TPM as a Strategic Weapon

Do you think of TPM as a tool to reduce breakdown? Think again. Our recent study has proven that TPM can become a strategic weapon for industries to survive in global competition. 

Most of the companies using TPM in India were able to reduce manufacturing cost by 35%, improve productivity by 60% and reduce defects by 80%. 

If you are a manufacturing organization, are these not the top strategic agenda you need to work on?  

TPM aims to create a corporate system that maximizes the efficiency of the production system by preventing the occurrences of all losses on the front line and focusing on end product. It is the process of achieving Zero Breakdown, Zero Accidents and Zero Defect. TPM is applied across all the sectors, including production, development and administration. TPM is based on the participation of all the members, ranging from top management to front line employees, and it is the main reason for the results achieved after the successful implementation of TPM.

The performance of any industry can be measured by the Overall Equipment Effectiveness (OEE) – it identifies the percentage of manufacturing time that is truly productive. An OEE score of 100% means the industry is manufacturing only Good Parts, as fast as possible, without any Stoppage Time. OEE can be calculated by using following equation.

OEE= Availability X Performance X Quality

TPM is a strategic approach to improve the OEE of any Manufacturing industry. Successful Industry wide implementations of TPM can improve productivity, decrease no. of breakdowns, decrease the no. of defect, reduce the customer complaints, reduce the manufacturing conversion cost, decrease the work in process inventory, increase in the Morale of employees, achieve Zero Accidents.

Following are the results achieved by the different industries after TPM implementation.

1. Improvement In OEE- Following graph represents OEE status of various industries before and after TPM Implementation.

TPM Implementation

2. Percentage reduction in the Manufacturing conversion Cost: Following graph represents percentage reduction in cost achieved after TPM Implementation.

TPM Implementation

3. Percentage Improvement in Productivity: Following graph represents percentage increase in productivity achieved after TPM Implementation.

TPM Implementation

4. Percentage Reduction in No. of Breakdowns: Following graph represents percentage reduction in no. of breakdowns achieved after TPM Implementation.

TPM Implementation

5. Percentage reduction in no. of Defect: Following graph represents percentage reduction in no. of defects achieved after TPM Implementation.

TPM Implementation

As you can see above, TPM implementation has helped different types of industries in achieving both tangible and intangible benefits significantly.

The Following factors must be adhered for the successful implementation of TPM in Indian organizations:

      • Strong commitment by Top Management.
      • Total employee involvement.
      • Effective implementation of TPM initiatives, their monitoring and follow-up.
      • Compatibility between business plans of the company with the TPM goals.
      • Appropriate transformation in organizational culture.
      • Adequate training for the skill enhancement of the worker. 

It can be concluded from the above evidences that Successful Organization wide Implementation of TPM helps to overcome the different challenges faced by different organizations in today’s competitive market.

References:

      • “Impact of TPM implementation on Indian manufacturing industry” by Jitendra Kumar, Vimlesh Kumar Soni and Geeta Agnihotri, Mechanical Engineering, Maulana Azad National Institute of Technology (MANIT), Bhopal, India.
      • “Study of Success Factors of TPM Implementation in Indian Industry towards Operational Excellence: An Overview” Pardeep Gupta, Sachit Vardhan, Md Shazli Al Haque, Mechanical Engineering Department Sant Longowal Institute of Engineering & Technology, Longowal, Sangrur (Punjab), India. 
      • JIPM website. 
        https://www.jipm.or.jp/en
      • Data represented in graphs were taken from the following Newsletters published by CII-TPM Club of India.
        • PROGRESS @ TPM- Newsletter from CII TPM Club India: July, 2018
        • PROGRESS @ TPM- Newsletter from CII TPM Club India: September, 2017
        • PROGRESS @ TPM- Newsletter from CII TPM Club India: June, 2016
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