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• Producing 10 per cent more in the same time increases return on capital employed by 20 per cent

• Producing the same in 10 per cent less time increases return on capital employed by 5 per cent (^reduced labour cost by 10 per cent)

• What is your organization's potential return on capital employed?

Figure S.10 OEE/loss relationship if it is possible, will not be enough. This will reduce unit cost to only £2.05. There are other hidden losses associated with redundancy - not least the barriers it presents to continuous improvement. Finding the additional demand will avoid the loss of 5p/unit.

Loss prioritization

Loss modelling allows a comparison of potential cost structures at current and forecast OEE levels and volumes. Using best of best and average OEE improvement curves, it is possible to predict forward the likely cash flow gains from improved OEE. These areas of loss avoidance can be both linked to the appropriate TPM techniques and allow resources to be focused and then deployed through the pillar champions to the shopfloor teams.

8.4 Steps to achieve the TPM vision

Experience of implementing TPM has shown that the route to world-class performance begins with eliminating sporadic losses. Once these are under control, the task of eliminating chronic losses is made easier. There are two main contributors to sporadic losses:

• equipment condition

Using TPM techniques, the route to addressing these factors takes around three years and is the main focus for the first two milestones of the master plan:

• Get everyone involved.

• Refine best practice and standardize.

This is the structured mechanism for the TPM master plan which integrates the vision and actions of the management team, providing consistent:

• prioritization

• expectations

• reward and recognition

As a result, skills are progressively developed so that:

• operators become technicians;

• maintainers become engineers;

• supervisors become managers;

• managers become entrepreneurs.

Milestone 1 Introduction, trial & prove the route

Milestone 2 Milestone 3 Milestone 4 Refine best Build Strive for zero practice . capability . losses & standardize _^ _

Milestone 1 Introduction, trial & prove the route

Milestone 2 Milestone 3 Milestone 4 Refine best Build Strive for zero practice . capability . losses & standardize _^ _

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