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file://C:\My%20Documents\My%20eBooks\Downtime\Print%20Version\Cover.htm
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Shared Left Border HOME True Downtime Cost Main Categories Equipment Constants Categories People Product Startup Bottleneck Sales-Expectation Labor Constants Labor-per-Product QC Maintenance Engineering Management Overhead Downtime Occurrence Maintenance Time Reduced Production Scrap Band-Aid OEM Tooling Shipping OEE Data Standards Included Articles What is TDC? (Overview) Data Collection Root Cause Analysis Selecting CMMS Resources Savings Examples Glossary
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With all these categories, it may appear to be too much to monitor and analyze. Feel free to momentarily review the "Data Overload" section to see why there is no need to sound the "Data Overload" alarm.
This EBook provided by Business Industrial Network and we make no manner of an endorsement, representation or warranty regarding any contents located within. It is recognized that there is a great deal of uncertainty and honest scientific difference of opinion surrounding parameter selection for these futurelooking cost analyses. This EBook content is provide as a starting point for improving manufacturing cost analysis. Viewers understands that any content or other information offered on or through BIN95.com and DowntimeCentral.com are provided for informational purposes only.
file://C:\My%20Documents\My%20eBooks\Downtime\Print%20Version\TDC.htm
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Equipment Cost Category (constants) Categories Standardize your data collection categories, learn from MIMOSA. People Indirect labor cost can often be greater than the more apparent direct labor cost. Product Made up of two sub-categories. Cost per Unit, and Units per Hour. 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. Sales Expectation Our goal is always to maintain a 100% capacity readiness. Labor Cost Category (constants) LPP/M Does your LPP/LPU calculations include indirect labor? QC Associate QC cost, re-work, etc. with actual downtime occurrence. Maintenance There is a substantial staff supporting those one or two who actually do the machine repair. 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.
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Downtime Cost Category (Occurrence) Time Are you tracking when maintenance arrives at the scene, or when the machine actually went down? Reduced Production Time and percentage of full capacity equipment is running a reduced rate due to a malfunction. Scrap On continuous flow systems, scrap related directly with downtime can be a very significant cost. Band-Aid Please take note that band-aid time estimates, and amount of times needed to be done are usually under estimated. OEM, Consulting, Contractor Your interactions with OEMs can be a major cost factor in downtime as well as other areas. Tooling Often classified as a nuisance problem if allowed to continue, can really add up in cost. Parts/Shipping Out of the parts and procurement fields, the actual parts cost is the only value commonly tracked. What about shipping, locating, rentals?
Copyright 1995 Business Industrial Network
This EBook provided by Business Industrial Network and we make no manner of an endorsement, representation or warranty regarding any contents located within. It is recognized that there is a great deal of uncertainty and honest scientific difference of opinion surrounding parameter selection for these futurelooking cost analyses. This EBook content is provide as a starting point for improving manufacturing cost analysis. Viewers understands that any content or other information offered on or through BIN95.com and DowntimeCentral.com are provided for informational purposes only.
file://C:\My%20Documents\My%20eBooks\Downtime\Print%20Version\TDC-2.htm
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People
Number of Direct and in-direct idle workers
Product
Cost per unit at that stage in production Units per hour
Start-Up
Electrical surge cost, Set up, % reduced till start/stop Equipment fatigue Scrap produced, is it recycle able
Bottleneck
List other downstream equipment, and % effected
Expected Sales
% effect on product out the door.
Copyright 1995 Business Industrial Network
This EBook provided by Business Industrial Network and we make no manner of an endorsement, representation or warranty regarding any contents located within. It is recognized that there is a great deal of uncertainty and honest scientific difference of opinion surrounding parameter selection for these futurelooking cost analyses. This EBook content is provide as a starting point for improving manufacturing cost analysis. Viewers understands that any content or other information offered on or through BIN95.com and DowntimeCentral.com are provided for informational purposes only.
file://C:\My%20Documents\My%20eBooks\Downtime\Print%20Version\Equipment.htm
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Please view this article online - How to prioritize production layout and categorize within CMMS. (The
CMMS article at DowntimeCentral.com was donated by non-bias CMMS consultants - Perspective CMMS who specialize in how to select and implement CMMS software.)
Note they did not overlook plant wide bottlenecks like the powerhouse, steam, air, vacuum and emergency power. After viewing the online article, you can return here and read the example below.
Some areas like Tooling often falls into the category too small to analyze, even if MTBF is high. Once you adapt TDC methods of monitoring and analyzing downtime cost, you will be amazed at the potential savings in what was once thought to be an insignificant category. In the example of "Tooling", TDC shows us much larger categories that add to the cost. When a tool breaks, it's not just a couple dollars to replace, plus five minutes of time (labor). Each time a tool breaks or needs replaced, there is cost of lost production (amplified by possible bottleneck), scrap, quality, start-up cost, indirect labor (such as maintenance, quality, engineering, supervisors, etc.). There is also risk of higher cost such as Safety, damage to equipment etc. After considering all the TDC metrics outlined on this web site, it becomes apparent that ten cents you saved on cheaper tooling could cost you hundreds or thousands times what the whole tool cost. Especially when you are monitoring frequency of toll defect such as MTBF.
Learn that the indirect affected labor cost is often greater than the more apparent direct labor cost. Page
file://C:\My%20Documents\My%20eBooks\Downtime\Print%20Version\People.htm
3/16/2003
Learn that the indirect affected labor cost is often greater than the more apparent direct labor cost. Page
Some may state, "that is covered in our overhead calculations" or "that is covered in our labor per product calculation". That is great as long as those previous methods includes the indirect labor listed below. You will then realize the cost savings, where as those general "Overhead" numbers may not point out a particular cost reduction area.
