Improving maintenance efficiency at AstraZeneca through increased ...
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Improving maintenance efficiency at AstraZeneca through increased use of TPM Jonas Bergsman Anders Häll Production economics Master’s thesis Department of Management and Engineering LIU-IEI-TEK-A--10/00781—SE
Transcript of Improving maintenance efficiency at AstraZeneca through increased ...
Improving maintenance efficiency at AstraZeneca
through increased use of TPM
Jonas Bergsman
Anders Häll
Production economics
Master’s thesis
Department of Management and Engineering
LIU-IEI-TEK-A--10/00781—SE
Improving maintenance efficiency at AstraZeneca
through increased use of TPM
Jonas Bergsman
Anders Häll
Supervisors:
Linköping University: Johan Johansson
AstraZeneca: Andreas Jaensson
Master’s thesis
Department of Management and Engineering
LIU-IEI-TEK-A--10/00781—SE
Foreword
This master’s thesis has been conducted at AstraZeneca’s production site in Snäckviken. It
covers 30 credit points and is performed at the division of production economics at Linköping
University. The project is the last phase of our master’s degree in Science of Mechanical
Engineering and it has given us the opportunity to practise the expertise gained during the
education.
At Linköping University we have had an excellent support from our supervisor Johan
Johansson. And have had the honour to participate in a bigger academia-business project
called the PIC-LI. This master’s thesis would not have been possible to perform without the
help and support from the employees at API and especially the maintenance engineers
which have given us important input to the project. We want to express special thanks to our
two supervisors at AstraZeneca, Andreas Jaensson and Johan Gester; who has showed
great commitment and helped us during this period.
AstraZeneca. May 2010
__________________
Anders Häll
__________________
Jonas Bergsman
Abstract
This is the report from the master’s thesis, performed at AstraZeneca, Sweden Operations at
the Snäckviken Active Pharmaceutical Ingredient (API) plant. AstraZeneca is a multinational
pharmaceutical enterprise with operations all over the world and our scope is the API plant in
Södertälje, Sweden. The site is a chemical agent mixing plant, with large size batches
containing expensive agents and solutions. This means that the value in each batch is high
thus putting pressure on the maintenance department keeping the uptime high.
The areas of interest in this master’s thesis are the maintenance strategy, the use of
performance indicators, the use of computerized maintenance systems, integrated
production and maintenance and motivational aspects. These topics were chosen in
collaboration with the maintenance manager at API. The report examines and provides
improvement proposals on the maintenance function at the Active Pharmaceutical Ingredient
production plant at AstraZeneca, Sweden Operations.
The purpose of this master’s thesis is to examine how AstraZeneca can improve
maintenance management and work with motivational aspects in order to ameliorate the
completion of the TPM pyramid and thus increase the maintenance efficiency. The purpose
is fulfilled by providing solution proposals that improves the overall maintenance results
which in turn improves the maintenance efficiency.
It was found that the TPM work had stalled and that the TPM was not fully understood by the
employees. A perception of a stalled TPM work put the focus on the TPM and its
components and the awareness arose that the commitment from the maintenance
technicians as well as the productions operators could be better.
The features of the current maintenance systems were not fully utilized. This affected the
use of the performance indicators. It was difficult to determine how efficient the maintenance
work and planning was, regarding the performance indicators. The maintenance engineers
at API are highly experienced and the API planning department works with the current
competence but it was perceived that the planning procedure was shifting between individual
planners, and that the process was based, not on a common policy, but on the experience
and expertise the engineers possessed. When investigating how the motivational work at
API was managed it was found there was a too long-sighted goal setting with respect to the
employees and that the incitements for reaching a particular goal could be revised on a
shorter termed basis.
What we propose is that API should look at aspects such as performance indicators but also
put an equal focus on less obvious points such as motivating the staff through competitions
etc. We urge them to look at goal setting, have TPM and goal setting be intertwined and
effectively communicated throughout the organization and managing cultural change in an
active way thus making each maintenance staff member take a self interest in the TPM
program. In increasing the TPM pyramid completion we propose that API focus on extending
the use of the current maintenance system and to introduce performance indicators that can
be used for mapping performance. This will also help motivating the staff and the
performance indicators can be used in the goal setting program. As a guide on how to work
with these issues, a number of improvement proposals have been generated addressed to
API; that covers this master’s thesis areas of interests.
Contents
Table of figures ...................................................................................................................... I
List of abbreviations .............................................................................................................. II
1 Introduction .................................................................................................................... 1
1.1 Background............................................................................................................. 1
1.2 Problem definition ................................................................................................... 2
1.3 Purpose .................................................................................................................. 3
1.4 Delimitations ........................................................................................................... 3
2 Methodology .................................................................................................................. 4
2.1 The work process.................................................................................................... 4
2.2 Ensuring validity and reliability ................................................................................ 5
3 Company description ..................................................................................................... 7
3.1 AstraZeneca ........................................................................................................... 7
3.2 History .................................................................................................................... 7
3.3 Active pharmaceutical ingredient production at Snäckviken .................................... 7
4 Theory ........................................................................................................................... 8
4.1 Total productive maintenance ................................................................................. 8
4.2 Maintenance planning ........................................................................................... 10
4.2.1 The scheduling problem ................................................................................. 13
4.3 Integrated production and maintenance planning .................................................. 13
4.4 Maintenance performance indicators .................................................................... 14
4.5 Computerized maintenance management system................................................. 15
4.6 Motivational Theory ............................................................................................... 16
4.6.1 The theory of X and Y .................................................................................... 17
4.6.2 Maslows theory of motivation ......................................................................... 18
4.6.3 McClelland’s motivational theory .................................................................... 19
4.6.4 Expectancy Theory ........................................................................................ 20
5 Present situation .......................................................................................................... 21
5.1 Active pharmaceutical ingredient production site .................................................. 21
5.2 Maintenance strategy ............................................................................................ 22
5.3 Standard operation procedures ............................................................................. 23
5.4 Planning coordination ........................................................................................... 25
5.5 Production planning .............................................................................................. 25
5.6 Maintenance planning ........................................................................................... 26
5.6.1 Preventive maintenance ................................................................................ 27
5.6.2 Corrective maintenance ................................................................................. 28
5.7 Calibration planning .............................................................................................. 29
5.8 Key measurements ............................................................................................... 31
5.9 Computerized maintenance management system................................................. 33
5.10 Mechanical workshop and operative maintenance ................................................ 34
5.11 Motivation ............................................................................................................. 35
5.12 Strengths and improvement potentials .................................................................. 36
6 Analysis ....................................................................................................................... 38
6.1 Total productive maintenance ............................................................................... 38
6.2 Maintenance management .................................................................................... 40
6.3 Integration between maintenance and production planning ................................... 41
6.4 Performance indicators ......................................................................................... 42
6.5 Motivation ............................................................................................................. 45
6.5.1 Extrinsic motivation ........................................................................................ 46
6.5.2 Intrinsic motivation ......................................................................................... 47
6.5.3 Leadership and cultural change at API .......................................................... 48
6.6 Performance indicators related to motivational theory ........................................... 48
7 Improvement proposals ................................................................................................ 50
7.1 Total productive maintenance ............................................................................... 50
7.1.1 TPM-pyramid related to responsibility and mandate....................................... 50
7.1.2 TPM-pyramid, goal setting and measurement ................................................ 50
7.1.3 TPM-zoomed in charts and step by step guide to World Class Maintenance . 51
7.1.4 TPM-pyramid and personal commitment and competition .............................. 51
7.2 Planning Process .................................................................................................. 53
7.2.1 Improve the planning process ........................................................................ 53
7.2.2 Define safety time that maintenance and production needs. .......................... 54
7.3 System use ........................................................................................................... 55
7.3.1 Introduce more comprehensive classification of work orders ......................... 55
7.3.2 Review of the maintenance policies for equipment ........................................ 56
7.3.3 Increase the length of visualized plans........................................................... 56
7.3.4 Document time needed for preventive maintenance ...................................... 57
7.3.5 Introduce time data in SAK ............................................................................ 58
7.4 Performance indicators ......................................................................................... 58
7.4.1 Introduce more useful performance indicators ............................................... 58
7.5 Motivation ............................................................................................................. 59
7.5.1 Intrinsic motivation results .............................................................................. 59
7.5.2 Extrinsic motivation Results ........................................................................... 61
7.5.3 Intrinsic versus extrinsic motivation ................................................................ 61
8 Conclusions ................................................................................................................. 63
9 Recommendations ....................................................................................................... 65
9.1 Improvement actions ............................................................................................. 65
9.2 Prioritizing the improvement proposals ................................................................. 66
9.3 Future research .................................................................................................... 68
References ......................................................................................................................... 69
Performance indicators schematics ........................................................................ Appendix 1
Policy decision model............................................................................................. Appendix 2
TPM pyramid (Current state) .................................................................................. Appendix 3
TPM pyramid (After improvements) ........................................................................ Appendix 4
Table of figures | I
Table of figures
Figure 1:1 The areas of interest in this master’s thesis .......................................................... 3
Figure 2:1 Work process, (Lekvall & Wahlbin, 2007 modified) ............................................... 4
Figure 4:1 Pillars of TPM ....................................................................................................... 8
Figure 4:2 The maintenance total cost picture, (Pintelon & Gelders, 1992, modified) .......... 10
Figure 4:3 Categories of maintenance ................................................................................ 11
Figure 4:4 Maintenance policy decision model (Waeyenberg & Pintelon, 2002) .................. 12
Figure 4:5 The Motivation Quadrant (Pagan, 2006) Hybrid with (Robbins, 1991) ................ 16
Figure 4:6 The Behaviour Model (Abrahamsson & Andersen, 2005) ................................... 17
Figure 4:7 Maslow's pyramid (Abrahamsson & Andersen, 2005) ........................................ 18
Figure 4:8 Motivation Loop .................................................................................................. 18
Figure 4:9 Victor Vroom’s Expectancy Theory (Abrahamsson & Andersen, 2005) .............. 20
Figure 5:2 TPM Pyramid (AstraZeneca, TPM pyrmid, 2009d) ............................................. 22
Figure 5:1 Schematic view of the active ingredient substance production process .............. 22
Figure 5:3 Hierarchical structure of the SOP’s associated with maintenance ...................... 24
Figure 5:4 The SOP staircase ............................................................................................. 24
Figure 5:5 The coordinators organizational function ............................................................ 25
Figure 5:6 The production planning process ....................................................................... 26
Figure 5:7 The maintenance organization structure. (Jaensson, A. 2010) ........................... 27
Figure 5:8 The preventive maintenance process ................................................................. 28
Figure 5:9 The corrective maintenance process (AstraZeneca, 2009b) ............................... 28
Figure 5:10 Calibration work process (AstraZeneca, 2009b) ............................................... 30
Figure 5:11 History of TA at API 2009 ................................................................................. 31
Figure 5:12 History of unfinished work orders 2009 ............................................................ 32
Figure 5:13 The history of urgent work orders ..................................................................... 32
Figure 5:14 Schematic view of the maintenance information system (Based on AstraZeneca,
(2009e) ............................................................................................................................... 33
Figure 5:15 Principle view of the hierarchical system structure. .......................................... 34
Figure 6:1 TPM Implementation and cultural change pyramid anchorage schematics ........ 38
Figure 6:2 The relation between critical and non-critical work orders .................................. 40
Figure 6:3 Total cost curve of maintenance (Johansson, 1993) .......................................... 43
Figure 6:4 Victor Vrooms Expectancy Theory ..................................................................... 45
Figure 6:5 Intrinsic and extrinsic vs. Maslov's pyrmid .......................................................... 46
Figure 6:6 The bonus (incentive) made out of percentage of base salary............................ 46
Figure 6:7 The Maslow Pyramid intrinsic higher order need compared to lower order need of
hygiene factors.................................................................................................................... 48
Figure 7:1 TPM Zoomed chart with the what, why and how’s shows the whole chain. ........ 52
Figure 7:2 The Planning Process visualization .................................................................... 53
Figure 7:3 Safety time ......................................................................................................... 54
Figure 7:4 Capacity/ utilization diagram............................................................................... 57
Figure 9:1 Effect/ Effort diagram of the 10 important improvement proposals ..................... 67
Figure 9:2 Execution order when using priority option no. 1 ................................................ 67
Figure 9:3 Execution order when using priority option no. 2 ................................................ 68
Figure 9:4 Execution order when using priority option no. 3 ................................................ 68
List of abbreviations | II
List of abbreviations
ANL ........... Plant registry
AOH .......... Work order manager
API ............ Active pharmaceutical ingredient
CBM .......... Condition based maintenance
CM ............ Corrective maintenance
CMX .......... Calibration management software
CP ............. Calibration point
DOM ......... Design-out maintenance
EFA ........... Replacement factory/ Ersättningsfabrik
ERP .......... Enterprise resource planning
FBM .......... Failure based maintenance
FDA .......... Food and Drug administration
FUH .......... Preventive maintenance manager
GMP ......... Good manufacturing practice
KPI ............ Key performance indicator
MRP .......... Material resource planning
MTBF ........ Mean time between failure
MTTR ........ Mean time to repair
MWT ......... Mean wait time
OMA ......... Operations maintenance API/R&D
PI .............. Performance indicator
PM ............ Preventive maintenance
RAM .......... Random access memory
SAK .......... Systemet för anläggningskontroll
SHE ......... Safety, Health, Environment
SOP .......... Standard operation procedure
SYFA ........ Synthesis factory/ Syntet fabrik
TA ............. Technical availability
TGS .......... Technical governance and support
TPM .......... Total productive maintenance
UBM .......... Use based maintenance
VMI ........... Vendor managed inventory
Introduction | 1
1 Introduction
This chapter will present an introduction to this master’s thesis. It includes a background of
the problem that initiated the project. It also presents the purpose for this master’s thesis
which is broken down to a set of research fields. At last the delimitations of the work are
presented.
1.1 Background
AstraZeneca is a global player on the pharmaceutical market. Their yearly sales exceeds $
32 Billion and the company has nearly 63 000 employees all over the world. AstraZeneca is
active in over 100 countries with a growing presence in emerging markets. The research and
development headquarter is sited in Sweden and there is a total of five production sites,
located in Södertälje, Lund, Mölndal and Umeå. (AstraZeneca, Annual Report, 2009a)
A large part of the production is located in Sweden and some of the most important factories
are located in Södertälje. The production is always aiming at maximizing the efficiency in the
supply chain (through continuous improvements). The Lean philosophy has been adapted in
order to reduce waste and to use the capacity in an efficient way.
In pharmaceutical production there are strict regulations and policies that need to be
considered in order to ensure that the product quality is high. In the first manufacturing steps
of a product the production is managed as a chemical plant were different ingredients get
mixed in several chemical processes. This production has a high level of automation which
places high demands on the equipments functionality. The processes need to be properly
operated, equipment needs to be calibrated and the machines need to be well maintained.
Since the value of a batch is very high, the production needs to be processed without
interruptions. The maintenance work is therefore an important issue to handle in the active
pharmaceutical ingredient (API) production.
The API unit in Södertälje is now facing a future shutdown and some products have already
been outsourced to other manufactures. Although there will still be work for some years, due
to a forecasted increase in orders. AstraZeneca is also undergoing a rationalization process,
reducing cost and number of employees. This has affected the maintenance department
which has reduced its work force which had resulted in a need for more effective work.
Due to the situation, the maintenance work is now needed to be handled with less capacity.
In order to get a more efficient maintenance, AstraZeneca works with the Total productive
maintenance (TPM) concept but due to high utilization of the employees, the improvement
work within TPM has been constrained. The fact that API is also facing a shutdown makes it
important to work with motivating the personnel, since the motivation can suffer during these
kinds of circumstances. The maintenance engineers and the manager are highly utilized and
have therefore no time to identify improvement opportunities to make the maintenance work
more efficient or finding ways in how to motivate the employees. Due to the high utilization of
the maintenance engineers and manager this master’s thesis has been initiated to
investigate these issues.
Introduction | 2
1.2 Problem definition
The high utilization of the staff has increased the importance for the maintenance workers to
perform their maintenance and calibration work more efficiently so that the time needed for
maintenance is reduced. This also places high demands on the maintenance engineers, to
plan the maintenance and calibration work in an efficient manner, so that there will be less
need for maintenance resources.
All maintenance performed at API is based on the underlying maintenance strategy of
AstraZeneca which is the Total productive maintenance. This intends to achieve a sense of
joint responsibility between the management, the operators and the maintenance workers to
run the machines as efficiently as possible and also to optimize their overall performance.
Since TPM is an important issue in the maintenance management at API, this concept will
be explored in depth in this master’s thesis.
In meetings with the maintenance manager the current situation was briefed to us and he
pinpointed the fields of interest that he thought could be important to examine. A known
problem was the use of the maintenance system. For several years API have worked to get
an extended system use, but there is still some work to be done before one can consider it
as excellent. This has resulted in an insufficient amount of historical data that could be used
for analyzing and improving the maintenance performance. Related to this, there have been
several attempts to introduce new maintenance performance indicators to better measure
the maintenance work and efficiency. Due to the unavailability of adequate data this has
been hindered,
An important issue in the use of performance indicators is their interconnection to the
motivational aspect. The current set of performance indicators, are supposed to be used in
an efficient way with respect to key targets and motivation. This is not the case today. An
overview of the set of performance indicators may help solve this problem. We will dive
deeper into performance indicators and how they relate to motivation in later chapters.
In cooperation with the maintenance manager the following areas have been deemed
important to examine in this master’s thesis.
The maintenance strategy, Total productive maintenance
The maintenance management and planning issues
The use of the current maintenance systems
The use of maintenance performance indicators
Motivating the employees
Within each of the topics there will be thorough research and a breakdown of the problems
posed. We will have a look at the current performance, highlighting weaknesses and put
down a proposal on how these could be improved. To give the big picture and to verify that
the proposals lead to improvements, the results from the different topics will be connected to
the TPM pyramid (a framework for measuring TPM completion). The areas of interest in this
master’s thesis are showed in Figure 1:1 and this will be used to visualize the report.
Introduction | 3
Figure 1:1 The areas of interest in this master’s thesis
1.3 Purpose
The purpose of this master’s thesis is to examine how AstraZeneca can improve
maintenance management and work with motivational aspects in order to ameliorate the
completion of the TPM pyramid and thus increase the maintenance efficiency.
1.4 Delimitations
This master’s thesis corresponds to approximately 20 weeks of work. It is focused on the
active pharmaceutical ingredient department at AstraZeneca in Snäckviken, Södertälje. Due
to the limited timeframe and the aim of the research, some parts in the study will be
delimited from this master’s thesis.
AstraZeneca’s global organisation has launched an implementation of an ERP (Enterprise
resource planning) system. This implementation is planned to begin in Q3 (for the Swedish
part of AstraZeneca). Due to insufficient information this will not be examined further.
During the master’s thesis other departments at Södertälje will be visited. The information
from these visits will only be used as inspirational source to collect ideas and inputs on the
problems API is facing. Thus they are not going to be analysed in depth in this master’s
thesis. Since the managerial aspects are in focus, details in the operational (hands on)
maintenance work will not be revised. An important issue to consider in maintenance work is
the handling and coordination of spare parts. Due to an ongoing project, aiming to
centralizing the spare part inventory, this management issue will not be covered in this
master’s thesis.
