfg. Co. Ltd. and United Traders Ltd.

Hindustan unilever limited is India’s largest fast moving consumer goods company, touching the lives of two out of three Indians with over 20 distinct categories in home & personal care products and food & beverages.

HUL is also one of the country's largest exporters; it has been recognised as a Golden Super Star Trading House by the Government of India.

It’s annual sales of €51 billion in 2012, Unilever has about 52% shareholding in HUL.

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Company Profile: HUL

It is headquartered in Mumbai, India and has an employee strength of over 16,000 employees and contributes for indirect employment of over 52,000 people.

The company was renamed in June 2007 to “Hindustan Unilever Limited”.

In 2007, Hindustan Unilever was rated as the most respected company in India for the past 25 years by Business world, one of India’s leading business magazines.

Hindustan Unilever's distribution covers over 1 million retails outlets across India directly and its products are available in over 6.3 million outlets in India, i.e., nearly 80% of the retail outlets in India.

It has 39 factories in the country.

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TPM at HLL Case Study

JIPM bestowed its excellence awards on Hindustan Lever Limited(HLL) Sumerpur, Chindwara, Yavatmal, and Silvassa plants.

At Silvassa factories, worn out machine parts are not tossed out to the trash can as in other factory.

Changeover time has been reduced to 25 – 30 minutes, which result in enhancement of the skills of workers.

Whenever the need arises for new machine, a team of employees is sent to the manufacturer to suggest design according to the requirement.

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Outsourcing production to third parties.

Implementation of TPM at various factories of HLL, resulted in returns that are 8 to 12 times investment in the past 3 years.

Each worker of the factory belongs to at least one these circles.

Intellectual pool has helped HLL to make intelligent deviations from some of the norms setup by JIPM.

HLL has created seven to eight knowledge management teams.

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TOTAL PRODUCTIVE MAINTENANCE Increase production while, at the same time, increasing employee

morale and job satisfaction. Hold emergency & unscheduled maintenance to a minimum.

Why we need TPM ? The major objectives of the TPM are

Avoid wastage in quickly changing environment. Reduce Cost of Manufacturing. Produce a low batch quantity at the earliest possible time. Goods send to Customers must be “ non – defective”

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TPM at HLL

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PLLAR 1 - 5S :TPM starts with 5S.

Problems cannot be clearly seen when the work place is unorganized.

Cleaning and organizing the workplace helps the team to uncover problems.

Making problems visible is the first step of improvement.

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PILLAR 2 - JISHU HOZEN (Autonomous maintenance) This pillar is geared towards developing operators to be able to take care of small maintenance tasks, thus freeing up the skilled maintenance people to spend time on more value added activity and technical repairs. The operators are responsible for upkeep of their equipment to prevent it from deteriorating.

Policy : Uninterrupted operation of equipments. Flexible operators to operate and maintain other equipments. Eliminating the defects at source through active employee

participation. Stepwise implementation of JH activities.

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PILLAR 2 - JISHU HOZEN (Autonomous maintenance)

JISHU HOZEN Targets: 1. Prevent the occurrence of 1A / 1B because of JH. 2. Reduce oil consumption by 50% 3. Reduce process time by 50% 4. Increase use of JH by 50%Steps in JISHU HOZEN : 1. Preparation of employees. 2. Initial cleanup of machines. 3. Take counter measures 4. Fix tentative JH standards 5. General inspection 6. Autonomous inspection 7. Standardization and 8. Autonomous management.

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PILLAR 3 - KAIZEN : "Kai" means change, and "Zen" means good ( for the better ). Basically

kaizen is for small improvements, but carried out on a continual basis and involve all people in the organization. Kaizen is opposite to big spectacular innovations.

Kaizen requires no or little investment. The principle behind is that "a very large number of small improvements

are more effective in an organizational environment than a few improvements of large value.

This pillar is aimed at reducing losses in the workplace that affect our efficiencies.

By using a detailed and thorough procedure we eliminate losses in a systematic method using various Kaizen tools.

These activities are not limited to production areas and can be implemented in administrative areas as well.

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PILLAR 3 - KAIZEN :Kaizen Policy :

Practice concepts of zero losses in every sphere of activity. Relentless pursuit to achieve cost reduction targets in all resources Relentless pursuit to improve over all plant equipment effectiveness. Extensive use of PM analysis as a tool for eliminating losses. Focus of easy handling of operators.

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PILLAR 3 - KAIZEN :Kaizen Target : Achieve and sustain zero loses with respect to minor stops, measurement and adjustments, defects and unavoidable downtimes. It also aims to achieve 30% manufacturing cost reduction.

Tools used in Kaizen : PM analysis Why - Why analysis Summary of losses Kaizen register Kaizen summary sheet.

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PILLAR 4 - PLANNED MAINTENANCE:

It is aimed to have trouble free machines and equipments producing defect free products for total customer satisfaction. This breaks maintenance down into 4 "families" or groups. Preventive Maintenance Breakdown Maintenance Corrective Maintenance Maintenance Prevention

With Planned Maintenance we evolve our efforts from a reactive to a proactive method and use trained maintenance staff to help train the operators to better maintain their equipment.

