An Evaluation of Total Productive Manufacturing in Kenya: A Case Study of Unilever Kenya

Abstract

The ultimate goal of Total Productive Manufacturing (TPM) is to implement perfect manufacturing. Originally introduced as a set of practices and methodologies focused on manufacturing equipment performance improvement, TPM has developed into a comprehensive equipment-centric effort to optimize manufacturing productivity. TPM is based on team work and provides a method for the achievement of world class levels of overall equipment effectiveness through people and not through technology or systems alone. This study was intended to evaluate TPM in Kenya, its effect on productivity and production cost of firms in the manufacturing sector and to come up with recommendations that would help firms to implement TPM successfully. The study focused on Unilever Kenya limited and found that TPM had improved Unilever’s performance by increasing efficiency and reliability of production equipments, reduced cost of production, increased employee involvement and morale. In the manufacturing industry, the strategy formulation considers the forces of competition in the industry segment. Due to the increased awareness of the competition efforts must surpass the mass production witnessed in the 1920’s, by adoption of practices using technology and innovativeness to ensure survival. TPM is hence used as a source of manufacturing-led competitive advantage through improved quality, speed, delivery, flexibility and cost. The role of business operations in tapping into the different sources of manufacturing-led competitive advantage is based on the production needs of the organization and availability of the technological advances. The study used a descriptive survey method in which Goldratt’s theory combined with the collection of qualitative data. Data collected was coded to allow the researcher to use descriptive statistics. The research findings showed that implementation of TPM has improved UKL’s performance by improving OEE through cost reduction, increasing employee knowledge, improving employee involvement, morale and product quality, ensuring continuous machinery maintenance, reduced wastage of materials and employee training.