Business Industrial Network True Downtime Cost

Business Industrial Network

www.DowntimeCentral.com

True Downtime CostTrue Downtime Cost


Introduction

A little about the speaker AFE Region 9 – Marketing and Communication

Representative

• Benefits of Trade Organizations

• Networking among similar organizations

• What is commonality between the Internet and organizations

Why the topic Downtime Cost?• TDC Survey


The Power of networking…

You

InternetOrganization

A third intangible force


2002 Downtime Survey

150 employees, only 80 hours annual downtime reported

Average OEM respond time, 20 hours. Max 40 hours, cost nothing?

7 industries surveyed, 4 industries reported on an average, that they had less than 6 PLCs in their facility.

30% PM, 10% emergency. The Truth - 9% PM, 60% emergency.


Quick Help Results

Our customers can see ROI of 200%

BIN makes Manufactures, Vendors, and Support companies more profitable through TDC information.

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Overview – The 3 step plan

True Downtime CostAdopt Information StandardsUnderstanding OEE


Acronyms explained

ROI• Return On Investment

OEE• Overall Equipment Effectiveness

ROA• Return on Assets

RAV• Replacement Asset Value


True Downtime Cost (TDC)

Corrugators = $ 10,000 per hour• 6 Hours saved in Unplanned downtime, $60K

Air compressor = $ 30,000 per hour• 6 Hours saved in Unplanned downtime, $180K

Cell Bottleneck = $ 3,000 per hour• 6 Hours saved in Unplanned downtime, $18K


Overview (Definition:)

TDC – True Downtime Cost•A method of recording and analyzing all significant cost metrics associated with equipment downtime in a building or manufacturing facility. •TDC provides a way to assign time and/or monetary value to previously considered “non-tangible” cost of downtime. •Also TDC includes downtime factors commonly overlook to arrive at a more true value for the cost of downtime.


HOW MANY HOURS PER YEAR ?HOW MANY HOURS PER YEAR ?

Our survey shows the average annual downtime that was tracked and

reported, to be 450 hours.

True Downtime cost per yearTrue Downtime cost per yearCorrugators = $ 4,500,000 per year

Air compressor = $ 13,500,000 per year

Cell Bottleneck = $ 1,350,000 per year


Focus on the 80%

80% of the failures come from 20% of the failure modes.

TDC helps you focus on the greatest cost of downtime, as opposed to traditional broad categories such as “Maintenance” , “Labor”, “The Hottest Fire” etc.


Why use TDC? Executive Management

• True (Better) information, make better daily decisions based on true cost, not just labor and production schedule.

Maintenance Management• TDC gives you the tools to cost justify those much

needed equipment upgrades and replacements. All Service and Product Suppliers

• Allows you to show customers the true value and savings of your product or service.

• Helps your customers cost justify purchasing from you.

You’ve seen the value in CMMS, now see that value increase.

CMMS, might pay for itself in 18-30 months

Targeted cost/risk review of projects and maintenance requirements will typically achieve net payback in 3-6 months.



Data Collection

Equipment –constants• Updated annually, or as needed

Labor – constants• Updated when needed automatically

Downtime – occurrences• Updated at time of each occurrence

automatically


A Quick Look at TDC metrics

Equipment

Categories

People

Product

Start-Up

Bottleneck

Sales Exp

Labor

LPP/M

QC

Maintenance

Engineering

Management

Downtime

Time

Reduced

Scrap

Band-Aid

OEM

Tooling

Part / Ship

Overhead

A greater return is why we see the popularity of …

TPM• (Total Productive Maintenance)

RCM • (Reliability Centered Maintenance)

CMMS• (Computerized Maintenance Management System)

OEE• (Overall Equipment Effectiveness)



TDC shows at least 10 times the cost that conventional methods show.

This is why TDC amplifies the value of asset management programs by many times.


What if TDC dies off, employees lose interest?

TDC made easy by growing number of Computer systems

Are being recognized as necessary and valuable for …• asset information

• work management

• condition monitoring



The relationships are poorly understood, the mathematics are too nasty, and the available raw data is usually inadequate. However, much has changed through the TDC project.

The Old Mindsets


TDC to OEE OEE can appear improved by actions

such as purchasing oversize equipment, providing redundant supporting systems and increasing the frequency of overhauls.

Also complete understanding of OEE is required to make sound decisions.

TDC enhances OEE accuracy, and places it in perspective.


TDCTDC represents the final bottlenecks to a fully integrated and auditable approach to maintenance strategy development / justification.

“LEAN”TPM, RCM, PM

ERP,CMMS,EDI,DCS,PLC

TDCVisit online to learn more about•Standards•OEE•TDC Data Source•TDC Cost Factors

Documents

Business Industrial Network True Downtime Cost