International Journal of Scientific Research and Management (IJSRM)

||Volume||07||Issue||12||Pages||EM-2019-1449-1458||2019||
Website: www.ijsrm.in ISSN (e): 2321-3418
DOI: 10.18535/ijsrm/v7i12.em03

Total Productive Maintenance and Performance of Bottling Company

Plants in Edo State.
1
Nnabuife, E. 2Ohue Paul Itua & 3Emerole Ikechukwu Chimezie
1,2&3Department of Business Administration, Faculty of Management Sciences, Nnamdi Azikiwe
University, Awka, Anambra State; Nigeria.

Abstract
The broad objective of this paper is to determine the effect of total productive maintenance on performance
of selected bottling company plants in Edo State. Specifically, this paper seeks to ascertain the effect of
planned maintenance on the competitive advantage of selected bottling company plants in Edo State.
Survey research design was adopted for the study, a total population of two hundred and sixty nine (269)
was used for the study, census sampling method was used for the study because the population is a
manageable size, the data collection tool employed by the researcher was the questionnaire, while the
analysis of the data was done using the linear regression analysis. The findings revealed that planned
maintenance impacts the competitive advantage of selected bottling company plants in Edo State since (F =
223.041; R2 = 0.832; P <.05). The researchers therefore concluded that total productive maintenance
impacts the performance of the companies in focus. It was against this backdrop that the researchers
recommended that heads of the production department of the companies in focus should ensure the
enactment of a schedule geared towards regularly maintaining their production equipments and an
orientation of new employees on the importance of equipment maintenance should be done by heads of the
production department of the companies in focus.

Keywords: Total Productive Maintenance, Performance, Planned Maintenance, Competitive Advantage.

Introduction
Background of the Study
In today’s highly competitive and dynamic global business environment, organizations all over the globe are
required to deliver world class products and services(Ahuja & Kumar, 2009; Psomas & Fotopoulos,
2009).In pursuit of attaining this goal, organizations have been acquiring competitive strengths through the
adoption of world class strategies like Total Productive Maintenance (TPM) (Leonard, 2010). This gives
credence to the determination of the effect of total productive maintenance on performance of selected
bottling company plants in Edo State, Nigeria. TPM in reality is not a new subject. It was first introduced in
Japan back in 1971, as an offshoot of the Toyota Production System and it was made popular by the Japan
Institute of Plant Maintenance (JIPM). It was only in the 1990’s that JIPM actually opened its door, its secret
about TPM, to the western world with its first TPM Instructors’ class in the English language. Since then,
many books, articles and literatures have been written in English about TPM (Gosavi, 2006).
This world class strategy (TPM) has gain prominence in business organizations during the last fivedecades
and have conquered today’s organizational arena(Ahuja &Khamba, 2008;Hernandez, 2010;Sharma &
Kodali, 2008). The benefits achieved through the implementation of total productive maintenance in
business organizations have been widely reported in managementliterature; this has led to the continuous
interest in the concept(Ahuja& Khamba, 2008; Koc, 2007).
Many leading organizations during the last decade have been using TPM as a competitive strategy. For
example, leading American organizations like Proctor and Gamble, DuPont, Eastman Chemical, Ford, AT &
T and Texas Instruments have adopted TPM as a tool for enriching competitiveness (Ahuja &Khamba,
2008). Though the concept Total Productive Maintenance is not new to the Nigerian environment, some
Nigerian business organizations have not effectively applied this strategy. In management literature, several

Nnabuife, E., IJSRM Volume 07 Issue 12 December 2019 [www.ijsrm.in] EM-2019-1449

researchers have reported the power of TPM. Ireland and Dale (2001) stated that, the TPM program aids an
organization to strivecontinuously for producing non-defective productswhich by extension impacts its
performance level.
Organizational performance has been central to the attention of scholars as it is one of the most important
construct for measuring the effectiveness of an organization (Combs, Crook, & Shook, 2005). Business
performance for some time now has been seen to be associated with total productive maintenance.According
to Richard, (2009) organizational performance encompasses some specific areas of firm outcomes: (a)
financial performance (profits, return on assets, return on investment, etc.); (b) product (service) market
performance (sales, market share, firm innovation, competitive advantage etc.); and (c) shareholder return
(total shareholder return, economic value added, etc.).
Though some managers of business organizations have not been able to successfully implement total
productive maintenance in their organization, an effective implementation of TPM could impact the
performance of an organization (Ireland & Dale, 2001). A non-financial performance indicator was used for
the study.

The bottling company plants used for this study are Nigerian bottling company (Eyaen) and seven up
bottling company (Oluku) plants located in Benin City Edo State.The production department of these
companies is the focal point of this study.

