An Evaluation[1]

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An evaluation of TPMimplementation initiatives in anIndian manufacturing enterprise

I.P.S. Ahuja and J.S. KhambaUniversity College of Engineering, Punjabi University, Patiala, India

AbstractPurpose – The purpose of this study is to identify maintenance-related losses for ascertaining andaddressing the performance losses, and affecting improvements in the manufacturing performance inan organization through strategic total productive maintenance (TPM) initiatives.Design/methodology/approach – In this paper TPM initiatives in the steel manufacturing planthave been elaborated to ascertain the tangible and intangible benets accrued as a result of successful

TPM implementation. The approach has been directed toward justication of TPM implementationfor its support to competitive manufacturing in the context of Indian manufacturing industries.Findings – The paper establishes the long-term effects of TPM on organizational performance in theIndian context. TPM implementation initiatives have shown marked improvements in the equipmentefciency and effectiveness, and have also brought about appreciable improvements in othermanufacturing functions in the organization. It has been observed that systematic interventionsregarding TPM deployment have signicantly contributed toward improving the manufacturingsystem productivity, quality, safety, morale and besides ensuring the cost effectiveness of themanufacturing function within the organization. The case study reveals that holistic TPMimplementation has lead to establishment of strategic proactive maintenance practices in theorganization for avoiding future system and equipment-related losses, and has marshaled theorganization toward capability building for sustained competitiveness in the global marketplace.Practical implications – This paper highlights the contributions of maintenance function to ensure

enhanced equipment reliability, thereby affecting improvements in the manufacturing systemperformance. In this study the TPM implications in a steel manufacturing plant have been highlighted,which may be implemented in other manufacturing plants to improve their performance.Originality/value – The present s tudy encompasses systemat ic ident ication of maintenance-related losses, setting up of targets regarding maintenance performance improvementsand developing guidelines for achieving enhanced manufacturing system performance throughstrategic TPM initiatives in the steel manufacturing plant, which can also be important to allconcerned with maintenance and safety in various manufacturing enterprises.

Keywords Productive maintenance, Production equipment, India, Manufacturing systems,Total quality management

Paper type Case study

IntroductionIn the contemporary dynamic globalized world economy, manufacturing organizationsare faced with stiff cut-throat competition. The global competition characterized by therapid technological innovations and ever-changing market demands is puttingenormous pressure on manufacturing organizations across the globe. Thecontemporary manufacturing organizations endeavor to achieve world-classperformance through continuous improvement in the production systems anddevelopment of world-class products and services, to satisfy the peculiar and rapidlychanging customer requirements. The manufacturing sector globally has witnessed

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drastic changes in the later part of the twentieth century. These changes have left theirunmistakable marks on the different facets of the manufacturing organizations (Gomeset al., 2006). The challenges of stiff competition and the drive for prots are forcing theorganizations to implement various productivity improvement efforts to meet thechallenges posed by ever-changing market demands (Samuel et al., 2002).

In the dynamic and highly challenging environment, reliable manufacturingequipment is regarded as the major contributor to the performance and protability of manufacturing systems (Kutucuoglu et al., 2001). Its importance is rather increasing inthe growing advanced manufacturing technology application stages (Maggard andRhyne, 1992); therefore, equipment maintenance is an indispensable function in amanufacturing enterprise (Ahmed et al., 2005). The intense competitive pressure on theorganizations is triggering the top management of these enterprises to look at theperformance of each and every business function, including manufacturing ormaintenance for achieving competitive advantage (Pintelon et al., 2006). In the highlycompetitive globalized scenario the maintenance function is being looked on bymanufacturing organizations as a potential source of cost savings and competitiveadvantage. The effective integration of maintenance function with engineering andother manufacturing functions in the organization can help to save huge amounts of time, money and other useful resources in dealing with reliability, availability,maintainability and performance issues (Moubray, 2003). This has provided theimpetus to the leading organizations worldwide to adopt effective and efcientmaintenance strategies such as condition-based maintenance (CBM),reliability-centered maintenance (RCM) and total productive maintenance (TPM),over the traditional reghting reactive maintenance approaches (Sharma et al., 2005).

