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What is the True Downtime Cost? (page 7)
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 haven’t 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, I’ll 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.

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