Total productive maintenance and companies performance: a case study of fast moving consumer goods companies

Authors

  • Olufemi Adebayo Oroye Bells University of Technology, Ota, Nigeria https://orcid.org/0000-0003-4961-8306
  • Bamisaye Olufemi Sylvester Air Force Institute of Technology, Kaduna, Nigeria
  • Peter Kayode Farayibi Federal University of Technology, Akure, Nigeria

DOI:

https://doi.org/10.30656/jsmi.v6i1.4185

Keywords:

Total productive maintenance, Firm performance, Structural equation model

Abstract

TPM implementation by FMCG firms in Ado/Ota industrial hub of Ogun State Nigeria was investigated, and its influence on the firm's performance was analyzed. Primary data were collected through the administration of an online questionnaire. A total number of 98 respondents participated in this research. The analysis was conducted through descriptive analysis and structural equation model (SEM) using a smart partial least square (PLS) software. It was observed that TPM implementation had a positive influence on firms' performance. The descriptive analysis. It noted that most firms explored in this study had implemented TPM. It implies that above ninety percent of companies in the industrial hub are practicing TPM. The data employed in this research are limited to those obtained from FMCG firms in Ado/Ota in Ogun State, Nigeria. However, this study's findings can represent other firms in other locations where TPM is practiced. This research will be helpful for FMCG firms in Nigeria, especially those in Ogun State. TPM was measured using the following indicators: 5S, Autonomous Maintenance, Kobetsu Kaizen, Planned Maintenance, Quality, Education and Training, Office TPM, and Health, Safety and Environment. Eight indicators measure The company's performance: Product Quality, Cost, Inventory, Lead Time, Processing Cycle Time, Customer Complaints, Equipment Efficiency and Overall Productivity. The research review shows that the TPM implementation significantly affects firms' sustainable performance. In addition, the result shows that local firms in the survey area are yet to key into implementing TPM practices fully.

Downloads

Download data is not yet available.

References

A. Miremadi and E. Faghanie, “An empirical study of consumer buying behavior and its influence on consumer preference in Iranian FMCG market: A case study,†Int. Bus. Manag., vol. 5, no. 1, pp. 146–152, 2012, doi: http://dx.doi.org/10.3968/j.ibm.1923842820120501.1115.

D. Friday, J. M. Ntayi, M. Muhwezi, S. Eyaa, and B. Tukamuhabwa, “Vertical collaboration and physical distribution service quality in Uganda’s soft drinks demand chains,†Int. J. Econ. Manag. Sci., vol. 1, no. 4, pp. 42–52, 2011. Available: https://nru.uncst.go.ug/handle/123456789/3449.

R. Majumbar, Product Management in India. PHI Learning, 2007. Available: https://books.google.co.id/books?id=vI9vE7_LJX4C.

KPMG International, “Impact of Covid-19 on the Nigerian Consumer Markets Sector,†KPMG International, 2020. Available: https://assets.kpmg/content/dam/kpmg/ng/pdf/advisory/impact-of-covid-19-on-the-nigerian-consumer-markets-sector.pdf.

A. Odupitan, “Understanding the distribution channels of fast moving consumable goods (FMCG) of food industry in Nigeria,†Vaasan ammattikorkeakoulu, 2017. Available: https://www.theseus.fi/bitstream/handle/10024/138255/ODUPITAN_AMINAT.pdf?sequence=1.

M. Sabry Shaaban and A. H. Awni, “Critical success factors for total productive manufacturing (TPM) deployment at Egyptian FMCG companies,†J. Manuf. Technol. Manag., vol. 25, no. 3, pp. 393–414, Jan. 2014, doi: http://dx.doi.org/10.1108/JMTM-09-2012-0088.

R. K. Sharma, D. Kumar, and P. Kumar, “Manufacturing excellence through TPM implementation: a practical analysis,†Ind. Manag. Data Syst., vol. 106, no. 2, pp. 256–280, Jan. 2006, doi: http://dx.doi.org/10.1108/02635570610649899.

P. Tsarouhas, “Implementation of total productive maintenance in food industry: a case study,†J. Qual. Maint. Eng., vol. 13, no. 1, pp. 5–18, Jan. 2007, doi: http://dx.doi.org/10.1108/13552510710735087.

