13 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.

• Shopfloor - the machine or process: - floor-to-floor OEE
45% 'Value Chain' OEE: 16 Losses (80%)


55% door-to-door OEE (85%)


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