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www.DowntimeCentral.com
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
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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.
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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
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Acronyms explained
ROI• Return On Investment
OEE• Overall Equipment Effectiveness
ROA• Return on Assets
RAV• Replacement Asset Value
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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
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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.
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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
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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.
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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.
www.DowntimeCentral.com
www.DowntimeCentral.com
Data Collection
Equipment –constants• Updated annually, or as needed
Labor – constants• Updated when needed automatically
Downtime – occurrences• Updated at time of each occurrence
automatically
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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)
www.DowntimeCentral.com
www.DowntimeCentral.com
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.
TDC 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
www.DowntimeCentral.com
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
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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.