Statement of the Problem

The inability of the production managers of the companies in focus to employ a unique strategy geared
towards ensuring the regular maintenance of their production equipments and machines has necessitated this
study. This is because observations made by the researchers revealed that in a bid to minimize cost, heads of
the production department do not maintain their equipments regularly according to the standard of their
sister companies overseas. This by extension could impact the competitive position and by extension the
overall performance level of the companies in focus.

Objective of the Study

The broad objective of this paper is to determine the effect of total productive maintenance on performance
of selected bottling company plants in Edo State.
Specifically, this study seeks to ascertain the effect of planned maintenance on the competitive advantage of
selected bottling company plants in Edo State.

Research Question
What is the effect of planned maintenance on competitive advantage of selected bottling company plants in
Edo State?

Research Hypothesis
Ho: The relationship between planned maintenance and competitive advantage of selected bottling company
plants in Edo State is not significant and positive.

Review of Related Literature

Conceptual Review
Total Productive Maintenance
Total Productive Maintenance seeks to maximize equipment effectiveness throughout the lifetime of the
production equipment. It strives to maintain the equipment in optimum condition in order to prevent
unexpected breakdown, speed losses and quality defects.
Total Productive Maintenance initiatives in production help in streamlining the manufacturingand other
business functions and garnering sustained profits (Ahuja and Khamba, 2007). TPM is
adopted, in order to strengthen the manufacturing business performance and to achieve a world-class
performance (Swanson 2001; McKone, Schroeder & Cua, 2001).
TPM in reality is not a new subject. It was first introduced in Japan back in 1971, as an offshoot of the
Toyota Production System and it was made popular by the Japan Institute of Plant Maintenance (JIPM). It
was only in the 1990’s that JIPM actually opened its door, its secret about TPM, to the western world with

Nnabuife, E., IJSRM Volume 07 Issue 12 December 2019 [www.ijsrm.in] EM-2019-1450

its first TPM Instructors’ class in the English language. Since then, many books, articles and literatures have
been written in English about TPM (Gosavi, 2006).
TPM activities in a manufacturing company secure the physicalimprovement of personnel, equipment and
the company as a whole. TPM activities target to improve equipmenteffectiveness and eventually to secure
zero equipment failures, zero defects and reworks, and zero industrial accidents. TPM is focused on
improving all the big picture indicators of manufacturing success (Samuel, John, Shi & Qi 2002). TPM is
also very much about safety, asset utilisation, expanding capacity without investment in new equipment or
people, continuing to lower the cost of equipment maintenance and improve equipment uptime. TPM is a
resource-based approach where all employees are responsible for contributing to avoid equipment
deterioration, breakdowns, failures and stoppages (Seng, Jantan & Ramayah, 2005). Implementing TPM
requires a long-term commitment with the support of management to achieve the benefits ofequipment
effectiveness and operational excellence. The eight TPM
pillars are: Asset Productivity, Autonomous Maintenance, Planned Maintenance, Training and Education,
Maintenance Prevention, Quality Maintenance, Office TPM, and Safety and Environment that encompass
almost all areas in operating a factory (Bamber, 2003).
From the foregoing, total productive maintenance is a wholistic approach that specifies an effective
functioning of the component parts/sub systems of an organization.

Planned Maintenance
Stephenson (2018) sees planned maintenance as a proactive approach to maintenance in which maintenance
is scheduled to take place on a regular basis. The type of work to be done and the frequency varies based on
the equipment being maintained, and the environment in which it is operating. The primary objective of
planned maintenance is to maximize equipment performance by keeping equipment running safely for as
long as possible, without that equipment will deteriorate or have unplanned outages (Stephenson, 2018).
Planned maintenance is any variety of scheduled maintenance to an object or item of equipment. Planned
maintenance helps an equipment to operate correctly and it helps in the avoidance of any unscheduled
breakdown or downtime in an organization (Wood, 2003).
A review of the definitions of scholars shows that planned maintenance is a well thought process by the
management of any organization that strives for equipment efficiency and effectiveness.

Organizational Performance
Organizational performance is a socially constructed phenomenon that is subjective, complex, and
particularly hard to measure in most business organizations (Au 1996; Anspach 1991). According to
Wikipedia, (2008) organizational performance comprises the actual output or results of an organization as
measured against its intended outputs (or goals and objectives).
According to Richard, (2009) organizational performance encompasses some specific areas of firm
outcomes: (a) financial performance (profits, return on assets, return on investment, etc.); (b) product
(service) market performance (sales, market share, firm innovation, competitive advantage etc.); and (c)
shareholder return (total shareholder return, economic value added, etc.). According to Upadhaya, Munir
and Blount (2014) an organization is regarded as effective when it has a high performance level. This study
is centered on a non-financial performance indicator.
The foregoing shows that organizational performance shows how well an organization is functioning.

