1. Ensure your New Equipment Adds Value to your Business
WEA Conference
McLaren Vale - 19 June 2014
Ensure your New Equipment Adds Value to your Business

2. Many of us have had enough experience to know that it never is!
‘The order has just been placed for your new equipment - now you just wait for it to arrive, be installed and start running to meet the expectations from your customers’.
If it were only that simple!
Many of us have had enough experience to know that it never is!

3. ‘Ensure Your New Equipment Adds Value to Your Business’
How do we
‘Ensure Your New Equipment Adds Value to Your Business’
and not cause pain

4. Ensure your New Equipment Adds Value to your Business
Outline of Presentation
Ensure your New Equipment Adds Value to your Business
Typical or Traditional Approach
The 5 Stages of New Equipment Management
3 Key Concepts to ensure your new equipment adds value:
Prevention at Source
User Friendly
Compliance Testing by Competent People
Making it Happen through a Team approach
Key Learning

6. 8 Doors, 85 Adjustment Points

7. 1. Traditional approach to New Equipment
Senior Management decide what new equipment is required
Project Engineering is given the task to scope out the work and arrange any contracts required
Purchasing are given a Bill of Materials and requested to buy the new equipment not supplied by the contractors
Equipment arrives and is installed
Project Engineering arranges for Commissioning then hands over to Production
Maintenance gets called when it doesn’t work
Production and Maintenance then battle to get new equipment to perform as expected
Project Engineering don’t want to know about any problems because they are busy with the next project
NOTES:
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8. 2. The 5 Stages of New Equipment Management
Stage 1 Design (Specification & Performance)
Stage 2 Procure (Purchase, Transport & Store)
Stage 3 Accept (Factory Test & Receipt Test)
Stage 4 Install & Commission (Production Acceptance)
Stage 5 Perform, Monitor & Learn (Post-Launch)
NOTES:
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9. 3. 3 Key Concepts to ensure your new equipment adds value
and not cause pain
The Concept of ‘Prevention at Source’ for New Equipment isn’t understood or practiced
Getting all affected parties involved at the earliest possible time to use their collective experience to specify and design the new equipment
so any problems are identified at the earliest possible time
NOTES:
0-07
for example: during design, rather than during commissioning
Example Prevention at Source in Action
To design equipment so that the Air Service Unit is located at eye level so it is easy for the Operator to regularly check, costs no more than traditionally locating it at the base of the equipment, out of everyone’s way. The extra cost occurs when the equipment arrives on site and the air service unit has to be relocated, or the air service unit remains out of site and after a period of time the air service unit does not work properly and defects are introduced into the equipment due to incorrect air pressure, moist air, or air that is not properly lubricated.

10. Prevention at Source for Product Prevented from entering the process
The cost of Product Defects when they are:
Prevented from entering the process
Internally Detected
Customer Detected
100X
10X 1X
The Second Key Concept I would Like to Discuss is Prevention at Source Design
Some of you maybe be familiar with the concept of Prevention at Source for Product Defect Avoidance
The concept being:
The earlier we identify and eliminate quality problems in the value stream or process the less cost is incurred.
Up to a factor of 10 at each stage as shown in the diagram.
Prevention at Source is achieved by reducing process variation and by identifying & fixing the root cause of problems at the earliest possible time ( This often termed as the“Tyranny of Time’)
finding problems at the earliest possible time

11. Prevention at Source for Design 60,000 man-hours Vs 30,000 man-hours
Definition 10 20 30
Shipbuilder A
Design
Redesign
Thousand man-hours 20 7 3
Shipbuilder B
Thousand man-hours
This concept can be applied to Plant & Equipment Design
By investing more time and effort in developing the specification for the New Equipment by collecting & analysing important data & information such as:
Maintenance history & Data
Problems & Losses with existing plant & equipment
Successful TPM/CI improvements implemented
Design Standards
The latest Proven Technology.
This is referred to as the Definition Stage
Therefore in Theory by spending all this time & effort in Definition stage perfecting specification & design less time will and cost is incurred in the Design & Redesign stages.
As depicted by Ship Builder B
However if we spend less time & effort in the Definition stage there is big risk of having to spend more time & effort (therefore cost) in Designing & Redesign as illustrated by Ship Builder A
60,000 man-hours Vs 30,000 man-hours

12. Example Prevention at Source in Action
3. 3 Key Concepts to ensure your new equipment adds value
and not cause pain
The Concept of ‘User Friendly’ for New Equipment isn’t understood or practiced
“Engineers traditionally look at Functionality
as the prime objective of design and often pay limited attention to Operability, Maintainability, Standardisation and Trainability”
NOTES:
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Example Prevention at Source in Action
To design equipment so that the Air Service Unit is located at eye level so it is easy for the Operator to regularly check, costs no more than traditionally locating it at the base of the equipment, out of everyone’s way. The extra cost occurs when the equipment arrives on site and the air service unit has to be relocated, or the air service unit remains out of site and after a period of time the air service unit does not work properly and defects are introduced into the equipment due to incorrect air pressure, moist air, or air that is not properly lubricated.

