Flevy Management Insights Q&A
How can TPM and Planned Maintenance be leveraged to reduce energy consumption in manufacturing operations?
     Joseph Robinson    |    Total Productive Maintenance


This article provides a detailed response to: How can TPM and Planned Maintenance be leveraged to reduce energy consumption in manufacturing operations? For a comprehensive understanding of Total Productive Maintenance, we also include relevant case studies for further reading and links to Total Productive Maintenance best practice resources.

TLDR TPM and Planned Maintenance reduce energy consumption by maximizing equipment efficiency, minimizing downtime, and eliminating energy-wasting practices through proactive maintenance and continuous improvement.

Reading time: 4 minutes

Before we begin, let's review some important management concepts, as they related to this question.

What does Total Productive Maintenance mean?
What does Planned Maintenance mean?
What does Employee Engagement mean?
What does Performance Management mean?


In the current landscape of manufacturing operations, energy consumption stands as a significant portion of operational costs and environmental footprint. Leveraging Total Productive Maintenance (TPM) and Planned Maintenance strategies can lead to substantial reductions in energy usage, thereby enhancing both financial performance and sustainability metrics. These methodologies, when implemented effectively, can transform maintenance from a cost center into a strategic asset that drives efficiency and competitiveness.

Understanding the Impact of TPM and Planned Maintenance

TPM is a holistic approach aimed at maximizing equipment effectiveness through the active involvement of all employees, from the shop floor to the executive suite. It emphasizes preventive maintenance, equipment improvement, and cross-functional teamwork to ensure that production processes run as efficiently as possible, minimizing downtime and energy waste. Planned Maintenance, a critical component of TPM, involves scheduling maintenance activities at predetermined intervals to prevent unexpected equipment failures and inefficiencies.

Organizations that adopt TPM and Planned Maintenance can expect to see a direct impact on their energy consumption. Equipment that is properly maintained and operating at peak efficiency consumes less energy than equipment that is allowed to deteriorate. For instance, a motor that is regularly serviced to ensure it operates smoothly will use less power than one that is misaligned or has worn bearings. Moreover, these methodologies help identify and eliminate energy-wasting practices, such as overproduction, unnecessary equipment idling, and inefficient equipment operation.

Real-world examples underscore the effectiveness of these strategies. A study by McKinsey & Company highlighted a manufacturing plant that reduced its energy costs by 10% through the implementation of TPM, attributing the savings to improved equipment efficiency and reduced downtime. This case illustrates the tangible benefits that can be achieved through diligent application of 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

Strategies for Implementation

Implementing TPM and Planned Maintenance requires a strategic approach that involves several key steps. First, it is essential to secure commitment from top management. The success of these initiatives hinges on leadership support, as it requires a cultural shift towards proactive maintenance and continuous improvement. Next, organizations should conduct a thorough assessment of their current maintenance practices and energy consumption patterns to identify areas for improvement.

Training and empowering employees is another critical step. Workers on the shop floor are often the first to notice signs of equipment inefficiency or failure. By training employees in basic maintenance tasks and encouraging them to report potential issues, organizations can address problems before they lead to significant energy waste. Additionally, leveraging technology, such as predictive maintenance tools and energy management systems, can enhance the effectiveness of TPM and Planned Maintenance programs by providing real-time data on equipment performance and energy usage.

Finally, it is crucial to establish metrics and KPIs to measure the impact of TPM and Planned Maintenance on energy consumption. This not only helps in tracking progress but also in identifying further opportunities for improvement. Organizations should aim to integrate these metrics into their overall Performance Management systems to ensure continuous focus on energy efficiency.

Case Studies and Success Stories

Several leading manufacturers have demonstrated the potential of TPM and Planned Maintenance to reduce energy consumption. For example, Toyota, a pioneer in implementing TPM, has consistently reported lower energy costs as a result of its relentless focus on preventive maintenance and continuous improvement. Similarly, a report by Deloitte highlighted a chemical manufacturer that achieved a 20% reduction in energy consumption after adopting a comprehensive Planned Maintenance program.

These success stories underscore the importance of viewing maintenance not as a necessary evil but as a strategic opportunity to enhance operational efficiency and sustainability. By prioritizing TPM and Planned Maintenance, organizations can not only reduce their energy costs but also contribute to environmental conservation and improve their competitive positioning in the market.

