Title: Business Industrial Network
1Business Industrial Network
True Downtime Cost
2Introduction
- 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
3The Power of networking
A third intangible force
42002 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.
5Quick Help Results
- Our customers can see ROI of 200
- BIN makes Manufactures, Vendors, and Support
companies more profitable through TDC information.
PREVENT
PARTS
FIND
FIX
Hours Down
6Overview The 3 step plan
- True Downtime Cost
- Adopt Information Standards
- Understanding OEE
7Acronyms explained
- ROI
- Return On Investment
- OEE
- Overall Equipment Effectiveness
- ROA
- Return on Assets
- RAV
- Replacement Asset Value
8True 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
9Overview (Definition)
- 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.
10HOW MANY HOURS PER YEAR ?
- Our survey shows the average annual downtime that
was tracked and reported, to be 450 hours.
True Downtime cost per year
Corrugators 4,500,000 per year Air compressor
13,500,000 per year Cell Bottleneck
1,350,000 per year
11Focus 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.
12Why 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.
13Youve 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.
www.DowntimeCentral.com
14Data Collection
- Equipment constants
- Updated annually, or as needed
- Labor constants
- Updated when needed automatically
- Downtime occurrences
- Updated at time of each occurrence automatically
15A Quick Look at TDC metrics
Overhead
16A 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)
www.DowntimeCentral.com
17TDC shows at least 10 times the cost that
conventional methods show.
CMM X 10
TPM X 10
- This is why TDC amplifies the value of asset
management programs by many times.
RCM X 10
OEE X 10
18What if TDC dies off, employees lose interest?
19TDC made easy by growing number of Computer
systems
- Are being recognized as necessary and valuable
for - asset information
- work management
- condition monitoring
www.DowntimeCentral.com
20The Old Mindsets
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.
21TDC 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.
22www.BIN95.com
TDC represents the final bottlenecks to a fully
integrated and auditable approach to maintenance
strategy development / justification.
TDC
- Visit online to learn more about
- Standards
- OEE
- TDC Data Source
- TDC Cost Factors