The objective of this paper is to study the effectiveness and implementation of theTPM program for a steel manufacturing unit, and highlight the contributions made bystrategic TPM initiatives in a typical Indian manufacturing organization. The

approach has been directed toward justication of TPM implementation for its supportto competitive manufacturing in the context of Indian manufacturing industries.Through a case study of implementing TPM in an Indian manufacturing enterprise,the TPM implementation issues, roadmap and strategies adopted toward successfulTPM implementation, assessment of performance losses in the production facilities,contributions of TPM initiatives in improving the organizational performance arediscussed and analyzed. Moreover, the critical success factors in implementing TPMare also elaborated based on the learning from the study. The study reveals thatholistic TPM implementation has lead to realization of signicant enhancement inmanufacturing capabilities in the organization.

TPMIn order to remain competitive in today’s highly challenging and rapidly changingbusiness environment, a keen understanding of the intricate dynamics of theproduction facility is required to be able to manage the organizational resourceseffectively to meet the organization’s sustainability efforts. The success in highlychallenging contemporary manufacturing scenario depends on the implementation of multiple complimentary and proven strategies. While just-in-time (JIT) and totalquality management (TQM) programs have been around for a while, manufacturing

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organizations of late, have been putting enough condence in the latest strategicquality maintenance tool, TPM.

TPM as the name suggests consists of three words:(1) Total . This signies to consider every aspect and involving everybody from top

to bottom.(2) Productive . Emphasis on trying to do it while production goes on and minimize

troubles for production.(3) Maintenance . Means keeping equipment autonomously by production

operators in good condition – repair, clean, grease, and accept to spendnecessary time on it.

Nakajima (1989), a major contributor of TPM, has dened TPM as an innovativeapproach to maintenance that optimizes equipment effectiveness, eliminatesbreakdowns, and promotes autonomous maintenance by operators throughday-to-day activities involving the total workforce. TPM is not a maintenance-

specic policy, it is a culture, a philosophy and a new attitude toward maintenance.According to Chaneski (2002), TPM is a maintenance management program with theobjective of eliminating equipment downtime. Lawrence (1999) describes TPM as thegeneral movement on the part of businesses to try to do more with fewer resources.According to Bestereld et al. (1999), TPM helps to maintain the current plant andequipment at its highest productive level through the cooperation of all functionalareas of an organization. TPM is a partnership between maintenance and productionfunctions in the organization to improve product quality, reduce waste, reducemanufacturing cost, increase equipment availability, and improve the company’s stateof maintenance (Rhyne, 1990).

According to Blanchard (1997), TPM is an integrated life-cycle approach to factorymaintenance. TPM can be effectively deployed in an organization to develop employeeinvolvement at every step of the manufacturing process and facilitate maintenance inorder to streamline production ow, increase product quality and reduce operatingcosts. Total employee involvement, autonomous maintenance by operators, smallgroup activities to improve equipment reliability, maintainability, productivity, andcontinuous improvement ( kaizen ) are the principles embraced by TPM. TPM achieveslower operating costs through ongoing changes in behavior, work procedures andattitudes. TPM initiatives in production help in streamlining the manufacturing andother business functions, and garnering sustained prots. TPM also facilitates theorganizations to achieve higher levels of productivity, improved customer service,morale, and prots. TPM initiatives, as suggested by the Japan Institute of PlantMaintenance (JIPM), involve an eight pillar implementation plan that results insubstantial increase in labor productivity through controlled maintenance, reduction inmaintenance costs, and reduced production stoppages and downtimes. The JIPM eightpillar TPM implementation plan is depicted in Figure 1. Figure 2 shows detailedmaintenance and organizational improvement initiatives and activities associated withthe respective TPM pillars.

Overall equipment effectivenessTPM is a production-driven improvement methodology that is designed to optimizeequipment reliability and ensure efcient management of plant assets (Robinson and

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Ginder, 1995). The successful implementation of TPM results in the dramatic reductionof wastage and performance losses associated with production facility. TPM focusesupon cutting down various organizational performance losses as a strategy towardaffecting manufacturing performance improvements. The various manufacturing andproduction losses tackled by TPM include:

. equipment losses (failure/breakdowns losses, start up losses, product changeover/set up losses, tool changeover losses, minor interruption loss, speed loss,defects and rework losses, shut down loss);

. manpower losses (production stoppage losses, line organization losses,measuring and adjustment loss, management losses, operation motion-relatedlosses); and

. material losses (yield losses, consumables i.e. die-jig-tool losses, energy losses).