Competitive Advantage
Firms that earn persistently higher levels of profit than competitors have a competitive advantage (Grant,
2008). A variety of theories within the strategy domain address competitive advantage as a way of
explaining how management decisions or market factors lead to superior economic performance. According
to Rayport and Jaworski (2004) to have a competitive advantage a firm must create superior value for buyers
by offering lower prices than competitors for equivalent services or by providing unique services that a
buyer is willing to pay for at a premium price. Using this definition, a given firm must devise a competitive
strategy that is able to establish a profitable and sustainable position relative to competitors. Grant (2008)
asserts that building unique and valued know-how and capabilities that rivals cannot easily imitate entails
having a competitive advantage. Rayport and Jaworski (2004) assert that an organization’s interface with its

Nnabuife, E., IJSRM Volume 07 Issue 12 December 2019 [www.ijsrm.in] EM-2019-1451

customer is its sole aim of striving to gain a competitive advantage over its competitors. Walsh, Enz, and
Canina (2008) assert that when an organization has a competitive advantage over its competitors, it could
positively affect the profitability of the organization.
A review of the definition of the concept by various scholars shows that an organization could have a
competitive advantage when it has the ability to satisfy customers better than others.

Theoretical Framework
This study is anchored on Maintenance Management Theory Propounded by Sack (1963). Visser (1998)
observed that this theory is a relatively young academic discipline. The work of Sack (1963) was improved
upon by Newborough (1967), Mann and Heintzelman (1976) and Kelly and Harns (1978). Maintenance
management theory emphasizes the scheduled maintenance of equipments and machines of an organization.
This theory is relevant to this study because the planned maintenance of the equipments and machines of the
companies in focus could impact the competitive position of these companies.

Empirical Review
Bakri (2015) examined the impact of total productive maintenance on performance of selected automotive
companies in Malaysia. Case study research design was used for the study, questionnaire was the data
collection tool employed, regression analysis was used to analyse the collected data. Findings of the study
revealed that total productive maintenance impacts the performance of the automotive companies in focus.

Nzewi, Chiekezie and Arachie (2016) examined the relationship between total productivity maintenance and
the performance of selected aluminium firms in Anambra State. The study employed a correlation research
design, a population of 399 was used for the study, while a sample size of 200 was determined using Taro
Yamane sampling technique. Questionnaire was the data collection tool employed and pearson product
moment correlation coefficient was used to analyse the collected data. Findings revealed that maintenance
autonomy has a significant positive relationship with employee commitment.
Renganathan (2014) examined the impact of total productive maintenance practices on the performance of
selected manufacturing companies in Malaysia. Secondary source of data was utilized for the study,
regression analysis was used to analyse the collected data. The findings revealed that total maintenance
practices impacts the performance of the focused companies.
Ajiboye and Adedokun (2010) investigated maintenance engineering and productivity in a salt production
firm in Osun State Nigeria. Descriptive survey research design was used for the study, questionnaire was the
data collection tool employed while regression analysis was used to analyse the collected data. Findings
revealed that machine with good working condition impacts the productivity of the firm in focus.
Chiekezie, Nzewi and Odekina (2017) examined the extent to which maintenance culture influences
performance of selected manufacturing firms in Benue State, Nigeria.The study adopted survey research
design with a population of two hundred and thirty three (233) and a sample size of one hundred and forty
seven (147) derived using Taro Yamane’sformula for finite population. Questionnaire was used as
instrument for data collection. Data collected were analyzed with the use of pearson product
momentcorrelation coefficient.Result of the study
Shows that preventive maintenance significantly influences product delivery of the selected firms.

Gap in Knowledge
None of the empirically reviewed has examined total productive maintenance as it relates to the performance
of selected bottling company plants in Edo state, Nigeria and none of the empirically reviewed has
specifically identified planned maintenance as it relates to the competitive advantage of selected bottling
company plants in Edo state, Nigeria. This is the gap in knowledge that this study intends to fill.

Methods
Research Design
The research design adopted for this study was the survey research design. It was used because of the nature
of the study. Survey research design enables the researcher to observe what happens to the sample subjects
without manipulating them.

