2 – Assessing the true costs and benefits of TPM

This chapter deals with the explanation of assessing the true costs and benefits of total productive maintenance (TPM). The underlying strengths of TPM are its ability to reduce complexity and provide the route toward systematic decision making. Early problem detection and resolution through self-managed teams also help reduce the volume of matters requiring management attention—providing management with time to manage. This chapter presents a TPM-derived loss model, which is an important management tool to deliver a totally productive operation. The challenge for management is the need for clear strategies: to secure a future with a smaller operation without slipping below critical mass or to ensure larger market share or grow the existing one. TPM provides a route to support either strategy by delivering (1) organizational activity, which reflects the future needs of the changing customer/economic environment, (2) an infrastructure to support team-based ways of working, (3) decision processes based on systematic thinking to challenge accepted practices, (4) team-based recognition and rewards systems that align short-term activities with long term-business goals, (5) a focus on enhancing knowledge rather than defending one's corner, (6) improved overall equipment effectiveness to enhance supplier/customer relationships, and (7) a mechanism to pull through improvements rather than pushing down initiatives. TPM also provides a development route to enhance the impact and develop the capability of key personnel.