TPM Stands For Total Profit Management B

TPM Stands For Total Profit


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B.G. Shavin Umayanga
Institute of Lean Management (Pvt.) Ltd.


Total Productive maintenance (TPM) combines the best features of Productive and Predictive maintenance with innovative management strategies and Total employee involvement.


In briefly we can say, “The TPM is tool of improving people/ machine/ equipment and eliminating 3 Zeroes, increasing profit by eliminating 16 losses.”

Moreover, It is a business strategy which can transform a factory by developing existing people and equipment with innovative management strategies and total employee involvement throughout the enterprise. Transforming a factory into an operation with an equipment-oriented management that is consistent with the changes in contemporary society is very important for survival in todays globalized, privatized and liberalized business world.

Normally TPM activities were targeted at production departments, TPM was originally defined by the japan institute of plant maintenance (JIPM) to include the following five strategies:

1. Maximize overall equipment effectiveness.

2. Establish a comprehensive PM system covering the life of equipment.

3. Involve all departments that plan, use, and maintain equipment.

4. Involve all employees from top management to front-line workers.

5. Promote PM through motivation management.

Nowadays TPM concept is Appling through many type of organizations, which are pre- production and product development departments and administrative departments also. Now there is new definition of TPM, with following strategic components.

1. Build a corporate construction that will maximize the effectiveness of the production system.

2. Using shop-floor approach, build an organization that prevents every type of loss ( by ensuring 3Zeroeszero accidents, zero defects, zero failures) for the life of the production system.

3. Involve all departments in implementing TPM, Including development, sales, and administration.

4. Involve everyone from top management to shop-floor workers.

5. Conduct zero loss activity through overlapping small group activities.

As above mention, TPM= Total Productive Maintenance and later on "P" denotes

"Perfect or Production", while "M" includes "Management" besides maintenance. Today

TPM stands for "Total Profit Management"

• Total Employee involvement.

•Operator take the responsibility for maintenance.


• Maintenance
•Complete a Preventive maintenance Program.

• Product/Profit/Production.

•Eliminate or minimize Breakdown during Production


There are three main reasons why TPM has spread so rapidly throughout Japanese industry and why companies outside japan are becoming interested. It guarantees dramatic results, visibly transforms the workplace, and raises the level of knowledge and skill in production and maintenance workers.

TPM helps operators understand their equipment and widens the range of maintenance and other tasks they can handle. It enables them to make new discoveries, acquire fresh knowledge and enjoy new experience. It strengthens motivation, engenders interest in and concerns of equipment and fosters the desire to maintain equipment in peak conditions.


TPM is a innovative Japanese concept. The origin of TPM can be traced back to 1951 when preventive maintenance was introduced in Japan. However the concept of preventive maintenance was taken from USA. Nippondenso was the first company to introduce plant wide preventive maintenance in 1960. Preventive maintenance is the concept wherein, operators produced goods using machines and the maintenance group was dedicated with

work of maintaining those machines, however with the automation of Nippondenso, maintenance became a problem as more maintenance personnel were required. So the management decided that the routine maintenance of equipment would be carried out by the operators. ( This is Autonomous maintenance, one of the features of TPM ). Maintenance group took up only essential maintenance works.

Thus Nippondenso which already followed preventive maintenance also added Autonomous maintenance done by production operators. The maintenance crew went in the equipment modification for improving reliability. The modifications were made or incorporated in new equipment. This lead to maintenance prevention. Thus preventive maintenance along with Maintenance prevention and Maintainability Improvement gave birth to Productive maintenance. The aim of productive maintenance was to maximize plant and equipment effectiveness to achieve optimum life cycle cost of production equipment.

By then Nippon Denso had made quality circles, involving the employees participation. Thus all employees took part in implementing Productive maintenance. Based on these developments Nippondenso was awarded the distinguished plant prize for developing and implementing TPM, by the Japanese Institute of Plant Engineers ( JIPE ). Thus Nippondenso of the Toyota group became the first company to obtain the TPM certification.


In present days, world manufacturing environment already becomes more industrious and overloaded. Moreover it is trended and become more vital point as elimination of waste. Otherwise that organization can’t survive in the industry. Therefor it is must to eliminate the root cauls of waste generating points. Waste generated due to the failure of facilities which has incurred huge investment and waste such as defective products should be absolutely eliminated

Considering any company, institute or department there is a loss which occur in production or any process. According to TPM there are 16 loss and among them there is 8 major losses. Moreover TPM address all above 16 losses and by applying TPM, it is very less complex to improve profitability of the company.

As mention above TPM reduce the 8 major equipment losses to zero has been recognized as necessary for corporate survival. The change over time which is more vital in lead time reduction is included in the 8 major losses.

Furthermore, considering profit management in any company product quality is more vital point in peasant days. Nowadays industry is more competitive and by causing that point it is not allowed to have even one defective product in the market. Quality Assured Perfect Line (SAPL) concept is the solution for this problem which is in TPM and by with that one, the delivery of total quantity is now taken for granted.

