How to use data collection to calculate cost of each downtime occurrence

Maintenance Management Resources
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TDC - Downtime Category Add to favorites

These are "per downtime" occurrence entries, but most can be exported from your CMMS. Your existing method of reporting need only meet the TDC recommendations below.

Recording the actual time and other real time information associated with each downtime occurrence is crucial to the success of any maintenances goals. The work order is the apex to determining true downtime cost. You can do an excellent job of obtaining the constants of TDC equipment and labor categories, and still have bad downtime cost calculations due to inaccurate reporting of the actual downtime occurrence.

The fact is, there are still alot of facilities out there who do not utilize their work order system 100%. This problem is compounded by most systems not utilizing the information to it's maximum cost saving potential. This main category of "Downtime" covers these deficiencies..

Please click on sub-topic in yellow, to learn more.

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.

Parts & Shipping

Everyone records parts cost related to downtime occurrence, but did you include shipping cost? (them next day air often cost more than the part. :>)

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. Click here to see why there is no need to sound the "Data Overload" alarm.

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.)