Generation after 1999

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In the year 1999, even in the face of predictions that the Japanese economy had come out of the bottom of the pit with a slight reversal of the growth index to positive, there were many factors that made the future of Japan's economy uncertain, such as the exchange rate trend, the merger of large incorporations across borders, changes in the balance sheet system, retirement and severance compensation issues, company classifications, among others.

Despite the slight trend towards the recovery of productive activities, it is practically impossible to return to the production levels of the past; for companies to emerge victorious in the struggle for survival amidst increasingly fierce price competition and technological warfare, it is essential that they promote a reduction of costs in an innovative manner.

According to Suzuki, innovative cost reduction activities were promoted since the Second Generation TPM in the form of trial and error; however, it became evident that these, with participation limited to all sectors of the factory or plant, yield minimal results regarding their efficiency.

Especially for establishing strategic costs and maintaining or increasing the production volume of a plant with the introduction of a new product, there is no other way to manage them other than by implementing TPM throughout the organization. If it is impossible to extend it throughout the company, at least the functions of the organization's headquarters should be involved at the business unit level – R&D sectors, branches, commercial, administrative, etc. (NAKAZATO, 2000)

This position is precisely the Third Generation TPM, its area of work is the cost reduction of the Product – the new version of Total Productive Management.

Courses, Consultations, and Diagnoses of TPM are with Loss Prevention!