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Population of Study
Table 1: Population of Employees in the Organizations of Study

Company Marketing Production Human Finance Total

Department Department Resource Department
Department
Nigerian 118 162 127 135 542
Bottling
Company
(NBC) Benin
Plant
Seven Up 75 107 81 93 356
Bottling
Company,
Benin Plant
Total 193 269 208 228 897
Source: Personnel Department of the Organizations of Study (April, 2019).

Table 2: Study Population

Company Production
Department
Nigerian Bottling 162
Company (NBC)
Benin Plant
Seven Up 107
Bottling
Company, Benin
Plant
Total 269
Source: Personnel Department of the Organizations of Study (April, 2019).

The study population was restricted to the production department of the companies in focus because planned
maintenance of equipment is peculiar to the production department was the chosen variable for this study.

Sample Size and Sampling Technique

Census sampling was used for this study. It was chosen because the study population of 269 is a manageable
size. Based on this, 269 copies of the questionnaire were randomly distributed to the respondents of the
production department in the companies of study.

Instrument of Data Collection

The data collection tool employed by the researcher was the questionnaire. It was designed on a five point
Likert Scale. Strongly Agree (SD), Agree (A), Strongly Disagree (SD), Disagree (D) and Undecided (U).

Validity of the Instrument

Validity is the extent to which an instrument measures what it intends to measure. The content and face
validity test was used by the researcher.

Reliability of the Instrument

This is a measure of the consistency of a particular instrument employed by a researcher. The Cronbach’s
Alpha reliability test was used for the study. Suwannoppharat and Kaewsa, (2015) assert that a reliability
coefficient of 0.696 and above is acceptable. Therefore, a benchmark of 0.696 was used for the study.

Table 3: Scale: Reliability Statistics for Total Productive Maintenance

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 Reliability Statistics
Cronbach's N of Items
Alpha
.842 5

Since the Cronbach’s Alpha score of the reliability statistics for total productive maintenance 0.84 is greater
than 0.696, it shows that the instrument is reliable.

Table 4: Scale: Reliability Statistics for Organizational Performance

Reliability Statistics
Cronbach's N of Items
Alpha
.736 5

Since the Cronbach’s Alpha score of the reliability statistics for organizational performance 0.74 is greater
than 0.696, it shows that the instrument is reliable. The results of the reliability test were indications of the
internal consistency of the instrument.

Method of Data Analysis

Regression analysis was used to analyse the collected data. This was done with the aid of Statistical Package
for Social Sciences (SPSS) version 20.
Data Presentation and Analysis

Table 5: Table of Returned and Unreturned Questionnaire

ANALYSIS OF RETURNED AND UNRETURNED QUESTIONNAIRE

Frequency Percentage %

Returned Questionnaire (Valid) 189 70.26

Returned Questionnaire (Invalid) 42 15.61

Unreturned Questionnaire 38 14.13

Total Questionnaire Administered 269 100

Source: Field Survey, April (2019)

The table above shows that out of the 269 copies of the questionnaire administered, 189 valid questionnaires were
retrieved. Based on that, 189 copies of the questionnaire were used for the analysis.

What is the effect of planned maintenance on competitive advantage of selected bottling company plants in
Edo State?
Table 6: Descriptive Statistics of the Analysed Data (planned maintenance)
Descriptive Statistics
N Minimum Maximum Mean Std. Deviation
Q1 189 1.00 5.00 3.5000 1.20924
Q2 189 1.00 5.00 3.2407 1.32663
Q3 189 1.00 5.00 3.5285 1.31380
Q4 189 1.00 5.00 3.4672 1.10312
Q5 189 1.00 5.00 3.2148 1.14635
Valid N (listwise) 189
Source: Field survey, 2019.
A bench-mark of 3.0 was used for the study. Since the mean values of all the questions for planned
maintenance are above 3.0, it shows that all the questions were acceptable for the study. Hence, they were
all used for the study.

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Table 7: Descriptive Statistics of the Analysed Data (Competitive Advantage)
Descriptive Statistics
N Minimum Maximum Mean Std. Deviation
Q1 189 1.00 5.00 3.4630 1.22417
Q2 189 1.00 5.00 3.1667 1.43737
Q3 189 1.00 5.00 3.1630 1.51342
Q4 189 1.00 5.00 3.4573 1.48929
Q5 189 1.00 5.00 3.2963 1.24314
Valid N (listwise) 189
Source: Field survey, 2019.
A bench-mark of 3.0 was used for the study. Since the mean values of all the questions for competitive
advantage are above 3.0, it shows that all the questions were acceptable for the study. Hence, they were all
used for the study.

Test of Hypothesis
Ho: The relationship between planned maintenance and competitive advantage of selected bottling company
plants in Edo State is not significant and positive.