Increase maintenance efficiency
Maintenance management
TPMPerformance
indicators
Use of the current maintenance
system
Integration of maintenance,
calibration and production planning
Motivation
Methodology | 4
2 Methodology
This chapter will present the methodology addressed in this master’s thesis. The phases will
be described and the chapter will end with an evaluation of the sources of errors that can
occur in this master’s thesis and how these have been managed.
2.1 The work process
The work in this master’s thesis is performed with the following methodology, Figure 2:1. The
methodology is based on the work of Lekvall & Wahlbin (2007), but has been modified in
order to better fit this master’s thesis. This method will provide guidance during the master’s
thesis and ensure that the work will be well structured. The work will be carried out with the
focus on a specific object which is defined as a case study according to Lekvall & Wahlbin
(2007).
Figure 2:1 Work process, (Lekvall & Wahlbin, 2007 modified)
Basic Study
To get an overview of the subject, the work starts with a brief study of related literature in
maintenance planning, production planning and information about chemical industry.
Commonly used nomenclature and maintenance procedures and techniques were
examined.
Problem identification
When a basic knowledge of the subject is obtained a problem identification can take place.
In this master’s thesis the problem is specified in some basic research areas and in this
phase the purpose of this master’s thesis will be specified. It is important in an early phase of
the project to clearly define and formulate the purpose; this is to ensure that there are no
misunderstandings and differences in interpretation of the objectives (Lekvall & Wahlbin,
2007). Because the project is limited to 20 weeks naturally there must be a limited scope to
have the chance to investigate at the kind of depth that a master’s thesis requires.
Basic study
Problem
identification
Field study Specify problem
Recommendation
Analysis
Conclusion
Theory
Pre
-stu
dy
Empirical study
Ana
lysis
Methodology | 5
Field Study
This phase includes the information retrieval process. The process will include both open
and semi-structured interviews, studies of internal documents, exploration of AstraZeneca’s
computer based systems and also to investigate working procedures and processes. The
open interviews will be carried out through conversation, based on maintenance related
problems (Befring, 1994). The semi-structured interviews will be carried out with questions
that are prepared in advance. The order of answering the questions or the correct answer in
the semi-structured interviews will be unbound (Dahmström, 2005) (Lekvall & Wahlbin,
2007). Open style format of the questions are aimed at letting people express their views
and ideas to the highest extent possible, because we don’t want to influence their answers
by putting to narrow or specified questions in these interviews. This will result in a
description of the current situation at API including identified strengths’ and weaknesses
Specify problem
Based on the problem and the purpose presented in this master’s thesis the field study will
provide input to and result in a more specific and more concrete problem formulation. The
level of detail will be higher which will contribute to a more focused and specific information
gathering process, in the theory phase (Lekvall & Wahlbin, 2007). In this phase both primary
and secondary data will be considered (Dahmström, 2005). Primary data are information that
is generated or gathered specifically for this master’s thesis while secondary data are
information that not have been produced for this study (Lekvall & Wahlbin, 2007).
Theory
When the problems are identified and the areas of interest are defined, a phase of collecting
theories and information will be initiated. Scientific literature such as research reports and
books written on the subject will be read in the search for relevant information. The
methodology will be to search and try to use as up to date books and reports as possible,
which is the main principle when searching literature according to Befring (1994). The
relevant theories found will be presented in chapter 4.
Given that the data is inconclusive it renders it impossible to conduct a sound analysis, thus
more field study will be carried out in order to gather more information to support and
validate the analysis and the results. (Lekvall & Wahlbin, 2007)
Analysis
The analysis phase includes an analysis of the current situation by applying relevant
theories. This phase also includes the conclusions that can be made and how the situation
can be improved. At last the author’s recommendations will be presented on how
AstraZeneca should tackle the weak points and transform the ideas to tangible solutions.
2.2 Ensuring validity and reliability
In all studies there are sources of error. According to Lekvall & Wahlbin (2007) and
Dahmström (2005), two commonly used terms for analysing errors are validity and reliability.
Validity is defined as the level that the measurement actually measures what it is supposed
to measure. Reliability is the accuracy of the measurement and how resistant it is against
factors of randomness. It is important that both the reliability and the validity are high to
make sure that the result is accurate and trustworthy.
Methodology | 6
In this master’s thesis the field study is largely based on interviews with employees at API.
When gathering information from personnel it is always a risk that it is affected by the
interviewees own opinion, standpoint and interest. To avoid the risk that subjective
information affects the result, at least, two employees have been asked the same questions
when crucial or key information have been gathered.
We have collected information from several sources so that when building the analysis and
the results the reliability and validity of the study will be high. The questions in the interviews
have been formulated not to influence the interviewee in any particular direction. All
information gathered during interviews has also been carefully probed to avoid being too
much influenced by personal opinions.
During the literature study the theories have been interpreted by the authors of this master’s
thesis expertise which can lead to a deviation from the original meaning. To reduce that this
affects the results the original article, to a large extent, has been used to avoid another
interpretation. To increase credibility in the theories old sources have been de-prioritized and
the information has been inquired with respect to this. The majority of the theories presented
are supported by several authors independent of each other which increase the validity.
The study can also be considered as objective to the extent that the authors of this master’s
thesis don’t have any self-interest in the outcome of this work. Since this master’s thesis has
been conducted by two individuals the results can be affected by the experience and
expertise possessed. This risk has been avoided by building the analysis and results on
theories which also increases the reliability of this master’s thesis.
Company description | 7
3 Company description
This chapter aims to give the reader a brief overview of AstraZeneca. First a description of
the company and its business is presented followed by the company’s history. Next the API
at Snäckviken will be presented.
3.1 AstraZeneca
AstraZeneca is a world class manufacturer of medicine with well-known products such as
Losec, Nexium and Seloken. It is a multinational corporation, active in over 100 countries,
employing approximately 63 000 people. The employees are distributed with 51% in Europe
and 32% in Americas and 17% in Asia. Sales in 2008 equalled $32 billion and had a net
income of $6.1 billion. With 12 000 people employed in research and development it invests
roughly $5 billion annually (2008) in R&D. (AstraZeneca, Annual Report, 2009a) After 2007 it
has conducted a major downsizing programme, reducing costs and focusing on core
business to become more competitive as a response to the changing market environment.
The focal point is changing from manufacturing to research and development as well as
employing a forward integration strategy and thus outsourcing the manufacturing to external
contractors. As a public company it is noted both on the London Stock Exchange, the New
York Stock exchange and the Stockholm OMX exchange.
3.2 History
AstraZeneca is a merger of the two big pharmaceutical companies Astra AB and Zeneca
Group plc. The merger took place in 1999 as the two companies shared many goals and
were similar in their structure. Astra AB was formed in 1913 as 400 doctors and
apothecaries joined together to form the company. In 1949 the company had a big success
when they launched the local anaesthetic Xylocain. Another big success was the 1994
marketing cooperation with Merck in launching Losec, an ulcer treatment drug.
(AstraZeneca, intranet)
The Zeneca Group PLC was formed in 1993 when the company ICI, released three of its
divisions to form the Zeneca Group. Zeneca was focused on the cancer, cardiovascular,
central nervous system, respiratory and anaesthesia domain. The similarity in sales, profit
and also in research and focal diversification made the two companies complement each
other well.
3.3 Active pharmaceutical ingredient production at Snäckviken
The operations at the Snäckviken plant is divided into the sub divisions; API (Active
Pharmaceutical Ingredient), Turbuhaler, Liquids and TGS (Technical Governance & Support,
as the combined maintenance support).
API manufactures the active substance and it is chemical process industry. They account for
all active pharmaceutical ingredients for internal and external demand. The finished goods
are refined to tablets, liquids used in injection and powder for inhalation. The produced
products at API are then delivered to internal customers in Södertälje and to international
manufacturers of medicine.
Theory | 8
4 Theory
This chapter contains the theories relevant for this master’s thesis. It aims at giving the
reader a theoretical viewpoint of the problem and these theories will later be applied in the
analysis. The theories presented are; Total productive maintenance, Maintenance planning,
Integrated production and maintenance planning, Maintenance performance indicators,
Maintenance system use followed by Motivational theory.
4.1 Total productive maintenance
Total Productive Maintenance (TPM) was introduced in the 1950’s and laid the foundations
for the modern production philosophies. It was condensed from the North American
preventive maintenance ideas and refined by the Japanese to form TPM. (Wireman, 2004).
TPM is the foundation for the Lean concept and is the first step to be mastered if one has an
ambition to successfully incorporate the Lean production methods. The employment of TPM
is to be taken as a long term strategic journey rather than a quick menu. The idea is to gain
competitive advantage by eliminating all disruptions in the process by employing preventive
maintenance, trying to foresee possible breakdowns, logging them and involving both the
operators and the maintenance staff in preventive maintenance work. The concept might
sound simple but the difficulty lies in being disciplined following the teaching and changing
the culture of the company to implement it successfully. To be effective, all related
departments are to be involved in the new mindset. The idea of continual improvements and
involvement of all the personnel must be emphasized. When it comes to the management
support, in this way of thinking, it is no longer accepted for the manager to just dismiss an
employee having amelioration ideas. The manager needs to explain why an idea won’t work.
The importance is that one wants the culture of improvement and ideas of people, in all
levels of the organisation, to gain momentum (Wireman, 2004). Total productive
maintenance has a multitude of pillars seen in Figure 4:1 which provides an overview of the
TPM pillars.
Figure 4:1 Pillars of TPM
Improving
equipment
effectiveness
Improving
maintenance
efficiency and
effectiveness
Early
equipment
management
and
maintenance
prevention
Training to
improve the
skills of all
people involved
Involving
operators
(occupants) in
routine
maintenance
Terry Wireman - TPM House
Theory | 9
Wireman (2004) chooses to focus on his five most important pillars.
1. Improving equipment effectiveness
2. Improving maintenance efficiency and effectiveness
3. Early equipment management and maintenance prevention
4. Training to improve the skills of all people involved
5. Involving operators in routine maintenance
There is not one single TPM strategy that fits every company (Wireman, 2004). Experts from
around the world agree that it is difficult to implement a cookbook-style of TPM in any
company. Factors such as the skill, age and complexity of the workforce, age of equipment,
company culture, the current status of the maintenance program, benchmarking and
measurements affect the TPM programme. In implementing TPM, Wireman (2004) outline a
procedure to go about to analyze an implementation in practice.
What are good and sound maintenance practices? There are guidelines on the way to
perform a good maintenance job and some key components are outlined beneath.
1. Preventive Maintenance Program Development
Preventive maintenance is the most important aspect of any equipment maintenance
process improvement strategy. The equipment must be preventively maintained to avoid
consequence cost that surpasses the maintenance cost.
2. Evaluate the Preventive Maintenance Program
Evaluating the preventive maintenance program insures proper coverage of the critical
equipment of the plant or facility. The program should include a good cross section of the
following:
Inspections
Adjustments
Lubrication
Proactive replacements of worn components
The program should support the goal of no unplanned equipment downtime.
1. Have a continual review if it is effective.
2. Review the maintenance stores
Inventory and purchasing must be analyzed; the equipment spares should be identified and
documented in a purchasing system. The purchasing system should be able to track the
maintenance schedules. Also the data of cost and usage of all spare parts must be complete
and accurate.
3. Are the stores effective?
The service level measures the percent of time that a part is available when requested. The
spare parts must be on hand at least 95% of the time for the stores and purchasing systems
to support equipment maintenance activities. Unless the maintenance activities are
proactive, the stores and the purchasing groups cannot be cost effective in meeting
equipment maintenance spare part demand.
4. Review the work order systems
The work order system must be designed to track all equipment maintenance activities. The
activities can be anything from inspections and adjustments to major overhauls.
Theory | 10
4.2 Maintenance planning
A modern industrial company contains a large number of technical equipment which all
interacts to achieve the business objectives. Maintenance contributes more than ever to the
achievement of these objectives. (Waeyenberg & Pintelon, 2002) The manufacturing
process demands a high level of performance, availability and reliability from the machinery
installed. This appears even more important in the chemical batch process industry where
the process time from inception to completion could last several days. (Rajan & Roylance,
2000) The value of a batch is also very high and increases during the production cycle. A
break-down during a production cycle may cause high monetary losses. The production may
need to be stopped which can lead to quality problems and in some cases it is necessary to
discard the whole batch which is very expensive since a batch value can amount to millions
of SEK. This type of production also has a high level of automation, which leads to a plant
with more maintenance workers than production workers (Noemi & William, 1994). The total
cost of maintenance could be visualized by an iceberg, Figure 4:2, where the direct
maintenance costs are the ones that are recognized by everyone and therefore taken into
account. Managers however, often forget the indirect maintenance costs, the underwater
part of the iceberg. These costs may be even larger than the maintenance cost. (Pintelon &
Gelders, 1992).
The maintenance cost differs for different kind of maintenance tasks. If a machine breaks
down the indirect costs in terms of idle production time can be very large. In planned
maintenance task this cost may be very small as it can be conducted during nights but the
Direct maintenance costs
Manpower
Materials
Tools
Overhead
Indirect maintenance costs
Equipment
Accelerated wear because of poor
maintenance
Excessive spare parts inventory
Unnecessary equipment redundancy
Production
Rework because of badly aligned
equipment
Excessive scrap and material losses
Idle workers due to breakdowns
Late shipment because of unplanned
down-time
Products
Quality and reliability issues
Lost sales because of long down-time
periods
Warranty claims from dissatisfied
customers
Figure 4:2 The maintenance total cost picture, (Pintelon & Gelders, 1992, modified)
Theory | 11
direct cost still exits. Maintenance activities can be divided into the two broad categories;
preventive and corrective maintenance (Vassiliadis & Pistikopoulos, 2001), see Figure 4:3.
Preventive maintenance
To prevent equipment from break-down one utilize preventive maintenance. It comprises
maintenance activities such as periodic inspection, prevention of deterioration and
equipment diagnosis. Preventive maintenance can further be divided into periodic
maintenance and predictive maintenance (Vassiliadis & Pistikopoulos, 2001).
Periodic maintenance may include activities such as lubrication, cleaning, parts replacement,
tightening and adjustment which are repeated in a predefined time period or amount of
machine use.
Compared to periodic maintenance, predictive maintenance is condition based. It manages
trend values by measuring and analyzing data gathered from the equipment. For instance
one could measure the vibrations in a machine and when the value falls outside an accepted
value, a maintenance work order is initiated.
Corrective maintenance
Corrective maintenance is maintenance that is carried out after equipment has failed or an
error has been detected. Some equipment is critical for the production process and these
failures need to be fixed immediately. Since the process is affected by this kind of error the
initiated work order must have the highest priority in order to get the production stop as short
as possible.
Some corrective maintenance, that don’t cause stop in production or that should be
performed on non-critical equipment, can be planned for future execution. Depending on the
importance, the planned work order could be assigned with different priorities and is then to
be scheduled with the preventive maintenance work.
A facility may use all of the above mentioned policies at once. The different maintenance
policies are used depending on the characteristic of the equipment. Waeyenberg and
Pintelon, (2002) proposes a maintenance policy decision model to identify the correct
maintenance policy for a particular component, Figure 4:4.
Maintenance
Preventive
maintenance
Corrective
maintenance
Periodic
maintenance
Predictive
maintenance
Figure 4:3 Categories of maintenance
Theory | 12
In each step of the decision model there is a technical question concerning the technical
possibility. If the answer is yes, the economic implications have to be regarded.
In the first step the criticality of the equipment or component is considered and the possibility
of the ―run to failure‖ policy. In the case of a critical component, first the technical issue has
to be considered. Even though equipment is critical, a failure may be easy to repair.
Secondary damage is also taken into account in the judgement. For non-critical and
technical feasibility of FBM (Failure based maintenance) the economic implication is
evaluated. The run to failure policy may be appropriate for noncritical or easily repaired
machines (Noemi & William, 1994). If FBM is not justified the question of the possibility of
DOM (Design-out maintenance) will be considered. The focus of DOM is to improve the
component or design to make maintenance easier or even eliminate it. This can be achieved
by for instance changing to more durable parts If DOM is not appropriate the decision
process look further for hidden failures. Many failures are not age related and can occur
randomly (Waeyenberg & Pintelon, 2002). However, most of these failures tend to have
given some kind of warning before they occur. The follow-up of this phenomenon is called
condition monitoring. In many cases the operators will be able to detect some irregularities
through looking, hearing, feeling and smelling, detective based maintenance. This also plays
an important role in TPM where the operators are more involved in the maintenance work. If
the cases where the symptoms are undetectable by human senses there are high-tech
monitoring devices to use. These are represented in the next step of the decision model,
CBM (Condition based maintenance). Here, one must consider the possibility of measuring
the needed data to predict a failure. Measurements can be costly which may make this
policy too expensive. This technique is gaining popularity due to the fact that it is becoming
Failure based
maintenance
Design-out
maintenance
Detective based
maintenance
Condition based
maintenance
Further
investigation
Critical? FBM? FBM?
Redesign? Redesign?
Hidden
failure? Detectable?
Condition
measurable? CBM?
Use based
maintenance
Condition
predictable? UBM?
Technical
Economic
Yes
No
(Corrective)
(Predictive)
(Periodic)
(Prevention)
Figure 4:4 Maintenance policy decision model (Waeyenberg & Pintelon, 2002)
Theory | 13
more widely available and the price for measurement equipment is decreasing. The last
option is UBM (Use based maintenance) or periodic maintenance. Here maintenance is
carried out after a predefined period of time or working hours. UBM assumes that failures
behaviour is predictable. If this option is not proper there is a need for further investigation or
reviewing the decision criteria.
4.2.1 The scheduling problem
Maintenance can be seen as a job shop scheduling problem. The complexity of maintenance
planning is though higher because of some characteristic that distinguish from other types of
scheduling (Noemi & William, 1994).
Preventive and corrective maintenance work is non-repetitive
Even if it occurs to be the same job it could differ from one execution to the next. During a
routine maintenance task, it will not be known which parts that need to be replaced or
repaired until it have been examined.
Preventive maintenance is ever-changing
A schedule cannot be assumed to remain current. The production process requires that
maintenance is responsive to the current need of production.
Preventive maintenance policies need to guard against over maintenance.
Under maintenance will become known if errors and breakdowns increase. Over
maintenance can occur if maintenance improvements have been made but the maintenance
frequency hasn’t been modified to take the changes into account.
Preventive maintenance tasks have an implementation window.
Maintenance tasks don’t have a rigged due date. The due dates are often specified as a
preferred time interval or preventive maintenance cycle.
Preventive maintenance tasks may be rescheduled
Maintenance task that are planned may be rescheduled early if a breakdown has occurred
making it convenient to schedule the task now instead of forcing another downtime later.
This is called opportunistic maintenance.
Preventive maintenance policies can make use of idle time in the production
schedule.
The maintenance planner will ideally schedule maintenance during the idle times in the
production schedule. However, this time may not be long enough or resources such as
maintenance worker may not be available at the correct time.
4.3 Integrated production and maintenance planning
Manufacturing, and the maintenance of manufacturing plant, is far more complex today than
a few years ago and will be even more complex in the future (Sherwin & Jonsson, 1995).
Manufacturing will be more focused on cost reduction and this will therefore require a
maintenance system that works. Author Sherwin and Jonsson (1995) state that the battles
between production and maintenance have to stop by broadening the perspective of
maintenance and integrating the two systems into a complete market-oriented system.