If talking about profitability, it is very important point is safety. Safety must be part in all business, producing or any other activities in the company. One way to have a direct effect on profitability is your workers’ compensation (WC) insurance cost. A factor used by insurance companies to develop the premium for WC coverage is called the Experience Modification Factor. It must breakdown and by that we can improve the profitability of the company.

Another way to look at safety and its impact on company profits is the cost of a claim. Direct costs of claims include medical and compensation or indemnity payments. These are paid by the insurance company. Indirect or hidden costs include but are not limited to lost time of a supervisor investigating a claim, loss of efficiency due to breaking up a crew, and time for hiring a new employee. Let’s look at this example. If an accident has direct costs of $20,000, the indirect costs can range from four to 10 times, or $80,000 to $200,000. Indirect costs come out of the bottom line of a company. Because they are not insurable, they have a negative impact on profitability.

Good contractor safety and performance records are no longer preferred they are considered a necessity for survival. Not only is safety a smart investment, but good performance gives companies a competitive advantage. By TPM is address safety point briefly. 5S is foundation concept in TPM which is very useful to create work friendly environment where Safety Health and Environment pillar of TPM builds a Safety Assured Perfect Line (SAPL) and an Environment Assured Perfect Line(EAPL). ;Protect the environment, the environment protects people.;
Other than the 8 major equipment losses there are another 8 losses which is addressed under TPM. 5 major losses in management which effects labor productivity and
3 major losses which directly impact the manufacturing cost. We call it cost loss. It is

Energy, Consumables and Yield loss. Accordingly, the introduction of TPM to reduce the

16 major losses to zero in the manufacturing process and challenging zero accident for corporate survival is required. Once these 16 losses are converted into cost, you could realize the importance of TPM for your business. The loss cost matrix will be an eye opener


As a pioneer in TPM, JIPM has introduced 12 steps to implement TPM successfully. They are:-

1. Top management declares its commitment to introducing TPM

2. TPM orientation session and education campaign

3. The site’s basic TPM policy and targets are set

4. TPM promotion organization is established, and management- led pilot model are commenced
5. TPM implementation master plan is prepared

6. TPM official Kickoff

7. Establishment of a system to maximize production effectiveness by introducing

8 pillars

8. Establishment of early management for new products and equipment

9. Establishment of a system for quality maintenance

10. TPM in administration and support department

11. Establishment of safety, health and environment system

12. TPM is fully implemented and upgraded.

In detail, it starts with an official declaration by the CEO/MD that the company is introducing TPM as a strategic approach for survival. For that, this should be board meeting minute. Activities are like allocate budget for training, 5s implementation.

Then the 2nd step awareness begins across the organization "Introductory education and campaign of TPM" starting from top management. The content and the duration will differ
from category to category. Like Top management training campaign should be at lease


after this session atlases 8 persons should be certified in company for future journey. Moreover, all employees should train

– What is TPM

– Why TPM

– What if we don’t TPM

Likewise, the third step is establishing a TPM promoting organization and a pilot model. From a matrix organization which is composed of a horizontal organization like a TPM promotion committee or the project teams and a vertical organization, which is the regular company organization is combined, and also to form the all –employees’ participation type of organization consisting of small overlapping groups. Basic policies are then set with targets for TPM and creation of master plan for developing TPM. Once the 5th step is completed, you are ready for TPM kick off and gradually move to other steps which address all activities of the eight pillars in detail.


There are lot of definitions for Lean and among them,

– Identifying and systematically elimination of waste and reducing incidental activities.

– Double the output with half the resources in half the time

– Another way of looking at lean is that aims to achieve the same output with less human effort, less space, less equipment, less inventory and less time.

– When considering TPM and Lean, “TPM is a supportive tool for lean manufacturing. Lean is eliminating waste which you didn’t see before (Motion, Transportation, Over processing, Over Production). But these are not burning Issues in any manufacturing process, organization, or company. burning issues are like Backdown, high defect rate, high change over time, etc… we must improve process and in parallelly can bring Lean. For Process improvement, must solve burning issues in production. Otherwise there isn’t any point to bring Lean to the company. then it is so easy to increase profit in the company. when simply Sayed, without TPM (Process improvement) it is impossible to do lean and increase profit in the company.


In TPM, the main objectives are 3Zzero accidents, zero defects, zero failures. To fulfil above objectives there are many key features in TPM concept. If use that key features correctively it is very possible to achive good profit to company. furthermore in TPM there is the system to measure effectiveness of TPM results, which is PQCDSM.

P- Productivity. Q- Quality
C- Cost

D- Delivery

S- Safety

M- Moral

When talking about TPM , there is 8 major Pillars. Once a high degree of stability is established using the 5S program, an organization can start implementing the total productive maintenance in earnest. Total productive maintenance has eight pillars that are aimed at proactively establishing reliability of machines. One point that must be made here is that people are center of this system and must be continuously trained to identify and eliminate waste. It is a system that is based on a clear set of principles and structures and should not be interpreted to be a set of tools or techniques to be applied haphazardly

When considering one by one of this pillars,

1. Focused Kaizen

The Kaizen is a continuous improvement process that helps organizations to ensure maximum quality and productivity by identifying, analyzing and eliminating various problems in the industry. A set of team is formed from peoples in various department of the industry. The Problems relating to the equipment are identified and improvement goals are set in kaizen event. During the events, the participants map the current state of affairs as a baseline performance measure on which they will compare any future performance after improvement. The team works together and come up with root cause of the problems and come up with solutions and ensure that its implemented and sustained.