Production
Setup personnel Quality Delivery Engineering Other Production related personnel
Maintenance
Repair personnel Parts person Engineering Other Maintenance Support personnel
Management
Floor Supervisors Maintenance Manager Production Manager Engineering Manager General Manager Safety Manager
Administrative
Maintenance Secretary MIS Accounting Legal While each individual's involvement may only be minutes, they all add up. Also keeping in line with obtaining the "True" cost, the hourly wage should be calculated from an accounting stand point. That is, how much the employee costs the company per hour, not how much they are paid. (A maintenance manager who does a lot of the leg work that could have delegated to his subordinates, may spend 30 minutes supporting the repair of a machine. TDC would show this, and amplify the cost savings to resolve. His base pay may calculate out to $20 per hour. But with insurance, retirement plans, and other benefits, he may actually cost the company $30 per hour. That 30 minutes of one manager can easily equal the cost of one machine operator. As you move up the management chain, and add all indirect labor, the true labor cost could have been over $100 instead of $15 for one employee. See Also... A Regional Survey to Determine the Significance of Human Error in Manufacturing (www.engr.orst.edu/~HFE/HMSE/Error/survey.html)
file://C:\My%20Documents\My%20eBooks\Downtime\Print%20Version\People.htm
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This EBook provided by Business Industrial Network and we make no manner of an endorsement, representation or warranty regarding any contents located within. It is recognized that there is a great deal of uncertainty and honest scientific difference of opinion surrounding parameter selection for these futurelooking cost analyses. This EBook content is provide as a starting point for improving manufacturing cost analysis. Viewers understands that any content or other information offered on or through BIN95.com and DowntimeCentral.com are provided for informational purposes only.
file://C:\My%20Documents\My%20eBooks\Downtime\Print%20Version\Product.htm
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Equipment fatigue: It is surprising how many don't realize the physical limitations of a light bulb. That is in respect that they are not designed to be turned off and on (the time to heat back up uses more energy). Each time they are, the life cycle of the bulb is considerably reduced. Now consider the fatigue on a high torque motor, devices with elements, computer monitors (that's why screen savers where invented), mechanical fatigue, etc. While it's difficult to consider all the parts of a piece of equipment, and arbitrary value should be assigned. (percent of equipment replacement cost) Scrap Produced and Quality: After the big quality boom of the seventies, this information should be well known. You need to assign the amount of scrap cost per product, at each stage of the production. The reduction in quality associated with a standard start-up/shut-down is not considered directly in TDC metrics. This is because each facility sets, their quality standards, and the part is ether saleable or scrap. (although there may be consideration of lost potential sales do to wide quality margins.) Calculating the actual dollar value per scrapped product, in relationship to that stage of the production is very important. A great example is the manufacturing of Ring and Pinions in a Dana axial plant. At the forging stage of the ring production, the scrap cost would be a fraction of a percent. As the entire part can be recycled, with only loss of forging cost. But if that ring was scrapped after it had been geared and matched with a pinion, the cost would be close to the total finished product cost. Other Cost: Hey, did we miss something? Well this sub-category is where you place that cost. The point of these categories may appear to be micro-analyzing, but the more you use in your asset managing strategies, the closer you will be to the True Downtime Cost. Also more profitable decisions can be reached. In summary, you sum all these factors together, per machine. On an annual bases, you re-evaluate. Then within you asset management software package of choice, you can readily see the start-up cost for machine, cell, line, or entire facility. Remembering the key to TDC is making this information known to all employees, not just a manager in some remote office. :>) See Also: Condition Monitoring in the 21st Century www.plant-maintenance.com/articles/ConMon21stCentury.shtml An article by Sandy Dunn, of Assetivity, outlining some of the challenges and opportunities that exist for users and providers of Condition Monitoring equipment and services in the 21st Century.
This EBook provided by Business Industrial Network and we make no manner of an endorsement, representation or warranty regarding any contents located within. It is recognized that there is a great deal of uncertainty and honest scientific difference of opinion surrounding parameter selection for these futurelooking cost analyses. This EBook content is provide as a starting point for improving manufacturing cost analysis. Viewers understands that any content or other information offered on or through BIN95.com and DowntimeCentral.com are provided for informational purposes only.
file://C:\My%20Documents\My%20eBooks\Downtime\Print%20Version\Startup.htm
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This EBook provided by Business Industrial Network and we make no manner of an endorsement, representation or warranty regarding any contents located within. It is recognized that there is a great deal of uncertainty and honest scientific difference of opinion surrounding parameter selection for these futurelooking cost analyses. This EBook content is provide as a starting point for improving manufacturing cost analysis. Viewers understands that any content or other information offered on or through BIN95.com and DowntimeCentral.com are provided for informational purposes only.
file://C:\My%20Documents\My%20eBooks\Downtime\Print%20Version\Bottleneck.htm
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Examples: The Whirlpool Findlay Division has been able to increase production by 21%, without any significant capital costs by focused TPM and OEE utilization. If your reliability program resulted in an OEE increase from 85 percent to 89 percent. If at 85% you had annual sales of $1,236,500,000 Therefore, each percentage point of OEE represents $15,135,000 of sales. With the increase in product represented by improved OEE, sales would increase $60,520,000. Another reports losses less visible can be much greater. Equipment not running capacity, may result in not filling orders, or reduced sales volumes. For example, if prolonged operation with four out of five furnaces working reduces production capacity by 20 percent, a continuous process line with a design rating of 1,000 units per hour would be capable of only 800 units. To determine the loss, multiply the 200 units per hour by the unit sales price of $100. This computes to a $20,000 loss for each hour of operation at reduced capacity. Should this mode continue for a full year, the annualized loss equals more than $175 million. Most who do measure Producibility (production ability), do so by machine cycle times, then the next most common is yield rate. Have you reduced your cycle time, but increased your downtime? True product ability, capacity, 100% ready to meet sales expectation (of 100% capacity) has to be looked at as the big picture. How much product can you get out the door? Yes, sales expectation (and goal) should be calculated with all of your equipment running at 100% efficiency, 24/7/365. Once at 100% readiness, you can focus on getting your sales team to capture your chunk of the market share.
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LPP /M
LPP / Equipment Contribution is not as accurate, as using the items below in addition to direct labor (machine operators).
QC
QC wages of those involved in Extra inspections, Rework, etc.
Maintenance
Indirect maintenance labor as well as Mechanic/Technicians doing actual troubleshooting and repair.
Engineering
Downtime support, troubleshooting, specifications, re-engineering.
Management
Time associated with downtime support, out at downed equipment, meetings, calls, administrative, and decision making research time. Granted, procedures will need to be put in place and enforced to accurately track labor time associated with equipment down, but the savings will be well worth it. With all these categories, it may appear to be too much to monitor and analyze. Feel free to momentarily review the "Data Overload" section to see why there is no need to sound the "Data Overload" alarm.
This EBook provided by Business Industrial Network and we make no manner of an endorsement, representation or warranty regarding any contents located within. It is recognized that there is a great deal of uncertainty and honest scientific difference of opinion surrounding parameter selection for these futurelooking cost analyses. This EBook content is provide as a starting point for improving manufacturing cost analysis. Viewers understands that any content or other information offered on or through BIN95.com and DowntimeCentral.com are provided for informational purposes only.
