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Maintenance Management Resources
Six sigma and lean manufacturing, it's all about money:
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True Cost of downtime
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TDC - OEM and Outsourcing Service Contractor or Consultant Category

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These are per downtime occurrence entries, but most can be exported from your CMMS. A couple fields are constants related to known cost such as annual contracts. Your existing method of reporting need only meet the TDC recommendations below.

Your interactions with OEMs can be a major cost factor in downtime as well as other areas. You should be tracking the related metrics listed below to reveal areas of opportunity. Just the travel cost alone often start out at $ 3,000 for just one day! That is a lot to pay for a photo eye getting cleaned, which an operator or maintenance person could have done, but you would be surprised how often that scenario or a similar one, takes place.

The size of cost saving opportunity when dealing with OEM, Contractors, and consultants is so great, that we will address it further in our future web site (AboutOEM.com). When integrating the metrics below, consider all outsourcing related to maintenance repair and operation, to be recorded and tracked associated with the equipment in your facility.

OEM metrics (Who is responsible for checking?) ...



Per Occurrence:

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.)

 

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 companies have inadequate equipment documentation. TDC will show you the hidden cost. TDC with OEE will also show you most supplemental services such as predictive, preventative, consulting are great investments.

An OEM Support Note: Business Industrial Network's "Quick Help" service is designed to fill the voids left in OEM support. Give it a try! Can you afford not too? Your competitors may already be using "Quick Help", see what they are saying. :>) We are 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. This enables us to come up with a collaborative solution to get your equipment quickly repaired and into full production.

See also...

Our Downtime Cost Survey of over 80 companies and Corporations

Are you a manufacturer? Click here to participate in our Downtime survey and receive free 66 page report. (updated and emailed to you automatically as survey grows.)

Alternative sourcing of Original Equipment Manufacturer (OEM) machinery spare parts can cost you in many ways.

 

 

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