Measurement of cost reduction gained with total productive maintenance applications

Total productive maintenance (TPM) is increasingly being seen as a suitable initiative/techniquefor effectively involving the workforce in manufacturing based organizations to obtain increasedproductivity and add new impetus to total quality (TQ) efforts.This study, after outlining the concept of TPM and how it can be introduced into a company, triesto point out the relation of TPM, TQM and JIT and mainly aims to show the effect of TPM onproduction cost reduction.In the first part of this study, the concept, history and targets of TPM and the relationshipbetween TPM, Total Quality Management (TQM), and Just In Time (JIT) are explained . In thesecond part, 8 essential activities of TPM and calculation of the ?Overall equipment efficiency?are explained. The third part defines individual steps for a successful implementation TPM,whereas the fourth part outlines the role of small group activities in TPM implementation. In thefifth part, the measurement method of TPM?s effectiveness is explained. In the sixth part, theimpact of Total Productive Maintenance practices on costs are examined and a model issuggested to demonstrate how TPM applications reduce costs . In the seventh part, real lifeapplications in various companies are given as case studies and the impact of TPM on costreduction are shown.Both using theoretical methods and utilizing case studies from 3 different manufacturingcompanies, it is concluded that TPM has an important contribution to reduction of productioncosts, helps keeping JIT in tact and that its implementation in a company is easier if TQMmethods are already available there.Keywords: Total Productive Maintenance, Autonomous Maintenance, 6 Major Losses, SmallGroup Activities, Cost Reduction