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Existing LPP
Direct labor (operator) X 30% fringe benefits
TDC LPP
Direct labor (machine operator) X 30% fringe benefits QC labor X 30% fringe benefits + Management labor X 30% fringe benefits + Maintenance labor X 30% fringe benefits + Engineering labor X 30% fringe benefits + Material Handler labor X 30% fringe benefits + A product routing shows every step a product goes through in the manufacturing process, which includes labor times for each step. The accountant uses these direct labor times to estimate the labor time required to make the product. These labor hours do not include all the support personnel labor that goes into making the product, and support is not usually included in the overhead factor either. The above method of calculating LPP typically does involve a multiple for fringe benefits that amount to 30% of the hourly wage for example. But for the sake of monitoring and analyzing labor cost in relationship to TDC, QC, Management, Maintenance and engineering must be considered as well as direct labor (machine operator). Even something originally thought as trivial such as delivering raw material to the machine after repaired can add up over a years time. For decision making, labor per product should be a variable dependant on your OEE. Carefully examine the existing LPP information to see if you labor estimates are a variable. Don't use it if it appears it really is a fixed cost, use the individual labor categories mention above.
This EBook provided by Business Industrial Network and we make no manner of an endorsement, representation or warranty regarding any contents located within. It is recognized that there is a great deal of uncertainty and honest scientific difference of opinion surrounding parameter selection for these futurelooking cost analyses. This EBook content is provide as a starting point for improving manufacturing cost analysis. Viewers understands that any content or other information offered on or through BIN95.com and DowntimeCentral.com are provided for informational purposes only.
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When calculating the cost of re-work, it often will bring insight to the most cost effective solution, in regards to the re-work or scrap question. Often re-work demands over-time, trips to customer locations and other hidden costs that are not given full consideration. A Quality Note: Quality does not cost, it pays. Quality really pays in reference to Machine quality, replacement part quality, repair quality, Service quality, and management quality.
This EBook provided by Business Industrial Network and we make no manner of an endorsement, representation or warranty regarding any contents located within. It is recognized that there is a great deal of uncertainty and honest scientific difference of opinion surrounding parameter selection for these futurelooking cost analyses. This EBook content is provide as a starting point for improving manufacturing cost analysis. Viewers understands that any content or other information offered on or through BIN95.com and DowntimeCentral.com are provided for informational purposes only.
file://C:\My%20Documents\My%20eBooks\Downtime\Print%20Version\QC.htm
3/12/2003
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This EBook provided by Business Industrial Network and we make no manner of an endorsement, representation or warranty regarding any contents located within. It is recognized that there is a great deal of uncertainty and honest scientific difference of opinion surrounding parameter selection for these futurelooking cost analyses. This EBook content is provide as a starting point for improving manufacturing cost analysis. Viewers understands that any content or other information offered on or through BIN95.com and DowntimeCentral.com are provided for informational purposes only.
file://C:\My%20Documents\My%20eBooks\Downtime\Print%20Version\Maintenance.htm
3/12/2003
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This EBook provided by Business Industrial Network and we make no manner of an endorsement, representation or warranty regarding any contents located within. It is recognized that there is a great deal of uncertainty and honest scientific difference of opinion surrounding parameter selection for these futurelooking cost analyses. This EBook content is provide as a starting point for improving manufacturing cost analysis. Viewers understands that any content or other information offered on or through BIN95.com and DowntimeCentral.com are provided for informational purposes only.
file://C:\My%20Documents\My%20eBooks\Downtime\Print%20Version\Engineering.htm
3/12/2003
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This EBook provided by Business Industrial Network and we make no manner of an endorsement, representation or warranty regarding any contents located within. It is recognized that there is a great deal of uncertainty and honest scientific difference of opinion surrounding parameter selection for these futurelooking cost analyses. This EBook content is provide as a starting point for improving manufacturing cost analysis. Viewers understands that any content or other information offered on or through BIN95.com and DowntimeCentral.com are provided for informational purposes only.
file://C:\My%20Documents\My%20eBooks\Downtime\Print%20Version\Management.htm
3/12/2003
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file://C:\My%20Documents\My%20eBooks\Downtime\Print%20Version\Overhead.htm
3/16/2003
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Standard Costing
http://rjdadamo.com/mgtphysics/toc.htm This power point presentation is from accounting 2120 on performance evaluation through standard costs. Right click yellow link above and select "Save As" to download.
Business Basics
http://www.swcollege.com/vircomm/skousen_acct/ppt/16/16.ppt This power point presentation describes the wholesale and retail business processes. Right click yellow link above and select "Save As" to download.
file://C:\My%20Documents\My%20eBooks\Downtime\Print%20Version\Overhead.htm
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Time
The time from the first occurrence of equipment breakdown to the time equipment was back into full production.
Reduced
The percentage of full production rate, and time running at reduced production during downtime occurrence.
Scrap
Number of total units scrapped during downtime occurrence and percentage of cost recovered by recycling.
Band Aid
Band-aid is a sub category of several TDC categories and should be a percentage of the actual downtime occurrence cost.
OEM
Annual fee/ est. hours used per year, or T&M + Expenses for OEM support during downtime occurrence.
Tooling
Replacement or reworking cost for tooling, related to downtime occurrence, minus recycling savings as a percentage.
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Granted, procedures will need to be put in place and enforced to accurately track downtime associated with equipment down, but the savings will be well worth it. A common example to think about is one of production "annoyance" classification. Although very seldom realized, there are always production costs involved with these "annoyances". In slightly more extreme cases, we have seen equipment failure resulting in additional manpower go unreported and unknown to maintenance departments for over 30 days. Clearly a breakdown in the management of the work order system. In some cases, TDC shows the true cost to production being 30 times the cost of the additional employees. If the procedure and methodologies of TDC were in place, and cost was being indicated to all involved, the above example could never occur. With all these categories, it may appear to be too much to monitor and analyze. Feel free to momentarily review the "Data Overload" section to see why there is no need to sound the "Data Overload" alarm.
This EBook provided by Business Industrial Network and we make no manner of an endorsement, representation or warranty regarding any contents located within. It is recognized that there is a great deal of uncertainty and honest scientific difference of opinion surrounding parameter selection for these futurelooking cost analyses. This EBook content is provide as a starting point for improving manufacturing cost analysis. Viewers understands that any content or other information offered on or through BIN95.com and DowntimeCentral.com are provided for informational purposes only.
file://C:\My%20Documents\My%20eBooks\Downtime\Print%20Version\Downtime.htm
3/16/2003
Do you start the maintenance time clock when the machine first breaks down?
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You will have the information to make more informed decisions about ... Repair under planned or unplanned downtime? Repair under planned or unplanned downtime? Repair or Replace? Report it or just deal with it? Strict work order policies, or passive? Run-to-failure or predictive maintenance?
file://C:\My%20Documents\My%20eBooks\Downtime\Print%20Version\Time.htm
3/21/2003
Do you start the maintenance time clock when the machine first breaks down?
