The impact of operations and maintenance practices on power plant performance

– The purpose of this paper is to examine the impact of operations and maintenance (O&M) practices, individually and collectively, on power plant performance. , – Data were collected from more than 100 power plants in Australia and Malaysia. The reliability and validity (content, construct, and criterion) of the practice and performance measures were evaluated. , – Committed leadership and maintenance-oriented practices as part of a total productive maintenance (TPM) philosophy were found to be the main differentiators between high and low performing plants. , – The research is cross-sectional in nature, therefore, it does not permit us to account for the lag between implementation and performance. Second, the performance measures are subjective and may be subject to response bias. , – The implication of the research findings for plant managers is that they need to allocate more “softer” resources to the O&M function if they expect high plant availability. , – Apart from capacity and fuel cost, operating costs are an important source of differentiation for power plants. The implication is that reduction in operating costs is directly related to the reduction of consumer power bills. , – The reader will learn from this paper that committed leadership and maintenance-oriented practices have greater explanatory power in the regression models than employee involvement, customer focus, strategic planning, and knowledge management. This knowledge is important because it emphasises that in addition to quality management practices, which are focussed on the development of the people aspects of the organization, the plant equipment and physical assets should also be given equal emphasis, in order to improve operational performance of power plants.

[1]  Roger G. Schroeder,et al.  A FRAMEWORK FOR QUALITY MANAGEMENT RESEARCH AND AN ASSOCIATED MEASUREMENT INSTRUMENT , 1994 .

[2]  Mark A. Huselid The Impact of Human Resource Management Practices on Turnover, Productivity, and Corporate Financial Performance , 1995 .

[3]  Richard Schonberger,et al.  World class manufacturing : the lessons of simplicity applied , 1986 .

[4]  Colin Kirkpatrick,et al.  Electricity sector reform in developing countries: an econometric assessment of the effects of privatization, competition and regulation , 2008 .

[5]  S. Brooks,et al.  Applied Multivariate Statistics for the Social Sciences , 1993 .

[6]  R. Schroeder,et al.  Relationships between implementation of TQM, JIT, and TPM and manufacturing performance , 2001 .

[7]  J. Nunnally Psychometric Theory (2nd ed), New York: McGraw-Hill. , 1978 .

[8]  James R. Evans Leading practices for achieving quality and high performance , 1996 .

[9]  Armand V. Feigenbaum,et al.  Total quality control , 1961 .

[10]  R. Kaplan,et al.  Strategy Maps: Converting Intangible Assets into Tangible Outcomes , 2003 .

[11]  Elliott N. Weiss,et al.  TPM: PLANNED AND AUTONOMOUS MAINTENANCE: BRIDGING THE GAP BETWEEN PRACTICE AND RESEARCH , 1998 .

[12]  M. Terziovski,et al.  The relationship between total quality management practices and operational performance , 1999 .

[13]  R. Schroeder,et al.  The impact of total productive maintenance practices on manufacturing performance , 2001 .

[14]  Seiji Tsuchiya Quality Maintenance: Zero Defects Through Equipment Management , 1992 .

[15]  H. Kaiser An index of factorial simplicity , 1974 .

[16]  Joseph F. Hair,et al.  Essentials of Business Research Methods , 2003 .

[17]  A. David Competitive bidding in electricity supply , 1993 .

[18]  Roberto Cigolini,et al.  Total productive maintenance practices: a survey in Italy , 1997 .

[19]  R. Gonzalez Applied Multivariate Statistics for the Social Sciences , 2003 .

[20]  Paul L. Joskow,et al.  Digitized by the Internet Archive in 2011 with Funding from Working Paper Department of Economics the Performance of Coal-buruing Electric Generating Units in the United States: 1960-1980 , 2022 .

[21]  B. Tabachnick,et al.  Using multivariate statistics, 5th ed. , 2007 .

[22]  W. Velicer,et al.  Relation of sample size to the stability of component patterns. , 1988, Psychological bulletin.

[23]  Joan C. Woodward Management and technology , 1958 .

[24]  Barrie Dale,et al.  A study of total productive maintenance implementation , 2001 .

[25]  J. Dean,et al.  MANAGEMENT THEORY AND TOTAL QUALITY: IMPROVING RESEARCH AND PRACTICE THROUGH THEORY DEVELOPMENT , 1994 .

[26]  R. MacCallum,et al.  Sample size in factor analysis. , 1999 .

[27]  R. Schroeder,et al.  Total productive maintenance: a contextual view , 1999 .

[28]  S. Rogelberg,et al.  Introduction Understanding and Dealing With Organizational Survey Nonresponse , 2007 .

[29]  F. Cooke Implementing TPM in plant maintenance: some organisational barriers , 2000 .

[30]  J. Hair Multivariate data analysis , 1972 .

[31]  Peter J. Dowling,et al.  Electricity industry reform: a case analysis in Australia , 1998 .

[32]  E.L. Draper Assessment Of Deregulation And Competition , 1998, IEEE Power Engineering Review.

[33]  R. Schroeder,et al.  Manufacturing practices, strategic fit and performance: A routine‐based view , 2004 .

[34]  Li Ling,et al.  Enhancement of maintenance management through benchmarking , 2000 .

[35]  J. Barney Firm Resources and Sustained Competitive Advantage , 1991 .

[36]  F. Chan,et al.  Implementation of Total Productive Maintenance: A Case Study , 2005 .

[37]  Andy Field,et al.  Discovering statistics using SPSS, 2nd ed. , 2005 .

[38]  L. Swanson Linking maintenance strategies to performance , 2001 .

[39]  David P. Lepak,et al.  Human Resource Management, Manufacturing Strategy, and Firm Performance , 1996 .

[40]  Sanjay L. Ahire,et al.  Development and Validation of TQM Implementation Constructs , 1996 .

[41]  Peter Beike Tqc And Tpm , 2016 .

[42]  Shaukat A. Brah,et al.  Relationship between total productive maintenance and performance , 2004 .

[43]  Fang Lee Cooke Plant maintenance strategy: evidence from four British manufacturing firms , 2003 .

[44]  B. Bass LEADERSHIP AND PERFORMANCE BEYOND EXPECTATIONS , 1985 .

[45]  Peter Bryar,et al.  The Australian Business Excellence Framework : A Framework For Small Horticultural Enterprises , .

[46]  J. Moubray Reliability-centred maintenance , 1995 .

[47]  Enrique Loredo,et al.  Privatisation and Deregulation: corporate governance consequences in a global economy , 2000 .

[48]  L. J. Porter,et al.  Identification of the Critical Factors of TQM , 1996 .

[49]  H. Kaiser A second generation little jiffy , 1970 .

[50]  B. Tabachnick,et al.  Using Multivariate Statistics , 1983 .

[51]  M. T. Hides,et al.  Factors affecting successful implementation of total productive maintenance , 1999 .

[52]  Allan Tomlinson Introduction to the TPM , 2008 .

[53]  Rick Tamaschke,et al.  Strategy in a restructured industry environment: The case of electricity generation firms , 2007 .

[54]  R. Darlington,et al.  Factor Analysis , 2008 .

[55]  P. Lawrence,et al.  Organization and Environment: Managing Differentiation and Integration , 1967 .

[56]  J. Wayne Patterson,et al.  Maintenance: Modeling Its Strategic Impact , 1997 .

[57]  G. S. Dangayach,et al.  Manufacturing strategy: Literature review and some issues , 2001 .

[58]  P. Williams Practice management. , 2005, The Alpha omegan.

[59]  T. C. Powell Total Quality Management as Competitive Advantage , 1995 .