Global Corporate Council India / GCCI International LLP

30/09/2025

Positive Loss vs. Negative Loss in TPM

In Total Productive Maintenance (TPM), losses are of two types: negative and positive.

Negative losses are unnecessary waste from system failures or non-essential activities. The goal is total elimination, with examples like defects, breakdowns, and stoppages.

Positive losses are a necessary evil linked to planned, essential non-production activities. These should be minimized, such as setup time, maintenance, and start-up losses.

14/09/2025

TPM Journey: Reactive to Proactive (15-Year Strategic Plan)

Vision: A 15-year TPM journey, benchmarked by JIPM awards.

Strategy: Strategic investment for profitability and competitiveness, not a cost.
Alignment: Drives market leadership, superior quality, and customer loyalty.

Phases:
Yrs 1-3 (Foundation): Stabilize equipment, prove ROI with quick wins.
Yrs 4-7 (Consolidation): Expand plant-wide, target OEE 85%.
Yrs 8-11 (Optimization): Integrate into design, cut capital needs.
Yrs 12-15 (World Class): Achieve market dominance through excellence.

Financials:
Becomes self-funding after Phase 1.
Payback in 3–4 years with positive NPV.

Primary cost: employee time for training and improvement.

Major savings: lower breakdowns, parts, scrap, rework, energy, and inventory.

Key benefit: revenue growth via higher throughput and OEE.

Culture & People: Builds proactive mindset, safety, and engagement.

Governance: Guided by executive steering committee.

Conclusion: Inaction costs far exceed investment. Request approval to launch Phase 1.

13/09/2025

06/09/2025

5 Ladders of Safety Control

The concept of safety ladders (or hierarchy of controls) helps prioritize how to manage workplace hazards. The higher the ladder, the more effective and reliable the control measure is.
1. Elimination (Most Effective)
Completely remove the hazard from the workplace.
Example: Replacing a hazardous chemical with a safe alternative.
2. Substitution
Replace the hazard with something less dangerous.
Example: Using water-based paints instead of solvent-based paints.
3. Engineering Controls
Design or modify equipment, tools, or processes to reduce exposure.
Example: Machine guarding, ventilation systems, noise enclosures.
4. Administrative Controls
Change the way people work to reduce risk.
Example: Training, job rotation, safe work procedures, warning signs.
5. Personal Protective Equipment (PPE) (Least Effective)
Provide safety gear to protect workers when hazards cannot be fully controlled.
Example: Helmets, gloves, safety shoes, goggles, respirators.

✅ Key Insight:
Always aim to start from the top of the ladder (Elimination) and move downward only if higher-level controls are not practical. PPE should be the last line of defense, not the first.

01/09/2025

Poka Yoke: Problem vs Key Tactics

Poka-Yoke, or mistake-proofing, helps prevent errors and improve safety.

For process defects, it fits best under Lean Manufacturing / Toyota Production System with tactics like guide pins, fixtures, sensors, checklists, and timers.

For safety accidents, it supports the Hierarchy of Controls, using guard interlocks, light curtains, and two-hand controls for safer operation.

22/08/2025

Poka-Yoke Limitations:

Poka-Yoke, or error-proofing, is a powerful tool for preventing mistakes in processes, but it has its own limitations.

1. Intentional Violations – Cannot stop deliberate circumvention.
2. Behavioural Accidents – Cannot prevent slips, trips, and falls.
3. Systemic Errors – Cannot prevent software bugs.
4. Material Flaws – Cannot detect subtle defects.
5. Catastrophic Failures – Cannot prevent unexpected explosions or disasters.
6. Equipment Failures – Cannot prevent mechanical breakdowns.
7. Aesthetic Defects – Cannot judge subjective imperfections.

16/08/2025

Cost of Poor Quality (CoPQ)

It can be grouped into four categories:
1. Internal Failures: Scrap, rework, repairs, inspection of defects, downtime, and waste disposal.
2. External Failures: Warranty claims, returns, customer complaints, liability costs, and loss of reputation or loyalty.
3. Appraisal Costs: Inspection, testing, quality assurance, calibration, and training for quality staff.
4. Prevention Costs: Quality planning, process improvements, employee training, and supplier management.
Advanced (TPM Level 2–3) organizations also factor in:
Opportunity Costs: Lost sales, revenue, or market share.
Intangible Costs: Brand reputation damage, reduced trust, and lower employee morale.

The formula is:
Total CoPQ = Internal Failure Costs + External Failure Costs
To measure business impact:
Total CoPQ % of Sales = ((Internal + External Failure Costs) / Total Sales Revenue) × 100

13/08/2025

Cost of Good Quality (CoGQ)

It includes Prevention Costs and Appraisal Costs.

Prevention Costs cover planning and training done by engineering and quality assurance before production to avoid defects. These are calculated as training plus process control costs, often shown as a percentage of sales.

Appraisal Costs involve inspections and audits by quality control during production to detect defects. These equal inspection labor plus test equipment costs, also expressed as a sales percentage.

Formula:
Total CoGQ = Prevention Costs + Appraisal Costs
Total CoGQ % of Sales = ((Prevention Costs + Appraisal Costs) / Total Sales Revenue) × 100

09/08/2025

Cost of Quality (CoQ)

The Cost of Quality (CoQ) is categorized into four areas: Prevention, Appraisal, Internal Failure, and External Failure.

Prevention Costs (training, process control) focus on planning to avoid defects, managed by engineering/QA before production.

Appraisal Costs (inspection, audits) involve testing to find defects, done by QC during production.

Internal Failure Costs (scrap, rework) result from process failures detected before delivery by the production team.

External Failure Costs (warranty, recalls) occur after delivery, affecting customers and handled by service/legal teams.

Key Formulas:

Good Quality = Prevention + Appraisal Costs
Poor Quality = Internal + External Failure Costs
Total CoQ % of Sales = (All Costs / Sales) × 100

03/08/2025

TPM in Service Industry

The shift from physical to digital systems adapts manufacturing principles to service and software domains. Here, equipment or machines align with the service delivery process in services and the Software Development Lifecycle (SDLC) and production environment in software.

An equipment breakdown equates to a service interruption or, in software, a system crash or outage. Minor stoppages mirror service delays, like slow APIs, UI lag, or pipeline issues.

Defects and rework translate to service errors or complaints, and in software, to bugs, data corruption, or failed deployments. Yield loss reflects resource waste—such as unused server capacity or developer time fixing bugs.

Changeover/setup time becomes discharge or turnaround time in services, and in software, deployment, setup, or integration time. The operator role corresponds to nurses or drivers in services and developers or SREs in software.

This comparison enables TPM concepts to enhance efficiency and reliability in service and digital environments.