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More accurate reporting of times related to occurrence will bring your focus on known major cost factors... 90% of the time is spent finding the problem and how to fix it, 10% actually replacing the fuse. Who or what technical support will be available to take care of an end user whose production line is down at 2 a.m. on the week end? One company, seen automation of lubrication points on just two lines translated into 30 to 60 hours of additional machine time and profit gains of 60,000 to 120,000 annually. Learn by example; one of VersaCall's customers:
The USPS determined the operational cost of the entire facility to be between $135.00 and $160.00 per minute. They further determined that they could conservatively save ten minutes per 16-hour workday by installing a VT400 system to reduce the down time lost. Data collected and reported by the VT400 system showed that they were, on average, saving a combined 10 minutes over two shifts. This amounts to $1350.00 to $1,600.00 per day, or over $6,750 per 5-day workweek. As with all the other maintenance data entry categories, procedures must be put in place backed by the support and understanding of management. Neglecting this vital communication function will provide less than acceptable results. A system is useless unless data collection is a well-defined process. A CMMS lives on data.
This EBook provided by Business Industrial Network and we make no manner of an endorsement, representation or warranty regarding any contents located within. It is recognized that there is a great deal of uncertainty and honest scientific difference of opinion surrounding parameter selection for these futurelooking cost analyses. This EBook content is provide as a starting point for improving manufacturing cost analysis. Viewers understands that any content or other information offered on or through BIN95.com and DowntimeCentral.com are provided for informational purposes only.
file://C:\My%20Documents\My%20eBooks\Downtime\Print%20Version\Time.htm
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file://C:\My%20Documents\My%20eBooks\Downtime\Print%20Version\Reduced.htm
3/21/2003
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Equipment failure:
A closed loop control board on an extruder fails.... all parts made till machine stopped were too thin (scrap).... minor hardware failures which take hours or days to diagnose and repair.
Non-reported:
It is accepted by operators, every time machine speed is adjusted while running, one part is scrapped. But in accordance with manufacturers this should not be occurring. Therefore indicating a machine problem.
Band-aid:
Scrap per hour produced because of problem temporarily being band-aided till scheduled repair. Also scrap produced while performing band-aid repair on machine. True Band-aid cost are important to track, as they are deceiving when weighing decision as to full repair or just band-aid.
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Equipment installation:
While new equipment is being installed, as long as production is not stopped, scrap costs can be overlooked. This area should be addressed during the planning, and monitored during the actual install. There is also the unplanned occurrence from accidents, such as the fork lift bumping a running machine while moving equipment. Also slowing or stopping production due to traffic by the installers. All the different aspects of an installation can affect many areas of downtime cost, and they add up quickly!
Maintenance procedure:
Consider this example of cost related to maintenance procedures and human error. A maintenance person makes an adjustment on one shift, but does not record what was done. This adjustment could have increased scrap rate for three shifts until that person returns to work the next day. Unwillingness of maintenance personnel to "accept ownership" of the system.
This EBook provided by Business Industrial Network and we make no manner of an endorsement, representation or warranty regarding any contents located within. It is recognized that there is a great deal of uncertainty and honest scientific difference of opinion surrounding parameter selection for these futurelooking cost analyses. This EBook content is provide as a starting point for improving manufacturing cost analysis. Viewers understands that any content or other information offered on or through BIN95.com and DowntimeCentral.com are provided for informational purposes only.
file://C:\My%20Documents\My%20eBooks\Downtime\Print%20Version\Scrap.htm
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Before computers, band-aid cost was never tracked, which has led to it being overlooked in most cases now days. A good example is a case of required re-engineering. The facility had a two week wait for planned downtime to replace a bearing with a different type. In the mean time, up to 3 times a day maintenance would have to drag the welder to the machine to do a band-aid spot weld. (the vibration had it's effects.)
Looking at the maintenance time only resulted in 1.5 times per day average, at 15 minutes per day. This went on for 12 days, resulting in a total of 4.5 hours downtime till scheduled permanent fix. When deciding whether to shut down for repair, or wait till scheduled downtime, the 6 hours to do repair was the only consideration.
At first glance, the decision looks pretty sound, till you see the true cost with TDC. To keep it simple we will use just a few of the TDC metrics to make our decision.
file://C:\My%20Documents\My%20eBooks\Downtime\Print%20Version\Band-Aid.htm
3/21/2003
How much is a machine band aid costing you? True Band-Aid cost... Estimated band-aid time* = 1X15 minutes per day (total 3 hours) Estimated permanent repair time* = (6 hours) Scrap produced* = 2X12 band-aid repairs (24 parts) Reduced Production* = 5 parts per incident (60 parts) Labor* per band-aid = 2 maintenance* X 15 minutes (6 man-hours) = 1 QC inspection* per start-up(1 man-hour) Closer to True Down Time (TDC) cost of Band-Aid TOTAL $ 45.00 $ 90.00 $ 120.00 $ 300.00 $ 150.00 $ 25.00 $ 595.00
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band-aid time* - Estimates are almost always low, should be 1.5 times per day. At some facilities, maintenance men often travel in pairs, especially on off shifts. :>) 15minutesX12days=3hrs, 3hrsX$15=$45 permanent repair time* - This and the estimate above are the common, on the spot estimates made. Usually the labor is calculated at what the hourly wage of a maintenance person is. It should be the hourly cost of maintenance person to the company. Insurance, benefits, etc. 6hrsX$15=$90 Scrap produced* - One part was scraped with each start-up, and one with each shut-down, at $5 per part. 2partsX12bandaids=24parts, 24 partsX$5=$120 Reduced Production* - In this example 5 parts per 15 minutes of band-aid downtime could not be made. In some cases you would have number of parts not produce while down, and number of parts reduced per hour do to running machine in limp mode. The ladder is usually higher. 60partsX$5=$300 Labor* - Two oversights when calculating labor, 1. should be hourly cost to company, not hourly wage. 2. The amount and type of people involved in downtime. Who performs extra activities do to downtime, maintenance, operators, set-up, engineering, management, QC, etc. 2 maintenance* - We used two maintenance to cover off shift where extra maintenance went out to see if they could help, day shift - maintenance manager supervised, etc. although maintenance wage was $15, actual hourly cost to company was $25 per hour for each employee. 1 QC inspection* - Procedures called for one part to be inspected after every start up of machine (5 minutes). To simplify, QC wage was same as maintenance.
file://C:\My%20Documents\My%20eBooks\Downtime\Print%20Version\Band-Aid.htm
3/21/2003
How much is a machine band aid costing you? True Permanent Fix cost ... Scrap produced = (2 parts) Reduced Production* = 20 parts per hour (120 parts) Labor for fix = 2 maintenance* X 6 hours (12 man-hours) = 1 QC inspection per start-up(1/4 hour ) Closer to True Down Time (TDC) cost of Band-Aid TOTAL $ 10.00 $ 600.00 $ 300.00 $ 6.25 $ 916.25
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Reduced Production* - 6 hours of downtime results in 120 parts lost production even if downtime is planned. This based on fact that machines should run 24/7/365 to maximize ROI. 120partsX$5=$600 2 maintenance* - Maintenance personnel utilization is much more efficient during planned downtime, but actual took two to do permanent fix. Although maintenance wage was $15, actual hourly cost to company was $25 per hour for each employee.
