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TDC - True Downtime Cost 

Definition:

  • A method of recording and analyzing all significant cost metrics associated with equipment downtime in a building or manufacturing facility.
  • TDC provides a way to assign time and/or monetary value to previously considered “non-tangible” cost of downtime.
  • Also TDC includes downtime factors commonly overlook to arrive at a more true value for the cost of downtime.

In viewing the Cost Factors below, one might think micro-analyze, but the fact is, most of this data is already being collected, and in your computer systems.

Click on one of the cost factors below to learn more, or ...

Or start with the next page ...

You can also click here to download full Power Point presentation.(995KB)

Good starting point, at the bottom of each page, the 'Next' button will keep you in logical order Standardize your data collection categories, learn from MIMOSA. Learn that the indirect affected labor cost is often greater than the more apparent direct labor cost. 1 The TDC product category is made up of two sub-categories. Cost per Unit, and Units per Hour. Every time your startup your machine, there is hidden cost downtime cost related to Bottlekneck. We have to maintain a 100% capacity readiness The second main category, often thought to be the area of greatest savings, maybe greater than you realize. Does your LPP/LPU calculations include indirect labor? Associate QC cost, re-work, etc. with actual downtime occurrence. There is a substantial staff supporting those one or two who actually do the machine repair. Engineering costs to support troubleshooting and repair of machines can slip through the cracks. Requesting maintenance, redirecting operators, reporting to upper level management, altering production schedules/flow, administrative tasks, etc. TDC,Overhead - find the cost hidden in the overhead category TDC, main data collection Category for each downtime occurrence. Are you tracking when maintenance arrives at the scene, or when the machine actually went down? Time and percentage of full capacity equipment is running a reduced rate due to a malfunction. Some causes for scrap related directly with downtime. Please take note that band-aid time estimates, and amount of times needed to be done are usually under estimated. Your interactions with OEMs can be a major cost factor in downtime as well as other areas. Often classified as a nuisance problem if allowed to continue, can really add up in cost. Out of the parts and procurement fields below, the actual parts cost is the only value commonly tracked.

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.

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Business Industrial Network was founded in 1995 Copyright © 1995 [Business Industrial Network]. 

All rights reserved. Revised: January 14, 2005.

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