You become more productive by using your resources more efficiently.  By distributing the tasks and responsibilities around, you not only become more flexible and able to respond to changes more quickly, but involve more people in the improvement process.  Productivity comes from working smarter, not harder.  That is the difference between effectiveness and efficiency.   You can be effective without being efficient, but, the key to productivity is to do both.

Not only is TPM an excellent means of improving productivity, it was primarily designed to improve quality by eliminating equipment related defects.  Following the principle of Zero Defects, TPM focuses on improving equipment management to achieve Zero Defects in the product.  These are defects produced from poor machine design and manufacturing, insufficient training, deterioration, misuse, and neglect. Whoa, you say!!  You can’t get to Zero Defects…that means a perfect running process.  Well, the trick is to target Zero Defects and to move as close to it as possible.  Zero Defects becomes a goal––a state of mind that refuses to accept  poor quality. Getting as close to the goal as possible will obviously improve your quality over what it is now.  You must first fight the old mind-set that it can’t be done…it can.  

Many companies are already moving toward Six Sigma, a quality target that means 99.996% defect-free delivery.  By attacking problems that prevent you from getting to that goal in a systematic manner, you can realize a significant reduction in quality defects.  Estimates are that 50 to 95% of your quality problems come from how the equipment is designed, manufactured, operated, and serviced.  You have to admit your equipment can be a real _________!

TPM is also a way to improve delivery.  Just-In-Time is a process to streamline the process flow and therefore reduce waste.  TPM increases equipment availability by reducing downtime.  In fact, it is difficult to have a successful JIT process without addressing equipment related problems that “slow the flow.”  

Does this stuff make sense so far?  C’mon, let’s look at other ways TPM can help.  Be patient, we’re getting there.

Cost reduction is another area that TPM can affect.  A tremendous amount of the money spent on the manufacturing process goes toward maintenance related costs.   An average of 28%* of total sales can be for maintaining equipment and facilities––lost production due to breakdowns, contractors, overtime, parts, administration, labor, etc.  Many think that maintenance costs are just direct expenditures, but there are many associated costs.   A 4%* reduction in costs is the same as a 15% increase in sales.  The advantage is that you don’t have to add equipment or people.  By reducing your costs, you could sell most product at a lower price, thereby, increasing the level of business you bring in.  In fact, TPM allows you to increase your quality while reducing your costs and lead times for production.  That is the way to increase business. 

An important point is that you not only reduce your costs, but you optimize the money you do spend.  In other words, you get “more bang for the buck.”