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PILLAR 4 - PLANNED MAINTENANCE:

Policy : Achieve and sustain availability of machines Optimum maintenance cost. Reduces spares inventory. Improve reliability and maintainability of machines.

Target : Zero equipment failure and break down. Improve reliability and maintainability by 50 % Reduce maintenance cost by 20 %

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PILLAR 5 - QUALITY MAINTENANCE: It is aimed towards customer delight through highest quality through defect free

manufacturing. Focus is on eliminating non-conformances in a systematic manner, much like Focused Improvement. We gain understanding of what parts of the equipment affect product quality and begin to eliminate current quality concerns, then move to potential quality concerns. Transition is from reactive to proactive (Quality Control to Quality Assurance).

QM activities is to set equipment conditions that preclude quality defects, based on the basic concept of maintaining perfect equipment to maintain perfect quality of products. The condition are checked and measure in time series to very that measure values are within standard values to prevent defects. The transition of measured values is watched to predict possibilities of defects occurring and to take counter measures before hand.

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PILLAR 5 - QUALITY MAINTENANCE: Policy :

Defect free conditions and control of equipments. QM activities to support quality assurance. Focus of prevention of defects at source Focus on poka-yoke. ( fool proof system ) In-line detection and segregation of defects. Effective implementation of operator quality assurance.

Target : Achieve and sustain customer complaints at zero Reduce in-process defects by 50 % Reduce cost of quality by 50 %.

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PILLAR 6 - TRAINING : It is aimed to have multi-skilled revitalized employees whose

morale is high and who has eager to come to work and perform all required functions effectively and independently. Education is given to operators to upgrade their skill. It is not sufficient know only to "Know-How" by they should also learn "Know-why". The different phases of skills are

Phase 1 : Do not know.Phase 2 : Know the theory but cannot do.Phase 3 : Can do but cannot teachPhase 4 : Can do and also teach.

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PILLAR 6 - TRAINING :Policy : 1. Focus on improvement of knowledge, skills and techniques. 2. Creating a training environment for self learning based on felt needs. 3. Training curriculum / tools /assessment etc conductive to employee

revitalization 4. Training to remove employee fatigue and make work enjoyable.Target : 1. Achieve and sustain downtime due to want men at zero on critical machines. 2. Achieve and sustain zero losses due to lack of knowledge / skills / techniques 3. Aim for 100 % participation in suggestion scheme.

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PILLAR 7 - OFFICE TPM Office TPM should be started after activating four other pillars of TPM (JH,

KK,QM, PM). Office TPM must be followed to improve productivity, efficiency in the administrative functions and identify and eliminate losses. This includes analyzing processes and procedures towards increased office automation.

Office TPM addresses twelve major losses. They are 1. Processing loss 2. Cost loss including in areas such as procurement, accounts, marketing, sales leading to high inventories 3. Communication loss 4. Idle loss 5. Set-up loss 6. Accuracy loss 7. Office equipment breakdown 8. Communication channel breakdown, telephone and fax lines 9. Time spent on retrieval of information 10. Non availability of correct on line stock status 11. Customer complaints due to logistics 12. Expenses on emergency dispatches/purchases

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PILLAR 8 - SAFETY, HEALTH AND ENVIRONMENT:Target :

Zero accident, Zero health damage Zero fires.

In this area focus is on to create a safe workplace and a surrounding area that is not damaged by our process or procedures. This pillar will play an active role in each of the other pillars on a regular basis.

A committee is constituted for this pillar which comprises representative of officers as well as workers. The committee is headed by Senior vice President ( Technical ). Utmost importance to Safety is given in the plant. Manager (Safety) is looking after functions related to safety. To create awareness among employees various competitions like safety slogans, Quiz, Drama, Posters, etc. related to safety can be organized at regular intervals.

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Why has the TPM programme at HLL overshadowed all other programmes such as TQM?

Aim of both programs is to improve efficiency and productivity.TQM is quality oriented and TPM is equipment oriented a) save ideal time which increase productivity b) Did not need to further improve in quality c) Earning benefits by no. of products not by quality d) For TQM, may increase cost and implementation time

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How do you think HLL would have overcome barriers created by trade unions during the introduction of TPM in the organization?

Total employee involvement. Establish sense of ownership. Most effective approach – obtaining views and ideas at early phase of

implementation. Cultural transformation- implementing team who is responsible for managing change, motivation and effective communication. Training and education.

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TPM at HLL

Deviating from the norms of JIPM may result in HLL disqualified for the JIPM awards in the future. Give your views?Motive of all JIPM type company is to give best suitable technique which increase company productivity not to form strict norms. As ultimate goal of HLL is to improve efficiency and effectiveness by Improvement of equipment effectiveness Achieve autonomous maintenance , Plan maintenance , Train all staff in relevant maintenance skills , Achieve early equipment management, 5S, Quality maintenance, Office TPMIn addition if HLL brings some other norms to improve efficiency and effectiveness this will bring modification values in JIPM norms, So they must be awarded.

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Thank You