TPM employs overall equipment effectiveness (OEE) as a quantitative metric formeasuring the performance of a productive system. OEE is the core metric formeasuring the success of TPM implementation program (Jeong and Phillips, 2001).This metric has become widely accepted as a quantitative tool essential formeasurement of productivity in manufacturing operations (Samuel et al., 2002). Therole of OEE goes far beyond the task of just monitoring and controlling themanufacturing system performance. The OEE measure is central to the formulationand execution of a TPM improvement strategy (Ljungberg, 1998). It provides asystematic method for establishing production targets, and incorporates practicalmanagement tools and techniques in order to achieve a balanced view of processavailability, performance efciency and rate of quality (Bulent et al., 2000). OEE iscalculated by obtaining the product of availability of the equipment, performanceefciency of the process and rate of quality products:

OEE ¼ Availability Að Þ£ Performance Efficiency P ð Þ£ Rate of Quality Q ð Þ ð1Þ

Figure 1.Eight pillars of TPMimplementation plan(suggested by JIPM)

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Figure 2.Organization structure forTPM implementation

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where:

Availability Að Þ ¼Loading Time 2 Downtime

LoadingTime£ 100: ð2Þ

Performance Efficiency P ð Þ ¼Processed Amount

Operating Time =Theoretical Cycle Time£ 100: ð3Þ

Rate of Quality Q ð Þ ¼Processed Amount 2 Defect Amount

Processed Amount£ 100: ð4Þ

TPM seeks to improve the OEE, which is an important indicator, deployed to measuresuccess of TPM program in an organization. TPM has the standards of 90 percentavailability, 95 percent performance efciency and 99 percent rate of quality (Levitt,

1996). An overall 85 percent benchmark OEE is considered as world-class performance(Blanchard, 1997; McKone et al., 1999). The OEE measure provides a strong impetusfor introducing a pilot and subsequently company-wide TPM program.

TPM implementation case studyThe past decade has witnessed drastic cultural and attitudinal changes in Indianmanufacturing organizations, due to the ever-increasing challenges to survival of theorganizations (Chandra and Krishna, 1998). Thus, Indian manufacturing organizationshave been forced to look out for proactive strategic TPM initiatives for harnessingmanufacturing competencies (Ahuja et al., 2006). The present study records theimplementation and evaluation of TPM exploits in the manufacturing environment of an Indian enterprise. The case study serves the purpose of scrutinizing the TPMimplementation practices adopted in the Indian industry and to highlighting theachievements of Indian enterprise through strategic TPM initiatives. The studyexplores the ways in which Indian manufacturing industries can implement TPM as astrategy and culture for improving the manufacturing performance.

The case study reported in this paper has been conducted at a steel manufacturingunit, a Rs.1,500 Crore agship company having ISO 9002 and ISO 14001 quality andenvironmental systems, catering to approximately one-third market share of thestainless steel production in the country. The plant, indigenously designed tomanufacture hot rolled coils, plates, blooms and slabs at the time of its inception, laterventured into manufacturing of stainless steel at products. Since then, the companyhas forged ahead as the largest stainless steel at producer in the country in its fullymodernized plant, and has subsequently added new facilities to improve the productmix by setting-up stainless steel cold rolling mills. Further, the organization has takenup major modernization and expansion plans, effectively catering to improvement inquality, production capacity and reduction in cycle time, for sustaining its marketleadership and gaining international recognition in stainless steel manufacture. Theorganization is carving a name in stainless steel, by production and supply of stainlesssteel, cold rolled coils, cold rolled sheets, hot rolled coils, hot rolled plates and ats,slabs, precision strips, blooms and round bars, as per the national and internationalstandards to meet the total quality requirements of customers.

