AstraZeneca_Slutrapport
Transcript of AstraZeneca_Slutrapport
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Improving maintenance efficiency at AstraZeneca
through increased use of TPM
Jonas Bergsman
Anders Hll
Production economics
Masters thesis
Department of Management and Engineering
LIU-IEI-TEK-A--10/00781SE
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Improving maintenance efficiency at AstraZeneca
through increased use of TPM
Jonas Bergsman
Anders Hll
Supervisors:
Linkping University: Johan Johansson
AstraZeneca: Andreas Jaensson
Masters thesis
Department of Management and Engineering
LIU-IEI-TEK-A--10/00781SE
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Foreword
This masters thesis has been conducted at AstraZenecas production site in Snckviken. It
covers 30 credit points and is performed at the division of production economics at Linkping
University. The project is the last phase of our masters degree in Science of Mechanical
Engineering and it has given us the opportunity to practise the expertise gained during the
education.
At Linkping 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 masters 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
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Anders Hll
__________________
Jonas Bergsman
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Abstract
This is the report from the masters thesis, performed at AstraZeneca, Sweden Operations at
the Snckviken 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
Sdertlje, 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 masters 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 masters 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 masters thesis areas of interests.
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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 Snckviken .................................... 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 McClellands 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
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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
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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
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Table of figures | I
Table of figures
Figure 1:1 The areas of interest in this masters 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 Vrooms 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 SOPs 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 hows 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
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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/ Ersttningsfabrik
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 fr anlggningskontroll
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
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Introduction | 1
1 Introduction
This chapter will present an introduction to this masters thesis. It includes a background of
the problem that initiated the project. It also presents the purpose for this masters 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 Sdertlje, Lund, Mlndal and Ume. (AstraZeneca, Annual Report, 2009a)
A large part of the production is located in Sweden and some of the most important factories
are located in Sdertlje. 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 Sdertlje 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 masters thesis has been initiated to
investigate these issues.
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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 masters 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 masters 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
masters thesis are showed in Figure 1:1 and this will be used to visualize the report.
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Introduction | 3
Figure 1:1 The areas of interest in this masters thesis
1.3 Purpose
The purpose of this masters 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 masters thesis corresponds to approximately 20 weeks of work. It is focused on the
active pharmaceutical ingredient department at AstraZeneca in Snckviken, Sdertlje. Due
to the limited timeframe and the aim of the research, some parts in the study will be
delimited from this masters thesis.
AstraZenecas 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 masters thesis other departments at Sdertlje 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 masters
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
masters thesis.
Increase maintenance efficiency
Maintenance management
TPMPerformance
indicators
Use of the current maintenance
system
Integration of maintenance,
calibration and production planning
Motivation
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Methodology | 4
2 Methodology
This chapter will present the methodology addressed in this masters thesis. The phases will
be described and the chapter will end with an evaluation of the sources of errors that can
occur in this masters thesis and how these have been managed.
2.1 The work process
The work in this masters 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 masters thesis. This method will provide guidance during the masters
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 masters thesis the problem is specified in some basic research areas and in this
phase the purpose of this masters 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 masters thesis requires.
Basic study
Problem
identification
Field study Specify problem
Recommendation
Analysis
Conclusion
Theory
Pre
-stu
dy
Empirical study
Ana
lysis
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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 AstraZenecas
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 (Dahmstrm, 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 dont 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 masters 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 (Dahmstrm, 2005). Primary data are information that
is generated or gathered specifically for this masters 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 authors 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
Dahmstrm (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.
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Methodology | 6
In this masters 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 masters
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 masters
thesis dont have any self-interest in the outcome of this work. Since this masters 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 masters thesis.
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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 companys history. Next the API
at Snckviken 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 Snckviken
The operations at the Snckviken 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 Sdertlje and to international
manufacturers of medicine.
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Theory | 8
4 Theory
This chapter contains the theories relevant for this masters 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 1950s 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 wont 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
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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.
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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)
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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 dont 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
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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)
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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 hasnt been modified to take the changes into account.
Preventive maintenance tasks have an implementation window.
Maintenance tasks dont 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 organizations
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,
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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:
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.
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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 dont 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)
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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 1960s (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)
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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
organizations) 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
Maslows 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
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Theory | 19
4.6.3 McClellands 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 dont 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 persons 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.
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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 persons 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 individuals 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 persons 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 Vrooms 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 masters
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 AstraZenecas international organizations. The plant
constitutes of two major factories of interest, the SYFA (Syntet fabrik) and the EFA
(Ersttningsfabrik)
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 organizations
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
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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
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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 SOPs 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 SOPs, Figure 5:3.
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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 Snckviken facility. Next
there is the documentation of the items. Such documentations can be the blueprints of
facilities and machinery. The SOPs 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 SOPs are getting more
specific regarding facility documentations, safety, health and environment, buildings and
process equipment and control systems.
The SOPs of AstraZeneca are based on best practice procedures to ensure that the
requirements supersede both the legislative conditions imposed by authorities but also good