Flevy Management Insights Case Study
Total Productive Maintenance Strategy for Forestry Operations in North America


Fortune 500 companies typically bring on global consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture, or boutique consulting firms specializing in Total Productive Maintenance to thoroughly analyze their unique business challenges and competitive situations. These firms provide strategic recommendations based on consulting frameworks, subject matter expertise, benchmark data, KPIs, best practices, and other tools developed from past client work. We followed this management consulting approach for this case study.

TLDR A North American forestry and paper products firm faced rising maintenance costs and declining equipment reliability due to inefficiencies in its Total Productive Maintenance processes. The strategic overhaul of these practices resulted in significant improvements, including an 18% increase in Overall Equipment Effectiveness and a 15% reduction in maintenance costs, highlighting the importance of aligning maintenance initiatives with production goals.

Reading time: 8 minutes

Consider this scenario: A North American forestry & paper products firm is grappling with inefficiencies in its Total Productive Maintenance (TPM) processes.

Despite a solid market position, the company has seen its maintenance costs soar while equipment availability and reliability have declined. The organization has recognized that to sustain its market share and improve profitability, a strategic overhaul of its TPM practices is imperative.



Given the organization's recent challenges with maintenance cost overruns and reduced equipment reliability, two hypotheses emerge: firstly, that there is a misalignment between maintenance activities and production goals; secondly, that there is insufficient training and engagement of frontline employees in TPM practices.

Strategic Analysis and Execution Methodology

Adopting a meticulous and structured Total Productive Maintenance methodology can substantially enhance the organization's operational efficiency and profitability. This methodology, often employed by top-tier consulting firms, will structure the project into clear, actionable phases:

  1. Initial Assessment and Planning: This phase focuses on understanding the current state of TPM in the organization. Key activities include reviewing maintenance records, interviewing staff, and benchmarking against industry standards. The goal is to identify gaps in the current TPM approach and develop a tailored project plan.
  2. Data Collection and Analysis: The second phase involves a deep dive into maintenance data to discern patterns and root causes of inefficiencies. Key analyses include equipment failure rates, maintenance turnaround times, and cost per maintenance activity. Insights from this phase will guide the development of improvement initiatives.
  3. Strategy Formulation: In this phase, we synthesize the data collected to formulate a TPM strategy that aligns with the organization’s production goals. This involves designing new maintenance processes, developing training programs, and establishing clear TPM roles and responsibilities.
  4. Pilot Implementation and Refinement: Before a full-scale rollout, a pilot implementation will test the new TPM processes. Feedback from this phase will be used to refine the strategy, address unforeseen challenges, and ensure that the strategy is robust and scalable.
  5. Full-scale Implementation: With a refined TPM strategy, the organization will proceed to implement the changes across all relevant operations. This phase requires rigorous project management to ensure timelines are met and the transition is as smooth as possible.
  6. Review and Continuous Improvement: The final phase involves establishing a review framework to monitor the effectiveness of the TPM strategy. This ensures that the organization can sustain improvements and adapt to future changes in production demands or technology.

For effective implementation, take a look at these Total Productive Maintenance best practices:

Total Productive Maintenance (TPM) (234-slide PowerPoint deck and supporting PDF)
Overall Equipment Effectiveness (OEE) (139-slide PowerPoint deck)
Total Productive Maintenance - 30 Templates (Excel workbook)
TPM: Planned Maintenance (Keikaku Hozen) (102-slide PowerPoint deck)
TPM Self-Assessment Guide & Tool (57-slide PowerPoint deck and supporting Word)
View additional Total Productive Maintenance best practices

Are you familiar with Flevy? We are you shortcut to immediate value.
Flevy provides business best practices—the same as those produced by top-tier consulting firms and used by Fortune 100 companies. Our best practice business frameworks, financial models, and templates are of the same caliber as those produced by top-tier management consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture. Most were developed by seasoned executives and consultants with 20+ years of experience.

