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Overall Equipment Effectiveness (OEE)
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Mean Time Between Failures (MTBF) and Mean Time To Repair (MTTR)
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Planned Maintenance Ratio (PMR)
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Rate of Improvement (ROI)
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Employee Involvement Index (EII)
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Here’s what else to consider
Total Productive Maintenance (TPM) is a holistic approach to optimize the performance and reliability of manufacturing equipment and processes. It involves the participation of all employees, from operators to managers, in maintaining and improving the equipment they use. But how can you measure the success of TPM implementation in manufacturing? What are the key performance indicators (KPIs) that reflect the benefits of TPM? In this article, we will discuss some of the common and effective TPM KPIs and how to use them to evaluate your TPM progress and results.
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- Aadik Goel, CA, MBA Ivey MBA | Ex-KPMG | Ex-Entrepreneur | Continuous Learner
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- Ercio Prado Manufacturing Engineer | Process improvement | Project Management
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- Ramaprasad E T PGPEx-VLM Co'24 | IIM Calcutta | IIT Kanpur | IIT Madras
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1 Overall Equipment Effectiveness (OEE)
One of the most widely used and comprehensive TPM KPIs is Overall Equipment Effectiveness (OEE). OEE measures how well your equipment performs in terms of availability, performance, and quality. It is calculated by multiplying the three factors: availability (the ratio of actual operating time to planned production time), performance (the ratio of actual output to ideal output), and quality (the ratio of good products to total products). OEE can be expressed as a percentage, with 100% being the ideal state of no downtime, no speed loss, and no defects. OEE can help you identify and eliminate the six major losses that affect equipment performance: breakdowns, setup and adjustments, idling and minor stops, reduced speed, defects and rework, and startup losses.
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- Aadik Goel, CA, MBA Ivey MBA | Ex-KPMG | Ex-Entrepreneur | Continuous Learner
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To measure the success of TPM in manufacturing, look for clear signs like machines running more efficiently, less downtime, and a more engaged workforce. If after implementing TPM, your production line is more streamlined, your team is happier, and your outputs are better, you're definitely doing something right.
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- Ercio Prado Manufacturing Engineer | Process improvement | Project Management
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You can measure the success of implementation using various key performance indicators (KPIs), such as machine availability. If there's an increase in machine availability post-TPM implementation, it indicates signs of reduced unplanned downtime.In my experience with TPM implementation, one of the crucial aspects addressed was operator involvement. Allowing operators to comfortably share daily issues increased employee engagement with preventive maintenance practices and the TPM culture.
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- Peter Hofmann, MBA Manufacturing Consultant at DXC Technology
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At first sight OEE is a "simple" outcome based measurement. Gaining insights into how OEE can be improved is a different story.That is where IIOT data become very useful. Collecting, consolidating, analyzing and visualizing the data at different levels will help to systematically understand where and how the OEE can be improved. That is where manufacturing operations can make sense of the data and drive specific improvements. Ultimately, these improvements result in an improved OEE - and bottom line.
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- Er. Ram Teja Ganta Senior QA/QC (Mech) Professional > Manufacturing | Metal Fabrication | Machinery | Farm Equipment | Energy
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OEE measures the percentage of planned production time that is truly productive. Many manufacturing lines are only 60% productive, meaning there are tremendous opportunities for improvement. So, as a benchmark, what is considered a “good” OEE score? * 100% OEE is perfect production: manufacturing only good parts, as fast as possible, with no stop time.* 85% OEE is considered world class for manufacturers(mass production). For many companies, it is a suitable long-term goal.* 60% OEE is fairly typical for manufacturers, but indicates there is scope for improvement.* 40% OEE is not at all uncommon for manufacturing companies that are just starting to track and improve their manufacturing performance.
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Measure the success of Total Productive Maintenance (TPM) implementation in manufacturing by tracking key performance indicators (KPIs) such as Overall Equipment Effectiveness (OEE), mean time between failures (MTBF), mean time to repair (MTTR), equipment downtime, and maintenance costs. Additionally, consider improvements in safety, employee engagement, and product quality.
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2 Mean Time Between Failures (MTBF) and Mean Time To Repair (MTTR)
Another pair of TPM KPIs that indicate the reliability and maintainability of your equipment are Mean Time Between Failures (MTBF) and Mean Time To Repair (MTTR). MTBF measures the average time that your equipment operates without interruption or failure. It is calculated by dividing the total operating time by the number of failures. MTTR measures the average time that it takes to restore your equipment to its normal operating condition after a failure. It is calculated by dividing the total downtime by the number of failures. MTBF and MTTR can help you assess the effectiveness of your preventive and corrective maintenance activities, as well as the root causes and frequency of failures.