Theory | 14
The integration with production is important and crucial because the production and the
maintenance have a direct intertwined relationship. A break-down in a machine results in
disruption of production and thus leads to cost due to downtime, loss of production,
decrease in productivity and quality. It also leads to inefficient use of employees, equipment
and facilities (Budai et al. 2006). A good maintenance plan that is integrated with the
production plan can result in considerable cost savings (Levrat et al. 2008).
In litterateur the integration between production and maintenance planning is reviewed by
different mathematical optimization models that aim at for instance minimizing cost like the
one presented by Aghezzad et al. (2007). This model however is based on a number of
known parameters like cost for carry out corrective maintenance, cost for each preventive
maintenance task and costs associated with production. In order to implement an
optimization model and be able to use these parameters must thus be known.
4.4 Maintenance performance indicators
The efficiency and effectiveness of a system plays an important role in an organization’s
success. Therefore performance needs to be measured using performance measurements.
(Parida & Kumar, 2006). Neely et al (1995) defines performance measurements as the
process of quantifying the efficiency and effectiveness of action. However measuring and
improving a feature that the customer does not value is a waste of time and resources.
(Anupindi et al. 2008)
Maintenance in discrete units factoring industry differs from maintenance in the process
industry. The differences cause a need for other performance indicators. This industry is
often a very capital intensive which makes the availability of the production unit very
important. (Arts et al. 1998)
Measurements can be divided into external and internal measurements. External
measurements are related to the external effectiveness of a process. External effectiveness
could be measurements such as customer satisfaction and fulfilment of the competitive
priorities. Service level and quality measures are often used for measuring the external
effectiveness of a company (Jonsson & Lesshammar, 1999). A manager can not directly
control customer satisfaction or financial performance. In order to meet customer
expectations and improve financial performance, a manager requires internal operational
measurers that can be controlled. These must be detailed and ultimately correlate with
product and financial performance (Anupindi et al. 2008). When knowing the external
measures expected by customers the process manager must translate them into appropriate
internal measures that affect the externals. Anupindi et al. (2008) highlights two conditions
that need to be met in order to be effective.
1. They must be linked to external measures that customers deem important.
2. They must be directly controllable by the process manager.
The performance indicators can be classified as lead or lag. A lead indicator acts as a
warning system. At the operational level it could be indicators such as vibrations and
particles in oil. These would help analyzing the condition of equipment and take early action
before failure. A lead indicator is of the statistical and non-financial type. Lagging indicators
are measures that provide the basis for studying deviations after completion. Cost of
maintenance and mean time between failures (MTBF) can be used as lagging indicators.
The performance of maintenance depends on decisions at different levels e.g. strategic,
Theory | 15
tactical and operational. The strategic level (level 1), handles decisions in centralised or
decentralised maintenance, organisational structure and level of outsourcing. Maintenance
budget for plants, skills, inventories and decision on preventive or condition based
maintenance are taken at the tactical level (level 2). The operational level (level 3)
determines maintenance intervals, inspections, repairs etcetera. A lagging performance
indicator at level 3 could relate to a leading indicator at level 1. For example; the lagging
indicator, maintenance cost per ton at operational level can be used for monitoring
maintenance cost and budget at level 2. This could control the future provision for
investment in plant maintenance, a leading indicator at level 1. (Parida & Chattopadhyay,
2007)
Criteria for measurement can be qualitative and quantitative. Quantitative measurements are
for instance downtime, number of stops etcetera. Qualitative measures include e.g.
employee satisfaction and environmental aspects. Without any formal measures of
maintenance performance the maintenance work is difficult to plan, execute and improve.
The effectiveness of maintenance and its performance needs to be measured also for the
justification of investment in maintenance. That is why a proper maintenance performance
measurement (MPM) framework is important (Parida & Chattopadhyay, 2007). Arts et al.
(1998) proposes a number of maintenance performance indicators among them the ratio of
PM which is calculated like:
𝑃𝑟𝑒𝑣𝑒𝑛𝑡𝑖𝑣𝑒 𝑚𝑎𝑖𝑛𝑡𝑒𝑛𝑎𝑛𝑐𝑒 𝑜𝑢𝑟𝑠
𝑇𝑜𝑡𝑎𝑙 𝑚𝑎𝑖𝑛𝑡𝑒𝑛𝑎𝑛𝑐𝑒 𝑜𝑢𝑟𝑠
This monitors the relative amount of PM done by the unit. A benchmark of the chemical
industries in Louisiana showed that 85% was an appropriate value. (Arts et al. 1998)
4.5 Computerized maintenance management system
In a modern process and manufacturing plant most of the companies use a computerized
maintenance management system to help manage the maintenance performed in the plant.
It is vital that these systems have the ability to document history events that have occurred
within the maintenance work. It is therefore necessary to have a documented work process
for gathering data that ensures that the data are collected properly. (Latino, 2004) In order to
obtain world-class maintenance, a system for data collection is required, that can handle
data related to breakdown frequency, duration of maintenance and so on. It is advantageous
to have a system that can record data in real-time which continually updates the information
in the system. (Labib, 1998).
Using a Computerised Maintenance Management System (CMMS) does not guarantee
results (Palmer, 2006), as it is only 50% of the CMMS implementations that are successful. It
is important to view the CMMS tool not only as a maintenance staff tool, but a tool for the
entire company. The CMMS is usually called an asset management system because of the
fact that the system helps with information for more than just the maintenance staff. It is
important to view the system as an information system or a tool, as it should not dictate the
maintenance strategy. Furthermore it should be a quick CMMS system (Palmer, 2006). It
should not take more than a few milliseconds to retrieve information; because all the search
time due to faulty programming of the program adds up to high costs if it stops productivity
during an extended period of time. If needed to wait for a quarter of a second or more to
retrieve information from the CMMS it might be worth it to get a faster more efficient CMMS
software suit.
Theory | 16
4.6 Motivational Theory
The motivational theory is important because it can help understand the mechanisms of
motivation. It tries to explain the route from wanting to do something all the way to tangible
action. If managed correctly motivational management can exercise tremendous leverage on
individual and organizational performance. This translates to a more productive output which
in turn saves both valuable time and money. Motivational theory is connected to
organizational theory and human resources strategy. These concepts are intertwined and
affect each other. The motivational theory is a key concept to grasp if one wants to have a
profound impact on organizational behaviour.
Intrinsic motivation is the motivation that comes from inside an individual rather than from an
outside reward (Deci E. , 1971). An intrinsically motivated individual will play the guitar or
solve a math problem simply because it provides enjoyment not because he or she is
looking to have a reward in conjunction with the activity. The activity performed is the reward
itself.
Extrinsic motivation is a motivation that comes from outside an individual (Deci & Ryan,
1985). An individual will work with an activity even though they have little interest in it,
because of an anticipated reward for performing the activity.
There are different ways in motivating people; some of them are ―Towards goal‖ motivation
also known as pleasure motivation (Robbins, 1991). ―Away from‖ is referred to as pain
motivation, go with the stream motivation and go against the stream motivation. Different
people are appealed by different motivational strategies, see Figure 4:5. (Robbins, 1991)
state that the majority of people are away from (or pain) motivated.
The Towards goal motivation is the ―if you do this thing you will have a reward‖ type of
strategy. And the opposite is the so called Away from motivation strategy ―if you don’t do this
there will be a punishment‖ strategy. The two others are self explicatory; Go with the stream,
is following the law of least resistance, as with the Go against the stream needs to argue
with everyone and everything. In TPM the focus is based on the Towards goal strategy.
Different people are influenced by different strategies. The reason why a person is more
towards one square of the block can be the temperament that one is born with, but to greater
extent the way one is has been rasied.
There is almost always resistance to change and to translate this to a TPM programme the
TPM responsible has two objectives; step one is to convince the top management and the
second step is to quickly employ a secondary anchorage to the shop floor. The secondary
anchorage can be anything from information charts to a foreman that drives in the culture
Towards goal motivation
(Pleasure motivation)
Away from motivation
(Pain motivation)
Go with the stream Go against the stream
Figure 4:5 The Motivation Quadrant (Pagan, 2006) Hybrid with (Robbins, 1991)
Theory | 17
and when somebody might say it is not my problem the rest of the group replies it is their
problem and resolves it directly without bureaucracy. An organization that gives their
employees a feeling of participation will in return augment workers commitment to the task if
the organization shares its goals and also the information on how the organization is doing
relative their goals (Bowen & Lawler, 1992). The idea is to share information and create
participation and let the employees have the skills and the power to go outside their
traditional role (Bowen & Lawler, 1992). An example of this is involving operators in routine
maintenance. The secondary anchorage is to make sure that the new idea is absorbed at
the shop floor and give a feeling of commitment to the path and strategy chosen. But also
from the top to understand the importance of sharing information for commitment and
motivation and not withholding information as means of power in the organization (Wilson,
2004).
The motivational theory is about why peoples behaviours emerge, maintains and ends
(McClelland, 1955). Motivation theory states or explains why people act the way they do. He
states that a behaviour theory must contain both personal variables and external variables.
The personal variables are divided into (1) motivational variables, (2) abilities or character
based aspects and (3) cognitive variables (beliefs, values or comprehension). Opportunities
represents external variables. Both motives and values affects the behaviour. It is possible to
think that there are general human motives and that these are expressed in different ways.
McClelland (1995) differentiate between values and motives and what energizes their
behaviour.
The behaviour model, Figure 4:6, is a tool to visualize how the cognitive factors, the habits,
skills and the possibilities affects the chain from motivation to tangible action. Further
Abrahamsson and Andersen (2005) states that groups cannot be motivated, only individuals
can be motivated.
4.6.1 The theory of X and Y
The theory of X and Y was has its origins in the 1960’s (McGregor, 2006). He argued that
companies employ two different types of strategies in their workforce motivation programme.
The X theory states that people are lazy by nature and needs to be yelled at by a supervisor
for things to be done. The X strategy takes an authoritarian viewpoint and comes as a
natural instinct to many people given the cause and effect nature between yell at someone
and see the results of temporary improvement (McGregor, 2006). If the manager continues
with the X strategy the moral might dry up to become bad. Even the ones that were
optimistic from the start are now ambivalent and seem to want to go nowhere. As the moral
decreases and people get sucked down into the spiral, the boss is really setting an example
and screams more at the employees. The boss can say that it was not his or her fault
because at least he did something.
Motives Actions
Cognitive
Factors (Values)
Habits
and skills Possibilities
Actions
Figure 4:6 The Behaviour Model (Abrahamsson & Andersen, 2005)
Theory | 18
The Y concept states that people are happy to work by nature and take pleasure in the
process. It is a strategy of the patient one but there are rewards to be reaped. It is a so
called ―towards goal‖ theory and takes an optimistic outlook that people, given the right
support and motivation, finds their ways of fulfilling their own goals (aligned to the
organization’s) or many times superseding them. The patience to let a cultural change
process has its turn, requires non-instant gratification thinking and it puts leadership skills as
well as character to the test. It is necessary for a leader to avoid to be controlling and/or to
be afraid if the process is out of control. A leader that is controlling and/or micro managerial
is effectively taking away the mandate from the employees below. A leader should be in
control but avoid being controlling.
4.6.2 Maslows theory of motivation
Maslow’s theory of need explains the needs of one person and it is not a theory to predict a
specific behaviour in a specific situation. Maslow divided his theory into five groups (1)
physiological needs, (2) safety needs, (3) social needs, (4) need for status and prestige and
(5) need for self actualisation into a pyramid structure of hierarchy. (Abrahamsson &
Andersen, 2005)
Maslow admits that sometimes aggregated needs gets stronger than their under aggregated
base so that in special cases for instance, safety needs, might be more important than
physiological needs. But the hierarchy of needs is the default norm as viewed in Figure 4:7.
Maslow says that the human being never gets satisfied; she always searches for something
new. In his theory we are formed less by the environment and more of internal aspects such
as personality traits. The continual search for something new is in the need for status and
prestige (4) and self actualisation (5) at the top of the box of the pyramid. (Abrahamsson &
Andersen, 2005)
Figure 4:7 Maslow's pyramid (Abrahamsson & Andersen, 2005)
Physiological needs
Safety needs
Social needs
Need for status & prestige
Self
actualisation
(5)
(4)
(3)
(2)
(1)
Unsatisfied need Motivation Action Satisfied need Finish
Unsatisfied need Motivation Action Satisfied need
Lower order needs (Social, Safety and Physiological needs)
Higher order needs (Self Actualisation & Need for status and prestige)
Figure 4:8 Motivation Loop
Theory | 19
4.6.3 McClelland’s motivational theory
The motivational loop describes how Maslows top two The Need For Status and Prestige
and the Self Actualization need is in a looping manner and the lower order needs are
hygiene factors that can only motivate to action if not present as seen in Figure 4:8. Lighting
conditions is an example; if the working place is well lit the need is satisfied but if bad lit it
creates a motivation to buy new lamps. When the lighting conditions improve after the action
is taken the need is satisfied and we don’t think about it anymore.
McClelland stated that each individual has a need for achievement, a need for belonging
and a need for power. The three needs are mostly learned so it is possible to change them.
It is emphasized that the need for achievement, belonging and power are learned and also
more or less hidden. The effect of his theory, that the need of a person is learned, implies
that they are possible to change for the better. Neither does he claim that these needs are all
the needs that exist, but wants to highlight those that are important for his scope.
The need for achievement means a positive attitude to performing and mastering something.
A person with a strong need for achievements (1) wants to work long to make something
good or achieve something special. (2) Do something better than others. (3) Achieve or
supersede those requirements put up by what he/she has formulated in terms of quality,
performance or results. (4) To do something unique and extraordinary.
In his book (McClelland, 1955) state that a person’s achievement is not only based in her
abilities, genome, skill and knowledge, but to a great extent her achievement need. That
said; a person with a big need for achievement almost always translates into great
performance. The need for achievements must be nurtured. A person with low achievement
need translates to a low effort put in and thus bad performance output as a result. By
tackling the psychological aspect of achievement need, the motivational foundation emerges
to move from low to high output. McClelland believes that there is a strong connection
between the achievement motive and economic growth (Wilson, 2004) implicit motives for
achievement needs are developed early before learning to speak and tend to be semi-
unconscious.
Theory | 20
4.6.4 Expectancy Theory
Victor Vroom published his Expectancy Theory of motivation in 1964 and it constitutes of
three parts. (1) Expectation that an effort leads to performance, (2) instrumentality, that a
performance leads to results and (3) valence measures the attractiveness of the result to the
individual, as depicted in Figure 4:9.
Expectation has to do with a person’s perception of the probability that a certain effort will
lead to results. A person that does not see the connection between her effort and the results
will finally totally disconnect the motivational action chain and have no expectancy.
Instrumentality refers to the individual’s perception of the probability that an effort boils
down to a certain determined result, positive or negative. If a person believes that she will
get a higher salary if she makes an effort; she demonstrates instrumentality (Abrahamsson &
Andersen, 2005).
Valence has to do with a person’s perception of the value in the expected result. That would
be how much the person likes or dislikes the result that emerges from the effort. The
expectations of the relation between effort and results are multiplied with respective
valences. The valence is condensed to the question ―is the outcome I get of any value to
me?‖ (Abrahamsson & Andersen, 2005)
Figure 4:9 Victor Vroom’s Expectancy Theory (Abrahamsson & Andersen, 2005)
Expectation
That an effort
leads to result
Instrumentality
Expectation that
an achievement
leads to result
Valence
What value one
credit the results
EFFORT ACHIEVEMENT RESULTS
―What is the probability that if I do a good job that there will be some kind of outcome in it for me?‖
―Is the outcome I get of any value to me?‖
Present situation | 21
5 Present situation
A review of the current situation at AstraZeneca will be presented in this part of the master’s
thesis. The text presented is chosen with respect to the areas of interest but with some
complementing areas to make it possible to get the whole picture. The information is
gathered in interviews with the employees and from studies of internal systems and
documents.
5.1 Active pharmaceutical ingredient production site
API is the abbreviation for Active Pharmaceutical Ingredient and represents the chemical
substance in medicines that affects the human body. Every pill manufactured weights a lot
more than its active component due to the fill substance. The weight of the active part is
stated on the blister and the wallet, for instance 20 mg when the pill actually weighs two
gram.
The API production is the first step of the manufacturing process and situated upstream in
the supply chain. It is a chemical factory producing large volume batches for further
processing or exporting to other of AstraZeneca’s international organizations. The plant
constitutes of two major factories of interest, the SYFA (Syntet fabrik) and the EFA
(Ersättningsfabrik)
SYFA was built in 1974 and it is a multipurpose chemical mixing plant capable of producing
a wide range of substances. It is being used as a back-up plant in case outsourced plants
are experiencing difficulties in their operations. The SYFA plant is currently working at about
30 % of its capacity and the spare capacity also works as a buffer for the organization’s
internal demand. In SYFA there are four sections which are independent of each other. A
single section is reported taking one year to master.
The EFA is a modern state of the art installation and it is highly automated with little attention
required by its operators. The EFA is a multipurpose facility comprised in three sections.
Each one of these contains a reactor hall with four reactors. It is an eight story building with
the control room placed at the sixth level. The factory is built with a gravitational flow so the
raw materials are inserted at the top floor and the finished substance comes out at the
bottom floor.
To understand the concept of the EFA one has to view the underlying philosophy. EFA is
built around a cell philosophy of which they separate the products in separate production
facilities, inside the factory. The cell structure is to minimize the risk of cross contamination.
The production units can then be interconnected to produce different substances. Also it is
easier to perform maintenance in one cell block meanwhile production continues in the
others. A benefit with three sections with identical equipment is that the speed of
implementation and the learning process is augmented when a new substance is introduced.
To connect the different cells a manual operated jack panel is being used. This makes it
easy to clean in comparison to a more complex, automated valve. The principles of the
production flow are shown in Figure 5:1. In the reaction process substances are mixed with
solvents to start a chemical reaction in-between the ingredients. This liquid is then
processed to the next manufacturing phase, the separation process. Here the liquid is
layered, separating solvents (called mother liquid) from the product. The product is now
viscous, like milkshake, which is to be dried out so it will be a dry powder. This is done in the
Present situation | 22
drying process. At last the powder is filled to barrels and shipped to the finished goods
inventory ready for use. The powder can for instance be used in the tablets production.
It is important not to spread dust and gases from different chemical substances and
solvents, thus all chemicals are being handled in separate rooms to ensure integrity and risk
of contamination. There are rooms for the dispensing of dry commodities, for batching of dry
commodities and for dispensing liquids. Due to the fact that the rooms are dedicated for
chemical filling, they are abstemiously decorated. This is to make the rooms easy to clean
and to reduce the risk of contamination.
For the thermal processes in the EFA there are several machineries which require intensive
maintenance. The heat exchangers, pumps and condensers are all placed in separate
thermal process rooms. This does not only help the maintenance staff but also produce a
better working environment for the operators making it almost noiseless outside the
machinery rooms.
