Business Industrial Network

1
Business Industrial Network
True Downtime Cost

• www.DowntimeCentral.com

2
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

3
The Power of networking
A third intangible force
4
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.

5
Quick 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
6
Overview The 3 step plan

• True Downtime Cost
• Adopt Information Standards
• Understanding OEE

7
Acronyms explained

• ROI
• Return On Investment
• OEE
• Overall Equipment Effectiveness
• ROA
• Return on Assets
• RAV
• Replacement Asset Value

8
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

9
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 ?

• 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
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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.

13
Youve 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
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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
Overhead
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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
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TDC 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
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What if TDC dies off, employees lose interest?
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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
20
The 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.
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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.

22
www.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