_=0 to 30 Employees
_=31 to 50 Employees
_=51 to 100 Employees
_=101 to 200 Employees
_=201 to 301 Employees
Typically daily management decisions related to equipment downtime are made based primarily on labor cost. Of course, production demand is also at the top of the priority list too. The bottlenecks are taken into account in the decisions when they are realized. Some facilities overlook equipment as a bottleneck, like air compressors, boilers, and strappers out in the warehouse. The decision making balance to maintain is between production demand and "True Downtime Cost"™, not primarily production demand and direct labor cost.
Using a TDC methodology, the 'Overhead' bucket becomes very small, making clear to all, the areas of greatest opportunity. In these times of economic turmoil, it is ever more important to look at the "True Downtime Cost"™ in it's respective categories, not only to see the greatest opportunity, but to profit from the valuable insight this methodology will bring. You will learn that many of the metrics with cost savings bottom line improvement opportunities, far outweigh the labor category and the immediate temporary gains of downsizing.
There are three main downtime categories proposed. The main category of "Equipment Cost" and "Labor Cost" are composed of metrics that are one time entry of constants, updated annually, exported from your existing computer systems. The main category of "Downtime Cost" contain the metrics that are "per downtime" occurrence entries, but most can be exported from your existing CMMS. The data being recorded from facility to facility, from software package to software package, vary greatly. I have done detailed analysis of each downtime cost metric, but the results are too great to mention in this article. Surprisingly some metrics have large cost savings opportunities and have been overlooked by the general industry.
The grand total of TDC for labor is $200 direct labor + $95 indirect labor, for a total of $295. We all know in the industry, most would not bat an eye at $295. There are two points to made by this example. One is the commonly overlooked "overhead" cost, which is hiding almost 66% of the true cost in the labor category alone. The other point known to upper management and accountants, is indirect labor, which is a large part of the picture, yet only considered on a daily basis by very few.
Above was a best case scenario. Consider a bottleneck with 20 downstream employees affected. Add in Engineering, material handlers, more management/supervisors, controller, safety personnel, accounting, secretaries, rework, and offsite QC inspections. You could include the offsite personnel cost like consultants, OEM techs, etc., but it is recommended to have those costs in their own category as they are so great. Think about if the entire plant was shut down. How much would the TDC labor cost alone, be? You may re-prioritize the main breaker switch or air compressor PM.
Looking for the overlooked
- Equipment Cost Category（常量）
- Categories- Standardize your data collection categories, learn from MIMOSA.
- 人们- 间接劳动力成本通常大于更明显的直接劳动力成本。
- Product- 由两个子类别组成。每单位成本，每小时单位。
- Start-up- Every time you startup your machine, there is hidden cost.
- Bottleneck- Using a process flow diagram, pre-determine a bottleneck factor for each asset.
- 销售期望- 我们的目标总是保持100％的容量准备。
- LPP/M- 您的LPP / LPU计算是否包括间接劳动力？
- QC- Associate QC cost, re-work, etc. with actual downtime occurrence.
- Maintenance- 有一个大量的工作人员，支持那些实际完成机器修复的人。
- Engineering- Engineering costs to support troubleshooting and repair of machines can slip through the cracks.
- Management- Requesting maintenance, redirecting operators, reporting to upper level management, altering production schedules/flow, administrative tasks, etc.
- Time- 您是否跟踪维护到达现场时，或者当机器实际下降时？
- 减少生产- 由于故障，全容量设备的时间和百分比运行降低速率。
- 废料- On continuous flow systems, scrap related directly with downtime can be a very significant cost.
- 创可贴- Please take note that band-aid time estimates, and amount of times needed to be done are usually under estimated.
- OEM, Consulting, Contractor- 您与OEM的互动可以是停机时间和其他领域的主要成本因素。
- 工具- 如果允许继续，通常被归类为滋扰问题，可以真正增加成本。
- Parts/Shipping- 除了零件和采购领域，实际零件成本是常用的唯一值。租赁如何运输，出租？
Reporting true results
在past, the philosophy was the less cost buckets I have to manage, the easier my job is. However today is the day of powerful computer tools and data collection technology. We now have the capability to have a computer manage all those buckets, and do it the way we want. This technology coupled with people type methodologies like TQM, TPM, RCM and Lean Manufacturing, enables us to spare our employees the hardships of downsizing and seek much greater opportunities such as equipment utilization.
When the world's top consultants are asked, "Why don't manufacturers realize the full potential of programs like TPM, RCM, or even their CMMS software?" you have no doubt heard some of the following standard replies. "The program was not endorsed from the top down", or "Lack of understanding of the strategy" or "Lack of measurable or quantifiable results". The last reply is the most accurate. With the realizing the true cost of downtime, will best quantify the results.
- Use a process flow chart and identify your bottlenecks
- Predetermine the "True" cost of downtime for each profit center category
|Actually a combination of two methods are used to bridge the gap between data collection and management technique. Strict usage of TDC metrics and data sharing standards like MIMOSA. Implementation of programs like TPM, requires the proper structure, measures, information and commitment. Only using vague, generalized tools like OEE to base day to day financial decisions on, can cost thousands to millions. Build your facility on rock; build it on standards.|
MIMOSA is more than an organization developing open exchange conventions. It is the enabling factor permitting integrated maintenance management, a connection to enterprise resource programs, and practical profitability-related operations and maintenance. Require your software vendors and program administrators to use TDC guidelines, and MIMOSA standards. This will reduce implementation cost, enhance benchmarking tools, and insure your success.
Overall Equipment Effectiveness
The overall performance of a single piece of equipment, or even an entire factory, will always be governed by the cumulative impact of the three OEE factors: Availability , Performance Rate, and Quality Reject Rate. When I was a speaker at an AFE convention in
可用性- Measures the percent of time that the equipment can be used (usually total hours of 24-7-365 for equipment utilization, or scheduled production time to result in a reliability only measurement), divided by the equipment uptime (actual production).
表现- 设备以其理论速度为个别产品生产产品的可用时间的百分比。它测量速度损失。（例如，低效批量，机器堵塞）如果无法从OEM获得设备规格，请使用最佳录制的PPH /质量率。
The world's leaders in the industry are mostly in agreement on how to implement OEE and why. I contribute this fact to its simplicity. Identify your bottlenecks and major cost centers to benchmark and monitor first. Most recommend using the calendar time metric (24/7/365) for your availability factor. As machine utilization will also indicate reliability performance, giving you the whole picture and immediately focusing your resources on the greatest opportunity. Also using OEE as a benchmarking tool would not work well if based on a variable such as production schedule. Benchmarks must be based on a constant to allow portability to similar industries and markets. The bottom line is the method of implementing OEE is irrelevant if you don't start utilizing it at all. It is very true what they say, "Do something is better than doing nothing at all".
"Costing methods & techniques for manufacturing processes to offer the greatest return on capital employed (ROCE)."
True Downtime Costs™ Analysis专注于成本核算和成本核算技术that quantify like activities that previously fell under theindirect cost definition, like the hidden cost of outsourcing, warranties, etc. This technique isa must for bottleneck management, but also should be applied to piece manufacturing and even other industries.
Authors Don Fitchett and Mike Sondalini coauthor the extension of the original Ebook "The true cost of manufacturing down time" (ISBN 1-933047-15-1). With this second edition also comes an action plan to utilize existing shop floor data collection to monitor the many manufacturing processes and associated costs.
"True Downtime Cost™" is a registered trademark of Business Industrial Network (https://BIN95.com)
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