2. Autonomous Maintenance

Autonomous Maintenance is a strategy where the operators of particular machine are responsible for machine adjustments and minor maintenance of that machine. Skill levels of workers increase as they understand the general working of equipment thus achieving the multi-skilling objective of a lean organization Capital investments are drastically reduced because the organization has reliable equipment. The lifespan of machines are drastically increased as forced deterioration is checked through constant monitoring and maintenance.

3. Planned Maintenance

Planned maintenance is the scheduling of maintenance activities based on observed behavior of machines such as failure rates and breakdowns. Production functions can build up some inventory to allow for the planned maintenance to be carried out as they have prior information of when these activities are scheduled. By constantly scheduling maintenance activities, the number of breakdowns gradually decreases and this then increases the capacity for productive activities.

4. Early Equipment Maintenance

Early equipment maintenance is to build in high efficiency from the design stage. EEM will help to design equipment in a way that it is easy to operate and maintain and is delivered to site in a condition that is equal to autonomous maintenance standards. The productivity as well as output quality of the machines is also guaranteed from the very first day when the equipment is commissioned. Below factors to be considered in EEM

– Ease of cleaning, lubrication and inspection

– Accessibility of equipment parts

– Make the machines easier to operate taking care of ergonomic aspects.

– Making it easier for the changeover to take place through simplification of procedures or eliminating the unnecessary ones
– Feedback mechanisms that prevent out-of-spec situations as well as clear indications of the correct specifications for quality products
– Increased safety features

5. Quality Maintenance

This TPM pillar addresses the issue of quality by ensuring equipment is able to detect and prevent errors during production. By detecting errors, processes become reliable enough to produce the right specification the first time and so cost of poor quality can be reduced. Using lean tools such autonomation (jidoka) and andon, machines detect and report any abnormal conditions, thereby releasing the operators from the tedious monitoring. Targeted improvement activities address quality issues that arise from time to time in the workplace by coming up with permanent countermeasures.

6. Training and Education

TPM education and training pillar is a companywide initiative that involves all levels in the organization from the operators to senior managers Through training, operators’ skills levels are raised to the point where they are able to carry-out basic maintenance activities that were previously the activity of maintenance staff The technical staffs are taught higher level skills such as preventive maintenance and analytical skills to help become more proactive in problem solving. Managers also learn the TPM skills so as to become competent mentors to their juniors as well as be involved in coaching programs.

7. Safety, Health ; Environment

The health, safety and environment pillar of total productive maintenance ensures that all workers are provided with an environment that is safe and the conditions that are harmful to their well-being are eliminated. When workers are in a safe environment, their attitude towards work changes dramatically with a resultant increase in important metrics such as productivity. The cross-functional teams will work towards making machines safe to use by the operators by putting in place such features as guards, works standards, use of personal protective equipment and first-aid kits in the work area. Each of these measures is aimed at improving the safety of the machines so as to have a more productive work- force.

8. Office TPM

Make all supportive functions to understand and apply the principles of lean in their own operations makes it easy for them to provide efficient service to the main value- creating processes. The TPM principles can also be applied as stand-alone techniques to improve the efficiency of these supportive functions. For example, if the administrative functions are able to improve their order processing procedures, then the material will get to the shop-floor in a flawless manner which will have a positive effect on the workflow. If suppliers are paid on time, they will have the ability to provide the services that they have been contracted to give without any problem.

Therefor according to above description of 8 pillars they are directly helps for

PQCDSM and it will helps for improve profit of the company. further more

Improve Cash Flow

(Improve sales and productivity)
Cash Inflow

(Eliminate Constraints and losses in sales)

Cash Outflow

(Eliminate Constraints and losses in Production)
TPM in Sales
=(Increase sales) TPM in Production
(Reduce cost of productivity)

Therefor by it’s can say very clearly, by Appling TPM to company we can improve productivity and parallel of that improve profit of the company. furthermore, when considering profit improvement,

Profit improvement = impro. Of revenue sales + Cost Reduction + Quality Impro. + Quick
Delivery + Value added service

By TPM, it addresses above all factors and it will help for improve profit of the company. when considering Quality factor, Appling TPM it will reduce cost of quality and it affect to profit improvement. In here,

Cost of quality = Cost of control + Cost of failure of control


Today, with competition in industry at an all-time high, TPM may be the only thing that stands between success and total failure for some companies. It has been proven to be a program that works. It can be adapted to work not only in industrial plants, but in construction, building maintenance, transportation, and in a variety of other situations. Employees must be educated and convinced that TPM is not just another "program of the month" and that management is totally committed to the program and the extended time frame necessary for full implementation. If everyone involved in a TPM program does his or her part, an unusually high rate of return compared to resources invested may be expected. If all there are doing well TPM is totally help for improve profit of company or any organization. There for TPM stand for Total profit management of any company.