Table 8: Model Summary of Regression Output

b
a) Model Summary
Mode R R Adjusted R Std. Error Change Statistics Durbin-
l Squar Square of the R F Change df1 df2 Sig. F Watson
e Estimate Square Change
Change
1 .818a .832 .814 .63123 .852 233.041 1 52 .000 1.659

a. Predictors: (Constant), Planned Maintenance

b. Dependent Variable: Competitive Advantage

Table 9: ANOVA Result from Regression Output

b) ANOVA
Model Sum of Squares Df Mean Square F Sig.
Regression 88.933 1 88.933 223.041 .000b
1 Residual 20.065 54 .386
Total 110.000 55
a. Dependent Variable: Competitive Advantage
b. Predictors: (Constant), Planned Maintenance

Table 10: Coefficients from Regression Output

a
c) Coefficients
Model Unstandardized Coefficients Standardized T Sig. 95.0% Confidence Interval
Coefficients for B
B Std. Error Beta Lower Upper Bound
Bound
(Consta
.292 .197 1.484 .144 -.103 .686
nt)
1 Planned
Mainten .904 .060 .906 15.254 .000 .789 1.028
ance
a. Dependent Variable: Competitive Advantage

The result obtained from the regression analysis shows that planned maintenance has significant effect on
competitive advantage (β = 0.904, t = 15.254, P<.05). Also, planned maintenance is apredictor of
competitive advantage (F = 223.041; R2 = 0.832; P <.05). The predictor variable single handedly explained
83.2% of the variance in competitive advantage, while the remaining 16.8% could bedue to the effect of

Nnabuife, E., IJSRM Volume 07 Issue 12 December 2019 [www.ijsrm.in] EM-2019-1455

extraneous variables. The durbin-watson value of 1.7 shows that there is no first order serial correlation.
This makes the result respectable.

Discussion of Findings
Findings from the test of the formulated hypothesis shows that planned maintenance has significant and
positive effect on competitive advantage of selected bottling company plants in Edo State. This corroborates
the work of Bakri (2015). He examined the impact of total productive maintenance on performance of
selected automotive companies in Malaysia. Findings of the study revealed that total productive
maintenance impacts the performance of the automotive companies in focus. The work of Nzewi, Chiekezie
and Arachie (2016) on the relationship between total productivity maintenance and the performance of
selected aluminium firms in Anambra State is also in line with the result obtained from the test of the
hypothesis. Findings of the study revealed that maintenance autonomy has a significant positive relationship
with employee commitment. The work of Renganathan (2014) also corroborates the result obtained from the
test of the formulated hypothesis. The study which examined the impact of total productive maintenance
practices on the performance of selected manufacturing companies in Malaysia revealed that total
maintenance practices impacts the performance of the focused companies.

Summary of Findings
Findings from the test of the formulated hypothesis shows that planned maintenance impacts competitive
position of selected bottling company plants in Edo State since(F = 223.041; R2 = 0.832; P <.05).

Conclusion
Based on the findings, the researchers concluded that total productive maintenance impacts the performance
of selected bottling company plants in Edo State. The findings of the study showsthat the planned
maintenance of equipment used by managers of the companies in focus could impact the competitive
advantage of these companies.
Recommendations
The researchers made the following recommendations based on the findings of the study:
1. Heads of the production department of the companies in focus should ensure the enactment of a schedule
geared towards regularly maintaining their production equipments.
2. An orientation of new employees on the importance of equipment maintenance should be done by heads
of the production department of the companies in focus.

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Appendix
Questionnaire Items onTotal Productive Maintenance and Performance
Options: Strongly Agree = SA, Agree = A, Undecided = UD, Strongly Disagree = SD, Disagree = D.

Questionnaire Item for Independent

Variable(Total Productive Maintenance)
Planned Maintenance SA A U SD D
No 5 4 D 2 1
3
1 There is a schedule of equipment maintenance in
your organization.
2 Your head of department wait for a machine to
break down before it is maintained/repaired.
3 There are a lot of faulty production equipments
lying fallow in your organization.
4 There are capable production engineers in your
organization.
5 You are satisfied with the working condition of `
production equipments/machines in your
organization.
Dependent Variable (Performance)
Competitive Position
1 You like the position your organization occupies
in the industry it belongs.
2 In the last five years, the market share of your
organization has been threatened.
3 There is an annual increase in the sales of your
organization.
4 There is an annual increase in the profit of your
organization.
5 Your organization has a stiff competitor in the
industry it belongs.

Nnabuife, E., IJSRM Volume 07 Issue 12 December 2019 [www.ijsrm.in] EM-2019-1458