Trusted by over 10,000+ Client Organizations
Since 2012, we have provided best practices to over 10,000 businesses and organizations of all sizes, from startups and small businesses to the Fortune 100, in over 130 countries.
AT&T GE Cisco Intel IBM Coke Dell Toyota HP Nike Samsung Microsoft Astrazeneca JP Morgan KPMG Walgreens Walmart 3M Kaiser Oracle SAP Google E&Y Volvo Bosch Merck Fedex Shell Amgen Eli Lilly Roche AIG Abbott Amazon PwC T-Mobile Broadcom Bayer Pearson Titleist ConEd Pfizer NTT Data Schwab

Total Productive Maintenance Implementation Challenges & Considerations

One key consideration is ensuring that the TPM strategy aligns with the overall business objectives of the organization. This requires a holistic approach to maintenance that incorporates financial, operational, and strategic perspectives.

Another consideration is the cultural change necessary for effective TPM. Employees at all levels must be engaged and trained to ensure that TPM practices are adhered to and that continuous improvement becomes a core part of the company culture.

Lastly, it is critical to establish clear metrics and targets for TPM performance. This enables the organization to track progress, identify areas for further improvement, and ensure that the TPM strategy delivers tangible business benefits.

Total Productive Maintenance KPIs

KPIS are crucial throughout the implementation process. They provide quantifiable checkpoints to validate the alignment of operational activities with our strategic goals, ensuring that execution is not just activity-driven, but results-oriented. Further, these KPIs act as early indicators of progress or deviation, enabling agile decision-making and course correction if needed.


A stand can be made against invasion by an army. No stand can be made against invasion by an idea.
     – Victor Hugo

  • OEE (Overall Equipment Effectiveness): Reflects the percentage of manufacturing time that is truly productive.
  • MTTR (Mean Time to Repair): Indicates the efficiency of maintenance interventions.
  • MTBF (Mean Time Between Failures): Measures the reliability of the equipment.
  • Cost per Maintenance Activity: Helps in understanding the financial efficiency of maintenance operations.

For more KPIs, take a look at the Flevy KPI Library, one of the most comprehensive databases of KPIs available. Having a centralized library of KPIs saves you significant time and effort in researching and developing metrics, allowing you to focus more on analysis, implementation of strategies, and other more value-added activities.

Learn more about Flevy KPI Library KPI Management Performance Management Balanced Scorecard

Implementation Insights

In implementing a TPM strategy, it is crucial to foster a cultural shift where every employee feels responsible for equipment maintenance. A study by McKinsey found that organizations with proactive maintenance cultures tend to reduce equipment failure rates by up to 30-50%.

Another insight is the importance of data in driving maintenance decisions. Advanced analytics can predict equipment failures before they occur, thus preventing costly downtime and extending equipment life.

Integrating TPM with other operational excellence initiatives can have a multiplicative effect on performance. For instance, TPM combined with manufacturing target=_blank>lean manufacturing principles can lead to significant improvements in production efficiency and quality.

Total Productive Maintenance Deliverables

  • TPM Assessment Report (PDF)
  • TPM Strategy Plan (PowerPoint)
  • TPM Training Toolkit (Word)
  • TPM Pilot Project Review (Excel)
  • TPM Performance Dashboard (PowerPoint)

Explore more Total Productive Maintenance deliverables

Total Productive Maintenance Best Practices

To improve the effectiveness of implementation, we can leverage best practice documents in Total Productive Maintenance. These resources below were developed by management consulting firms and Total Productive Maintenance subject matter experts.

Total Productive Maintenance Case Studies

A global paper manufacturing company implemented a comprehensive TPM program that led to a 20% increase in OEE within the first year. The program focused on employee engagement, standardized work, and predictive maintenance.

Another case involved a forestry equipment supplier that adopted TPM principles to streamline its maintenance processes. As a result, the company saw a 25% reduction in MTTR and a 15% decrease in maintenance costs over two years.

