News & Tips
12 May 2026
TPM Knowledge
Loss Zero is the Ultimate Partner for Management
TPM is an activity that aims to expand corporate profits and build a profitable corporate structure by reducing all hidden losses in the production system to zero. What exactly does "Production system" refer to? And what kind of losses are hidden within it?
The Chart below illustrates the structural model of the production system. The production department is placed at the center, surrounded by various staff departments such as Purchasing, Production Engineering, and Development.

The "Production system" advocated in the definition of TPM is not limited to the production department alone, but rather refers to the entire business processes from receiving an order to the delivery to the customer.
Furthermore, TPM considers the "16 major losses" as the fundamental hidden losses in the production system. The 16 major losses are simply the baseline; depending on the differences in industry and production format, there can be many other losses beyond these 16 major losses.
The major 16 losses can be broadly classified into three groups: ➀8 major losses impeding equipment effectiveness, ②5 major losses impeding labor effectiveness, and ③3 major losses impeding resource comsumption effectiveness.
Using these 16 major losses as a starting point, TPM first works to quantitatively grasp the current hidden losses. Then by assigning roles for "reducing" existing losses and "preventing" future losses, all stakeholders work together to achieve Zero Loss and expand corporate profits.
In addition to that, during the development and design stages of new products and new equipment, TPM predicts the occurrence of the 16 major losses and implements countermeasures to achieve a profitable vertical startup.
Before handing over new products or equipment to the production department, MP(Maintenance Prevention) design is applied to incorporate proactive countermeasures against the 16 major losses into the design. This is an activity to "prevent" losses at the upstream stage, and in today's era of short product lifecycles, it plays a massive role in securing the source of corporate profit.
- Reduce and further prevent the 16 major losses currently occurring on the shop floor
- Prevent the 16 major losses expected to occur in the future at the design stage.
Hence, TPM, which strives for Zero Loss by reducing and preventing the 16 major losses, can truly be called the best partner for management.
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