5.2 Maintenance strategy
Figure 5:2 TPM Pyramid (AstraZeneca, TPM pyrmid, 2009d)
Substance
Inventory
Solvent
Inventory
Charging
Reactor
Process
Reactor Centrifuge Dryer Filling to
Barrels
Finished Goods
Inventory
Drying Process Separation Process
Mother Liquid
Drainage
Reaction Process
API production schematics
Figure 5:1 Schematic view of the active ingredient substance production process
Present situation | 23
The maintenance department follows a pyramid structured maintenance schematics which is
based on a vision to be world class in maintenance management, Figure 5:2. At
AstraZeneca this means being green in all of the boxes in the TPM-Pyramid. It requires at
least 80% completion in a box for it to become green. The Pyramid is a blueprint on how to
manage and change the daily routines in the operational base to move upward as each box
go from red to yellow to green.
The methodology is to start in the base and move upward. The concept is derived from TPM
(Total Productive Maintenance), a sibling of the TQM concept and the continuous
improvement philosophy as explained in chapter 4.1. This is the main strategy of the
maintenance management. It is difficult to study their work and to model exactly where TPM
applies in reality but they do measure key figures in order to map how the maintenance work
is improving. The maintenance department is encouraging a cultural change where
everything is reported back in the CMMS system. They stress the fact that a job is not done
until it is also reported in as finished. This is important for the maintenance engineer to follow
up on performance.
Another issue is the cultural aspect of TPM. It comes down to what kind of motivational
strategy is being employed. One of the most important factors in the strategy is continuous
improvements by all personnel. However TPM specialist priority is to convince the top
managers first and then convince the middle managers. When he a has reached the line
managers then have the line managers convince the operators that they need for instance;
to adopt an operator maintenance mindset.
5.3 Standard operation procedures
A standard operating procedure (SOP) is the framework of the way the work is conducted.
The purpose of SOP’s are to make sure that the work, in this case the maintenance work, is
conducted within the boundaries of Swedish and international law. The SOP states that the
maintenance work needs to be done with a certain degree of documentation due to the
traceability requirements in the pharmaceutical industry and in particular the Food and Drug
Administration (FDA). It starts with defining maintenance, corrective maintenance and
preventive maintenance. The definitions are important because mixing up terminology can
lead to misunderstanding and thus mishap. In the maintenance management there is a
hierarchical structure of the SOP’s, Figure 5:3.
Present situation | 24
The first thing stated in the highest aggregated maintenance SOP; the Plant Registry (ANL).
To achieve control in the facility it is crucial to have an understanding of the structure and
where the equipment is located, given the 250 000 items only at the Snäckviken facility. Next
there is the documentation of the items. Such documentations can be the blueprints of
facilities and machinery. The SOP’s also state the handling of the machines test report. The
importance is that the work is conducted in obedience to the best practice procedure.
As the maintenance work is broken down to its components the SOP’s are getting more
specific regarding facility documentations, safety, health and environment, buildings and
process equipment and control systems.
The SOP’s of AstraZeneca are based on best practice procedures to ensure that the
requirements supersede both the legislative conditions imposed by authorities but also good
manufacturing practice. What is described in Figure 5:4 is the staircase of control vs.
workload that show that the law requirements are the lowest standard of maintenance and
control. The second step is the Good Manufacturing Practice (GMP) and represents a
standard level control in the industry.
The highest level of control and also workload is the Best Practice procedures. It is not
always sound to employ Best Practice procedures if it is not called for.
Figure 5:3 Hierarchical structure of the SOP’s associated with maintenance
Law requirements
Good
Manufacturing
Practice
Best Practice
Increased work load
Incre
ased le
vel of contr
ol
ANL Item Number Registry
Facility Documentation
Safety, Health & Environment
Buildings and Process Equipment
Process Control System
Figure 5:4 The SOP staircase
Maintenance SOP
Present situation | 25
5.4 Planning coordination
The site production planning and scheduling at API are managed by maintenance
engineers, production planners and calibration engineers. To coordinate and synchronize
the different plans there are two coordinators employed.
The coordinators objective is to act as a link between production planning, maintenance
planning, calibration planning and production scheduling. The coordinator’s work is important
due to the fact that there is no computerized link in between the different activities. There is
no tool for sharing quantitative information between the departments, thus they rely on
intimate and informal communication. If a conflict arises it is usually resolved through
discussion and cooperation in between the departments. When a conflict can’t be solved
with a good outcome for both parties, the production planning often is the dominant one.
When scheduling the three disciplines there is a risk that each one adds some extra time to
ensure they managed the work in time. A problem mentioned is that all three adds their own
safety time, adding up to an unnecessary large amount of safety time.
If there is e.g. a stop in production due to unplanned maintenance work or a calibration
activity the responsible manager contacts the production coordinator who tries to re-plan
activities so that all interests are fulfilled. If that is not possible the coordinator calls for a
meeting where the managers discusses and comes up with a solution to the problem. The
coordinator’s function is shown in Figure 5:5.
Figure 5:5 The coordinators organizational function
5.5 Production planning
The production planning process is managed by two employees. To give an equal work load
the products are split on the two planners. In total there are 8 end products and 28 types of
raw material excluding solvents.
When the raw materials are ordered the planners need to consider both the supplier lead
time and the time needed for validity control. The validity check procedure is regulated by
law and internal policies. This is to ensure that the raw material is at a proper quality level
and to get it approved for production. The lab, that controls all incoming raw material, has a
maximum time limit of two weeks. In exceptional cases this time can be reduced when there
e.g. is a stock out of a crucial material. The lab is regarded as an internal organization and it
is located at the Snäckviken compound.
Production
Coordinator
Maintenance and calibration planning
Production
planning
Production
scheduling
Present situation | 26
The orders and planned production are implemented in a computerized system. In the
system the production planners can check current inventory levels and forecasts for the
different products. The forecast has a time bucket of one year and are updated once a
month. Internal customers like e.g. Liquid and Tablets have a vendor managed inventory
(VMI), which makes their inventory levels available in the system. External customers update
the forecast through a market department.
Due to the planned shutdown of API in Sweden the current production strategy is to increase
the inventory level of finished products. This is to handle the transition period when the
Swedish plant reduce its production and the new plant is starting up. There is also a
speculation inventory build up in substances due to new product releases. When the new
products is approved and introduced a large increase in demand is expected. And to level
the load in production this inventory build up is initiated.
The tool used in planning is an Excel based material resource planning (MRP) sheet. The
two planners have developed their own sheets, though with similar layout and structure. The
planning method used is similar to cyclic planning with orders recurring with different time
periods. The method is not scientifically based but rather depends on the planner’s expertise
and experiences. The forecast used by production extends over a one year time period
which makes the planning horizon twelve month. At the beginning of every week the
manufacturing unit is updated with information about the upcoming week’s planned
production. This is managed by the planners who attend at a morning meeting. At the
meeting they present the week’s job and give production cards to the person responsible for
the detailed scheduling. The cards include information about lot number, name of the
substance and the batch quantity. The detailed production schedule is then set by, for
instance, a group leader that are familiar with process times and current capacity situation.
The process is visualized in Figure 5:6.
5.6 Maintenance planning
At AstraZeneca, the maintenance department works alongside the production planning
department. At each flow; EFA, SYFA, METO/PILOT, Solvents and Warehouse there is a
maintenance engineer, Figure 5:7. The maintenance engineer is responsible for planning
and managing the maintenance at their own flow. Every month the maintenance engineers
are to report the status of the maintenance to the maintenance director at API who reports to
the chief of API. This is to inform the top management of maintenance that has affected or
will affect the production capacity.
Production scheduling
C
B
A
C B A
Forecast Production planning
1 week
Figure 5:6 The production planning process
Present situation | 27
Figure 5:7 The maintenance organization structure. (Jaensson, A. 2010)
The maintenance work, performed by the maintenance engineers, does not follow any pre-
defined process or guidelines how to fulfil the work. Instead the different flows have
developed their own routines and ways to manage the work. Of course there are general
guidelines on how to manage maintenance but there is no specific instruction in detail. The
general work procedure is regulated in the SOP’s (standard operation procedures), more
detailed described in chapter 5.2.
Not all competence and experience are available within the own flow or unit. To cope with
the competence issue, consultants may be needed. It is the maintenance engineers
responsibility to assure that the maintenance worker possess the right competence.
A maintenance manager is employed to synchronize and connect the work between the
flows. The manager has an overview of the situation in on-going work and is also used as a
link between both flows within API and to external consultants. The overall technical
responsibility is delegated the manager and the director is the one ultimately responsible for
the maintenance issues being solved.
The maintenance department uses a system called, SAK 142 further described in chapter
5.9 and it comprises; ANL (Plant registry), AOH (Work order manager) and FUH (Preventive
maintenance manager). It is aimed to systematize the maintenance process. The traceability
for maintenance and calibration is crucial to comply with authorities demand for the origin of
a specific batch in case of a mishap or a recall.
5.6.1 Preventive maintenance
In API the preventive maintenance is based on several aspects. The interval between
maintenance varies from one week to several years depending on the equipment. The
intervals are regulated by the vendor’s recommendations, process and product
requirements, legislation, and experience and risk assessment.
The maintenance work aims at being evenly distributed over the year, so that the
organization is able to handle the work internally with current capacity. When production is
expected to be low there are more equipment planned to be maintained and vice verse.
The general work process for preventive maintenance at API is described in the following
text. The process can be seen in Figure 5:8.
Maintenance director
API
Maintenace engineer
EFA
Maintenace engineer
SYFA
Maintenace engineer
METO/PILOT
Maintenanceengineer
Solvents
Maintenace engineer
Warehouse
Maintenance
manager
Present situation | 28
Figure 5:8 The preventive maintenance process
The preventive maintenance plan is based on upcoming maintenance work. This information
is gathered from the system FUH. When a plan has been established the preparations can
begin. This is an important phase and includes many crucial activities. The planner needs to
ensure that the repair materials are available. An order of the needed parts has to be placed
and a delivery lead time has to be considered when scheduling the work. When scheduling
the job the planner also has to consider that required personal and equipment are available.
This is to make the stop in production as short as possible so that the productivity can be
kept at a high level. When the job is completed it has to be reported and documented in
FUH. A brief description of the job and the cost associated with the task are put into the
system. The due date for the next maintenance activity is updated and when the report is
finish the work has to be controlled and approved so that production can start again.
Some maintenance work is of different character, for instance an oil change in a motor or
controlling pressure levels. These jobs don’t require any material and can be performed
while production is still running. The level of complexity is also low and the work can be
performed by operators or other personal associated with production. To make this process
effective the maintenance engineer establishes a list of jobs to be performed within a time
period. This is called a round list and it is delegated to a group leader, by a maintenance
engineer who is responsible. When the work is finished the performer reports back to the
maintenance engineer who registers the work as completed in the system.
There is always a risk that some maintenance work hasn’t been performed in time, due to
different causes as insufficient resources, delayed part delivery or that the planned execution
time is hindered by an overdue in production. These unfinished tasks are compiled into a
delayed-work-list. The maintenance planner has to revise all the delayed work for the plant
top management. The severance of each unfinished work order is determined and a
handling plan is established. Some maintenance may be regulated by law or crucial for the
production. In these cases a deviation report and a plan for how it should be handled needs
to be performed. For non critical maintenance work the task is moved to the next time period
and handled according the standard procedure as described above.
5.6.2 Corrective maintenance
As in all industries there are unpredictable failures and errors that are hard to foresee.
Should this happen, API has established a predefined action plan, Figure 5:9.
Figure 5:9 The corrective maintenance process (AstraZeneca, 2009b)
When an error or failure are detected the production immediately need to be informed so
that production, if necessary can be stopped. In the system AOH a work order is established.
Depending on the error, the right department is contacted and the preparation for the job
PM plan Preparations Completion ReportControl and validation
Error detectedTechnician and prod.flow are
contactedPreparation Completion Documentation
Inform production unit
Present situation | 29
begins. If the production needs to be stopped or the failure risks to be crucial for product
quality or safety, health and environment (SHE); the job is classified with emergency status
and this is also marked in the work order. For important matters the system is used as a
documentation tool and not to execute the work order. The communication is performed via
telephone or person to person to get a fast and short process time. To perform a job at
AstraZeneca a working promotion has to be established. The working promotion describes
what and when the work can be performed. This is to prevent accidents and to ensure that
the worker has the right qualifications. When the preparation is done the work can be
completed and the repaired equipment tested. The work performed is reported in AOH and
the production unit is informed so that production can re-start again. In this phase the work
promotion is enclosed.
For errors not vital for product quality or SHE the job can be postponed to a more proper
time for execution so that production can continue without interruption. These errors are
registered in AOH and a maintenance engineer handles these orders. When an order is
registered the manager has to attest it and start preparing for the job. The preparation
process for postponed orders is the same as the preparation phase for preventive
maintenance. When the job is completed the work needs to be registered and documented
in AOH. Some equipment is classified as crucial and some may cause a change in product
quality. For these errors a deviation report has to be made due to legal regulations.
5.7 Calibration planning
The calibration process is a crucial activity to make sure the equipment is measuring right.
The measured parameters need to be within the boundaries of what is tolerable both to
AstraZeneca internal requirements as well as the authorities. In calibrating the systems at
the Snäckviken compound a computerized calibration system is employed. The company
requires, in its corporate world wide maintenance strategies, that the calibration and
maintenance work should be performed and logged in a computerized system to enhance
traceability and to ease up information handling. The answer to this guide line is the recently
introduced CMX 193 system which is the calibrations management tool. The system was
introduced in 2005 and replaced the paper procedure which had become obsolete. When
the new system was introduced the culture was not embracive towards leaving the traditional
paper form. The CMX software led to a better understanding and overview of what
equipment needs to be calibrated. There is a search function to see at what date and in what
time span a calibration is due, this simplifies the calibration planning process. It is simple for
a calibration technician to look at the results and contributions of others, to have an up to
date view of the actions and what needs to be done.
The calibration is managed by a department called Serviceteknik which is responsible for the
operational calibration at API and at the R&D department. Under the calibration engineer
there are five full time employees working towards API. There is a total of about 6000 CP’s
(calibration points) each year that need to be checked at API. To decrease the number of
CP, all the non-critical CP’s are not periodically checked. These are only calibrated when an
error is spotted and the equipment has been repaired or exchanged. All the critical CP’s is
checked within a predefined time interval established in forehand. Serviceteknik is working to
revise those intervals and change them to be more appropriate. This is because of the
parameter values for some CP’s remained constant over several calibrations revisions. This
Present situation | 30
work is also done to reduce the number of calibrations per year. This leads to a request for
quality and assurance to increase the calibrations intervals.
When performing calibration there is need for validated equipment like for instance a
reference multi meter calibration tool. These tools are located in a centralized storage that is
shared between other calibration departments at AstraZeneca. There is a booking system
where the departments need to reserve the tools for the time when it is needed. There are
occasions when a tool is double-booked in the system. This causes problem due to that the
calibration is planned in the production schedule and need to be performed within this time
span. I these occasions the maintenance manager prioritizes what calibration that is most
urgent and which that can wait.
The one responsible that the equipment is calibrated is the maintenance engineer at each
flow. The maintenance engineer is the one that establishes a work order in AOH, which the
calibration department reports to. The one responsible to gather the upcoming CP’s is
however delegated to the Serviceteknik. The work process is shown in Figure 5:10.
Figure 5:10 Calibration work process (AstraZeneca, 2009b)
The spare part storage within calibration is inadequate and there is no computerized
database that contains information about stock kept items. The most efficient way of getting
spare parts today, is to go to a local retailer instead of searching in the storage’s in
Snäckviken.
Serviceteknik is also involved in more large-scale projects where different departments need
to cooperate for instance when installing a new reactor. In these jobs there may be need for
a mechanic, an electrician and so on. The Serviceteknik manager has experienced a lack of
coordination in these projects. It does not seem to be a clear leader and this makes the work
unstructured and sometimes inefficient.
Serviceteknik gather
upcoming CP's and send it to
a maintenance manager
The maintenance
manager establishes a work order in
AOH
Requsts for time in production
schedule
Booking equipment and
personalCompletion
Backreports in CMX and SAK
Present situation | 31
5.8 Key measurements
The key measurements used by the maintenance team at API are:
Technical availability (TA)
Mean time between failure (MTBF)
Number of unfinished work orders
Number of urgent work orders
Number of critical deviations
The technical availability is calculated at each of the production flows and the target is to
exceed 95 %. The low TA in April was cause by a major breakdown on one of the machines
that required a long repair. The formula used for the computation is:
𝑇𝐴 =𝑝𝑙𝑎𝑛𝑛𝑒𝑑 𝑝𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛 𝑡𝑖𝑚𝑒 − 𝑑𝑜𝑤𝑛𝑡𝑖𝑚𝑒
𝑝𝑙𝑎𝑛𝑛𝑒𝑑 𝑝𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛 𝑡𝑖𝑚𝑒
The last year history of TA is shown in Figure 5:11.
Figure 5:11 History of TA at API 2009
The measure, MTBF, has recently been introduced at API. This is calculated to get an
overview of how often the stoppages occur in the production flows. The current target is
primarily to log all failures in a proper way so it can be used for further analysis and the more
long-term goal is to lengthen the time between failures. When there is a stop in production
there is a paper form that is filled in by the operators. The information is compiled and used
for the calculation.
Number of unfinished work orders is important to use in the analysis of the efficiency of the
maintenance organisation, Figure 5:12. Every month there is a follow-up where the
unfinished work orders are examined. The most important issue is that there is no GMP or
SHE critical orders that could create quality problems or pose as a safety risk to personnel
and/or the environment. API has a target where the number of unfinished work orders must
not exceed a total of 100 within all flows.
60%
65%
70%
75%
80%
85%
90%
95%
100%
105%
Technical Availability 2009
EFA
SYFA
Meto/Pilot
Present situation | 32
Figure 5:12 History of unfinished work orders 2009
Every month the numbers of urgent work orders are counted, Figure 5:13. The information is
gathered from AOH and the work orders that are classified with the label urgent and process
control system are summed up. The number of these work order has been reduced last year
as a consequence intensive work with the classification on the orders. Many work orders has
frequently been assign with urgent, even if is not. The goal is to reduce the amount of these
work orders.
Figure 5:13 The history of urgent work orders
One important issue at API is to run the production quality loss free as this could cause
primarily pose as a safety risk for the user and secondly represent a monetary loss. One of
the measurements used to examine how the maintenance is performing in this manner is the
number of critical deviations that occurs. A deviation can be divided into three risk levels
(AstraZencea, 2009c).
Level 1 is a serious deviation that could negatively affect the product quality or a
critical departure from the GMP (Good manufacturing practice).
Level 2 is a less critical departure from GMP or a smaller product quality deviation.
Level 3 is a small GMP departure or a deviation that barely affect the product quality.
All the deviations that are classified as level 1 and 2 are logged, and the target is to not
exceed 4 deviations over a 3 month time interval. To have the deviations documented and
under control is a high priority because of the safety issues posed to customers and the law
and regulation requirements from authorities.
The key measurements explained above are the ones by the maintenance team at API.
These are linked upstream in the organisations through a hierarchical measurement
0
50
100
150
200
250
300
350
400
450
Number of unfinished work orders
0
50
100
150
200
250
300
Number of urgent work orders 2009
Total
EFA
Meto/Pilot
SYFA
Present situation | 33
structure. The main targets have been gathered from internal documents (Sweden
operations scorecard final draft) and are presented in Table 5:1.