Explore additional related case studies

Alignment of TPM with Business Objectives

Ensuring that TPM initiatives are in lockstep with broader business objectives is paramount. A misalignment here could result in suboptimal investments or efforts that don't translate into desired business outcomes. In practice, this means that TPM must not only focus on the technicalities of maintenance but also contribute to strategic objectives such as cost reduction, quality improvement, and customer satisfaction.

According to a PwC study, companies that align their maintenance strategies with business priorities can improve their profit margins by up to 5% due to increased productivity and reduced waste. This demonstrates that TPM is not just a maintenance strategy but a strategic business initiative that requires C-suite attention and alignment.

Engagement and Training in TPM Practices

Employee engagement and training are the bedrock of a successful TPM program. Without buy-in from the workforce, the most well-designed TPM strategies can fail to gain traction. It is essential for employees to understand the value of TPM and their role within it. Training programs should not only impart technical knowledge but also foster a sense of ownership and pride in the maintenance of equipment.

Research from Deloitte highlights that companies with high employee engagement report 31% higher productivity and 37% higher sales. Therefore, investing in comprehensive training and engagement initiatives is not just about TPM - it's about boosting overall organizational performance.

Establishing Clear Metrics and Targets for TPM

Clear metrics and targets are indispensable for monitoring the effectiveness of TPM initiatives. These KPIs must be relevant, measurable, and aligned with the desired outcomes of the TPM strategy. They serve as a compass that guides the organization towards continuous improvement and operational excellence. Moreover, they provide a language for communicating the impact of TPM to stakeholders across the organization, including the C-suite.

A study by Accenture found that companies that use KPIs effectively are 5 times more likely to make timely decisions. Therefore, setting and rigorously tracking the right KPIs is not just a matter of measuring performance but also about enhancing the organization's decision-making capabilities.

Integration of TPM with Other Operational Excellence Initiatives

TPM should not exist in isolation but rather be integrated with other operational excellence initiatives such as lean manufacturing, Six Sigma, and continuous improvement programs. This integration can amplify the benefits of each initiative and lead to a more cohesive and powerful approach to operational excellence. It's about creating a synergy where the whole is greater than the sum of its parts.

According to BCG, companies that integrate their operational excellence programs see up to a 15% improvement in delivery performance and a 20% reduction in cost of quality. This underscores the value of a holistic approach to operational improvement that leverages the strengths of various methodologies and frameworks.

Additional Resources Relevant to Total Productive Maintenance

Here are additional best practices relevant to Total Productive Maintenance from the Flevy Marketplace.

Did you know?
The average daily rate of a McKinsey consultant is $6,625 (not including expenses). The average price of a Flevy document is $65.

Key Findings and Results

Here is a summary of the key results of this case study:

  • Improved Overall Equipment Effectiveness (OEE) by 18% through the alignment of TPM initiatives with production goals.
  • Reduced Mean Time to Repair (MTTR) by 25%, enhancing maintenance efficiency and reducing downtime.
  • Extended Mean Time Between Failures (MTBF) by 30%, indicating higher equipment reliability and performance.
  • Decreased cost per maintenance activity by 15%, reflecting financial efficiency gains in maintenance operations.
  • Increased employee engagement in TPM practices, leading to a 20% improvement in productivity metrics.
  • Integrated TPM with lean manufacturing principles, resulting in a 10% reduction in waste and a 5% improvement in production quality.

The initiative has been markedly successful, evidenced by substantial improvements across key performance indicators. The alignment of TPM initiatives with production goals directly contributed to an 18% improvement in OEE, a critical measure of operational efficiency. The reduction in MTTR by 25% and the extension of MTBF by 30% are indicative of enhanced maintenance efficiency and equipment reliability, respectively. Financial efficiency gains are highlighted by a 15% decrease in the cost per maintenance activity. Furthermore, the integration of TPM with lean manufacturing principles not only reduced waste by 10% but also improved production quality by 5%. These results underscore the effectiveness of the strategic overhaul of TPM practices, driven by a meticulous methodology and a focus on employee engagement and training.

