• Journal of the Korea Safety Management & Science
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• v.15 no.3
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• pp.151-161
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• 2013

This paper proposes a strategic model of linkage between productivity metrics and financial accounting metrics to properly evaluate the financial effect of TPM activities and the business performance. This linkage strategy provides a connection tool for clear communication between factory-level and headquarters that the metrics proposed by this paper ultimately improves a quality of support from the management by receiving the factors required for productivity activities in the practical field. This factor includes such as equipment, raw materials and labors. Here, we propose that chain reaction models using break down structure of productivity metrics and financial metrics enhance the knowledge sharing of KPI (Key Performance Indicator) which generally tend to create oversimplified communication between management in headquarters and employees in the practical fields. The productivity metrics include OEE(Overall Equipment Effectiveness) of TPM (Total Productive Maintenance), OLE (Overall Labor Effectiveness) of PAC(Performance and Analysis and Control) activities, and OYE (Overall Yield Effectiveness) of TMM(Total Material Management) activities. The financial accounting metrics include ROE(Return on Equity), ROA(Return on Asset), and AVR(Added-Value Rate). The suggested chain reaction model selects the financial metrics as initial stage and branch down until final stage of productivity metrics. When demand exceeds supply, an ideal speed rate, the lean OEE strategy can be initially applied to reduce the gap between the demand and supply, then apply variable costing to estimate correct amount of operating profit. In addition, the paper presents a new type of model for linkage between financial accounting metrics including CAPEX(Capital Expenditure), OPEX(Operating Expenditure), EVA(Economic Added Value), DCL(Degree of Combined Leverage), and TPM productivity activities including AM(Autonomous Maintenance), PM(Preventive Maintenance), MP(Maintenance Prevention) and QM(Quality Maintenance). In order to support the evidence of proposed linkage strategy, a case analysis on 52 projects from national TPM contest from 2011 to 2012 is analyzed. The case presents the classification of CAPEX and OPEX activities from TPM, and proposes the correct implementation of financial effect for TPM projects.

• Journal of the Korea Safety Management & Science
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• v.14 no.2
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• pp.147-158
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• 2012

This paper aims to develop a new chain metrics for obtaining lean Overall Equipment Effectiveness(OEE) and present implementation strategy which considers the properties for Total Productive Maintenance(TPM) to reduce machine losses, Performance Analysis and Control(PAC) to reduce labor losses, Lean Production System(LPS) to reduce floor wastes, and Theory of Constraints(TOC) to minimize the problem of Capacity Constrained Resource(CCR). The study reviews the related literatures and reformulates the structure of machine losses, labor losses and field wastes. The research also develops the integrated productivity metrics according to time, units, reliability and maintainability. It is found that the study develops the actual productivity measure in terms of efficiency, effectiveness and standard productivity. In addition to that, it outlines and develops by using the integrated LPS and TPM, lean OEE measures such as Time Based Productivity(TBP), Unit Based Productivity(UBP), and Reliability & Maintainability Based Availability(RMBA). Implication examples are proposed to make it easier and available for practioners to understand the implementation strategies about TPM OEE, lean OEE and TOC OEE. Futhermore related to other studies, the research contributes to create a new chain productivity measures to clear the interrelationship concepts of productivity, efficiency and effectiveness. Moreover the paper develops the enhanced OEE measures by integration of TPM, PAC, LPS and TOC with the perspective of schedule, throughput, reliability, maintainability and availability.

• Journal of the Korea Safety Management & Science
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• v.14 no.1
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• pp.225-233
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• 2012

The research discusses interrelationship of structural and reliability importance measures which used in the probabilistic safety assessment. The most frequently used component importance measures, such as Birnbaum's Importance (BI), Risk Reduction (RR), Risk Reduction Worth (RRW), RA (Risk Achievement), Risk Achievement Worth (RAW), Fussel Vesely (FV) and Critically Importance (CI) can be derived from two structure importance measures that are developed based on the size and the number of Minimal Path Set (MPS) and Minimal Cut Set (MCS). In order to show an effectiveness of importance measures which is developed in this paper, the three representative functional structures, such as series-parallel, k out of n and bridge are used to compare with Birnbaum's Importance measure. In addition, the study presents the implementation examples of Total Productive Maintenance (TPM) metrics and alternating renewal process models with exponential distribution to calculate the availability and unavailability of component facility for improving system performances. System state structure functions in terms of component states can be converted into the system availability (unavailability) functions by substituting the component reliabilities (unavailabilities) for the component states. The applicable examples are presented in order to help the understanding of practitioners.

• Journal of the Korea Safety Management & Science
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• v.17 no.1
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• pp.337-348
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• 2015

This research introduces the Financial Effect Measurement (FEM) models which measures both the improvement and the innovation performance of Quality Control Circle (QCC) and activities of Six Sigma. Concepts and principle of Comprehensive Income Statement (CIS), Balanced Scorecard (BSC), Time-Driven Activity Based-Costing (TDABC) and Total Productive Maintenance (TPM) are applied in order to develop the 4 FEM models presented in this paper. First of all, FEM using CIS depicts the improvement effects of production capacity and yield using relationships between demand and supply, and line balancing efficiency between bottleneck process and non-bottleneck processes. Secondly, cause-and-effect relation of Key Performance Indicator (KPI) is used to present Critical Success Factor (CSF) effects for QC Story 15 steps of QCC and DMAIC (Define, Measure, Analyze, Improve, and Control) of Six Sigma. The next is FEM model for service management innovation activities that uses TDABC to calculate the time-driven effect for improving the indirect activities according to the cost object. Lastly, FEM model for TPM activities presents the interpretation of improvement effect model of TPM Capital Expenditure (CAPEX) and Operating Expenditure (OPEX) maintenance using profit, cash and Economic Added Value (EVA) as metrics of enterprise values. To better understand and further investigate FEMs, recent cases on National Quality Circle Contest are used to evaluate new financial effect measurement developed in this paper.