Company-wide TPM is about maximizing added value and eliminating waste across the supply chain in order to satisfy and exceed our customers' expectations

Figure 1.1 The value stream the sense of Overall Equipment Effectiveness (OEE), autonomous maintenance, 5 Ss, clean machines and so on, but rather as the proven roots and origins for applying company-wide TPM (see Figure 1.2).

The original fifth pillar of TPM, Early Equipment Management or TPM for Design, links well with the broader view that TPM stands for Total Productive Manufacturing. As such, it is not a Maintenance Department-driven initiative, but actually brings production and maintenance together as equal partners under the umbrella of manufacturing.

Similarly, 'TPM in the Office' is better served by broadening the application of these sound and proven principles into 'TPM in Administration', embracing all support functions such as sales, marketing, commercial, planning, finance, personnel, logistics, stores and information technology (IT). Company-wide TPM recognizes that:

• if equipment OEE improves but the overall door-to-door time remains the same, the waste is not removed;

• if equipment capability improves but quality standards remain the same, a potential area of competitive advantage is lost;

• if knowledge gained about the process does not produce higher rates of return on investment, the organization is not making the best use of its capabilities;

• if capability is increased but this is not met by generation of new business, an opportunity to reduce unit costs is lost.

1.2 Presenting the business case: what is Overall Equipment Effectiveness?

The true costs of production are often hidden. TPM addresses an 'iceberg' (Figure 1.3) of supply chain losses. Secondly, total life cycle costs can be more

Figure 1.2 The value stream and TPM
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.

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