Table 5:1 List of internal targets and goals
Sweden operations ●Conversion cost ●Deviations, level 1 & 2 ●SCM (supply chain monitor) ●Inventory
TGS (Technical governance & support) ●UH/site cost ●TPM
API ●Service level delivery ●Deviations, level 1 & 2 ●Waste ●First class batch percentage ●Unclosed deviations work orders
OMA (Operations Maintenance API/R&D)
●Unfinished WO/Total WO (FUH and CMX) ●TPM pyramid ●Internal efficiency, UH cost/ total cost ●GMP deviations level 1 & 2 ●Technical availability (for Brilinta)
OMA team ●Technical availability ●MTBF ●Number of urgent work orders. ●Unfinished work orders in AOH ●Number of GMP deviations level 1 & 2
5.9 Computerized maintenance management system The system used at AstraZeneca is called SAK142 (System för AnläggningsKontroll: System
for plant control). It is complied by several modules used for different purposes, Figure 5:14.
The three main modules are ANL (Anläggningsregister: Plant registry), AOH
(Arbetsorderhanteraren: Work order manager), FUH (Förebyggande underhållshantering:
Preventive maintenance manager). These independent systems are connected to each
other via joint database called Oracle discovery. SAK142 is ER-secured (Electronic Record)
which means that all changes are traceable in time and individual. The importance of saving
the historical data is related to the traceability requirements from the federal regulations.
Every end-product must be traceable through the manufacturing process and the supply
chain.
Figure 5:14 Schematic view of the maintenance information system (Based on AstraZeneca,
(2009e)
Oracle
discovery
Preventive maintenance
manager
Work order
manager
Admini-
stration
Plant
registry
SAK142
Purchasing
Economics
Billing
AOH
ANL
FUH
Present situation | 34
ANL is the system for maintaining a good knowledge of the machines, equipment etc. that
are related to a unit. Every item gets an individual identification number in the system where
maintenance information, documentation, needed spare parts and other relevant information
are registered. The system has a hierarchic structure which makes it easy to identify a
location for a chosen item, Figure 5:15. This feature is also a regulated by law and by
privies, for instance insurance companies and Swedish work environment authority. The
basic idea with the system is that one should be able to locate equipment easily and declare
where it is located. This module is also used by the AOH and FUH where maintenance and
work orders are connected to specific equipment. In total the systems contains about
250 000 individual items.
Figure 5:15 Principle view of the hierarchical system structure.
The module AOH is the most frequently used system for maintenance as it handles and
administrates all work orders that are generated. When an error is found the operator writes
a work order with the most important information such as a description of the problem, the
ANL number, the initiators identification and information about whether the problem is urgent
or not. From this information, the maintenance engineer attests’ the work order and start
planning the work.
All information about preventive maintenance is kept in FUH. A list of upcoming preventive
maintenance work can be extracted from the system. The extracted works are compiled to a
round list which is supposed to be completed within a defined period of time. This is
described in more detail in the next chapter.
The information and data for the whole organisation is handled by several different
computerized systems. A world-wide project is initiated which will gather all the separately
systems into one. The enterprise system that will be introduced is SAP.
5.10 Mechanical workshop and operative maintenance
The workshop focuses on supporting the mechanical equipment at the manufacturing site.
Such equipment might be pumps, motors, pipes, mixer arms etc. If any mechanical
component is malfunction or down the item is removed and examined at the workshop. At
the workshop the technicians makes an assessment if the item is to be repaired or replaced.
The maintenance staffs, works in some ways in accordance to the TPM model and they
emphasize that the best maintenance is achieved if the operators check the oil levels,
preventively cleans the equipment and fix what they can. If the maintenance is too
complicated there is a chance that an operator is trying to fix something that is too difficult
rendering a faulty installation. In these cases the workshop stresses the importance that the
operator maintenance is only performed at a certain level, even if the operator feels
confident. There are rules regulating what can be done and by whom. If, for instance, there
Building 1
Machine A
Generator X
Motor Z
Machine B Generator Y
Present situation | 35
is an electrical installation it requires a certified electrician. The traceability is also important
at the work shop; they use the SAK142 but also utilize the invoices to monitor the work
orders mainly for budgetary control. The work shop reduced its workforce which makes the
work load high and the schedule compact. When they utilize consultants to cope with the
capacity the policy is to quickly make the consultants productive by following experienced
maintenance crew. At the same time the maintenance crew is learning from the consultant
whom usually is an expert in his field.
5.11 Motivation
In order to motivate the employees at API there are individual monetary bonuses. The total
bonus to divide in between the employees is related to how well API reaches its goals and
targets in the organisation. The bonus is then divided in the different departments and finally
set on the individual. How the bonus is divided to each of the employees is determined by to
what extent they have reached their individual goals. These goals are reviewed and updated
once a year in order to continuously improve the skill of the workforce. In order to inform the
employees of performance in the Lean and TPM work there are charts in the factory
environment. These aim at keeping the crew motivated as they can supposedly see the how
there work influences the performance of the improvement programmes.
The motivational work is also based on how card (Hur-kort) which is a goal setting
programme revised at least once a year. The cards are followed up and we see them as a
good suitable tool. The power of the how-cards are based in how well the employees and
employers get along and assign it meaning and value. A bit more of responsibility could also
be assumed by the employees. This might be solved if there will be more rewards based on
the follow up on the how cards.
The how card in itself is used to discuss suitable goals during a given period of time where
the boss writes down expectations, goals and a timeframe in the how cards. It is reported
that more dedication is wanted from the employee. The employer wants the employee to
assume more responsibility and show more interest in the system. The problem has been
that the technicians have been negative out of inconsistent follow ups and bad system
support thus questioning the reliability of the system.
The commitment towards the how cards have been rather cool and not particularly
embracive. The vast majority is reported to regard the cards on a sceptical note although
some appreciate the concept. The follow ups are reported inadequate during 2010. This is
mainly on the technician level whereas the managers and engineers already are used to
goal setting and follow-ups so they are merely regarding the how cards as a formal tool to do
what they already have done for some time. The challenge is thus getting the culture
embracive towards the technician level. The image is a bit like that the managers are still
pushing it ―down‖ on the technicians and it has created a bit of a clash.
Present situation | 36
5.12 Strengths and improvement potentials
This sub-chapter presents the strengths found at API but also weaker points where there is
room for improvement. The found weak points will later be analyzed and considered when
generating the improvement proposals.
Strengths
Intelligent factory design, easy to operate and maintain and it provides a good
oversight of the production process.
They work with goals and have goal setting as an important part of the agenda.
There is a bonus system as an incentive to well performed work.
Working with reducing the number of calibrations points.
Multifunctional calibration personal, can perform work in automation, calibration and
electronic.
Project initiated to cope with spare part handling.
There is a common maintenance strategy selected for the whole AstraZeneca group
and that the TPM pyramid is a common tool to measure the success on the
improvement work.
The SOP’s are calling for best practice procedures from a quality and brand name
perspective.
SAP project is initiated. This might further simplify the productions and maintenance
process and further increase transparency in the operations.
Highly experienced maintenance engineers and maintenance workers which have
great knowledge about the processes and equipment.
The mechanical workshop can do their own spare parts and have their own easily
accessible mechanics.
There are short lead times because the mechanical workshop can fix items in place.
The mechanical workshop advocates operator maintenance and is not afraid of
losing work assignments.
Areas with improvement potentials
Project management in cross functional projects is not standardized, where a
dedicated project leader could provide useful coordination making sure that five
employees work effective.
Hard to get calibration equipment, it needs to be booked long in advance.
There are no historical data of the time needed for calibration.
CMX does not support time reporting.
It is hard to understand what needs to be done to go from one step to the next in the
TPM-box. That has a negative impact on the motivation when the road to success is
not clearly mapped out. And when the cause and effect of the effort put in translated
to tangible results is not fed back properly.
No TPM-charts that provides information on where the TPM work is at and what
needs to be done to go from red to green in a particular box.
Present situation | 37
It might me pricey to always conduct business above GMP standard or even above
law requirements. The generic enterprises might compete in a lower standard but to
a lower cost and the clientele might be more cost-sensitive than quality focused.
Production planners have no easy access to information in any system about the
production schedule and needs to rely on printed plans
No clear overhead / top down view and process for handling changes in the
production schedule.
All maintenance, production and calibration utilize their own ―safety time‖ in planning;
this makes for unnecessary large portions of safety margins in the planning and
scheduling when each entity inserts their buffer time to be on the safe side when
planning.
The usage of historical data from SAK142 is not used, due to a lack of quality in the
data.
The back reporting work orders in AOH is not fully utilized.
Individual working processes, every flow has its own way to work.
The measures of MTBF have no connection to SAK142 but is handled in separate
papers forms.
The goal setting in individual key targets is not completely mapped out. This can be a
problem in motivating the employees because there is little consistent and mapped
out road to success.
Little attention made to the intrinsically motivational aspect like personalized goal
setting and instigating a particular towards goal culture.
The bonuses are divided in a relatively evenly range on the personnel. This could
affect the motivation of a well performing employee.
Vague towards goal motivation and cultural change anchorage at the site (secondary
anchorage). Little attention on how to make all technicians charged up. High focus on
top management support and low attention on the ―hands-on‖ technician’s support.
Long time between achievement and reward. Little to no intrinsic motivation strategy
in place and thus a loss in tools to motivate to performance.
Analysis | 38
6 Analysis
This chapter will present the analysis of the current situation at API. The focus of the
analysis is chosen with respect to the purpose and area of interest in this master’s thesis.
6.1 Total productive maintenance
The TPM work at the Snäckviken facility is working on the pyramid and has some green and
yellow boxes but still the TPM Pyramid has long way to go to become world class. When
asking anybody in the maintenance department staff, except the directly responsible
maintenance managers, where they are at in the TPM pyramid, they do not know what box
in the pyramid they represent. Neither do they know what colour they are, in the box. The
maintenance crew; the people that are the closest to the problems and the closest to the
solution might not have a clear view of the goals. They should be able to tell, where they are
at and where they are heading and why. The why part, is one of the most important aspects
of the Y-theory strategy; given that the basic rule in TPM (Wireman, 2004) is to train the staff
to improve the skills of all people involved. This means also to adopt a way of thinking that
motivates everybody, at every level, to want to do their best. This means to have all
personnel have a maintenance viewpoint and report variation and suspected errors
regardless if it is their job or not. Also it means to activate the group consciousness at all
levels and all departments.
The implementation of TPM is a change of mindset and culture. To speed up the change of
culture it is necessary to have a primary anchorage and a secondary anchorage, see Figure
6:1. The primary anchorage is the convincing of the leaders to embrace the new mindset.
This is a top down approach. According to Wireman (2004), TPM needs to have the full
support from the leaders of the organization.
It should be very possible to have a spontaneous dialogue with any technician on how this
week’s MTBF was, compared to last week’s. Today that is not the case because they usually
don’t have a clear view of the key measurements or TPM pyramid advancements being
Technicians
Maintenance Engineer
Maintenance Manager
API
SweOps
The boss supports the idea = Primary anchorage
Information charts, competition, team spirit, results posted public = Secondary anchorage
This is important for the positive Y-based TPM-culture awareness to become a full swing
grass roots empowerment movement.
Secondary anchorage
is an information chart
on the wall telling and
reaffirming people
why it is so important
for the company
survival. New culture
gains momentum.
Figure 6:1 TPM Implementation and cultural change pyramid anchorage schematics
Analysis | 39
made. These types of measurements and their interconnection to other key figures should
be visible out in the factory and in different places around the facility for everybody to get
involved in the TPM process and to communicate the information of where the organization
is at and where it is heading according to Bowen and Lawler (1992), for having a motivated
staff.
It is important to have the information charts of the TPM work, with focus on respective field
of interest rather than just a standard AstraZeneca pyramid. The problem is that even if
AstraZeneca has a well organized TPM pyramid it is few people that actually understand
what the pyramid represent and what needs to be done to go from red to green colour. A
focused pyramid could help ease this and make the specific department understand which
TPM pyramid boxes that are important to them and how they will work (brake down of key
steps to reach their specific goal) to get to the next TPM-level.
If there is a goal; but the goal is not well defined and the route to get to the goal is not clearly
understood then there will be no expectancy from the employee’s and it won’t be motivating
when the expectation and instrumentality is lost. The absence smaller of steps (part goals) to
reach the final goal takes away the perception that an effort leads to results and rewards that
are relevant. This is some of the improvement possibilities that the TPM pyramid has at
AstraZeneca. It is not easy to understand and the part goals are not sufficiently detailed to
provide fuel and incentives
The maintenance strategy chosen is the TPM concept. The TPM is more of a concept or
philosophy than a guide. Wireman (2004) give the five rules of TPM:
1. Improving equipment effectiveness
2. Improving maintenance efficiency and effectiveness
3. Early equipment management and maintenance
4. Training to improve the skills of all people involved
5. Involving operators (occupants) in routine maintenance
The rules stated might be derived from the auto industry. In the particular pharmaceutical
industry we are looking at, it is more focused like this (due to excessive capacity).
1. Involving operators in routine maintenance
2. Training to improve skills
3. Early equipment management and maintenance
4. Improving maintenance efficiency and effectiveness
5. Improving equipment effectiveness
(It is the inverse of the TPM strategy above.)
Every time a manager needs to convince another manager below there is a risk for drift in
information fidelity and also a drift in scope. The TPM responsible is newly appointed and
also have a large set of responsibilities and may not spend as much time in the field as they
want. With little ―hands on‖ involvement it can be difficult to change the culture within the
maintenance team. That is why a further involvement from the TPM crew and more
information charts that shows the current state of the TPM work, may be needed.
The indifference might be due to the downsizing policy. More likely is it solely based in the
fact that there are few measurements and few incentives. The motivational strategy is based
in the ―go with the stream‖ attitude rather than the towards goal motivation. Nevertheless are
Analysis | 40
there any information boards on attitude and enlightenment on what is being done and what
financial implication the maintenance has to the final profit.
To have a monetary effect analysis of the maintenance work effort could work as incentive
for the maintenance crew, an emotional reward for them to see what kind of a difference
they make to the profit. We don’t see the cause and effect connection, or simply put the
direct measurement of what the maintenance crew is doing and the direct feedback on their
great work.
6.2 Maintenance management
The maintenance work at API is functioning well and the availability is above the targeted
level. When analysing the data from Oracle discovery the relation between the critical and
non-critical work orders can be seen, see Figure 6:2. This is not to be mixed up with the
earlier mentioned total cost curve by (Johansson, 1993). In this figure there are no costs or
time considered since this data is not logged in SAK which makes it hard evaluating the
economical effect of the different maintenance policies. Because of the quality in data in
SAK the historical data cannot be used effectively. The only data used are the data
necessary to produce the key indicators. Not even the data for calculating the MTBF is
gathered from SAK but from a separate data handling procedure.
Figure 6:2 The relation between critical and non-critical work orders
Related to the use of historical data from SAK is the quality of data in the system. The
maintenance engineers have worked to improve the quality in data. The maintenance
workers that fill in the work order, called back report, does not report in sufficient amount of
data thus the integrity of the measurements is compromised. To mention is that, after all, this
has been surely improved within the last couple of years but still there is a lot of information
that is missing in the back reports. To make the back reports more useful they should be
strictly defined on the way they are filled in When the data necessary is obtained
systematically there will be an easier job to map of the maintenance department’s efficiency..
A first phase could include more time reports from which, for instance, the mean time to
repair and the cost of different maintenance task could be calculated. When having enough
data the preventive maintenance and corrective maintenance could be further examined to
optimize the use of resources.
Another problem mentioned, is the shortage of project management process in cross
functional maintenance work and minor rebuilding projects. This is extra important when
0%
20%
40%
60%
80%
100%
Me
an n
um
be
r o
f w
ork
o
rde
rs/m
on
th
Critical and non-critical work orders
% Non-critical
% Critical
Analysis | 41
using contractors, which is common in this kind of special jobs, since they are relatively
expensive to use in comparison to employees.
The preventive maintenance work is divided into calibration and maintenance work. Since
calibration has a separate system, it has its own routines and also its own problems. In
CMX, as in SAK, there is very little time data information stored about the capacity
necessary to perform the different calibrations tasks. Calibration should be relatively easy to
predict in terms of time needed for completion compared to the more various maintenance
process times. If there was time data information in both CMX and SAK it would be possible
to make feasible and more precise schedules. To decrease the workload of the calibration
team a rationalization work of reducing the number of calibrations point has been initiated
and is an on-going project. When removing calibration points the effect of running the
equipment un-calibrated has to be evaluated. This is done in cooperation with the quality
department that is responsible for having the produced products fulfil the specified
requirements. The reduction process will in the long run reduce the cost for calibration since
the total number of man-hours needed to calibrate the facility will decrease.
6.3 Integration between maintenance and production planning
The integration between maintenance and production planning is functioning adequately
today and the production does hardly ever get interrupted by preventive maintenance work.
The results from the meetings between production and maintenance turn out with good
results. The planning process in between production and maintenance is not visualized in a
satisfactory manner. The maintenance engineers and managers are not having easy access
to information about when production is down. Another problem mentioned is that the
operators have too short-sighted information. They have no long term perception of the
maintenance and productions planning. The operators are the ones that have the best
knowledge about the production processes. Their knowledge and experience should be
used more effectively. Due to the short term information available, it is difficult for the crew to
come up with suggestions on how to improve the current production and maintenance
schedule.
In order to make a feasible and reliable schedule it should be documented how much time
the different maintenance work and calibration takes. Maintenance work may be difficult to
plan in detail, since it differs from one execution to the next. But having a good estimated
value should simplify the planning process. For calibration tasks the work orders would be
easier to set arbitrarily estimated times. The current planning situation is very person-
dependent since the maintenance engineers approximate or guess the time in planning. For
an inexperienced engineer, maintenance planning would be impossible to complete in an
adequate way.
The development of a well working interaction between the different disciplines is hindered
by the fact that there is a lot of spare capacity in production. The spare time capacity could
be used for completion of unfinished maintenance work. The attitude is slightly characterised
by ―-why change a functioning concept‖. But in a situation where the plant utilization is
higher, the need of a more cohesive interaction will be necessary in order to maintain the
availability in the facility with the current capacity.
Analysis | 42
6.4 Performance indicators
The current maintenance performance measurement system is shown in Appendix 1. An
interpretation and analysis of the connection between the different levels in the structure
have been made to get a clearer view of the link to external measures that customers deem
important. This analysis will focus on the measurements on the level of OMA maintenance
team (OMA MT). The OMA MT is responsible for determine maintenance intervals, repairs
and when equipment is planned to be down due to maintenance. Besides the operational
decision the OMA MT is also responsible for deciding the level of preventive maintenance,
skill of workforce etc., decision in a more tactical level.
The unfinished work order measures the number of uncompleted jobs each week. The data
is gathered from SAK and a list of these order are extracted. Some of the orders handles
long time project, e.g. a rebuilding project that is planned to run over a three month period.
The main purpose for this key indicator is to make an incitement of closing the work order.
Closing a work order means that the work has been performed but it hasn’t been registered
into the SAK yet. The number of unfinished work order is a lagging indicator at the tactical
and operational level. It is used by the maintenance manager to track the different flows
status. Every week the different flows maintenance engineer reports its current work order
status. The unfinished work orders need to be declared why they have not been performed
or why they are not closed.