In conclusion, TPM and Planned Maintenance offer a proven pathway to reducing energy consumption in manufacturing operations. By adopting these methodologies, organizations can achieve significant cost savings, enhance equipment reliability, and demonstrate a commitment to sustainability. The key to success lies in strategic implementation, employee engagement, and continuous improvement. With the right approach, TPM and Planned Maintenance can transform maintenance from a cost center into a strategic asset that drives operational excellence and sustainable growth.

Best Practices in Total Productive Maintenance

Here are best practices relevant to Total Productive Maintenance from the Flevy Marketplace. View all our Total Productive Maintenance materials here.

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.

Explore all of our best practices in: Total Productive Maintenance

Total Productive Maintenance Case Studies

For a practical understanding of Total Productive Maintenance, take a look at these case studies.

Total Productive Maintenance Enhancement in Chemicals Sector

Scenario: A leading firm in the chemicals industry is facing significant downtime and maintenance-related disruptions impacting its operational efficiency.

Read Full Case Study

Total Productive Maintenance Advancement in Transportation Sector

Scenario: A transportation firm operating a fleet of over 200 vehicles is facing operational inefficiencies, leading to increased maintenance costs and downtime.

Read Full Case Study

Total Productive Maintenance Improvement Project for an Industrial Manufacturing Company

Scenario: The organization is a global industrial manufacturer suffering stagnation in production line efficiency due to frequent machinery breakdowns and slow response to equipment maintenance needs.

Read Full Case Study

Total Productive Maintenance Initiative for Food & Beverage Industry Leader

Scenario: A prominent firm in the food and beverage sector is grappling with suboptimal operational efficiency in its manufacturing plants.

Read Full Case Study

TPM Strategy Enhancement for Luxury Retailer in Competitive Market

Scenario: The organization in question operates in the highly competitive luxury retail sector, where maintaining product quality and customer service excellence is paramount.

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




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

  •  
    "As a niche strategic consulting firm, Flevy and FlevyPro frameworks and documents are an on-going reference to help us structure our findings and recommendations to our clients as well as improve their clarity, strength, and visual power. For us, it is an invaluable resource to increase our impact and value."

    – David Coloma, Consulting Area Manager at Cynertia Consulting
  •  
    "My FlevyPro subscription provides me with the most popular frameworks and decks in demand in today’s market. They not only augment my existing consulting and coaching offerings and delivery, but also keep me abreast of the latest trends, inspire new products and service offerings for my practice, and educate me "

    – Bill Branson, Founder at Strategic Business Architects
  •  
    "As an Independent Management Consultant, I find Flevy to add great value as a source of best practices, templates and information on new trends. Flevy has matured and the quality and quantity of the library is excellent. Lastly the price charged is reasonable, creating a win-win value for "

    – Jim Schoen, Principal at FRC Group
  •  
    "One of the great discoveries that I have made for my business is the Flevy library of training materials.

    As a Lean Transformation Expert, I am always making presentations to clients on a variety of topics: Training, Transformation, Total Productive Maintenance, Culture, Coaching, Tools, Leadership Behavior, etc. Flevy "

    – Ed Kemmerling, Senior Lean Transformation Expert at PMG
  •  
    "Last Sunday morning, I was diligently working on an important presentation for a client and found myself in need of additional content and suitable templates for various types of graphics. Flevy.com proved to be a treasure trove for both content and design at a reasonable price, considering the time I "

    – M. E., Chief Commercial Officer, International Logistics Service Provider
  •  
    "If you are looking for great resources to save time with your business presentations, Flevy is truly a value-added resource. Flevy has done all the work for you and we will continue to utilize Flevy as a source to extract up-to-date information and data for our virtual and onsite presentations!"

    – Debbi Saffo, President at The NiKhar Group
  •  
    "I have found Flevy to be an amazing resource and library of useful presentations for lean sigma, change management and so many other topics. This has reduced the time I need to spend on preparing for my performance consultation. The library is easily accessible and updates are regularly provided. A wealth of great information."

    – Cynthia Howard RN, PhD, Executive Coach at Ei Leadership
  •  
    "Flevy is our 'go to' resource for management material, at an affordable cost. The Flevy library is comprehensive and the content deep, and typically provides a great foundation for us to further develop and tailor our own service offer."

    – Chris McCann, Founder at Resilient.World



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.