Had the data monitoring and decision making processes in compliance with TDC been in place, would they have made the same decision? As long as they could still make their ship dates, or had inventory, I don't think a band-aid would have been the choice. Without TDC they were looking at spending $45.00 now, and $90.00 approximately two weeks. Really they should have been looking at a conservative estimate of spending $916.25 now for a permanent fix, or $1511.25 with the band-aid for a permanent fix in 12 days (2+ times the cost). (Values based on fact that to get max ROI out of capital equipment, you should run equipment 24/7/365. There for even planned downtime has loss of 6 hours production.) The example above is a very low cost one. Consider if the machine in question was a bottleneck, and the parts cost at that stage of production was $30 each. They might then be looking at a labor only estimate of $45, when the true cost would be in the thousands (100+ times the cost). In summary, when looking at a band-aid decision, be sure to use manpower cost, not just their wages. Secondly, include all people involved in band-aid; maintenance, qc, set-up, power cost, machine depreciation, etc. Third, don't forget scrap cost and reduced production, just to name a few (bottleneck could cause similar cost throughout the plant). Last of all, take note that band-aid time estimates, and amount of times needed to be done are usually under estimated. See Also... Under pressure, supervisors and workers are inclined to apply Band-Aid fixes. http://www.reliability.com/article2.htm Are you a manufacturer? Please visit DowntimeCentral.com to participate in our Downtime survey and receive free 66+ page report. (updated and emailed to you automatically as survey grows.) Copyright 1995 Business Industrial Network - All rights reserved. Revised: March 11, 2003.
This EBook provided by Business Industrial Network and we make no manner of an endorsement, representation or warranty regarding any contents located within. It is recognized that there is a great deal of uncertainty and honest scientific difference of opinion surrounding parameter selection for these futurelooking cost analyses. This EBook content is provide as a starting point for improving manufacturing cost analysis. Viewers understands that any content or other information offered on or through BIN95.com and DowntimeCentral.com are provided for informational purposes only.
file://C:\My%20Documents\My%20eBooks\Downtime\Print%20Version\Band-Aid.htm
3/21/2003
What does your original equipment manufacturers cost you each year?
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Per Occurrence:
T&M + Expenses Time and Material* charged by service provider Air, Hotel, Car, Perdiem, Expenses*. Time and Material* - Most commonly tracked and recorded in CMMS programs. Expenses* - Less commonly tracked. $1,000 for Air Fare, $300 for Car, $200 Hotel= $1500 just for a couple days. There are creative ways you can reduce this cost, like making a deal with a hotel near your facility.
file://C:\My%20Documents\My%20eBooks\Downtime\Print%20Version\OEM.htm
3/12/2003
What does your original equipment manufacturers cost you each year?
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Constants:
Annual fee/ est. hours used per year Hourly/Daily charge of OEM or other service provider We have recorded many testimonies of unnecessary cost and unplanned downtime. Most of the greatest cost had a root cause related to OEM or equipment installation/modification. Not to insinuate that most OEMs aren't doing what they should, but to point out five facts when dealing with OEMs ... There are not many "World Class" OEMs out there. You are not at the mercy of an OEM, if you demand it, there is an OEM that will do it for you. If you don't insist on manuals, world class training, access to equipment data, true 24/7 support, etc; You may not receive it! Projects usually cost more time, downtime, quality, and money than you estimate. You get what you pay for. (Always take the cheapest bidder, and you may pay more in the long run, as pointed out in the four facts above.)
file://C:\My%20Documents\My%20eBooks\Downtime\Print%20Version\OEM.htm
3/12/2003
What does your original equipment manufacturers cost you each year?
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An example: Utilizing all TDC metrics can show you that 10 hours downtime waiting on a service provider could cost you $60,000! Those manufacturers and especially corporations who use the five facts above, can quickly resolve 90% of their unplanned downtime with in-house personnel. What is the TDC of a new installation? Lack of technical documentation? Our surveys show most TDC will show you the hidden cost. companies have inadequate equipment documentation (Note1). TDC with OEE will also show you most supplemental services such as predictive, preventative, consulting are great investments.
(Note1 - http://www.bin95.com/Survey/OEMdoc1.asp)
An OEM Support Note: Business Industrial Network's "Quick Help" (http://www.bin95.com/Manufacturing.asp) service is designed to fill the voids left in OEM support. Give it a try! Can you afford not too? Business Industrial Network is not in the business of replacing OEM support, but enhancing it, both on the customer side and on the OEM side. We work with customers, OEM contacts and other knowledgeable personnel around the world. This enables us to come up with a collaborative solution to get your equipment quickly repaired and back into full production. See also... Our Downtime Cost Survey of over 80 companies and Corporations http://www.bin95.com/Survey/GraphOEM.htm Alternative sourcing of Original Equipment Manufacturer (OEM) machinery spare parts can cost you in many ways. http://www.tobaccoreporter.com/backissues/May2001/story1.asp
This EBook provided by Business Industrial Network and we make no manner of an endorsement, representation or warranty regarding any contents located within. It is recognized that there is a great deal of uncertainty and honest scientific difference of opinion surrounding parameter selection for these futurelooking cost analyses. This EBook content is provide as a starting point for improving manufacturing cost analysis. Viewers understands that any content or other information offered on or through BIN95.com and DowntimeCentral.com are provided for informational purposes only.
file://C:\My%20Documents\My%20eBooks\Downtime\Print%20Version\OEM.htm
3/12/2003
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Machine failure caused by Tooling damage Root cause for tooling failure
Is Tooling Quality adequate? Is it the right tool for the right job? Is procedure the cause for tooling failure?