The urgent work order is used to track failures and error that is classified with the urgent
status. This indicates the proportion of corrective maintenance performed each month. The
time consumed by each of the orders differs a lot and also the resources needed to
complete an order. This is, like unfinished work orders, a lagging indicator at the operational
level but could be used as a leading indicator at the tactical level to determine the preventive
maintenance. If the urgent work orders are very expensive to complete it may be more
proper including them in the preventive maintenance schedule. Needed information to
analyze this at the tactical level is cost and/or manpower hour consumed for the urgent
maintenance work but at the moment this information is not documented. As urgent work
orders aren’t planned with the same foresight as preventive maintenance the need for spare
capacity in terms of manpower and safety time is high when there is a lot of urgent work.
Reducing the number of urgent work would make it easier to produce feasible maintenance
schedules. But having a very high level of preventive maintenance requires a big
maintenance crew. On the other hand, having a low level of preventive maintenance will
increase the number of break-downs which is very expensive at AstraZeneca. One has to
find the balance between preventive and corrective maintenance to keep the maintenance
cost a low as possible, see Figure 6:3.
Analysis | 43
Figure 6:3 Total cost curve of maintenance (Johansson, 1993)
The newly introduced key indicator MTBF has only been used during a couple of month and
for the moment there is no history to analyze. There have been previous attempts of
introducing this key indicator. A reason for failure in earlier implementations is, according to
the maintenance manager, too little interest in using it. The management haven’t been
genuinely interested in this measurement which may have caused earlier failures. The new
attempt is initiated by the management team which makes a more clear incitement for the
maintenance engineers to use it. The system for recording MTBF based on a paper sheet to
be filled in by the operators. Each stop is documented and the list is then handed to the
maintenance engineer who is responsible reporting to the maintenance manager each
month. This information is not stored in SAK which makes it hard for future employee’s
finding history information of the stops if they don’t have access to the maintenance
engineers Excel files, in which the information is stored today. The measure is today
presented at an aggregated level for each of the production flows. This makes it impossible
to make any conclusions of which equipment that may need some special attention in terms
of maintenance. MTBF can be used both as a lead and a lag indicator. I the terms of future
prediction, lead, it can be used to identify trends in the MTBF. An increase in the frequency
may imply that the equipment needs to be replaced. The lag indication can be used to
evaluate the maintenance work since break down is to be prevented by a proper
maintenance plan. When recording the MBTF it would be easy also to record how long time
the reparation took, time to repair. This could be used measuring the maintenance team’s
internal efficiency.
The technical availability level at API is high, more than 95 % which is the target set. In
months when the TA is not that great, the production outcome is of course affected. But
because of the fact that there is spare capacity that could be used the stops has no or very
little effect on the delivery. The method used for calculating the TA corresponds to reviewed
literature for instance, (De Groote, 1995). On interesting finding is that Turbuhaler uses
another definition of TA not, by the authors of this master’s thesis, found in literature.
Turbuhaler’s way of calculating TA was found in internal document (AstraZeneca, Formler
för beräkning av nyckeltal - Turbuhaler, 2010).
𝑇𝐴 =𝐴𝑐𝑡𝑢𝑎𝑙 𝑝𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛 𝑡𝑖𝑚𝑒
𝐴𝑐𝑡𝑢𝑎𝑙 𝑝𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛 𝑡𝑖𝑚𝑒 + (𝑡𝑖𝑚𝑒 𝑓𝑜𝑟 𝑒𝑞𝑢𝑖𝑝𝑚𝑒𝑛𝑡 𝑓𝑎𝑖𝑙𝑢𝑟𝑒,𝑤𝑎𝑖𝑡𝑖𝑛𝑔 𝑡𝑖𝑚𝑒 𝑎𝑛𝑑 𝑠𝑜𝑟𝑡 𝑠𝑡𝑜𝑝𝑠)
0
2
4
6
8
10
12C
ost
s
Level of preventive maintenance
Cost of corrective maintenance
Cost of preventive maintenance
Total cost
Analysis | 44
Table 6:1 Example of the difference with various methods
Total production time Total stop time TA API TA Turbuhaler Difference
400 h 10 h 97,5% 97,6% 0,1%
400 h 30 h 92,5% 93,0% 0,5%
400 h 50 h 87,5% 88,9% 1,4%
400 h 70 h 82,5% 85,1% 2,6%
400 h 90 h 77,5% 81,6% 4,1%
400 h 110 h 72,5% 78,4% 5,9%
This only affects the result of the calculation fairly when the stop times are relatively small.
But with increased relatively stop times the difference increases, se example in Table 6:1.
This will of course not affect the way of work in the maintenance team at API but could be
interesting at a higher hierarchical level when comparing and analyzing the TA in different
departments. Within API maintenance team, TA is only used as a lagging indicator mapping
the performance against former values.
The number of GMP classified work orders is an important tool in the safety, health and
environment (SHE) work. Keeping this value at a low value is important both for the safety of
the crew at the flows and also for the quality of the products delivered. Since there are strict
regulations considering the production processes and how the products are manufactured it
is at high priority keeping good track of these work orders. Equipment that are classified as
crucial for product quality is classified as GMP critical and these need to be calibrated as all
other machines. GMP classified equipment that is not calibrated need to be evaluated at
each of these cases to ensure that product quality isn’t affected. Historically a lot of the
equipment has been GMP classified which lead to high capacity need. The number of GMP
calibration points is continuously evaluated to, if possible remove the GMP classification. In
the long term this will reduce the work load of the maintenance workers.
The current measurement system is not associated with any extra cost for the maintenance
department expect for the recently introduced MTBF. The cost associated with this measure
is the extra time used by the operator to fill in the form and some administrational work for
the maintenance engineer to compile the data at each month. This cost can be considered
negligible.
The network of measurement at AstraZeneca and API shown in Appendix 1, bring out the
link from external customer requirements down to the OMA MT set of key indicators.
The set of key indicators is controllable by the maintenance engineers and the maintenance
manager. Their work directly affects the outcome of the maintenance via the key indicators.
But in order to improve the maintenance there need to be tools that the maintenance
engineers can use. This is one thing missing in the current system. There is a proper set of
key indicators but the tools to work with improving them are missing.
The set of measurements has a high focus in ―number of work orders‖, three out of five
(Unfinished WO, Urgent WO and GMP critical WO). These don’t encouraging the
maintenance crew to improve because they can’t control this parameter directly. The crew
get the work order and are then to fulfil it. The time used to carry out the work is not logged
or followed up. Neither is the time the equipment needs to wait before the work begins.
Analysis | 45
6.5 Motivation
Figure 6:4 shows how motivation leads to results and what affects the chain from incentive
to action. The reward can be intrinsic or extrinsic but preferably it should be a combination of
them both. In Victor Vrooms expectancy theory he addresses the why question with his
motivational schematics. That the expectation of an effort will lead to a positive feeling when
surpassing a key figure goal (intrinsic motivation). Also it might be a bonus that will motivate
extrinsically to perform according to the given key figure goals. When the individual to be
motivated is given a real tangible measure of where he is at for the moment and is
intrinsically or extrinsically stimulated to pursue a goal, it leads to an expectation and that
might translate into an effort. When there are measurements there is instrumentality and the
achievements are measurable. If the achievement is successful the valence (or the
relevance) of the reward for the person is evaluated as if it was ―worth the stretch‖. If it was,
then the person will be even more motivated taking on the next assignment. If properly
understood and embraced by a manager or coach; then this person can soon be self-
motivated and needs no or little attention except for the scheduled follow ups. The only thing
the manager or coach need to have in mind is keeping the valence of the reward to
achievement attractive. That could be a compliment, a bigger desk or a bonus. Dedicated
work will be seen and be premiered.
For this to work the reference frame for measuring dedicated work and success must be
clear. That means the expectations; instrumentality and valence cycle is clearly understood.
(Here is one of the remarks to map the cycle out and have it repeat itself faster). Also it is
important to map out which technician is having what type of goal and how he or she is
moving towards them; posted on a chart on the wall. There are no charts of this type at API
to this date.
If publicly posted a chart of goal setting and progress on the wall; this most likely results in a
culture of towards goal motivation. The Maslow pyramid’s fourth block the need for status
and prestige will come as a positive side effect of starting to measure and to follow up on the
results. There will be a competition involved so this need will start to emerge from the follow
up’s, not only in their rewards, but more from ―the eager to be the best‖. Finally the culture of
wanting to be the best outperforms and the extrinsic motivational forms.
Expectation
That an effort
leads to result
Instrumentality
Expectation that
an achievement
leads to result
Valence
What value one
credit the results
EFFORT ACHIEVEMENT RESULTS
―What is the probability that if I do a good job that there will be some kind of outcome in it for me?‖
―Is the outcome I get of any value to me?‖
Figure 6:4 Victor Vrooms Expectancy Theory
Analysis | 46
The bonus as an incentive will only reach the third level and constitutes a hygiene factor. It is
nice to have but will soon be taken for granted. The need for status and prestige and finally
the self actualization are motivational factors and work in a loop manner continually with
amplifying effect as the valence of the results keep coming and are attractive. The
attractiveness of the valence is based on the good feelings as emotional currency more than
monetary incentives as motivator. The emotional currency is very motivational, very
addictive and has a very short cause and effect cycle which is good for motivation.
6.5.1 Extrinsic motivation
Figure 6:6 shows how the bonuses are too close to each other. The criteria are often vague
for setting bonus thus the bonuses are set on a collectivistic basis, not on a performance
basis. This incapability to show what behaviour is premiered halt’s its sole purpose. A
problem with extrinsic motivation such as bonus is also that it takes long time from the point
the achievement is made to the actual reward. That is why a compliment (or a hand on the
shoulder) many times is more powerful than the bonus part; because it shortens the
achievement reward cycle. This type of extrinsic motivation is utilized by a Y-thinking
boss/leader/manager.
The motivational work done at the maintenance department are existent but might be
improved. There is a bonus system that is connected to targets. But often the targets are
vaguely set or even worse that the goals are set the same month that the bonus is to be
Figure 6:6 The bonus (incentive) made out of percentage of base salary
50 % of base salary
(Everybody is in the 15 % of base salary at the moment)
0 % of base salary 50 % of base salary Have the guts to review the past
years goal achievement and to pay
bonus from that standpoint.
(15 %)
(5 %) (50 %)
Physiological needs
Safety needs
Social needs
Need for status & prestige
Self
actualisation
Higher order need – Intrinsic motivation has a
loop characteristic that amplify motivation.
More powerful than a bonus.
Bonus only
reaches the
social needs
level and is
extrinsic
motivation.
Figure 6:5 Intrinsic and extrinsic vs. Maslov's pyrmid
Analysis | 47
paid. For a bonus to be motivating the goals need to be set a year before. Another problem
reported is that the bonuses are set too close to each other there should be a greater span
between the percentages of the base salary the employees are paid as bonus each year
and that it also should be heavily connected to goals achievements. Otherwise much of the
effect of the bonus is lost and is merely viewed as an extended salary and is thus not
motivating to the individual.
Not having efficient goal setting also makes employees that actually do a great work think
they don’t; merely because they have nothing to compare with. Another aspect mentioned
during the interviews is that the workers union halts the flexibility of the bonus system. The
union takes a very collectivistic standpoint and questions or blocks many attempts to pay
more for great achievement. Also sometimes it is hard for the boss to give his employees
different pay not only because they have not set tangible goals but they might have worked
together for 15 years and the boss simply can’t heart not to give his friend and colleague a
bonus. Also the group pressure around the coffee table as well as jealous sentiments from
the non-beneficiaries can be hard to handle. These types of problems are easier to cope
with if real tangible goals are set up and thoroughly discussed a year before. A problem with
extrinsic motivation such as bonus is that it takes long time from the point the achievement is
made to the actual reward. That is why a compliment or a hand to the shoulder many times
is more powerful than the bonus part because it shortens the achievement reward cycle.
This type of extrinsic motivation is utilized by a Y-thinking boss/leader/manager.
6.5.2 Intrinsic motivation
More powerful but harder to manage is the intrinsic motivation. In the Maslow pyramid it is
the top two, the higher order need; the need for status and prestige and the self actualisation
seen in the figure. As mentioned in earlier chapter the higher order need loops and the
satisfied need leads to more motivation. As an example a person is getting more used to
report data back into the work order system and get feedback from the maintenance
engineer that it is appreciated when doing so, soon make it standard operating procedure
and also takes pride in performing the activity. Already the maintenance manager is aware of
the importance of this loop and investigates in how to amplify the loop and make the intrinsic
motivation stronger.
The API has highly skilled and well performing technicians so the goal setting should be
individualized depending on skill but aligned with the goals that the organization have
outlined. This is why the key measurements and dividing the different goals into sub goals
until it actually has reached down to an individual level is important. The goals and key
figures must be divisible and that is a chain that is not completely mapped out, throughout
the API maintenance organization. Nor is it visible in the form of a chart on the wall. It is
important to see the results of the work (Hertzberg, 1968) to have a direct reward to
performance in order to maintain high motivation.
Analysis | 48
Unsatisfied need Motivation Action Satisfied need Finish
Unsatisfied need Motivation Action Satisfied need
Lower order need
Higher order need
It is important to look at each individual, to map out the achievement needs (McClelland,
1955) and look how it conjunct with the expectancy theory to figure out what is important to
each technician and make individualized plans (Abrahamsson & Andersen, 2005).
If one makes the employees understand and work towards an intrinsic goal and give them
responsibility and mandate, the technicians most likely will be more self-scheduling and also
more personal accountable. According to (Hertzberg, 1968) the employees given freedom
under responsibility in the clerical typewriting study conducted internationally in 1986 that the
Y-theory actually scientifically proves that the work was performed more efficiently in a Y-
based environment.
6.5.3 Leadership and cultural change at API
The leadership at the Snäckviken facility is characterized with a laissez-faire attitude where
the hierarchy is not over emphasized and there is a natural dialogue occurring in between
the departments. The informal approach is good for information sharing and is reinforced by
the cross-departmental lean-meetings they have every morning. Sometimes the leadership
can be too soft and too laissez-faire when for instance the planning is halted because it is
unclear who is determining what, as with the production and maintenance planning problem.
6.6 Performance indicators related to motivational theory
The key measurements and the motivation theory relate to each other. The purpose of
measuring is to have a gauge on where one is at for the moment and also if the results
measured are good or bad. Key measurements are necessary in comparing the results to
prior performances and the competition. As discussed earlier the towards goal motivation
strategy as the underlying formula for the TPM work. In the towards goal strategy it is
necessary to know where one is at and where one is heading. It is also important to
understand what one wants; otherwise it is hard to set a goal. So the first step seems to be
to map out where we are. Next question to ask is what we want and maybe why. When the
goals to be achieved are understood and mapped out as well as the road to get there; a
series of questions arises to the subconscious mind. The subconscious mind immediately
starts to seek out possible solutions to pass the obstacles and reach the desired outcome.
So now the subconscious mind is actively seeking ways to get to the point visualized. Now
the subconscious mind works in our favour seeking ways and reasons why the plan will
work, and not the opposite. This is towards goal motivation or according to (Robbins, 1991)
Figure 6:7 The Maslow Pyramid intrinsic higher order need compared to lower order need
of hygiene factors
Physiological needs
Safety needs
Social needs
Need for status & prestige
Self
actualisation Higher order need Intrinsic
motivation
Analysis | 49
pleasure motivation. To access this powerful cycle of towards goal motivation employees
need to ask themselves, where am I right now? Where do I want to go and why?
The where am I now is simply measurement, the where do I want to go next is goal setting
and visualization, and finally the why is the motivational aspect. As mentioned before the key
measurements needs to be hierarchically broken down to smaller components and
visualized to show their connection to lower rank measurement figures until all the levels has
their own set of connected and understood key figures at the respective level. It is important
that the technicians and managers understand their maintenance key figures so they
understand where they are at for the moment. The second step is to sit down and ask the
employee where he or she wants to go next and ultimately that every individual decides for
him or herself where to go next and soon set goals on his or her own. The sit down meeting
is useful to map out the possibilities for promotion as a function of achieving their key targets
and show how the key targets are connected to each other to gain knowledge how their
effort is important for others efforts to be successful. At the same time the boss has a
chance to get a more profound understanding of where the individuals are at for the moment
and what type of motivational form is attractive to them.
Improvement proposals | 50
7 Improvement proposals
This chapter will present the proposals on how the maintenance work and motivational
aspects can be improved. The improvement proposals have considered the fact that API
have a tight maintenance budget and that there is no possibility for any larger investments.
7.1 Total productive maintenance
It is important to communicate the route to the TPM targets so that there are short, medium
and long term goals that pave the way in a TPM improvement programme. The goals and
the way to get there should be clearly understood by everybody involved and also
understood by departments that are not directly involved in the maintenance routines. A
cross functional maintenance understanding helps operators and maintenance technicians
to dialogue and share information in a more natural way. A rotational programme where
maintenance technicians and operators try each other’s position gives a feel for what is
challenging in the opposite position. The understanding that emerges from trying the
opposite position might serve to give a new perspective and valuable insight. In such a
perspective it might be more natural for an operator to tell his maintenance colleagues that
there are, for instance, vibrations in a certain mechanical component and pass the
information on; potentially rendering in a preventive work order that saves time and money in
the big picture.
7.1.1 TPM-pyramid related to responsibility and mandate
There are three important key factors in this; to assume responsibility, to be given mandate
and to share information effectively. The TPM-group acknowledges that the operators are to
take responsibility for the machines in what is referred to as operator maintenance. The
mandate factor in this is to clearly understand who is responsible for what. To evade having
a situation where someone say that they don’t care to report a potential failure, a clear field
of responsibility is suitable. On the mandate side the employee need to be mandated to
actually form his plan to reach his targets. Also it is important that the budgetary
responsibility is given as peripheral as possible. If one really wants to give mandate to match
up the responsibility then budgetary responsibility is important. It is a move from centralized
control out to peripheral control and affects the motivation.
7.1.2 TPM-pyramid, goal setting and measurement
To get back to the pyramid; the goals and milestones need to be clearly defined and
understood and worked with in accordance. In the information sharing aspect the question of
what and why need to be answered clearly and easily throughout the organization. This is
answered in the zoomed TPM charts see Figure 7:1.
If an organizational behaviour change is to emerge then it is vital to have a solid
communications channel to explain why it is worth the agony of the change. Usually it is a
slow and durational process to change a culture but that is outside the scope of this thesis.
If there is a competition in place and prices to be given for great performance it has a
positive side effect that the rules for how great maintenance is measured will automatically
be adjusted partly by the managers but more profoundly by the technicians themselves they
will object if the measurements are not fairly constructed or even better start giving
proposals on how to measure maintenance. This makes everybody involved in how
Improvement proposals | 51
maintenance is measured and creates participation and motivation as well as valuable input
from the people closest to the source of the problems.
7.1.3 TPM-zoomed in charts and step by step guide to World Class Maintenance
The TPM charts might have a zoomed in focus on the TPM boxes that affects the assigned
department. In a zoomed in box it could be useful to provide information on where we are
and what needs to be done to get to the next milestone. For each milestone passed there
should be a collective price for the group that have made the effort. This is not in conflict with
the fact that only individuals can get motivated. Every individual in the group will be
motivated, but in a collectivized beneficial environment; the group motivates itself.