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- Ramaprasad E T PGPEx-VLM Co'24 | IIM Calcutta | IIT Kanpur | IIT Madras
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I have seen both these metrics showing tanngible improvements and giving 'instant gratification' to the teams involved. More number of minor breakdowns and lubrication activities get addressed by production operators. Those who work closely with the machines have become better at spotting issues that could turn into major breakdowns, allowing for proactive action. Plus, root cause analysis has gotten much better, benefiting from different viewpoints of both shopfloor workmen, maintenance technicians and engineers. So, I strongly suggest closely tracking Mean Time Between Failures (MTBF) and Mean Time to Repair (MTTR) as vital metrics for assessing TPM success.
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- PAVAN KUMAR REDDY C Assistant Manager - Production|| Jubilant Foodworks || Former-Licious || Former-Godrej Jersey || University Honour Graduate || IIM-V || Author
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MTBF and MTTR metrics offer invaluable insights into equipment reliability and maintenance responsiveness, respectively. A prolonged MTBF coupled with minimized MTTR post-TPM implementation delineates a proactive maintenance regime capable of forestalling unplanned breakdowns and swiftly rectifying equipment failures. The juxtaposition of these metrics underscores the efficacy of TPM methodologies in fostering a culture of preventive maintenance and rapid fault resolution, thereby bolstering production continuity and minimizing disruptions.
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Mean Time Between Failures (MTBF) and Mean Time to Repair (MTTR): Measure the average time between equipment failures and the time taken to repair them. A successful TPM implementation should increase MTBF and decrease MTTR.
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3 Planned Maintenance Ratio (PMR)
Another TPM KPI that reflects the quality and efficiency of your maintenance system is Planned Maintenance Ratio (PMR). PMR measures the proportion of planned maintenance activities to total maintenance activities. It is calculated by dividing the planned maintenance time by the total maintenance time. PMR can be expressed as a percentage, with a higher value indicating a more proactive and structured maintenance approach. PMR can help you reduce the occurrence of unplanned and emergency maintenance, which can disrupt your production schedule and increase your costs and risks.
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- Yichao Xue Full cycle product development and supply chain professional
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- Planned downtime is merely a plan and it needs to be constantly reviewed and verified until the setup is realistic and align with the company goal.- In my line of business, I will not allow a planned DT over 5% of total production time. Though it can also be different based on different ranges of business.- When it comes to improvement of DT, always understand the true root cause of a failure rather than an actions of mitigation. This mindset can help really solve the problems buried underneath.
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- PAVAN KUMAR REDDY C Assistant Manager - Production|| Jubilant Foodworks || Former-Licious || Former-Godrej Jersey || University Honour Graduate || IIM-V || Author
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PMR elucidates the proportion of scheduled maintenance activities vis-à-vis unscheduled interventions, reflecting the degree of proactive maintenance planning and execution. A heightened PMR following TPM implementation signifies a shift towards preventive and predictive maintenance paradigms, reducing reliance on reactive measures. This transition towards planned maintenance regimes not only augments equipment reliability and longevity but also engenders cost efficiencies by averting costly downtime and emergent repairs.
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4 Rate of Improvement (ROI)
Another TPM KPI that shows the impact of your continuous improvement efforts is Rate of Improvement (ROI). ROI measures the rate of change in your performance indicators over time. It is calculated by dividing the difference between the current value and the previous value of a performance indicator by the previous value. ROI can be expressed as a percentage, with a positive value indicating an improvement and a negative value indicating a deterioration. ROI can help you monitor and evaluate the progress and results of your improvement projects and actions, as well as the sustainability and consistency of your performance.
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- PAVAN KUMAR REDDY C Assistant Manager - Production|| Jubilant Foodworks || Former-Licious || Former-Godrej Jersey || University Honour Graduate || IIM-V || Author
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The ROI metric encapsulates the tangible returns accrued from TPM investments, encompassing cost savings, productivity enhancements, and quality improvements. A discernible uptick in ROI subsequent to TPM implementation validates the efficacy of strategic investments in maintenance practices, technology upgrades, and workforce development initiatives. Moreover, ROI analysis facilitates informed decision-making and resource allocation, ensuring sustained momentum in TPM initiatives and maximizing organizational value creation.
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5 Employee Involvement Index (EII)
Another TPM KPI that demonstrates the level of engagement and participation of your employees in TPM activities is Employee Involvement Index (EII). EII measures the ratio of employees who are actively involved in TPM to the total number of employees. It is calculated by dividing the number of employees who participate in TPM teams, suggestions, trainings, audits, or other TPM initiatives by the total number of employees. EII can be expressed as a percentage, with a higher value indicating a more empowered and motivated workforce. EII can help you foster a culture of ownership and collaboration among your employees, as well as enhance their skills and knowledge.
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All options are great output KPIs of a successful TPM implementation but I strongly believe that TPM drives cultural change bringing accountability to teams and empowerment for decision making. This is the most important evidence of a successful TPM implementation.
