Making Common Sense Common Practice

Models for Manufacturing Excellence


  • Ron Moore, Ron Moore, P.E., Managing Partner, The RM Group, Inc. Knoxville, TN

Presenting the best practices of the best manufacturing companies in the world, this book presents proven models for achieving world-class performance. Using a case study of a fictional company called Beta International, Moore illustrates how to increase uptime, lower costs, increase market share, maximize asset utilization, apply benchmarks and best practices, and improve many other aspects that ultimately raise your company's performance to the level of world-class. 'Making Common Sense Common Practice' takes a good, hard look at plant design, procurement, parts management, installation and maintenance, training, and implementing a computerized maintenance management system. In discussing the successes and failures of the world's premier manufacturers, Moore outlines a stable path of growth for almost any manufacturing company. In today's tough competitive markets, 'Making Common Sense Common Practice' greatly enhances your company's chance to succeed - and profit.
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VPs of Operations for Manufacturing companies, Manufacturing Managers, Maintenance Managers and Engineers world wide


Book information

  • Published: May 2004
  • ISBN: 978-0-7506-7821-6


‚ÄúThis book is now in its third edition and so clearly its author is doing something right ‚Ķ There are good reasons why it is doing so well. First, it is written in a good, no-nonsense, trade-style, which will undoubtedly appeal to practicing managers ‚Äď thus it is written in a ‚Äėhow to‚Äô style ‚Äď for example, there is a section on ‚ÄúSteps to Manufacturing Excellence‚ÄĚ. Second as well as being written in an engaging manner for practicing managers it alludes to a sufficient range of academic material to please academics who might also be interested in manufacturing. Third, it is timely because it is written at a time of crisis for many countries in terms of the demise of their manufacturing bases. The book is written in an interesting style, combining in-depth insights where necessary and more succinct, bullet-style approaches, where appropriate. Ron Moore has used life-like (though not real) cases as a core theme that runs through each of the chapters and this device works well. It brings cohesion and integration to the range of topic areas.‚ÄĚ ‚ÄĒ Steve Brown, School of Business and Economics, University of Exeter, UK, April 2006