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The basic motive behind TPM implementation at this plant has been acuteproblems faced by the enterprise in the form of: low productivity; high losses andwastages associated with the production system; high customer complaints, operatingcosts, overheads and defective products; non-adherence to delivery times; low skill andmotivation levels of the worker-force; and high idle time at various lines due tounplanned maintenance. Since the plant facilities and manufacturing processes wereextremely equipment intensive, even small improvements in equipment performancecould translate into major competitive advantage. Moreover, the data collection andanalysis process revealed that the total idle time for the critical process equipment wasobserved to be extremely high at 35-40 percent, which was not at all acceptable underthe prevailing circumstances. Thus, the need for fostering an efcient TPMimplementation program was felt fundamentally necessary.

The TPM kick off for the organization was planned and the organization’s missionand vision toward effective TPM implementation were carefully chalked out andcommunicated to all the employees. The organization structure for TPMimplementation, involving personal from various inter-disciplinary activity areaswas appropriately evolved, as depicted in Figure 3. TPM organization structure, at theenterprise, had been carefully evolved to plan, implement and support TPM initiativesat all levels. The key point of TPM development had been formation of effectiveproblem solving and equipment improvement teams of front line operators at theproduction oor. These teams comprised of small groups consisting of ve to sevenworkers lead by a supervisor performed preliminary TPM activities like autonomousmaintenance, focused maintenance and preventive maintenance, etc. Everymanufacturing line at plant had ve to eight teams for effective implementation of TPM activities. These teams worked under supervision of Foremen TPM promotioncommittee that comprised leaders from these teams as illustrated in Figure 3. Thiscommittee was headed by a line incharge. The foremen TPM promotion committee

Figure 3.TPM initiatives associatedwith various pillars

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used to control the line TPM promotion committee comprising of line incharges andheaded by a section head TPM.

A key feature of this organization structure was that there existed a signicantoverlap between various groups indicating that there was complete synergy betweentheir operations. TPM Secretariat was responsible for effective administration of TPMactivities. It contained TPM plant level sub-committees for each pillar such as theAutonomous Maintenance Sub-committee, Focused Improvement Sub-committee, etc.These sub-committees comprised of technical personnel from various sections,adequately trained in TPM techniques. These were concerned with monitoring theprogress of TPM activities, preparation of reports and presentation of developmentsand guidance of TPM promotion teams at various levels of organization. The TPMmanager controlled the working of TPM Secretariat and Plant Level SteeringCommittee, thus acting as a coordinator.

To begin with, the training needs of the operators, technicians, foremen, supervisorsand middle level management personnel were ascertained and adequate training andknowledge was imparted to the employees to have proper understanding of theunderlying TPM principles and fundamentals. Further, plant visits were also organizedto various successful TPM implementing plants to motivate the employees bydemonstrating the potential of TPM initiatives in realizing manufacturing competencies.The employees were also convinced and motivated about the achievements possiblethrough holistic TPM implementation, and the retardants addressed through counselingand taking positive steps toward addressing the concerns of the employees.

TPM implementation started with the selection of key model machines fromdifferent areas and initiation of four activities – autonomous maintenance, preventivemaintenance, focused improvement and quality maintenance at these criticalproduction facilities. The responsibility for implementation and follow up of TPMactivities at each of the machines was attached to supervisors and engineers concerned

with that particular production activity area. The small group activities (SGA), thedriving force behind the TPM implementation, were then introduced at variousmanufacturing areas in the plant with the production operators and executives at thevarious levels and related with the different organization functions encouraged to formthe small group kaizen teams.

The teams, comprising six to eight members at various hierarchical levels fromvarious organizational functions, were constituted to look into the areas of concernaddressing the key function areas. The objectives of the various teams were formulatedwhich included affecting focused improvement activities, institutionalizing autonomousmaintenance and predictive maintenance activities, motivating workers for suggestingand implementing kaizen themes, development of one-point lessons for improvingworker knowledge and skills. The team leaders were selected on the basis of theirknowledge and interest in equipment improvement as well as the respect and authoritythey commanded from their subordinates. A centralized TPM steering committee wasconstituted for training the workers in different functional areas and for catering tomulti-skilling requirements in the various organizational areas. The initiatives regardingmeasuring and maximizing OEE, the major thrust behind TPM implementation, wereinitiated and the workers were trained and motivated to understand and record variouslosses prevailing in the manufacturing systems. The initial benchmarking of equipmentperformance helped in highlighting the gap between the existing performance levels

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prevailing in the organization and desired manufacturing excellence levels, therebyproviding a strong impetus for introducing focused company-wide maintenanceimprovement strategies through deployment of eight pillar TPM implementationphilosophy across all the critical model equipment in the organization.