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- Er. Ram Teja Ganta Senior QA/QC (Mech) Professional > Manufacturing | Metal Fabrication | Machinery | Farm Equipment | Energy
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Employee Involvement Index, but I seen another terminology Employee Engagement Index. However It is a critical aspect of any company's success and can have a significant impact on productivity, customer satisfaction, and financial performance. Measuring employee engagement is not that straightforward, as it is a combination of motivation, happiness, satisfaction, and commitment, which are not as easy to measure. The first step in determining which metrics to measure is to assess the current state of employee engagement within your company. This can be done by conducting surveys or focus groups with employees, asking them questions about their job satisfaction and commitment levels.
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- PAVAN KUMAR REDDY C Assistant Manager - Production|| Jubilant Foodworks || Former-Licious || Former-Godrej Jersey || University Honour Graduate || IIM-V || Author
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Beyond quantitative metrics, the qualitative dimension of TPM success is epitomized by the Employee Involvement Index (EII), gauging the level of workforce engagement and ownership in maintenance processes. A thriving EII post-TPM implementation underscores a culture of continuous improvement, wherein employees are empowered as proactive stewards of equipment reliability and operational excellence. Cultivating a sense of ownership and accountability fosters a collaborative ethos conducive to innovation, knowledge sharing, and collective problem-solving, thereby fortifying the foundation of TPM success.
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- Ramaprasad E T PGPEx-VLM Co'24 | IIM Calcutta | IIT Kanpur | IIT Madras
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TPM is about empowering people to end the war between man and machine. The frontline warriors are the shop floor workmen who know the heart of the machines as they are the ones working closely and engaging with them. Sustaining TPM in the long run requires improved morale and some overlapping skill sets within members of different teams.Therefore, metrics such as participation rates in suggestion schemes, 5S health check scores, volume and quality of kaizen suggestions, job satisfaction scores, and performance in training programs are invaluable in assessing the efficacy and sustainability of TPM implementation.
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6 Here’s what else to consider
This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?
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- Miguel Arredondo Plant Manager | Operations Consultant | Manufacturing Process Improvement
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Make sure to establish a Baseline before you start, using data. Calculate the metrics you select on your own in necessary. Without clear measurements you will not know if you did the right things. Then make sure the calculations you make to measure progress are done in the same exact manner with data collected in the same way, with the same sources and formulas.
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- kedarnath maharana
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Mean Time to Repair (MTTR): This measures the average time taken to repair equipment failures, indicating improved maintenance response and efficiency.Maintenance Costs: Lower maintenance costs suggest more efficient use of resources and reduced waste.Safety Performance: Improved safety records, such as fewer accidents or incidents, can reflect a safer and more efficient working environment resulting from TPM practices.Quality Metrics: Improvements in product quality, reduced defects, and fewer rejections can be indicators of TPM success, as proactive maintenance can prevent issues affecting product quality.
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1. The success of Total Productive Maintenance (TPM) implementation in manufacturing can be measured using key performance indicators (KPIs) and metrics.2. Key metrics include Overall Equipment Effectiveness (OEE), equipment downtime reduction, and maintenance costs.3. OEE measures equipment efficiency based on availability, performance, and quality.4. Reduced unplanned downtime indicates successful TPM implementation.5. Lower maintenance costs post-TPM suggest improved equipment reliability.6. Mean Time Between Failures (MTBF) and Mean Time to Repair (MTTR) are important metrics to track.7. Regular monitoring and continuous improvement efforts are essential for sustaining the benefits of TPM in manufacturing operations.
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- Roger Borycki Helping Companies Improve | Reliability | Operations | Maintenance | Engineering
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A couple of elements that are important but not directly measurable. Safety, better plant knowledge reduces risk. To personnel to plant and equipment.Enhanced skill sets for operators provide them with the information and understanding to directly impact quality losses. (typically, not focused on in a maintenance led initiative. Better CMMS utilization from operations, (it should be part of the operations training/refreshing).A better running operation, with employees being trained and seeing the benefits of their input, should help with retention.
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- Ramaprasad E T PGPEx-VLM Co'24 | IIM Calcutta | IIT Kanpur | IIT Madras
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In my opinion, metrics should be broadly categorized into quantitative and qualitative dimensions. From my experience, qualitative aspects hold greater significance for sustaining TPM initiatives, as they require the active engagement of individuals who contribute through their practical knowledge and collaborative teamwork. It's essential to recognize that many manufacturing firms continue to operate relying heavily on tacit knowledge specific to their industry and department. Therefore, along with strategic clarity and a strond 5S foundation, prioritizing qualitative metrics, that assess employee engagement, teamwork, knowledge sharing & problem-solving abilities, can be critical in such environments.
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