The Grey Chronicles


TPM: GSPI Experience

Total Productive Maintenance [TPM] was developed by Seiichi Nakajima, Vice Chairman of the Japan Institute of Plant Maintenance, from his studies on preventive maintenance and visits in American and European manufacturing plants in 1950s to 1960s. He introduced TPM in Japan in 1971.

The changes Nakajima proposed for manufacturing environments were long overdue:

“TPM is an innovative approach to maintenance that optimizes equipment effectiveness, eliminates breakdown, and promotes autonomous operator maintenance through day-to-day activities involving the total workforce. . . . TPM’s cooperative effort dramatically increases productivity and quality, optimizes equipment life cycle cost, and broadens the base of every employee’s knowledge and skills, by increasing their motivation (yaruki) and competency (yaruude).”

The most important features of TPM are 1) activities to maximize equipment effectiveness; 2) autonomous maintenance by operators, and 3) company-led small group activities:

“Maximizing equipment effectiveness requires the complete elimination of failures, defects and other negative phenomena — in other words, the wastes and losses incurred in equipment operation. This goal is consistent with Philip Crosby’s philosophy of zero defects (ZD). . . Autonomous maintenance by operators maybe difficult to introduce where operation and maintenance were clearly separated. . . Company-led small group activity is consistent with Likert’s participative management model, with Ouichi’s Theory Z management, and with Peters and Waterman’sdefinition of the excellent company in In Search of Excellence

The Twelve Steps of TPM Implementation

The Twelve Steps of TPM Implementation

TPM was introduced at Global Steel Philippines (SPV-AMC), Inc. [GSPI] early July 2004, as one of its management initiatives, the other was Six Sigma, adopted from Ispat International Ltd. According to management estimates, it would take GSPI by the end of the year 2008 to prepare, introduce, implement, complete, stabilize (following the twelve steps of TPM development) and improve maintenance. By 12 March 2008, GSPI would receive the TPM Excellence Award-1st Category (GSPI Flash TPM, February 2008).

Interestingly, GSPI have completed the 12 steps within 44 months, or three years and eight months. An admirable feat considering that most TPM Prize awardees took an average of at least three years of TPM development. Therefore, GSPI is in the third stage of TPM development: stabilization.

Typical manufacturing operations have experienced improvements in the following areas in a relatively short period of time (6-12 months) through the implementation of TPM (IMEC, 2005):

• Overall Equipment Effectiveness (capacity) improvement of 25-50%
• Quality improvement of 25-50%
• Maintenance expenditure reductions of 10-50%
• Percent Planned vs. Unplanned maintenance increase of 10-60%

The question now: how do GSPI fared with these expectations? Figures such as these are never publicly disclosed by GSPI, thus to do the next best thing, this post asks these following questions:

  1. If OEE improved, did capacity utilization improved as well?
  2. If Quality improved, did customers complaints declined?
  3. If Maintenance improved, see related post.
  4. If Productivity improved, see related post.


Illinois Manufacturing Extension Center (2005). Total Productive Maintenance. Illinois: Illinois Manufacturing Extension Center, 2005. back to text

Molina, Gay (ed.) (2008) , “GSPI Gets JIPM Confirmation for TPM Excellence Award—1st Category.Flash TPM. Issue 18. Iligan City: GSPI, February 2008. back to text

Nakajima, Seiichi (1988). TPM: Introduction to Total Productive Maintenance. Oregon: Productivity Press, 1988, 128 pp. Translated from TPM nyümon originally published by the Japan Institute for Plant Maintenance, Tokyo: 1984. back to text

Peters, Thomas J. & Waterman, Robert H. (1982). In Search of Excellence. New York: Harper & Row, 1982. back to text

Disclaimer : The posts on this site are my own and doesn’t necessarily represent the Global Steel Pilippines (SPV-AMC), Inc., Ispat Industries Ltd, or National Steel Corporation’s positions, strategies or opinions.


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