Abstract
Substantial capital investments are required for manufacturing almost all goods of economic significance. The productivity of these investments enable companies and nations to compete. The maintenance of capital investments involves significant recurring expenses. For example, in 1991, DuPont s expenditure on company-wide maintenance was roughly equal to its net income. Maintenance expenses vary depending on the type of industry; however, they are typically 15–40% of production costs. Companies attempt to control maintenance costs by keeping them at a specified budget level, a level often based on the previous year’s expenses.
During the last decade, manufacturers found this approach to be insufficient. As companies have invested in programs such as JIT and TQM in an effort to increase organizational capabilities, the benefits from these programs have often been limited by unreliable or inflexible equipment. In the context of JIT & TQM use, rather than being seen simply as an expense that must be controlled, maintenance is now regarded as a strategic competitive tool. Total Productive Maintenance (TPM) has evolved as an effective program for improving equipment performance and increasing organizational capabilities.
TPM has resulted in significant improvements in plant performance. McKone, Schoreder, and Cua (1998) evaluated the impact of TPM practices on manufacturing performance and found that TPM has a positive and significant relationship with low cost (as measured by high inventory turns), high levels of product quality (as measured by higher levels of conformance to specifications), and strong delivery performance (as measured by higher percentage of on-time deliveries and by faster speeds of delivery). Their research indicates that TPM plays a significant role in improving manufacturing performance.
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McKone, K.E., Weiss, E.N. (2000). Total Productive Maintenance (TPM). In: Swamidass, P.M. (eds) Innovations in Competitive Manufacturing. Springer, Boston, MA. https://doi.org/10.1007/978-1-4615-1705-4_17
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DOI: https://doi.org/10.1007/978-1-4615-1705-4_17
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