file://C:\My%20Documents\My%20eBooks\Downtime\Print%20Version\Tooling.htm
3/21/2003
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file://C:\My%20Documents\My%20eBooks\Downtime\Print%20Version\Shipping.htm
3/23/2003
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Your shipping cost have a default value... Shipping Standard $20.00 Shipping Express $50.00 Shipping Emergency $700.00
Looking at the example shipping cost above, it's clear that emergency shipping should be considered carefully. But if your equipment is down, most often your hands are tied. See also... UPS Quick Cost Calculator (http://wwwapps.ups.com/servlet/QCCServlet) Do your parts procurement the Intelligent Internet way (http://www.mcsolutions.co.uk/dti/Dean_Foods.pdf) Using the Internet as a universal networking standard, business partners can create seamless, automated supply chain systems, learn from GE. (http://www.cio.com/archive/061597/commerce_content.html)
This EBook provided by Business Industrial Network and we make no manner of an endorsement, representation or warranty regarding any contents located within. It is recognized that there is a great deal of uncertainty and honest scientific difference of opinion surrounding parameter selection for these futurelooking cost analyses. This EBook content is provide as a starting point for improving manufacturing cost analysis. Viewers understands that any content or other information offered on or through BIN95.com and DowntimeCentral.com are provided for informational purposes only.
file://C:\My%20Documents\My%20eBooks\Downtime\Print%20Version\Shipping.htm
3/23/2003
Learn to measure OEE (Overall Equipment Effectiveness) and TEEP (Total Effective Equipment ...P Page
Understanding Overall Equipment Effectiveness (OEE), then advancing to Total Effective Equipment Productivity (TEEP
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: Percent of (scheduled production - reliability) or (calendar 24/7/365 - equipment utilization), that equipment is available for production. Percent of parts produced per time frame, of maximum rate OEM rated production speed at. If OEM specification not available, use best known production rate. Percent of good sellable parts out of total parts produced per time frame.
Calculators only work online at DowntimeCentral.com or in the interactive version of this book.
OEE Calculator
Availability Performance Quality OEE
, .: ,90
#0809
Example: 50% Availability (0.5) X 70% Performance Rate (0.7) X 20% Quality Reject Rate (results in 80%(0.8) acceptable) = 30%OEE
file://C:\My%20Documents\My%20eBooks\Downtime\Print%20Version\OEE_TEEP.htm
3/24/2003
Learn to measure OEE (Overall Equipment Effectiveness) and TEEP (Total Effective Equipment ...P Page
After viewing the material above, you should be aware of how the OEE formula can help you identify the lack of efficiency in your production process. The next step is to maximize your equipment utilization with TEEP. As you strive for World Class productivity in your facility, this simple formula will make an excellent benchmarking tool.
file://C:\My%20Documents\My%20eBooks\Downtime\Print%20Version\OEE_TEEP.htm
3/24/2003
Learn to measure OEE (Overall Equipment Effectiveness) and TEEP (Total Effective Equipment ...P Page
TEEP Calculator
PPH Goal Total Time PPH Actual TEEP
) /
, .: ,90
#0809
Example: (2 Parts Per Hour (idealistically) X 1 week Total Time sampled (168 hours)) x = (336 parts (idealistically)) (336) / 112 parts (actually produced in 1 week) = 33% TEEP Also Overall Equipment Effectiveness A powerful Production / Maintenance Tool for Increased Profits, Robert C. Hansen-Industrial Press, 2002 http://www.amazon.com/exec/obidos/ASIN/0831131381/downtimecentr-20
file://C:\My%20Documents\My%20eBooks\Downtime\Print%20Version\OEE_TEEP.htm
3/24/2003
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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 (www link)
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, cost thousands to millions. 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. See also the article on Data Collection included in this e-book.
This EBook provided by Business Industrial Network and we make no manner of an endorsement, representation or warranty regarding any contents located within. It is recognized that there is a great deal of uncertainty and honest scientific difference of opinion surrounding parameter selection for these futurelooking cost analyses. This EBook content is provide as a starting point for improving manufacturing cost analysis. Viewers understands that any content or other information offered on or through BIN95.com and DowntimeCentral.com are provided for informational purposes only.
file://C:\My%20Documents\My%20eBooks\Downtime\Print%20Version\six_sigma.htm
3/12/2003
What is the True Cost of equipment downtime? A free manufacturing article for you to distribute. Page
The key to realizing greater savings from more informed management decisions is to predetermine the "True" cost of downtime for each profit center category. TDC is a methodology of analyzing all cost factors associated with downtime, and using this information for cost justification and day to day management decisions. Most likely, this data is already being collected in your facility, and need only be consolidated and organized according to the TDC guidelines. _ = 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 its 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.
Hidden cost
Below is an example below of the hidden cost made relevant in just one of the proposed TDC buckets: labor. You will see the true cost of labor associated with the downtime scenario to be only $295. That amount pales in comparison to the other TDC categories combined, which can be 10 to 100 times that amount depending on the particular downtime occurrence. So you can see how the TDC method can be a valuable cost justification and benchmark tool to maintenance managers. A great analysis asset to executive management and a great sales tool to those who provide service and products to manufacturers. (Especially ERP and CMMS vendors who are the consolidators of the data)
What is the True Cost of equipment downtime? A free manufacturing article for you to distribute. Page
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. Since labor cost is one of the most popular areas to first start seeking opportunities, let us take a look at just one method of the old school style of thinking. (Which also happens to be a primary concern in downtime decision making.) Labor, more specifically direct labor. For example you have six operators doing not so productive cleaning while a machine is down and two maintenance technicians doing the repair. The decision makers are thinking At $10 per hour operator wage, $20 per hour maintenance wage, that is $100 per hour. Well, I know there is overhead involved too, but with so many categories it is too complicated to consider. Overhead is just a percentage of my man-hours anyway.
Now compare this to the true cost in just one TDC category; labor cost. First with the overhead bucket gone, the employees hourly cost is actual cost to the company. With insurance, retirement, training, admin, etc. double the hourly wage ($200) is a safe figure. As long as you are not dealing with a bottleneck, we need only take into account the indirect labor factor. Lets see in our example, there was a QC inspection at startup, the tool setup person, the line supervisor, maintenance supervisor, the plant manager, the parts procurer, to name the most apparent employees involved. A little more detail into the scenario, and we can calculate the indirect labor cost. The 15 minute QC inspection ($5), setup person also 15 minute ($5), the supervisor was taken from his normal duties the entire hour ($30). Doing what? Why supervising of course, well okay, he had logistics, reassigning employees, rescheduling, etc. For the sake of argument well say the production demand was high. This demanded two more high dollar employees, normally hidden in the overhead. The maintenance manager was summoned for coordinating, ($30) and the plant manager was on the scene for 15 minutes to set the priorities and get the facts first hand ($25). 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.
What is the True Cost of equipment downtime? A free manufacturing article for you to distribute. Page
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.
Equipment Cost Category (constants) Categories Standardize your data collection categories, learn from MIMOSA. People Indirect labor cost can often be greater than the more apparent direct labor cost. Product Made up of two sub-categories. Cost per Unit, and Units per Hour. 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. Sales Expectation Our goal is always to maintain a 100% capacity readiness.