For next steps, it is recommended to sustain and build upon these improvements through continuous monitoring and refinement of TPM practices. Establishing a more advanced analytics framework could further predict equipment failures and optimize maintenance schedules. Expanding the integration of TPM with other operational excellence initiatives, such as Six Sigma, could also uncover additional efficiencies and quality improvements. Finally, ongoing investment in employee training and engagement is crucial to maintaining a proactive maintenance culture and ensuring the long-term success of TPM initiatives.

Source: Total Productive Maintenance Enhancement Initiative for a Large-Scale Manufacturer, Flevy Management Insights, 2024

Flevy is the world's largest knowledge base of best practices.


Leverage the Experience of Experts.

Find documents of the same caliber as those used by top-tier consulting firms, like McKinsey, BCG, Bain, Deloitte, Accenture.

Download Immediately and Use.

Our PowerPoint presentations, Excel workbooks, and Word documents are completely customizable, including rebrandable.

Save Time, Effort, and Money.

Save yourself and your employees countless hours. Use that time to work on more value-added and fulfilling activities.




Read Customer Testimonials




Additional Flevy Management Insights

Biotech Firm Total Productive Maintenance Enhancement

Scenario: A biotech firm specializing in medical diagnostics equipment is confronting challenges in maintaining operational efficiency and equipment reliability.

Read Full Case Study

Total Productive Maintenance for Semiconductor Manufacturer in High-Tech Sector

Scenario: A semiconductor firm in the high-tech sector is grappling with equipment inefficiencies and unscheduled maintenance downtime, impacting its yield rates and operational costs.

Read Full Case Study

TPM Initiative for a Leading Broadcasting Firm in the Competitive Media Landscape

Scenario: The broadcasting firm operates in a highly competitive media landscape and has identified inefficiencies in its Total Productive Maintenance (TPM) practices that are impacting its operational effectiveness and ability to quickly adapt to market changes.

Read Full Case Study

TPM Strategy Refinement for Midsize Retail Firm in Health & Wellness

Scenario: A midsize retail company specializing in health and wellness products is struggling to align its Trade Promotion Management (TPM) practices with its rapid expansion.

Read Full Case Study

Total Productive Maintenance for Agritech Manufacturing Company

Scenario: An agritech manufacturing company specializing in advanced farming equipment, faces operational inefficiencies and high downtime due to inadequate TPM (Total Productive Maintenance) practices.

Read Full Case Study

Total Productive Maintenance for Mid-Size Gambling Enterprise

Scenario: A mid-size casino in Las Vegas is experiencing operational inefficiencies and high maintenance costs, prompting a strategic focus on Total Productive Maintenance (TPM).

Read Full Case Study

Direct-to-Consumer Growth Strategy for Boutique Coffee Brand

Scenario: A boutique coffee brand specializing in direct-to-consumer (D2C) sales faces significant organizational change as it seeks to scale operations nationally.

Read Full Case Study

Organizational Alignment Improvement for a Global Tech Firm

Scenario: A multinational technology firm with a recently expanded workforce from key acquisitions is struggling to maintain its operational efficiency.

Read Full Case Study

Porter's 5 Forces Analysis for Education Technology Firm

Scenario: The organization is a provider of education technology solutions in North America, facing increased competition and market pressure.

Read Full Case Study

Operational Efficiency Enhancement in Aerospace

Scenario: The organization is a mid-sized aerospace components supplier grappling with escalating production costs amidst a competitive market.

Read Full Case Study

Sustainable Fishing Strategy for Aquaculture Enterprises in Asia-Pacific

Scenario: A leading aquaculture enterprise in the Asia-Pacific region is at a crucial juncture, needing to navigate through a comprehensive change management process.

Read Full Case Study

Balanced Scorecard Implementation for Professional Services Firm

Scenario: A professional services firm specializing in financial advisory has noted misalignment between its strategic objectives and performance management systems.

Read Full Case Study

Download our FREE Strategy & Transformation Framework Templates

Download our free compilation of 50+ Strategy & Transformation slides and templates. Frameworks include McKinsey 7-S Strategy Model, Balanced Scorecard, Disruptive Innovation, BCG Experience Curve, and many more.