Figure 4 indicates the representative loss tree for a critical sample machine. Itclearly depicts the identication of various performance losses associated with thesample machine. The data reveals signicantly high total equipment losses (107hours), manpower losses (195 hours) and material losses (Rs.0.45 lac.) at the start of theTPM implementation program. Subsequently, the benchmarks and targets for variouslosses for the sample machine were identied as shown in Figure 5, and the strategiesfor controlling of the different losses were evolved and effectively deployed throughtotal employee involvement. The roadmap for addressing various performance losseswas evolved by holistic deployment of TPM initiatives. At this stage variousmaintenance improvement initiatives were adopted which included implementation of tracking root causes for the identied losses, failure mode and effect analysis (FMEA),

developing planned maintenance check sheets, putting into place predictivemaintenance initiatives at critical equipment, PM analysis, 5S implementation andvarious other maintenance improvement initiatives.

These initiatives resulted in signicant reduction in the performance losses over aperiod of time as depicted by Figure 6. The trends in total equipment loss, manpowerloss and material loss reveal a signicant improvement in the system performancethrough drastic reduction in performance losses, and validated the extremely highpotential of TPM initiatives toward addressing equipment related losses. This resultedin substantial increase in the total plant uptime as revealed from Figure 7.

Figure 8 depicts the trend in OEE of the critical sample machine over a period of time. The results reveal a signicant improvement in OEE as a result of strategic TPM

Figure 4.Loss tree for a criticalsample machine

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initiatives, from a meager 30.6 percent at the time of start of TPM implementationprogram to 71.6 percent after the successful TPM implementation. This can beattributed to focused improvement initiatives for identication and mitigation of thefactors contributing to low overall equipment effectiveness. The holistic TPMimplementation has also revealed drastic reduction in losses and signicantenhancement in total plant uptime for the manufacturing facility, as revealed inFigure 9.

This was followed by horizontal deployment of TPM implementation initiatives toall the production facilities at the plant. The benets accrued by the enterprise throughstrategic TPM implementation included productivity enhancement ( P ) by way of

Figure 6.Losses chart for a critical

sample machine

Figure 5.Bench mark and targets

for various losses

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enhanced equipment, manpower and materials productivity; quality improvement ( Q )through reduced process defects, defective products, customer complaints andimproved conformance to specications; cost reduction ( C ) through reduction inmanpower, maintenance cost, power consumption, breakdown, rework and operatingcost; improved delivery ( D ) through reduced inventories, dependable deliveries;improved safety ( S ) through zero accidents and zero pollution; improved moralethrough increased motivation, acceptance of improvement initiatives ( kaizens ), smallgroup activities; improved morale ( M ) through ownership and better familiarity withthe equipment, improved cooperation and coordination, free ow of information andcompetitive advantages in the form of value addition and customer delight.

The present case study reveals that there has been signicant improvement inoverall equipment effectiveness of all the production facilities as a result of TPMinitiatives. The benets realized through effective TPM implementation programincluded:

. OEE improvement: 14-45 percent;

. inventory reduction: 45-58 percent;

. improvement in plant output: 22-41 percent;

Figure 8.Overall equipmenteffectiveness evaluationfor critical machine

Figure 7.Total plant uptime

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. reduction in customer rejections: 50-75 percent;

. reduction in accidents: 90-98 percent;

. reduction in maintenance cost: 18-45 percent;

. reduction in defects and rework: 65-80 percent;

. reduction in breakdowns: 65-78 percent;

. reduction in energy costs: 8-27 percent;

. increase in employee suggestions: 32-65 percent; and

. total savings resulting from effective implementation of kaizen themes as a resultof signicantly enhanced participation across the organization: Rs. 80 million.

Thus, TPM has proven to be a continuous improvement strategy that works.Successful implementation of TPM requires at least three to four years of continuousefforts to reach the world-class status. TPM can help an industrial organization in themove toward world-class manufacturing (WCM) through achievement of distinctivebenets as gain of productivity, quality, safety, cost-cutting, exibility and morale.