What is the True Cost of equipment downtime? A free manufacturing article for you to distribute. Page
Labor Cost Category (constants) LPP/M Does your LPP/LPU calculations include indirect labor? QC Associate QC cost, re-work, etc. with actual downtime occurrence. Maintenance There is a substantial staff supporting those one or two who actually do the machine repair. 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.
What is the True Cost of equipment downtime? A free manufacturing article for you to distribute. Page Downtime Cost Category (Occurrence) Time Are you tracking when maintenance arrives at the scene, or when the machine actually went down? Reduced Production Time and percentage of full capacity equipment is running a reduced rate due to a malfunction. Scrap On continuous flow systems, scrap related directly with downtime can be a very significant cost. Band-Aid Please take note that band-aid time estimates, and amount of times needed to be done are usually under estimated. OEM, Consulting, Contractor Your interactions with OEMs can be a major cost factor in downtime as well as other areas. Tooling Often classified as a nuisance problem if allowed to continue, can really add up in cost. Parts/Shipping Out of the parts and procurement fields, the actual parts cost is the only value commonly tracked. What about shipping, locating, rentals?
In the 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.
What is the True Cost of equipment downtime? A free manufacturing article for you to distribute. Page When the worlds top consultants are asked, Why dont 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. Hey, there is a lot of wisdom to that saying, Money talks, .. If what was believed to be a $30K opportunity, is found to be a $300K opportunity, endorsement form the top down and commitment to understanding will more likely follow. Just as the leaders who sell a program to the facility must be able to prove the true value, the mechanism must be in place to report the true results. TDC bridges the gap between data collection, software/hardware and an improvement program such as Lean manufacturing. I have outlined below some clear concise steps that will lead you to a world class status. Use a process flow chart and identify your bottlenecks Adopt information standards in your existing and future systems Predetermine the "True" cost of downtime for each profit center category Use OEE to benchmark and identify areas of opportunity These guide lines are self sustaining. Most have identified their bottlenecks. Just make sure you havent overlooked one hanging on a wall, in a back room, or outside the building. I have talked about identifying the True Cost, so the appropriate priorities are set. Next, Ill comment a little on adopting standards and using OEE.
Standards
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.
What is the True Cost of equipment downtime? A free manufacturing article for you to distribute. Page
Overall Equipment Effectiveness Availability X Performance X Quality= OEE Availability - Measures the percent of time that the equipment can be used (usually total hours of 24-7365 for equipment utilization, or scheduled production time to result in a reliability only measurement), divided by the equipment uptime (actual production). Performance - The percentage of available time that the equipment is producing product at its theoretical speed for individual products. It measures speed losses. (e.g., inefficient batching, machines jams) If you can not obtain equipment specifications from OEM, use best recorded rate of pph/quality. Quality - Determining the percent of the total output (i.e. all products including production, rework and scrap ) that is good. Terrence O'Hanlon, the host of that chat session had an excellent quote that gets to the heart of what I have seen, They do not know what they do not know. With the knowledge and utilization of the OEE calculation, it is common to realize greater than 40% increase in your bottom line. If youre making a profit now, just think of the opportunity. More importantly, OEE is the glue that sustains other initiatives by enabling all to clearly see where to focus, and the results of their efforts. The exciting point is that OEE is a simple method of measuring, you can start utilizing it Today! The worlds 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 dont start utilizing it at all. It is very true what they say, Do something is better than doing nothing at all. My challenge to the industry is to Stop OEE Ignorance, and spread the word about this valuable tool. Joel Lenards favorite topic is What is the Cost of Ignorance?. I propose that in using True Downtime Cost, we will start to see. Below are the best resources I have seen to follow up on this article. TDC www.DowntimeCentral.com Standards http://www.mimosa.org/othermod.htm OEE - http://www.oeeconsulting.com/ Also Overall Equipment Effectiveness A powerful Production / Maintenance Tool for Increased Profits, Robert C. Hansen-Industrial Press, 2002 http://www.amazon.com/exec/obidos/ASIN/0831131381/downtimecentr-20
Don Fitchett is the founder of Business Industrial Network, an internet based company that offers online technical support for all equipment in all manufacturing industries worldwide. www.bin95.com
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Counts should always be taken from limit switches, photo eyes, proximity switches or other field devices that are necessary for the production line to operate. Counts should rarely be taken (if ever) from field devices installed for the sole purpose of counting. The reason is maintenance. A field device that is necessary for the production line to operate will be maintained, it has to be. A field device that is only there for counting purposes will get very low priority from the maintenance department, and it may be difficult to prove to them that it isn't functioning properly.
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Another good way to get a count is from the output of an already installed PLC or material handling device, like a robot. If the PLC sends a signal to a conveyor telling it to start running, after it has placed a part onto it, and it sends that same start signal every time it places a part, that might be a good way to get a count for parts out of that machine. Similarly, other machines have signals that they send to other devices that cause some action to be performed on the part of the device. In many cases these types of signals are a much better way of counting than a sensor at that location. Something that must be considered when programming the counting PLC or counter is the length of time the signal sent to it is made and how to condition that signal within the PLC or counter.
The first thing you must watch for is the signal being too fast. If the signal is being taken directly from a switch, you must ensure that the signal is in the "ON" state long enough for the PLC to "see" it and react to it. PLC response time can vary depending upon the type of controller and the size of the program it contains. By PLC response I mean the rise time of the signal within the PLC and the scan time of the program. Minimum sensor on time = Rise time of the PLC + 2 scan times + the ON Delay. We'll cover ON Delay in a minute. So, the rise time for a given PLC (the time it takes an input to go from 0 to 1 because of internal capacitance) might be 50ms. The scan time might be about 5ms. So assuming that you have no ON Delay at all, the sensor must be on a minimum of 60ms. If it doesn't stay on long enough ( see Figure 3 and Figure 5 ) you might miss a count, so your finished counts would be less than actual.