7.1.4 TPM-pyramid and personal commitment and competition
The group is being premiered compared to other groups and thus seen by the organization.
The organization then communicates its core values throughout its body through this
mechanism of rewarding a sound behaviour. This all implies that there should be TPM charts
on the walls with specific scope with the respective departmental focus. Also on this wall
chart there should be mapped out key figures and responsibility down at each level in a
hierarchical tree all the way down to the operators and technicians. To see each technician
or operators personal responsibility also serves the purpose that the person is being seen by
the organization. It creates participation to the programme if ones name is also on the same
goal chart that the progress is measured from. It creates a feeling of belonging and it states
the true effect that each technician and operator have to the profit. It creates a feeling of
belonging and importance that each individual wants to feel.
TPM zoomed charts with roadmap to success in a nutshell:
1. Identifies the step by step route to excellent maintenance and that affects the short
term and medium term steps in the TPM programme that provides TPM insight.
2. The chart share information throughout the organization and that affect the cultural
change.
3. The connected targets and step by step guide set goals all the way down to the
individual technician level that create participation thus it affects motivation.
4. The extrinsic bonus goals are connected to the pyramid and form the basis for the
bonus programme and thus it acts as a real motivational factor.
5. The zoomed chart acts as a roadmap to success for the maintenance personnel and
thus creates participation and that stimulates commitment to the programme.
Improvement proposals | 52
Planned and
improved big stop
TPM EFA – Short term and medium term route to success
Strategy: To make sure the base of the pyramid is green and by managing
the short term goals on a daily and weekly basis.
(World class is a long series of great performances on a short term basis.)
How can we make success unavoidable?
4. Who will make this happen?
Sven Svensson - responsible for Technical Availability
Target value: exceed TA of 89% for 3 weeks in a row.
Current record holder: John (94%)
Ray Rayleigh – Responsible for root cause analysis
Target value: To predict failure with 58% accuracy.
Current record holder: Ray (67 % in a 3 week span)
John Johnston – Responsible for MTBF
Target value: To extend the MTBF of up to 18 weeks:
Current record holder: Sven (16 weeks)
Possible errors of measurements in competition: Uncertainty
1. Important boxes for EFA:
* Planned and improved big stop
(67%)
2. How to reach the target
1. Raise Critical machine equipment to 95%
2. Spare parts inventory availability 98%
3. Time to search for equipment < 1 h.
3. Why is this important?
Estimated gain downstream of supply chain:
1% increase in improved Big Stop Box = $16 million /
year
Figure 7:1 TPM Zoomed chart with the what, why and how’s shows the whole chain.
Improvement proposals | 53
7.2 Planning process
The planning process involves the planning of productions, maintenance and calibrations
and to simplify we call it the planning process. This sub-chapter presents what can be
changed to make the planning process easier to handle.
7.2.1 Improve the planning process
The planning process could be improved by having calibrations, maintenance and
productions representatives attend a single planning meeting where the plan is adjusted with
all the attendees at place at the same time saving valuable time because the plan will be
revised directly.
When the plan is laid, revised and accepted it needs to be communicated quick and
effectively into the factories. We recommend that the plans are, for instance, laid in the
Wednesday afternoon and printed into big A1 charts and posted on the wall directly
afterwards it has been approved. Thus the operators have a greater insight on what is
coming up next week and it touches upon the information sharing and the participation within
the organization and creates more certainty and thus well being out of the certainty that the
information provide.
The plans that are made does not include maintenance activities, but only calibrations and
productions, so the maintenance need to search out air in the schedule and squeeze in the
maintenance in the windows that hopefully exist. Thus in our opinion, we opt for a more
intertwined planning process. The planning software should be easier to manipulate. We
believe these hard to change plans could be handled easier if data is imported from SAK
and CMX to a common database on the hard drive of the planning PC and then let an Excel
programme use the PC’s own RAM memory (random access memory) which is accessed
and manipulated much quicker than a direct uplink to the ERP, where each time all the data
that needs to be manipulated have to be downloaded through the SAK and CMX. To create
a common database is outside the scope of our objectives but there are specialists in IT, that
the company already contracts, that could solve this problem quite easily.
ANL: 111
ANL: 112
ANL: 113
Calibration
Production
Maintenance
Calibration
Production Maintenance
Calibration Production
Maintenance
2010-04-21 2010-04-22 2010-04-23 2010-04-24
Day2 Day3 Day4 Day5 Day6 Day7...
Selected: 112 – Drier
Item: Drier
MTBF: 15 weeks
TTF: 2 weeks (estimate)
Status: Very important
Type: Predictive maint.
Figure 7:2 The planning process visualization
Improvement proposals | 54
The planning software proposed should have the time on the X-axis and the ANL-number on
the Y-axis. The easy retrieval of information might help give a bird’s eye view of the condition
of the machine park. Another advantage is when the planner lays the plan he or she needs
to click on the machines to handle the ANL numbers. The planner then automatically
retrieves important data presented as an example in Figure 7:2. These types of charts
should directly be printed and posted into the factories favourably next to their Lean-charts.
The proposal can be summarized with the following steps.
1. Plan at the same time with all participants attending.
2. Put maintenance plan in directly in the schedule not only calibrations tasks and
production. The maintenance is equally important to the profit thus also it should
be visualized in the plans.
3. Revise the system so that it is based on onboard RAM-memory instead of
accessing slow ERP-databases for each manipulation.
4. Have the information of the status of the machines included from the ANL-
number imported to the program so it can visualize the performance indicators
and use statistical tools to try to pinpoint next time for the preventive
maintenance.
5. When the plan is completed immediately post it on the walls at the factory.
7.2.2 Define safety time that maintenance and production needs.
When setting the production schedule each week, production and maintenance including
calibration, have a meeting. During this meeting the present what they have planned to
perform and how much time they need. One problem that exits is that they both add their
safety time. This could easily add up to an unnecessary amount. More openhanded
information about the uncertainty that exits in the plans should make it possible to reduce the
total amount of safety time in schedule.
Maintenance is by nature an activity that is hard to predict how long time it will take to
conduct. This is because a maintenance task could differ from time to time. The time needed
for the production process should be easier to predict even if there are some uncertainties
regarding process times throughout manufacturing.
Figure 7:3 shows an example how maintenance and production adds their safety time. By
using a joint safety time instead, the total safety time can be reduced. The total planned time
can then be reduced, see the shared safety time pile, where the planned safety time has
been reduced. This free time can then be used for other more valuable activities for instance
more maintenance tasks.
Figure 7:3 Safety time
0
5
10
15
20
25
30
35
40
45
50
Maintenance Production Total Shared safety time
Safety time
Planned time
Improvement proposals | 55
7.3 System use
In this sub-chapter the improvement proposals that cover the maintenance system use will
be presented.
7.3.1 Introduce more comprehensive classification of work orders
A known problem at AstraZeneca is that there are few analyses that can be made out from
the historical data. The data don’t contain the information needed. One parameter in
maintenance is the proportion of the different policies (CM, PM etc.) that a company aims at
having, to obtain the minimal resources needed. The ultimate goal is to reduce the total cost
of maintenance, but finding out those costs may require quite an effort and may not be
proper for API since it have a limited time left to operate. A not that complex technique of
measuring the proportion, is to instead use the time consumed by each of the maintenance
policies. If the time is not available, one can at least compare the proportion of how many
work orders of the different classes that have been registered in SAK.
Having a high level PM may reduce the number of CM in the factory but it may be expensive
than accepting a certain amount of CM, even if each CM job is costly in itself. To get an
overview how the different policies affect each other, a more comprehensive classification of
work orders is needed.
First, one must define which policies that should be used in the classification, so that every
type of maintenance can be assigned with a proper policy. The policies chosen are the ones
below. They are based on the different categories of maintenance that is defined by
Vassiliadis & Pistikopoulos (2000) but modified with two categories of corrective
maintenance. This is to make a difference between corrective maintenance that affects the
production process or product quality and those that don’t. The classes proposed are:
Non-critical corrective maintenance
Critical corrective maintenance
Periodic maintenance
Predictive maintenance
The benefits of classify a work orders when would be when analyzing the percentage of the
different policies performed. A relationship between for instance periodic maintenance and
critical corrective maintenance would be able to be extracted. The benefits of doing such an
analysis would be that one could identify a proportion that utilizes the smallest amount of
resources (time, cost, number of work orders). The proportion between different classes of
maintenance is also a commonly used maintenance key indicators. If this classification is
fully implemented this key indicators will be easy to compile.
To give an example, if predictive maintenance classified work has increased with 10 % and
at the same time critical corrective maintenance work has been reduced with 15 % one can
make the conclusion that 1 % increase in predictive maintenance corresponds to a 1.5 %
reduction in critical corrective maintenance (or equipment failure) in this specific proportion.
With the same reasoning, other correlations could be examined and evaluated.
Today the different classes and types of maintenance tasks are differentiated by an account
number, for instance ―5511‖ is critical classified maintenance. To have a logical and useful
system of classification the different maintenance tasks in SAK could use a four digit
number. The positions in the number are then to be assigned with different meanings. The
Improvement proposals | 56
first digit could for instance imply the class of maintenance (1. Critical corrective
maintenance, 2. Non-critical corrective maintenance, 3. Periodic maintenance, 4. Predictive
maintenance, 5. Others (e.g. modification). The second digit could indicate if the task is for
instance 1. equipment related, 2. building related etc. The third digit could indicate which
factory that work orders considers and the forth could indicate the type of error that needs to
be fixed. Is it an electrical, pneumatically, mechanical etc. kind of failure.
A more comprehensive review of what the different numbers should denote is needed to be
carried out with experienced personal and maintenance engineers on site. This is to cover all
areas of interested that the authors of this master’s thesis doesn’t possess.
7.3.2 Review of the maintenance policies for equipment
One issue to handle in API is how the equipment will be maintained. Either it can be part of a
PM schedule and in predefined intervals undergo maintenance. It could also be left out from
this schedule and be part of an inspection scheme (round list) were one tries to identify
variation that could lead to failure. Today this work, with assigning different policies to
equipment, has been made with common sense and the experience that the maintenance
engineers possess. From an economical and technical point of view the current policies may
not be the proper one for each and every part in the factory. To have more structured way of
addressing different policies for the equipment, a maintenance policy decision model may be
used. The proposed model is easy to use and considers both costs and technical possibility
and it identify the proper maintenance policy for a particular component. The different steps
in the model have been complimented with a questionnaire making it more objective in the
judgment when deciding how to maintain equipment.
The benefits of redesigning the maintenance policy structure is that there will be more proper
maintenance performed according to economical and technical considerations. A possible
outcome of a review of the equipment would be that some use based maintenance (PM)
could be reclassified. This will reduce the need for maintenance man-hours since they are
the ones that perform this work. If the possibility of running more detective based
maintenance the operators could easily be more involved in the maintenance work which
also is a keystone in the philosophy of total productive maintenance. Detecting more errors
before the equipment totally breaks will also reduce the number of failures.
Design-out maintenance could have the advantage that the equipment doesn’t need any
maintenance. This is the case when removing equipment that may not longer be needed in
production. In situations where a part has been changed to a more durable, the life time of
the equipment will be extended, making it go into a use based maintenance schedule but
with an extended time between maintenance. If for instance one could be able to double the
time between maintenance for half of the equipment the work load will be reduced by 25%
for periodic maintenance.
7.3.3 Increase the length of visualized plans
The schedules placed and the plans visualized in the factory are focusing on the week’s
production and maintenance tasks that are planned for execution. With this information the
production is managed by the operators. Since the plan is short-termed the integration from
the operators is very small. They have little or no possibility in giving proposals how to re-
plan the schedule if there is a failure or delay making the plan obsolete. If the plans had a
longer time horizon it will be easier for the operators to come with proposals to the
Improvement proposals | 57
production and maintenance personnel that set the schedules. Since the operators are the
ones that have the best knowledge of the production processes their experience and
knowledge could give great input to the planners.
In the long-term schedules the level of detail will not be as high as within the nearest time
horizon but it will give the operators and crew in the factories a more comprehensive view of
the up-coming jobs.
By having more long-term schedules the integration between maintenance and production
will be improved. The operators can then see the maintenance tasks that are planned. By
having more transparent information sharing the acceptance for the ―other‖ department’s
assignments would possible increase. If the department’s works more openhanded there will
be better cooperation between maintenance and production and the operators may feel
more motivated in helping maintenance crew in case when needed. This could also be seen
as a first step towards operator maintenance.
7.3.4 Document time needed for preventive maintenance
The employees and engineers at API are highly experienced and have a great knowledge of
the production and maintenance work. Many of the maintenance engineers have worked for
many years. During this time they have obtained an understanding about the complexity of
the processes and times needed for different maintenance tasks. Therefore the schedules
placed, have a high reliability and the time consumed are often relatively close the
approximated. This method for planning is functional as long as the maintenance engineers
have great experience and a profound knowledge of the specific maintenance characteristics
that is conducted within API. A not that experienced maintenance engineer would have a
hard time estimating times and complexity of different maintenance tasks. This makes the
maintenance planning very personal dependent as it is performed today. One way of
addressing this problem is to assign estimated time of completion for maintenance tasks and
document it in SAK. This will make the information easy to access for any person that is
interesting in times for different maintenance work.
The information would also be useful for the experienced maintenance engineers who can
more easily see how much capacity that is needed for different time periods. This will also
make it easier to re-plan work, to other periods.
Figure 7:4 Capacity/ utilization diagram
In the following example Figure 7:4, it is easy to see that the work in period 4 cannot be
performed with the available capacity. But there is free capacity in period 2 and 3 making it
convenient to move work to these periods. This is possible for maintenance task since them
often has an implementation window. If there is still not the required capacity available, it is
easy to see and predict how much of external contractors that need to be used. In the long
0
20
40
60
80
100
120
1 2 3 4 5
Avaiable capacity
Demand according to PM plan
Period
Ho
urs
Improvement proposals | 58
run these capacity diagrams can be used as a decision base for reducing or increasing the
number of employees, since the capacity is directly correlated to the number of maintenance
workers.
7.3.5 Introduce time data in SAK
SAK has a great range of functionality but is not fully used. One parameter supported in the
system is time logging. Times can easily be reported in SAK but this is not done in the work
orders. This makes it impossible to track, monitor and map how much time that is spent on
maintenance. The time logging supported in SAK is: Registration time, planned start,
planned time to be completed, planned amount of time needed, actual start time, actual time
of completion and finally the status “closed”.
Since many maintenance task is flexible in start time of execution filling this time out may not
contribute to a better maintenance planning situation. But however filling out this field will
make it possible to easily count how long time a task is considered to take. A more important
field to fill out is the time that the work order took to complete because this information is
used for many of the analyses. To make it possible to compile reliable key figures such as
mean wait time, it is important that the time of registration corresponds to the time when the
equipment broke down or the error was detected.
If AstraZeneca starts to log time in SAK and getting the data of the time needed for
executing a set of maintenance tasks, the planning situation will be improved. At the same
time the maintenance key indicators will be more reliable and useful, and a general view of
how much resource that specific maintenance activity actually requires.
The planning situation would be improved in the way that the maintenance engineers who
schedule the work orders will have more detailed information of times for different
maintenance tasks. If, for instance, there is a critical failure on equipment, the engineer
would be able to search in the history of work orders in SAK for a similar failure. From the
information about time consumed from the last execution, the engineer would be able to
more accurate estimate the time needed for the repair.
To make reliable key indicators it requires good data that the indicators are based on. The
information needed for many key indicators are often time related, for instance mean time
between failure, mean wait time and mean time to repair. Introducing a more extensive time
logging in SAK would make it very easy extracting this information from Oracle Discovery
and compile it to desirable maintenance key indicators. Historical time data could also be
used for updating expected time of execution for many PM tasks.
7.4 Performance indicators
In this sub-chapter the improvement proposal that handles performance indicators will be
presented
7.4.1 Introduce more useful performance indicators
As a consequence of the maintenance key indicators used today, the actual result of the
reduction in workforce is hard to declare. The performance indicators used today does not
indicate if the maintenance work has been improved. The maintenance engineers can only
make assumptions that it is has. To map and actually measure how the maintenance is
performed is therefore important. There are several key indicators that could be used for
Improvement proposals | 59
measuring maintenance performance. One important issue when using indicators is the
conclusions that can be made from them. Simply if it is worth the stretch because measuring
and handling the information requires man-hours and it is necessary that there is an
incitement to perform those measures, there is no point in over measuring.
The indicators (MTTR) mean time to repair and (MWT) mean wait time are useful in the way
that they are actually measuring the maintenance crew performance, a future missing in the
current system of maintenance key indicators. In the MWT, the lead time from placed work
order fill the work order has begun is measured. This time is directly correlated to the
performance of both the maintenance engineers and the maintenance crew. The indicator
follows the condition that it must be directly controllable by the process manager (Anupindi et
al. 2008). With this close relationship between how work is performed and the value of the
indicator it makes a good incitement for the engineers of actually working with improvement
and also involving the maintenance crew in this process.
The MTTR is also correlated to how the maintenance engineers and the crew manage their
job. The maintenance engineers are responsible for planning the work so that it can be
performed without interruptions. A good plan makes the prerequisite for a fast performed job.
The maintenance workers on the other hand have an incitement of completing the job
efficient and effective.
7.5 Motivation
Our analysis on this is to start to measure and to connect the key measures so they are
placed in their context. Make the long term goals divided into sub goals and to map out the
milestones to reach the goals. Implement towards goal thinking. Have sub-goals divided into
weekly goals and get intrinsic or extrinsic rewards for each passed goal. Every weekly goal
should be intrinsically motivating (good feeling) the motivation action reward cycle need to
be short so the time between achievement and reward is short. Create competition to
nurture the need for status and prestige. Not have maintenance only judged from unfinished
work orders that are quite non-saying on performance and thus not very motivating rather
compete on things that are justly measurable or gives a comparable challenge. Even in a
good day with zero late work orders someone at maintenance should be angry if not
surpassing his own stated goals; very similar to top athletes. This type of passion (Maslow
(1), the base of the Maslow’s pyramid) is what results if the need for status and prestige is let
loose and transforms into the self actualisation pyramid top. Sweden Operations have to
start somewhere and then measure to create achievement need and to focus on Maslow (2)
is a good start. To have world class creative TPM employees that breed world class TPM
performance, the motivational form needs to be similar to world class top athletes.
Preferably a hierarchy styled schematics of the key figures. As well as to show what
economical effect a single technician has downstream in the supply chain to visualize the
effect and importance of good maintenance.
7.5.1 Intrinsic motivation results
There should be an economic calculation chart next to the key figures that show how
much a single technician produces in downstream supply chain revenue to show a
good job. It should have profit tag or revenue tag next to it.
Improvement proposals | 60
The goals should be to fit the pyramid and fully understood.
Rewards are based on performance – intrinsic or extrinsic.
Individualized competitions or group competitions provide incentive for the need for
status and prestige as well as the need for self actualization.
Employee of the month programme
There should be a big A1 paper on the wall that map out the key figures from
Sweden Operations key figures all the way down to the individual maintenance
technicians set of key figures.
If there are goals set and routes to reach the goals in place and the information is spread
and a Y-theory approach is implemented the foundations exist for motivation to come in to
play. The management of motivation is important and thus it is important to understand the
expectancy theory and the Maslow’s theory of motivation to get an understanding of the
motivation loop.