A. Jain, R. S. Bhatti, and H. Singh, “OEE enhancement in SMEs through mobile maintenance: a TPM concept,†Int. J. Qual. Reliab. Manag., vol. 32, no. 5, pp. 503–516, Jan. 2015, doi: http://dx.doi.org/10.1108/IJQRM-05-2013-0088.

R. Singh, A. M. Gohil, D. B. Shah, and S. Desai, “Total productive maintenance (TPM) implementation in a machine shop: A case study,†Procedia Eng., vol. 51, pp. 592–599, 2013. doi: https://doi.org/10.1016/j.proeng.2013.01.084.

S. Nakajima, TPM development program: implementing total productive maintenance. Productivity press Cambridge, 1989. Available: https://books.google.co.id/books?id=Q6F9QgAACAAJ.

Z. Habib, K. Wang, and M. Bejhem, “Implementation of total productive maintenance on Haldex assembly line,†Department of Production Engineering, Royal Institute of Technology, Sweden, 2008. Available: https://silo.tips/download/implementation-of-total-productive-maintenance-on-haldex-assembly-line.

I. P. S. Ahuja and J. S. Khamba, “Total productive maintenance: literature review and directions,†Int. J. Qual. Reliab. Manag., vol. 25, no. 7, pp. 709–756, 2008, doi: https://doi.org/10.1108/02656710810890890.

T. K. Agustiady and E. A. Cudney, “Total productive maintenance,†Total Qual. Manag. Bus. Excell., pp. 1–8, Feb. 2018, doi: http://dx.doi.org/10.1080/14783363.2018.1438843.

D. McCarthy and N. Rich, Lean TPM: A Blueprint for Change. Elsevier Science, 2015. Available: https://books.google.co.id/books?id=VcmcBAAAQBAJ.

E. Ferrari, A. Pareschi, A. Regattieri, and A. Persona, “TPM: situation and procedure for a soft introduction in Italian factories,†TQM Mag., vol. 14, no. 6, pp. 350–358, Jan. 2002, doi: http://dx.doi.org/10.1108/09544780210447456.

K. E. McKone, R. G. Schroeder, and K. O. Cua, “The impact of total productive maintenance practices on manufacturing performance,†J. Oper. Manag., vol. 19, no. 1, pp. 39–58, 2001, doi: https://doi.org/10.1016/S0272-6963(00)00030-9.

O. T. R. Almeanazel, “Total productive maintenance review and overall equipment effectiveness measurement,†Jordan J. Mech. Ind. Eng., vol. 4, no. 4, pp. 517–522, 2010. Available: http://jjmie.hu.edu.jo/files/v4n4/JJMIE-129-08_Revised(11)/JJMIE-129-08_modified.pdf.

K. Shirose, TPM: Total Productive Maintenance : New Implementation Program in Fabrication and Assembly Industries. Japan Institute of Plant Maintenance, 1997. Available: https://books.google.co.id/books?id=uoHFAAAACAAJ.

G. Kocher, R. Kumar, A. Singh, and S. S. Dhillon, “An approach for Total Productive Maintenance and factors affecting its implementation in manufacturing environment,†Int. J. Emerg. Technol., vol. 3, no. 1, pp. 41–47, 2012. Available: https://researchtrend.net/ijet/ijet31/ijetnew/7%20RAVINDER.pdf.

M. W. Wakjira and A. P. Singh, “Total productive maintenance: A case study in manufacturing industry,†Glob. J. Res. Eng., vol. 12, no. 1, pp. 25–32, 2012. Available: https://engineeringresearch.org/index.php/GJRE/article/view/680.

M. C. Eti, S. O. T. Ogaji, and S. D. Probert, “Implementing total productive maintenance in Nigerian manufacturing industries,†Appl. Energy, vol. 79, no. 4, pp. 385–401, 2004, doi: https://doi.org/10.1016/j.apenergy.2004.01.007.

M. Tenenhaus, “Component-based Structural Equation Modelling,†Total Qual. Manag. Bus. Excell., vol. 19, no. 7–8, pp. 871–886, Aug. 2008, doi: http://dx.doi.org/10.1080/14783360802159543.

