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Provided by: Business Industrial Network True Down Time Cost Analysis - 2nd EditionBusiness Process Management |
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MARGIN-BOTTOM: 0px" align="center">True Down Time Cost Analysis - 2nd Edition
MARGIN-TOP: 0px" align="center">By Don Fitchett and Mike Sondalini
"Costing methods & techniques for manufacturing processes to offer the greatest return on capital employed (ROCE)."True Down Time Costs Analysis focus on costing methods and costing techniques that quantify like activities that previously fell under the indirect cost definition, like the hidden cost of outsourcing, warranties, etc. This technique is a 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 book "The
true cost of manufacturing down time" (ISBN 1933047151). 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.
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'True Downtime Cost Analysis (TDC)' is the final piece to the lean manufacturing puzzle and a great cost justification tool for maintenance managers and production managers, right up to general managers, to make changes in their operations that move their companies toward using better practices.
The OEE and TEEP chapter discuss this benchmarking process tool
from a return on capital employed (ROCE) point of view. In line with the
"True" perspective of this book, the authors clarify the proper use of
OEE and TEEP. The action plan chapter ends with a detailed example plan
followed by an additional example of implementing TDC in your facility to it's
fullest extent.
"The TDC method used reveals many cost saving
opportunities that would not be evident using standard time and material cost
tracking methods that hide many costs under the indirect cost definition."
Extracts and summaries from this 102 page ebook have been published as
industrial engineering articles in many engineering and management journals as
well as industry websites throughout the world.
(Control Engineering, Instrumentation and Control Journal, Facilities Engineering Journal, Pumps & Systems Magazine, Pharma Manufacturing Magazine, Hong Kong Engineer, and more ...)
Table of Contents- Introduction to True Down Time Costs (TDC)
- Getting Started with OEE and TDC.
- Prioritize:
- Analysis:
- Set up OEE and TDC Plant-Wide
- Overview Of The Metrics
- Cost Factors Overview
- A Closer Look at Equipment Categories
- Cost
- Data Collection
- People
- Product
- Start-up
- Bottleneck-Factor
- Sales Expectation
- A Closer Look at Labor Categories
- Labor Per Product (LPP)
- QC Labor
- Maintenance Labor
- Engineering Labor
- Management Labor
- Overhead
- Manufacturing Cost
- A Closer Look at Down Time Categories
- Maintenance Time
- Maintenance Reduced Production
- Scrap Cost
- Band-Aid
- OEM, Outsourcing Service Contractor, Consultants
- OEM Metrics
- Machine Tooling Cost
- Maintenance Parts and Shipping
- Understanding Overall Equipment Effectiveness (OEE)
- Benefits of Using Overall Equipment Efficiency
- Benefits of Using True Downtime Cost
- Setting OEE base lines (Goals)
- The Right Way to Use Benchmarking
- Total Effective Equipment Productivity (TEEP).
- Where to start with TEEP?
- Standards for Downtime Factors
- Using TDC Metrics to Make Decisions
- Use a Recognized, Open Data Sharing Standard
- What is the True Down Time Cost (TDC)?
- Hidden Costs Unearthed and Revealed With TDC
- Looking For The Overlooked!
- Equipment Cost Categories (Constants)
- Labor Cost Categories (Constants)
- Downtime Cost Categories (Occurrence)
- Action Plan
- Overview of the Action Plan
- Steps along the Way
- Implementing Automated Data Collection
- Motivating Management
- See True Savings Resulting From The Programs You Implement
- Motivating Employees
- Utilizing TDC in Daily Decisions
- Resource Chapter
- Frequently Asked Questions
- Glossary
- Appendix