Figure 9.Losses distribution for

manufacturing facility

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The need for TPM implementation must be addressed seriously in the Indianindustries in order to survive and excel in the global competition.

Critical success factors in TPM implementationThe case study has revealed that the success of TPM in a typical Indian manufacturingorganization is largely dependent on the organization’s endeavor to holisticallyimplement TPM initiatives. The successful implementation of TPM in themanufacturing enterprise is a function of the ability of an enterprise to approachand practice TPM holistically; demonstrating top management commitment, supportand involvement; developing a realistic TPM implementation plan by employingproject management principles; ensuring alignment to mission and existingorganization; providing empowerment and incentive, reward mechanisms in theorganization; ensuring synergy between various business functions; eliminating thereactive maintenance culture; inculcating self-belief in the workforce; ensuring themotivation of workforce toward participative management and continuousimprovement; promoting cross functionality and teamwork; instilling skills andknowledge related to autonomous maintenance and equipment improvement;developing and maintaining standard operating practices; allocating time andresources for efcient TPM implementation practices; establishing and adhering tolaid out practices; putting in place relevant measures of performance, and continuallymonitoring and publicizing benets achieved in nancial terms. In order to ensure thesuccessful implementation of TPM initiatives and practices in the challenging Indianmanufacturing scenario the organizations must be willing to foster a favorable andmotivating environment and support change in the workplace, and create support forTPM concepts. Further, in order to ensure the alignment of employees toward theorganization’s goals and objectives toward a sustainable TPM implementationprogram, an appropriate understanding of underlying TPM principles and strategies

must be provided to employees at all levels in the organization. Moreover, forsuccessful TPM implementation, the organizations must harness competencies forimproving the traditional maintenance performance in the organization, besidesholistically adopting proactive TPM initiatives. It becomes imperative for the Indianorganizations to evolve proactive strategies for indigenous TPM implementationprogram capable of leading the organizations successfully in the competitiveenvironment. Thus there is an urgent need for establishing and holistically adoptingkey enablers and success factors in the organizations to ensure the success of TPMimplementation program for garnering manufacturing competencies for meeting thechallenges posed by the global competition.

ConclusionsThe study reported in this work has revealed that there is an emerging need for TPMimplementation in the Indian industry and the need to develop an indigenous actionplan to foster TPM implementation practices and procedures. TPM has proved to be ameans to supplement the concerted improvement efforts by addressing equipment andother related problems that adversely affect the performance of the manufacturingsystem. TPM implementation in the enterprise has demonstrated the effectiverealization of optimized equipment effectiveness, breakdown elimination andpromotion of autonomous operator maintenance through day-to-day activities

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involving the total workforce. TPM has helped the enterprise in improving the synergybetween the maintenance department and rest of the manufacturing functions,resulting in elimination of defects, improved manufacturing process reliability andOEE, affecting cost reductions thereby strengthening sustainability efforts of theorganization to meet cut-throat global competition for business excellence. TPM hasprovided an excellent means to improve the overall efciency of the manufacturingsystem. Thus, in a highly competitive scenario, TPM might prove to be one among thebest of the proactive strategic initiatives that can lead the organizations to scale newlevels of achievements and could really make the difference between success andfailure of the organizations.

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About the authorsI.P.S. Ahuja holds a Bachelor’s Degree in Mechanical Engineering and Master’s Degree inIndustrial Engineering from Thapar Institute of Engineering and Technology, Patiala, Punjab,India. Presently, he is working as Reader in Mechanical Engineering at University College of Engineering, Punjabi University, Patiala (India). His main research area is Total ProductiveMaintenance. I.P.S. Ahuja is the corresponding author and can be contacted at:[email protected]

J.S. Khamba holds a Bachelor’s Degree in Mechanical Engineering, Master’s Degree inIndustrial Engineering and PhD in Technology Management from Thapar Institute of Engineering and Technology, Patiala, Punjab, India. Presently, he is working as Professor inMechanical Engineering at University College of Engineering, Punjabi University, Patiala(India). His main research areas are Technology Management, Non Traditional Machining andTotal Productive Maintenance.

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An Evaluation[1]