The need for self actualization combined with McClelland’s achievement need in a loop
structure where the satisfied need creates more motivation and more achievement need,
makes it possible to map out the motivational process and where the chain might be stopped
today. The manager should pay attention to what is motivating for different individuals.
If the key measurements are in place and connected to the TPM pyramid and the two
together form tangible goals and milestone sub-goals that are explained and managed
properly then for each time an individual achieve a goal it will create more achievement need
and more motivation. The assignment of the manager is to keep the expectation,
instrumentality and the valence up. A valence reward can be a pat on the back or a
compliment or the honour to be employee of the month as well as a bonus. The manager is
Unsatisfied need Motivation Action Satisfied need Finish
Unsatisfied need Motivation Action Satisfied need
Lower order needs (Social, Safety and Physiological needs)
Higher order needs (Self Actualisation & Need for status and prestige)
Expectation
That an effort
leads to result
Instrumentality
Expectation that an
achievement leads
to result
Valence
The value one credit
the results
EFFORT ACHIEVEMENT RESULTS
―What is the probability that if I do a good job that there will be some kind of outcome in it for me?‖
―Is the outcome I get of any value to me?‖
Improvement proposals | 61
the moderator that makes sure there is an environment for employees to grow. His or her
objective is to keep the competition up. Be the one that provides approval. The longer this
management is in place the more self managed the employees will become.
It is important to always answer the question why and to spread the information throughout
the organization. This is why we advocate information charts to quickly provide information
on financial implication of excellent conducted maintenance management.
A word of caution is that any motivational programme can backfire and that too big of a
change too quickly can give rise to resentment.
7.5.2 Extrinsic motivation Results
Bonus set after achievement derived from the TPM-pyramid
The extrinsic motivation is external motivation. Extrinsic motivation is motivation that comes
from outside the individual. The bonus is a good example of extrinsic motivation and it
touches the Maslow no.4 need for status and prestige at its best but if incorrectly set; it
touches the Maslow no.3 social needs. In plain English, if the bonus is set collectively and
not based on achievement, the effect of it as a motivating factor turns to be a hygiene factor.
That said if the bonus is not set on an achievement basis it becomes regarded simply as an
extended salary. Thus it becomes a hygiene factor and a hygiene factor cannot motivate but
only destroy motivation if not present.
7.5.3 Intrinsic versus extrinsic motivation
If the bonus is correctly handled (that would be set upon achievements) then it touches upon
Maslow number four; the need for status and prestige but not his number five, which is the
need for self actualization as explained in the theory chapter 4.6.2. That means that the
bonus can never be as powerful a motivator as the intrinsic self actualization approach. This
approach requires that new measures be introduced. It also requires a new thinking and a
cultural change. Comparing the intrinsic and extrinsic motivational forms show how they
differs but also interconnects. We urge the reader to have a look at (Lepper & Green, 1975)
helps to understand the transformative nature of intrinsic and extrinsic motivation. We don’t
go in depth into the subject due to the complexity of the subject and the scope of the thesis.
What we want to show is simply put that the extrinsic route with external rewards set on
achievements can be a step stone to amplifying the need for self actualization (intrinsic
motivation) and probably serves as a major positive motivational boost to performance.
To illustrate with an example; a parent has a daughter and the parent wants her to play the
piano. The bonus philosophy is giving the child a piece of candy every time she plays good
or only plays the piano. The other way of motivating the child is creating an atmosphere
where music is fun, show her some chords and then kick-back and let her see it is fun. When
she tries it out she might find that she likes it and maybe world class piano playing starts to
become an achievement need in her and a self-actualization process starts. She plays a lot,
likes it and becomes good at it. The point trying to be made is that extrinsic motivation can
never outperform intrinsic motivation. Thus API should revise the bonus policy to be based
on achievements and think about ways to put a bigger focus on intrinsic motivation. This
type of change requires a continual effort and thus the TPM group should either be more
involved or should there be a representative that consolidates the group to share ideas and
experiences and then have the mandate to put into action the types of changes that are
necessary. There should be charts that stimulates to performance. These types of charts
Improvement proposals | 62
could be sole information charts, group competition results postings and show the monetary
effect the maintenance has to the profit thus leading to a feeling of importance. Just as with
the piano playing girl the technicians start to want to know what world class maintenance is
and getting more interested in getting there.
1. Put a full time or part time employee from each department to be department specific
TPM representative to fill the void between the TPM-group and the operations.
2. Actually gauge the motivation by taking the temperature in field and in surveys.
3. Gain comprehension of what motivates technicians by asking and observing.
4. Put changes slowly and gradually and on a; ―it is fun to participate‖ spirit. Those who
want to compete are simply premiered and seen through rankings. Forcing will
entrench resistance. The others will probably join in later.
Conclusions | 63
8 Conclusions
The improvement proposals presented in previous chapter all contributes to answering the
purpose of this master’s thesis which is to examine how AstraZeneca can improve
maintenance management and work with motivational aspects in order to ameliorate the
completion of the TPM pyramid and thus increase the maintenance efficiency.
By working with increasing the TPM pyramid completion, the maintenance efficiency also
improves. One of the goals of TPM is to improve maintenance efficiency and effectiveness.
The TPM pyramid is based on these goals and is supposed support reaching these goals.
Thus increasing the completion of the TPM pyramid will therefore increase the maintenance
efficiency which in turn fulfills the purpose of this master’s thesis.
The initial state of the TPM pyramid is presented in Appendix 3 showing that there is
potential improvement at the base of the pyramid. This master’s thesis has focused on the
boxes in the first three base levels, since these often are a prerequisite for improving higher
located boxes in the pyramid.
The boxes directly affected by the improvement proposals are: Key measurements ensuring
availability, Equipment history, Standards and routines, Weekly planning, Weekly
maintenance reporting, Operational routines for planning of maintenance activities, Planning
and routines for condition control , Work order system, Daily planning, Maintenance key
measurements.
The improvement proposals that API has been recommended to launch have got an
identification number in the list below from 1-10 and this is not to be seen as the proposed
order of priority.
1. Introduce more useful performance indicators (Chapter 7.4.1)
2. Introduce more comprehensive classification of work orders (Chapter 0)
3. Review of the maintenance policies for equipment (Chapter 7.3.2)
4. Document time needed for preventive maintenance (Chapter 7.3.4)
5. Introduce time data in SAK (Chapter 7.3.5)
6. Zoomed TPM charts (Chapter 7.1.3 and 7.1.4)
7. Follow-up on motivation and leadership (Chapter 7.5)
8. Introduce competition in daily work (Chapter 7.5)
9. Employ a TPM-representative at API (Chapter 7.5.3)
10. Set bonuses after performance (Chapter 7.5.1 and 7.5.2)
Within each of the boxes in the TPM pyramid there is a questionnaire, rating the level of
completion, which is to be filled out by the maintenance team. By implementing the
improvement proposals these ratings will improve the average percentage in level 1 and 2
by 4 %. The percentage of the TPM implementation can also be seen as how good the
maintenance is since a fully implemented TPM is considered as a world-class maintenance.
If implementing all of the proposed improvements the pyramid will have more green boxes.
From the current state there will be two boxes that will change from yellow to green color
and one box from red to yellow. The TPM is shown in Appendix 4 and it shows how the TPM
pyramid could look after an implementation of the improvement proposals.
To mention is that not all of the proposals directly affect the boxes in the TPM pyramid. The
motivational aspects are not covered by the TPM pyramid but these can however be seen as
Conclusions | 64
a prerequisite for having a good working environment and a well performing team. The lack
of motivated personnel will highly reduce the potential to run improvement projects
successfully. Which box in the TPM pyramid that is affected by the different improvement
proposal is shown in Table 8:1.
Table 8:1 Improvement proposals effect on TPM pyramid
Box in the TPM pyramid Proposal No.
Key measurements ensuring availability 1, 5
Equipment history 5
Standards and routines 2
Weekly planning 1, 5
Weekly maintenance reporting 1
Operational routines for planning of maintenance activities 3, 4
Planning and routines for condition control 3
Work order system 4, 5
Daily planning 5, 6
Maintenance key measurements 1, 2
Recommendations | 65
9 Recommendations
From the improvement proposals, we have extracted 10 actions that are the most important
to implement. When choosing what to prioritize we have not only valued the effect of
implementing the proposal but also the effort needed in terms of man-hours and further the
costs associated with the implementation. Due to the fact that none of the proposals
presented below require any big investment, the effort part in the effect/effort diagram is thus
mostly related to the man-hours and the training hours necessary. First the improvement
proposals will be presented and then followed by a sub-chapter describing how these should
be prioritized.
9.1 Improvement actions as presented before (not a prioritized list)
1. Introduce more useful performance indicators
Introduce the MTTR and MWT performance indicators. These are important in the evaluation
of the maintenance performances. The performance indicators are necessary as
motivational bench mark tools.
2. Introduce more comprehensive classification of work orders
Using a consistent system will improve the process when assigning a work order with its
account number. By using a code system in the four digit number it will be easier to locate
equipment and repair codes saving valuable time. This will in turn reduce the number of
work orders that are assigned with the ―wrong‖ account number which will increase the
visibility and control of the performed maintenance work.
3. Review of the maintenance policies for equipment
Implement a policy decision model to be used to evaluate the maintenance in the respective
units. Through a structured process the model aims to assign a maintenance policy for
equipment, considering both technical and economical aspects. By using the model, the
judgement will also be objective, and also possible to conduct by an inexperienced person.
4. Document time needed for preventive maintenance
Start to log and document the time needed for preventive maintenance task. To make
functional plans a long maintenance in field experience is required. By having the times
documented in the system the planning will be more accurate and easier to perform. It will
also increase the control of capacity and make sure anybody can make a production plan
not only the individuals with a vast experience from in field maintenance.
5. Introduce time data in SAK
Introduce the start and the completion times on every work order. To have complete and
accurate data of the maintenance time to repair etc. will serve as a support tool for decision
making. It will be possible to gather the data for the performance indicators, updating the
times used for preventive maintenance, map out the capacity utilization and it will help
calculating the maintenance costs involved.
6. Zoomed TPM-charts
Zoomed TPM-charts should be visible at offices and at the factories and constructed so that
they put a focus on the TPM-box that are important at each department. The zoomed chart
Recommendations | 66
works as a cultural anchorage of change, and answers the questions of what, why, how and
who is responsible for what. It maps out the entire chain all the way down to individual level
and explains how an effort leads to results.
7. Follow up on motivation and leadership
A bigger focus put on the short term goal setting and the follow-ups of them. The how-cards
form the basis for the zoomed TPM chart and should answer the what, why and who
questions and simply put this should be the standpoint or outlook for all the revisions of
intrinsic and extrinsic motivational stimuli. The point is that it takes time for a manager to
introduce this and make it work. It might be harder to foresee how much time it saves in the
long run.
8. Introduce competition in daily work
The effect of this is based at what level the manager handles the rules, the follow-ups and
manages to convince his employees to accept and embrace it. This could be done by putting
competitions and both intrinsically and extrinsically stimulate the team to performance.
9. Employ a TPM-representative at API
Some of the proposals involve organizational behavior change and usually that is more
difficult to handle than changing the way to calculate for instance a performance indicator.
To cope with the behavioral change there must be an external force that keeps the old habit
from resurrecting. A dedicated TPM-representative must fill the void in between the TPM-
group and the operational maintenance. He or she can exert this force by continual reviews
and follow ups, posting results and handling the environment much like a referee so that the
competition is fair and the climate is good.
10. Set bonuses after performance
To further enhance the points made above is to set bonuses after performance. The bonus
tool is an extrinsic motivational tool and not as sharp as the intrinsic tools but works to
highlight the important aspects of the intrinsic tools. The bonus should be set one year in
advance and be revised and paid in accordance. The point is not to be too harsh but to
introduce the common awareness into the organization that an effort that leads to results is
seen and premiered by the organization. This keeps the valence up in the Vroom-cycle and
sends the message that what each employee does counts, and this lead to participation.
9.2 Prioritizing the improvement proposals
Seen in Figure 9:1 are the 10 proposals mapped out in the diagram. The effect gain and the
effort needed have been carefully evaluated and discussed to get a subjective view. But
however the effort and effects are estimations and should not be used as absolute values.
The different quadrants indicate which of the proposals that gives the highest anticipated
effect in relation to the effort. In the quadrant, indexed 1, there is a high output from a
relatively low effort put in. The quadrants with index 2 have an estimated effect that is in
proportion to the effort put in. The quadrant indexed 2a, requires a comprehensive effort put
in but the potential benefits are still big. In quadrant with index 3, the effort is high relative to
the effect of implementing the proposal. From the philosophy of this figure we present three
possible ways to prioritize what to start with.
Recommendations | 67
One important issue to consider when deciding in what order the improvement proposals will
be implemented; is that proposal 5 is a prerequisite for executing proposal 1 and 2, see
arrows in Figure 9:1.
Depending on the strategy and resources available one can choose to start with different
improvement projects. In the following text we present three alternative methods on how to
prioritize the improvement proposals. Option no. 2 prioritizes the improvements with the
highest assumed effect while Option no. 3 prioritizes according to the minimal effort needed.
Our recommendation is prioritizing as Option no. 1 suggests, of which considers both the
effect and the effort. This option is presented last in this chapter.
Option no. 1. This option is a compromise between Option 2 and Option 3. Here both the
effects gained and the efforts required are taken into account. It is therefore beneficial to
start with the improvement projects that have a great potential effect but requires a minimum
of effort. The ratio between the effect and the effort gives the order shown in Figure 9:2
where the proposals with the highest ratio are prioritized first.
This method will result in starting with proposal 6 but we propose that both proposal 5 and 6
are launched simultaneous. This is mainly because of two reasons. Proposal 5 needs quite
an effort and is not done in a couple of days but is more of a continuous work, which benefits
are visible first when sufficient data have been gathered to make a sound analysis or can be
used as a decision support. This means that there isn’t any clear completion or finished date
when this proposal can be considered completed. Number 5 is also important to start with
because it is a prerequisite for succeeding with other improvements.
9 6 4 3 8 7
5
1
2 10
Figure 9:1 Effect/ Effort diagram of the 10 important improvement proposals
9
7
4
6
10
2
8
3
1
1 2
a
3
5
2
b
Hig
h
Lo
w
Effort High Low
Eff
ect
1. Introduce more useful performance
indicators
2. Introduce more comprehensive
classification of work orders
3. Review of the maintenance policies for
equipment
4. Document time needed for preventive
maintenance
5. Introduce time data in SAK
6. Zoomed TPM charts
7. Follow-up on motivation and leadership
8. Introduce competition in daily work
9. Employ a TPM-representative at API
10. Set bonuses after performance
Figure 9:2 Execution order when using priority option no. 1
Recommendations | 68
Option no. 2. This way is to focus on the improvements that give rise to the biggest effect.
Here the effort is foreseen and this option is believed suitable for companies with a lot of
resources that are not used for any value adding activity at the present-day. This option will
give the priority order as shown in Figure 9:3.
Option no. 3. This option addresses the improvement proposals that need the least
resources to implement. If a company have little time and its machine park is highly utilized
this option may be a proper one. Even if the effect of the improvement is not that great it can
provide motivational incentive seeing that one actually succeed in a single improvement
project. This can later boost the implementation of more resource requiring improvements. If
this option is followed strictly the priority order will be as depicted in Figure 9:4.
When starting to implement the improvement projects we urge to launch the projects one at
a time. This ensures the improvement work is focused and doing the opposite; all at once
presents a risk that none of the projects will succeed. Instead every improvement project
should have a committed project leader that is responsible for planning the start-up phase
and the implementation. It is also important to do follow ups on the result and analyze the
benefits gained.
9.3 Future research
During the field study there were some findings that did not get fully evaluated due to the
limitations and focus of this master’s thesis. One problem mentioned in communication with
the maintenance engineers where that some cross functional projects does not seem to
have a clear and mandated project leader. This could affect the efficiency in those project
and they might take longer to complete than necessary. We recommend AstraZeneca to
review this and to evaluate the above proceedings on their journey to a world class
maintenance programme.
Another interesting finding was that API differed from Turbuhaler in the way that they
calculated their technical availability. This gave rise to the question why this differs and also
if there are any additional areas that sets them apart in their measurements. A comparison in
some of the different unit’s key processes may sort things out and also give the opportunity
to make use of the expertise from the other departments to further enhance their
maintenance programme. We thank you for reading this master’s thesis and hope you liked
it and have use of the ideas and results derived from it.
Figure 9:4 Execution order when using priority option no. 3
1 6 4 7 8 5 3 2 9 10
Figure 9:3 Execution order when using priority option no. 2
1 5 6 8 9 4 7 3 2 10
References | 69
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Verbal
Borg, L. (2010-03-11). TPM specialist, TPM session
Einarsson, P. (2010-04-08) Chief API, Semi-structured interview
Gester, J. (2010-01-15). Maintenance engineer, Personal communication
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Vidzem, T. (2010-01-22) Maintenance engineer, Semi-structured interview
Delivery
service level Waste Deviation First class
batches
Unclosed
deviation WO
UH/Site cost TPM
Conversion
cost
Deviation
level
Supply chain
monitor
Inventory
Unfinished
WO
TPM
pyramide
UHcost/Total Technical
avaliability
GMP
Unfinished
WO
Urgent WO MTBF Technical
avaliability
GMP
Sweden
Operation
API TGS
OMA
OMA MT
Price Quality Delivery
External demand
Law-
regulations
Appendix 1 –Performance indicators schematics
1. Is the equipment critical to the production process or for ensuring product quality?
a. Is it complicated to exchange or repair equipment? (Does it require special
skills or tools?)
b. Is repair expensive or consequences of a breakdown costly?
2.
a. Is it possible to redesign the equipment by for instance changing to more
durable parts?
b. Is this redesign expensive to perform and will it be economically sustainable?
3.
a. Is it possible to predict the failure?
b. Are the symptoms of failure detectable by human senses? (Looking, smelling,
hearing and feeling)
4.
a. Are the symptoms measurable by any monitoring device? (Vibration
detektors, termometers etc.)
b. Is this equipment worth investing in? (Can the benefits exceed the costs?)
5.
a. Is the condition predictable after a period of time or hours of usages?
b. Is it affordable to place this equipment in a PM schedule?
Failure based
maintenance
Design-out
maintenance
Detective based
maintenance
Condition based
maintenance
Further
investigation
Critical? FBM? FBM?
Redesign? Redesign?
Hidden
failure? Detectable?
Condition
measurable? CBM?
Use based
maintenance
Condition
predictable? UBM?
Technical
Economic
Yes
No
(Corrective)
(Predictive)
(Periodic)
(Prevention)
a b
1.
2.
3.
4.
5.
Appendix 2 – Policy decision model
TPM Pyramid before the implementation of
improvement proposals
Appendix 3 – TPM pyramid (Current state)
Green >80 %
Yellow >40 %
Red <40 %
TPM Pyramid after the implementation of
improvement proposals. (The improvement,
in percentage, in the small boxes)
4 % increase of the average in level 1 and 2
+5 +13 +19
+13 +16 +6 +12
+50 +14
+4
Appendix 4 - TPM pyramid (After improvements) N
ivå
1
2
3
4
5 Green >80 %
Yellow >40 %
Red <40 %
