Notion of equipment effectiveness is a corner stone of Total Productive Maintenance
(TPM). It is a significant metric for studying the influence of productive equipments
and utilities on capacity utilization, quality, cycle time, resource allocation, costs, etc.
Equipment effectiveness contemplates an equipment-oriented management of
organization. Like the medical doctors get to think whether they like to see themselves
as health managers or disease managers, the option for business doctors is whether
they should be known as uptime managers or downtime managers. Outlook determines
initiatives and changes the focus from one way to the other. Takahasi and Osada
(1990), in their pioneering TPM studies1, chronicled the total productive maintenance
practice as ‘among the most effective methods for transforming a factory’ into a more productive entity. According to Takahasi and Osada, toward management of timestamped
output per time period, five M-elements of plant management inputs are
controlled through six output performance measures: P (Production), Q (Quality), C
(Cost), D (Delivery), S (safety), and M (Morale). Six ‘big’ losses of breakdowns, setup
and adjustments, short stoppage and idle runs, reduction in speed and short batches,
defective processes (including rework) and decline in startup and yield, are to be
monitored and controlled to improve on each of the above six performance measures.
Operation Time Ratio, Operating Speed Rate and Rate of Quality Products are given
as the respective evaluation yardsticks for two each of the losses in order.
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