13. Examples of User Friendly Equipment
Operability
Easy to Clean and Inspect for equipment defects
Easy to Access for Cleaning, Inspecting and Servicing
Easy to find Safety, Quality and Equipment problems at the earliest possible time
Easy to monitor equipment condition
Easy Set-ups and Changeovers
Maintainability
Maximum life of components to reduce Planned Downtime
All repairs completed within 1 hour to allow work to be completed during regular Clean for Inspection time
Excellent documentation so it will be easy to train operators in the functioning of the equipment
Visual Controls to highlight equipment condition
Good identification tagging of equipment so Operators can easily explain where problems are
Standardisation
Minimum type of nuts & bolts
Site Standard Pneumatics
Trainability
Easy to understand and comprehensive Standard Operating Procedure, Work Instructions, Job Breakdown Sheets, Standardised Worksheets
NOTES:
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14. Operability It’s the Frontline who create the bottom-line
Making equipment so it is easy for Operators to:
Identify process and quality problems at the earliest possible time
Identify equipment defect at the earliest possible time
Conduct Set-ups and / or Changeovers in the shortest possible time
NOTES:
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Remember!
Make it easy to do right and difficult to do wrong

15. Equipment Visual Controls
Examples of ‘User Friendly’
Equipment Visual Controls

16. Equipment Visual Controls
Examples of ‘User Friendly’
Equipment Visual Controls
Visual Inspection of belts stretching, with the machine working.
BEFORE
AFTER
Pulleys and Sprockets:
Must have indication of rotation direction and visual working indication, coloring them orange and green.
Fastening guards without tools.

17. Examples of ‘User Friendly’
Visual Workplace

18. Visual Workplace – Changeover Trolley
Examples of ‘User Friendly’
Visual Workplace – Changeover Trolley

19. Example Prevention at Source in Action
3. 3 Key Concepts to ensure your new equipment adds value
and not cause pain
The Concept of ‘Compliance Testing by Competent People’ for New Equipment isn’t understood or practiced
Sending the Project Engineer or Operations Manager overseas to check equipment before it is dispatched is often a recipe for disaster
Believing that transporting equipment from overseas doesn’t cause problems is also a naive view
NOTES:
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Example Prevention at Source in Action
To design equipment so that the Air Service Unit is located at eye level so it is easy for the Operator to regularly check, costs no more than traditionally locating it at the base of the equipment, out of everyone’s way. The extra cost occurs when the equipment arrives on site and the air service unit has to be relocated, or the air service unit remains out of site and after a period of time the air service unit does not work properly and defects are introduced into the equipment due to incorrect air pressure, moist air, or air that is not properly lubricated.

20. What can a Container Experience?

37. Believing that transporting equipment from overseas doesn’t cause problems is also a naive view – hence need for good Compliance Testing

38. 4. Making it Happen through a Team Approach
Stage
Team
Purpose 1
Macro NEM - Design (Spec & Performance)
Develop specification for procuring a New Production Line / Process / Plant eg New Bottling Line
Micro NEM - Design (Spec & Performance)
Develop specification for procuring a section or piece of New Equipment eg New Filler for Bottling Line
NOTES:
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TPM3 Friendly: Easy to Train
Easy to Operate
Easy to Maintain
Easy to Identify Defects
Easy to Monitor Condition
Examples of TPM3 Friendly
Comprehensive Visual Controls to easily identify condition of equipment
Location of air service units such that easy to see and access
Transparent guarding to clearly see inside the equipment
Ergonomic controls to make it easy to operate

39. 4. Making it Happen through a Team Approach
Stage
Team
Purpose 1
Macro NEM - Design (Spec & Performance)
Develop specification for procuring a New Production Line / Process / Plant eg New Bottling Line
Micro NEM - Design (Spec & Performance)
Develop specification for procuring a section or piece of New Equipment eg New Filler for Bottling Line 2
Special Micro NEM - Procurement
Identify supplier(s) and arrange purchase contracts, transport and storage
NOTES:
0-14
TPM3 Friendly: Easy to Train
Easy to Operate
Easy to Maintain
Easy to Identify Defects
Easy to Monitor Condition
Examples of TPM3 Friendly
Comprehensive Visual Controls to easily identify condition of equipment
Location of air service units such that easy to see and access
Transparent guarding to clearly see inside the equipment
Ergonomic controls to make it easy to operate

