The Effect of TPM Implementation as Strategic Maintenance Management to Improve Operational Performance on FPM Department PT. Berau Coal

Abstract

This study aims to investigate the effect of Total Productive Maintenance (TPM) practices as a strategic maintenance management to improve operational performance on Fixed Plant Maintenance (FPM) department in mining industry especially in PT. Berau Coal as one of the fifth biggest coal mining in Indonesia. This research is an applied research to examine the effect of implementing TPM on operational performance by using primary data from the questionnaires of 103 employees involved in FPM. Research using structural equation modeling (SEM) techniques and the results of data analysis show that the overall application of TPM has a significant effect in improving operational performance in the FPM department and in the direct relationship of each dimension of TPM practises shows that only operator involvement has a direct significant effect in improving operational performance while anotther disciplined maintenance, information tracking and housekeeping does not significant. The managerial implications of this research are as guidelines for decision makers in the mining industry to implement TPM as one of the maintenance strategies of machines and heavy duty equipment to improve performance.