Table of Contents

Acknowledgments Preface Manufacturing and Business ExcellenceChapter 1The Scene 1. The Players 3. Integrating the Manufacturing and Marketing Strategy 5. Becoming the Low-Cost Producer 8. Application of Increased Capacity 11. Beta‚Äôs Beaver Creek Plant‚ÄĒRoNA vs. Uptime 13. A Model for Becoming the Low-Cost Producer 13. Measuring Losses from Ideal 17. Sample Calculation of Batch Plant OEE 23. Discussion of Sample Measurement 28. A Special Case‚ÄĒBeta‚Äôs Dwale Plant 29. Hiding Behind Excess Capacity (The Hidden Plant) 30. Differences Between Batch and Continuous Manufacturers 33. Lean Manufacturing, Six Sigma, and Focused Factories 34. Summary 39. References 40. Chapter 2Benchmarks, Bottlenecks, and Best Practices Benchmarking‚ÄĒFinding Benchmarks and Best Performers 43. Making the Comparison 46. Bottlenecks‚ÄĒA Dynamic View 54. Manufacturing Uptime Improvement Model 58. References 65. Chapter 3Aligning the Marketing and Manufacturing StrategiesBeta‚Äôs Pracor Division 68. Market/Product Success Factors 69. Volume and Market Growth Analysis 72. Manufacturing Capability for Supporting Market/Volume Goals 73. Performance by Plant and by Product Line 74. The Plan 77. Revised Pricing Strategy 78. Plant Performance Requirements 79. Other Actions Required 80. The Expected Results 81. Effect of Product Mix on Manufacturing Performance 85. Beta‚Äôs Leets Division‚ÄĒRationalizing Customers and Markets 91. Summary 94. References 95.Chapter 4 Plant Design and Capital Project Practices 96 The Design Process 99. Design Objectives 100. Key Questions 101. Operations and Maintenance Input 105.Estimating Life-Cycle Costs 107. Additional Case Histories 108. Payback Analysis‚ÄĒToo Simple and TooExpensive‚ÄĒPayback Is Hell! 110. Summary 114. References 114. Chapter 5 Procurement Practices 115 A Model for Developing Strategic Alliances‚ÄĒGoose Creek Plant 117. Supplier Selection 120. Process for Improved Specifications for Equipment Reliability‚ÄĒMossy Bottom Plant 122. Improving Supplier Reliability‚ÄĒA Case Study 131. Supply Chain Principles‚ÄĒA Strategic Approach 134. References 137. Chapter 6 Stores/Parts Management Practices 138 What Are Stores? 139. The ‚ÄúCost‚ÄĚ of Stores 140. What Stores Are Needed‚ÄĒKind and Quantity 140. Standardization 143. The Store 144. Contracting the Stores Function 147. Key Performance Indicators 148. Beta‚Äôs Wheelwright Plant 150. Spare Parts Criticality Ranking Model 155. Summary 157. References 158. Chapter 7 Installation Practices 159 Follow Existing Standards and Procedures 161. Verify and Use Appropriate Manufacturer Recommendations 161. Installation and Commissioning of Rotating Machinery 162. Flange and Joint Installation 164. Workshop Support 164. Housekeeping 165. Use of the Pre-Destruction Authorization 165. Summary 166. References 167. Chapter 8 Operational Practices 168 Improving Operating Practices to Reduce Maintenance Costs 169. Consistency of Process Control 172. Control Loops 173. Process Conformance for Operational Excellence 175. Operator Basic Care 179. Establishing Operator Care/Ownership 180. Shift Handover Process 181. Production Planning 182. Advanced Process Control Methods 183. Summary 184. References 187. Chapter 9 Maintenance Practices 189 Going from Reactive to Proactive 189. Beta‚Äôs Repair Culture 195. Maintenance Practices 196. Preventive Maintenance 202. Predictive Maintenance 204. Beta‚Äôs Current Predictive Maintenance Practices 208. Beta‚Äôs Predictive Maintenance Deployment Plan 209. Proactive Maintenance 210. Focused Factories and Maintenance Practices: Centralized vs. Decentralized Maintenance 216. The Need for Integrating Preventive, Predictive, and Proactive Practices 219. Life Extension Program 222. Maintenance Practices and Safety Performance 223. Summary 224. References 226. Chapter 10Optimizing the Preventive Maintenance Process 229 First Things First 230. Creating Equipment Histories from ‚ÄúScratch‚ÄĚ 231. The Model 232. Some Examples 234. Case Histories 235. Mechanical Integrity 237. Summary 238. References 238. Chapter 11Implementing a Computerized Maintenance Management System 239 Case History 242. Reference 248. Chapter 12 Effective Use of Contractors in a Manufacturing Plant 249 The Reliability Improvement Program 249. Consolidating Maintenance Contractors 251. What Happened? 257. Lessons Learned 261. Best Use of Contractors 263. Summary 268. References 269. Chapter 13 Total Productive and Reliability-Centered Maintenance 270 Total Productive Maintenance Principles‚ÄĒTPM 271. Reliability-Centered Maintenance Principles‚ÄĒRCM 275. Case Study 278. Some Additional Benefits 283. Summary 284. References 286. Chapter 14 Implementation of Reliability Processes 287 Whamadyne‚Äôs Journey to Manufacturing Excellence 292. Whamadyne‚Äôs Reliability Improvement Plan 296. Results‚ÄĒ World-Class Performance 302. References 304. Chapter 15 Leadership and Organizational Behavior & Structure 305 Leadership 305. Organizational Issues 309. Empowerment 309.Empowerment as a Disabler 311. The Reliability Process‚ÄĒA Better Way 315. Reliability Improvement Teams 317.Organizational Structure 324. Mission Statements 328. Communication of Performance Expectations 329. Implementing Reliability and Manufacturing Excellence in a Union or Non-Union Plant 330. Compensation 331. Summary 332. References 333. Chapter 16 Training 334 The Strategic Training Plan 336. Boss as Trainer 337. Training Versus Learning 338. Training for Pay 339. Training in Appropriate Methodologies 340. Multi-skilling and Cross-functional Training 341. Intellectual Capital 342. Closing 344. References 345. Chapter 17 Performance Measurement 346 Return on Net Assets or Return on Replacement Value 355. Plant Age and Reliability 355. Measure for Weaknesses 355. References 356. Chapter 18 Epilogue 357 Beta‚Äôs 10-Point Plan 358. Appendix A World-Class Manufacturing: A Review of Several Key Success Factors 364 Appendix B Reliability Manager/Engineer Job Description 375 Index 379 Acknowledgments