40. 4. Making it Happen through a Team Approach
Stage
Team
Purpose 1
Macro NEM - Design (Spec & Performance)
Develop specification for procuring a New Production Line / Process / Plant eg New Bottling Line
Micro NEM - Design (Spec & Performance)
Develop specification for procuring a section or piece of New Equipment eg New Filler for Bottling Line 2
Special Micro NEM - Procurement
Identify supplier(s) and arrange purchase contracts, transport and storage 3
Special Micro NEM - Compliance Test
Conduct compliance testing of New Equipment before leaving factory and as it arrives at site
NOTES:
0-14
TPM3 Friendly: Easy to Train
Easy to Operate
Easy to Maintain
Easy to Identify Defects
Easy to Monitor Condition
Examples of TPM3 Friendly
Comprehensive Visual Controls to easily identify condition of equipment
Location of air service units such that easy to see and access
Transparent guarding to clearly see inside the equipment
Ergonomic controls to make it easy to operate

41. 4. Making it Happen through a Team Approach
Stage
Team
Purpose 1
Macro NEM - Design (Spec & Performance)
Develop specification for procuring a New Production Line / Process / Plant eg New Bottling Line
Micro NEM - Design (Spec & Performance)
Develop specification for procuring a section or piece of New Equipment eg New Filler for Bottling Line 2
Special Micro NEM - Procurement
Identify supplier(s) and arrange purchase contracts, transport and storage 3
Special Micro NEM - Compliance Test
Conduct compliance testing of New Equipment before leaving factory and as it arrives at site 4
Special Micro NEM - Install & Commission
Install and Commission New Equipment and if necessary, modify to ensure it is “User Friendly”
NOTES:
0-14
TPM3 Friendly: Easy to Train
Easy to Operate
Easy to Maintain
Easy to Identify Defects
Easy to Monitor Condition
Examples of TPM3 Friendly
Comprehensive Visual Controls to easily identify condition of equipment
Location of air service units such that easy to see and access
Transparent guarding to clearly see inside the equipment
Ergonomic controls to make it easy to operate

42. 4. Making it Happen through a Team Approach
Stage
Team
Purpose 1
Macro NEM - Design (Spec & Performance)
Develop specification for procuring a New Production Line / Process / Plant eg New Bottling Line
Micro NEM - Design (Spec & Performance)
Develop specification for procuring a section or piece of New Equipment eg New Filler for Bottling Line 2
Special Micro NEM - Procurement
Identify supplier(s) and arrange purchase contracts, transport and storage 3
Special Micro NEM - Compliance Test
Conduct compliance testing of New Equipment before leaving factory and as it arrives at site 4
Special Micro NEM - Install & Commission
Install and Commission New Equipment and if necessary, modify to ensure it is “User Friendly” 5
WAM / OEM - ABTs
and
FE&PI – XFTs
Performance, Monitor and Learn through rapidly progressing Work Area Management and the 7 steps of Operator Equipment Management Area Based Team (ABTs) activity supported by Focused Equipment & Process Improvement Cross-functional Teams (XFTs)
NOTES:
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TPM3 Friendly: Easy to Train
Easy to Operate
Easy to Maintain
Easy to Identify Defects
Easy to Monitor Condition
Examples of TPM3 Friendly
Comprehensive Visual Controls to easily identify condition of equipment
Location of air service units such that easy to see and access
Transparent guarding to clearly see inside the equipment
Ergonomic controls to make it easy to operate

43. 5. Key Learning Resource Impact from “Prevention at Source” Learning:
Total Resources Involved = Area Under Curves
Launch
“Prevention at Source”
Approach
Resource Requirements
Traditional
Approach
NOTES:
0-08 6 3 3 6
Pre-Launch Time (months)
Post-Launch Time (months)
Learning:
More resources up front but overall much less total resources required
Traditional Approach
Someone purchases the new equipment based on functionality with little consultation with the affected parties and when it arrives there is a lot of time and effort required to get it working properly, and being able to maintain it reasonably well.
TPM3 – NEM Approach
All affective parties using their TPM3 learning (TPM3 Friendly focus), specify requirements based on functionality, operability, maintainability, trainability and standardisation so when equipments arrives the resources required to get it up and running properly is minimised.

44. 5. Key Learning OEE Performance Impact: “Prevention at Source”
Total Resources Involved = Area Under Curves
Launch
“Prevention at Source”
Outcome
OEE Performance
Resource Requirements
Traditional
Outcome
NOTES:
0-09 6 3 3 6
Pre-Launch Time (months)
Post-Launch Time (months)
Learning
Less problems at launch resulting in much higher OEE in shorter timeframe

45. Case Study
The Label Guys

46. Case Study

47. Thank you
&
Any Question s