AROUTETO I iES3 PERFORMANCE Peter Willmott and Dennis McCarthy TPM -A Route to World-Class Performance TPM - A Route to World-Class Performance Peter Willmott and Dennis McCarthy UTTERWORTH EINEMANN Oxford Auckland Boston Johannesburg Melbourne New Delhi Butterworth-Heinemann Linacre House, Jordan Hill, Oxford OX2 8DP 225 Wildwood Avenue, Woburn, MA 01801-2041 A division of Reed Educational and Professional Publishing Ltd A member of the Reed Elsevier plc group First published 2001 0 Peter Willmott and Dennis McCarthy 2001 All rights reserved. No part of this publication may be reproduced in any material form (including photocopying or storing in any medium by electronic means and whether or not transiently or incidentally to some other use of this publication) without the written permission of the copyright holder except in accordance with the provisions of the Copyright, Designs and Patents Act 1988 or under the terms of a licence issued by the Copyright Licensing Agency Ltd, 90 Tottenham Court Road, London, England WlP 9HE. Applications for the copyright holder’s written permission to reproduce any part of this publication should be addressed to the publishers British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library Library of Congress Cataloguing in Publication Data A catalogue record for this book is available from the Library of Congress ISBN 0 7506 4447 8 Vpeset at Replika Press Pvt Ltd, 100% EOU, Delhi 110 040, India Printed and bound in-Great Britain by Biddles Ltd, Guildford and King’s Lynn Contents Foreword by Sir Ken Jackson Preface Acknowledgements Glossary of TPM terms Putting TPM into perspective from Total Productive Maintenance to Total Productive Manufacturing Assessing the true costs and benefits of TPM The top-down and bottom-up realities of TPM Techniques to deliver TPM principles The TPM improvement plan Applying the TPM improvement plan Planning and launching the TPM pilot Managing the TPM journey TPM for equipment designers and suppliers 10 TPM in administration 11 Case studies Index vii ix xi Xlll 1 17 23 62 78 116 145 165 181 193 212 247 Foreword The global market means we all have to reach world-class levels of performance. Those of us that don’t will be left behind. Big or small, private or public; there’s no hiding place from the winds of change. That’s why the AEEU recognized the value of TPM some years ago. We saw then that TPM could enable manufacturing and services industries to become the best in the world. Unlike TQM, which was conceptually sound, but patchy in outcome, TPM offers a new and invigorating approach. Involving everyone from shopfloor to boardroom, TPM is a team-based and freshly focused tool for success. And it can really help Partnership work. In many ways, it’s the missing link. TPM shows that cost reduction doesn’t just mean redundancy. Rather, it offers the opportunity for managers and the workforce to share the gains from reducing waste and boosting productivity and performance. Two years ago, I launched a new initiative called ’Partners in Success’. Built around the principles of TPM, it showed how unions and employers could raise their game and then share the rewards. And that message hasn’t changed. And it’s a pleasure to recommend another WCS publication on TPM. The AEEU has worked closely with Peter Willmott, Dennis McCarthy and others for some time now. We’ve been spreading the TPM message - at the DTI, throughout industry and at conferences and seminars in the UK and across Europe. That’s why this book will help organizations meet the challenges of the new knowledge economy. It is a tool for change and a guide through new markets. It ought to be on every practical manager’s bookshelf. Sir Ken Jackson General Secretary AEEU . Peter Willmott and Dennis McCarthy TPM -A Route to World-Class Performance TPM - A Route to World-Class Performance Peter Willmott and. Reed Educational and Professional Publishing Ltd A member of the Reed Elsevier plc group First published 2001 0 Peter Willmott and Dennis McCarthy 2001