COSTS AND BENEFITS OF TPM
It appears that maintenance costing has always been conducted in a cavalier manner without real effort in trying to incorporate all costing aspects. The various costs of maintenance can be represented by a curve.
Conclusions of the survey:
A survey conducted by the Department of Trade and Industry (DTI) in the UK to establish best practice in relation to maintenance, has come up with the following conclusions:
- Maintenance is not always considered at company executive level;
- Most companies seem to ignore the real cost of downtime in terms of lost sales opportunities;
- Within manufacturing industry, only 3.7% of annual sales revenue is spent on maintenance of operations equipment;
- The survey has also concluded that with good maintenance management the above costs can be drastically reduced and plant availability can be increased to lead to up to 30% increase in profitability.
Areas for maintenance costing:
Classification of the impact of TPM on productivity levels:
The impact of TPM on productivity levels can therefore be classified both at a tactical/operational level and at the strategic level:
- At the tactical level, optimization of resources/assets leads to optimum productivity levels;
- At the strategic level, the provision of a flexible, stable, efficient and reliable manufacturing facility means that market-driven demand can be met and satisfied all the time.