J. F. Hair, M. Sarstedt, C. M. Ringle, and S. P. Gudergan, Advanced Issues in Partial Least Squares Structural Equation Modeling. SAGE Publications, 2017. Available: https://books.google.co.id/books?id=-f1rDgAAQBAJ.

J. B. Lohmöller, Latent Variable Path Modeling with Partial Least Squares. Physica-Verlag HD, 2013. Available: https://books.google.co.id/books?id=xU_mCAAAQBAJ.

C. Fornell and F. L. Bookstein, “Two Structural Equation Models: LISREL and PLS Applied to Consumer Exit-Voice Theory,†J. Mark. Res., vol. 19, no. 4, pp. 440–452, Nov. 1982, doi: http://dx.doi.org/10.1177/002224378201900406.

W. W. Chin, B. L. Marcolin, and P. R. Newsted, “A Partial Least Squares Latent Variable Modeling Approach for Measuring Interaction Effects: Results from a Monte Carlo Simulation Study and an Electronic-Mail Emotion/Adoption Study,†Inf. Syst. Res., vol. 14, no. 2, pp. 189–217, Jun. 2003, doi: http://dx.doi.org/10.1287/isre.14.2.189.16018.

M. D. Akanmu, A. Y. Bin Bahaudin, and R. Jamaludin, “A partial least square structural equation modelling preliminary analysis on total quality management elements and environmental regulation and policy influencing organisational performance in the food and beverage companies of Malaysia,†Int. J. Product. Qual. Manag., vol. 22, no. 1, pp. 60–81, 2017, doi: http://dx.doi.org/10.1504/IJPQM.2017.085847.

I. F. Arromba et al., “Difficulties observed when implementing Total Productive Maintenance (TPM): empirical evidences from the manufacturing sector,†Gestão & Produção, vol. 28, no. 3, p. e5300, 2021, doi: http://dx.doi.org/10.1590/1806-9649-2021v28e5300.

K. Singh and I. S. Ahuja, “Structural equation modelling of transfusion of TQM-TPM model for Indian manufacturing industries,†Int. J. Manag. Pract., vol. 13, no. 1, pp. 47–73, Dec. 2019, doi: http://dx.doi.org/10.1504/IJMP.2020.104068.

N. F. Habidin, S. Hashim, N. M. Fuzi, and M. I. Salleh, “Total productive maintenance, kaizen event, and performance,†Int. J. Qual. Reliab. Manag., vol. 35, no. 9, pp. 1853–1867, Jan. 2018, doi: http://dx.doi.org/10.1108/IJQRM-11-2017-0234.

A. Turkyilmaz, E. Tatoglu, S. Zaim, and C. Ozkan, “Use of Partial Least Squares (PLS) in TQM Research: TQM Practices and Business Performance in SMEs BT - Handbook of Partial Least Squares: Concepts, Methods and Applications,†V. Esposito Vinzi, W. W. Chin, J. Henseler, and H. Wang, Eds. Berlin, Heidelberg: Springer Berlin Heidelberg, 2010, pp. 605–620. doi: https://doi.org/10.1007/978-3-540-32827-8_27.

K. F. Latif, A. Pérez, and U. F. Sahibzada, “Corporate social responsibility (CSR) and customer loyalty in the hotel industry: A cross-country study,†Int. J. Hosp. Manag., vol. 89, p. 102565, 2020, doi: https://doi.org/10.1016/j.ijhm.2020.102565.

J. Henseler, C. M. Ringle, and M. Sarstedt, “A new criterion for assessing discriminant validity in variance-based structural equation modeling,†J. Acad. Mark. Sci., vol. 43, no. 1, pp. 115–135, 2015, doi: https://doi.org/10.1007/s11747-014-0403-8.

Downloads

Published

2022-06-30

How to Cite

[1]
O. A. Oroye, B. O. Sylvester, and P. K. Farayibi, “Total productive maintenance and companies performance: a case study of fast moving consumer goods companies ”, j. sist. manaj. ind., vol. 6, no. 1, pp. 23–32, Jun. 2022.

Issue

Section

Research Article

Most read articles by the same author(s)