Page 22 - TPM A Route to World-Class Performance

TPM-from total productive maintenance to total productive manufacturing 3

I Supply penaky losses I

Figure 1.3 Supply chain hidden losses

than twice as high as the initial purchase price. Through TPM the useful life
of equipment is extended; you can therefore get more from your investment.
Thirdly, if capacity can be increased to consistently achieve its design potential,
then the fixed cost per unit will be significantly, and quite often many times,
reduced.

1.3 Attacking the hidden losses

Many companies attack the direct, visible costs without considering the lost
opportunity hidden costs.
To do either in isolation is both narrow and ineffective, What TPM does is
to attack the hidden losses and ensure value for money from the direct
manufacturing effort. The combined strategy will result in a dramatic benefit.
This approach is sometimes called ‘Cost deployment using TPM’. It could
more appropriately be called Loss deployment, as it focuses on both cost and
opportunities for added value.
Company-wide TPM starts by attacking the six classic shopfloor losses
affecting equipment effectiveness (see page 5). This is the main focus of
shopfloor teams. Figure 1.4 shows the relationship between these losses to be
addressed at each management level and the added value in terms of increased
competitiveness.
The volume of throughput is a key determinant of unit cost. It is easy for
management under pressure to concentrate on satisfying current demand
rather than growing future business.