The second thing you must be concerned about is how much time your signal is in the "OFF" state between counts. Minimum sensor off time = Fall time of the PLC + 2 scan times + the OFF Delay. Using this equation you can be positive that the PLC has "seen" the transition from "ON" to "OFF". If your signal doesn't remain "OFF" long enough then your PLC might not see that it was ever "OFF" and fail to count the next part ( see Figure 2 above ). This would result in a count that was lower than actual. Another problem that you can encounter is if your signal is sent to the PLC more than once for the same part. This can happen if for instance, you have a limit switch that "swings". When the part first contacts the limit switch, the signal is sent to the counting PLC and the signal remains "ON" for some period of time while the part travels under the switch. At the moment that the limit switch is free from the part, the wand on the switch physically swings back to and through its normal position, and then swings up and "makes" again. If your PLC happens to read its I/O at this point, then you can get more counts than actual. The way you fix this problem is by having a debounce time or ON Delay programmed into your PLC or Counter that will allow it to ignore signals that are active for only a small amount of time. You may also need an OFF Delay which will act like the ON Delay to filter out erroneous signals. The ON Delay and OFF Delay time for each sensor is usually arrived at by trial and error, but it can be no longer than the amount of time your sensor is "ON" and must be greater than one scan time of the PLC. As a good starting place try one fourth of the sensor "ON" time. Look at Figure 1 for an example of how an OFF Delay can filter out a bad signal. Look at Figure 4 for an example of the perfect counting signal and response. In the preceding sections I have shown you a few things that you shouldn't do, and I've also given you some formulas for calculating the minimum amount of time your sensor should be on and off. But remember the longer your sensor is off between counts and the longer your sensor is on while the part is there is better, you don't have to use the minimums.
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From a software perspective, counts should always be retrieved as delta values and stored. So, for example you program the computer system to scan the PLC's once a minute, the computer would poll the PLC for any counts that had occurred since the last polling and then zero out the register(s) in the PLC. Something you don't want to do is to allow the PLC to count continuously without zeroing. The computer system can poll the PLC periodically and retrieve the new count, then calculate the difference between the old and the new. Although, it doesn't seem much harder on the surface, there are hidden pitfalls with this approach. The simplest method is the best, just zero out the PLC count after reading it. Store the delta value in a database. Materials and Installation. I don't have a whole lot to say about the materials you use. I have never used anything other than industrial grade equipment and haven't had many problems there. I do know of a system that used Bar Code readers for data collection on the factory floor. They used the type of bar code wands that you use to find in retail stores. The system was plagued with problems, the equipment just wasn't good enough. Not only did they have their share of normal hardware breakdowns, but also the inspection people entering the information would purposefully damage the equipment, to get out of work. As far as installation is concerned; if you have been involved with factory floor installations before, just do what you normally do. If you are from the IT world, make sure your Data Collection equipment is housed in the appropriate Nema enclosure for the job you're doing. Some sites may require a water tight enclosure, others may suffer from dust, others may need stainless steel. Do some research on your conditions and take the time and spend the money to use the right enclosure for the job. Protect your wiring. You will either want to run conduit or armored cable from the PLC enclosure to the machine. You will also need to protect your networking cable. This too should probably be in conduit. If there is a cable tray leading back to the computer system, then by all means use it, just don't drape your cables from the rafters or leave them exposed for people to swing on. Data Storage. All I can say here is to use a commercial database. Do not try to write your own code to store data in a user file. You will suffer from this later. There are many commercial databases available today that should do the job quite nicely. MS Access and FoxPro come to mind for smaller systems. If you need something larger MS SQL Server, Oracle or Sybase are leaders in the field. When storing the information, store it as deltas. So, if you are retrieving information once per minute, you should have an entry for every count each minute. Then when it comes time to print out a report, all you have to do is give the report a time span to look at and summarize. You may also want to have the ability to create summary data files. For example a daily file that has hourly entries for every count. This can be useful later on for displaying or reporting data, it's more efficient. Real-time Feedback and Displays. This is an interesting topic because it can be very minimalistic or all encompassing. For starters, the basic thing you need will be some sort of operator feedback. What's the use in keeping counts if you can't tell people what they are. It's my belief that whether you write your own program or buy someone else's, it should have a few displays to see counts that are "standard", so you can at least look at some counts without needing a custom display. You should also have the capability of building displays that don't require programming. You may be able to use the built in display capability of the database that you pick for the job. This would allow you or someone else within your organization to create and modify a display without the need to hire a programmer to do so. Many people are familiar with MS Access and FoxPro. Operator feedback can come in many forms. You may wish to have an overhead display, continuously displaying a single count for several of your production personnel. This may be the number of packed boxes from the end of an assembly line. Or you may wish to have a single light turn on or off to indicate that a quota has been met. No matter what types of feedback you choose, your counts, I refer to counts as a summary of deltas over a time period, need to be configurable. The first system I put in was unique for that customer, they wanted hourly, shift and daily counts. With the shift beginning at a pre-defined time 8am, 4pm and 12am. This inflexibility later caused problems in the form of added work. I advise that any system you write or buy should be flexible enough to allow your time period to begin at any time of the day and be any duration, because many manufacturers have some places in their process that don't quite conform to their norm. For instance, the company I mentioned above had over 99% of their counts based on the hour... but for a couple of unique machines, they needed 30 minute counts, and I remember being asked about a 20 minute count. So, keep your counting time periods flexible.
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Management Reporting. Maybe the single most important thing that your counting system will yield is a management production report. To what extent you choose to report your counts depends upon what you are trying to accomplish. There are basically two types of reports. Those used for problem analysis and those used for accounting. The accounting report is simple. You're concerned with how much raw material went into your production line and how many parts came out. This type of report is mainly concerned with line efficiency and material usage. The problem analysis type of report is usually more detailed. On this type of report you are concerned with the efficiency of a machine or area. Generally, you use this report as a tool to tell you how many parts went into a machine and how many good parts came out. So, for a given time period you can tell how many rejects your machine is producing. On some machines it's impossible to tell if it's making bad parts because the same number that went in comes out, regardless. For this type of situation you would usually include this machine in a larger area, maybe two or three machines. Or, maybe you can add a sensor of some sort that will detect only good pieces and not bad. You may have to tie it into the machine control system somehow to make the machine dependent upon the switch functioning properly, otherwise you violate the rule about not adding switches just for counting. In any case, this type of report will usually start at the beginning of a production line or production area and work its way through the area, so that the output of one machine or area is the input of the next, and so on. Data Analysis. I could have covered this topic as either part of the Display section or the Report section, but I have waited until last because I feel that it is a separate way of thinking about counts. The single most useful tool you can have in analyzing counts is a screen that will trend your counting information over some historical time period. You can use the trend to see patterns that you would miss by looking at a tabular report or display. Similar to a simple trend are some SPC tools like Pareto Charts and Xbar and R charts. These tools can be useful for operations personnel to spot their own problems. Sophisticated users may want to use something like Stat Graphics or some other numerical analysis tool. Which brings us to exporting data. How you export data is up to you, but as a minimum you should have the ability to export raw data from your database for a variable time period to a comma delimited file. If you can, exporting to an Excel spreadsheet would be a little nicer, as Excel has the ability to graph your data also. Summary. I hope that this paper has helped to educate and not been too tedious to read. If I am successful, you will not make the same mistakes that I have. If you should have any questions about production counting, e-mail me below and I will try my best to answer them. --Rob Anderson countingquestions@atsi.cc
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