Business Industrial Network

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Business Industrial Network www.DowntimeCentral.com True Downtime Cost True Downtime Cost

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Business Industrial Network. www.DowntimeCentral.com. True Downtime Cost. Data Sources (Definition:). A method of recording and analyzing all significant cost metrics associated with equipment downtime in a building or manufacturing facility. - PowerPoint PPT Presentation

Transcript of Business Industrial Network

Page 1: Business Industrial Network

Business Industrial Networkwww.DowntimeCentral.com

True Downtime CostTrue Downtime Cost

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Data Sources (Definition:)

TDC – True Downtime Cost

•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.

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Data Sources Overview

Data – too much of it, not enough of it, inadequate quality or the wrong sort: and what is it used for anyway?

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Considerations of best metrics: What you measure is what you’ll get! Ultimately must be able to accurately track

failure rates and allocate costs individual machines (location, asset) machine categories (motors, pumps) components (bearings, seals)

Major benefits can be attained with current technology -- more effectively applied lower cost data collectors

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Digging for dataequipment histories, CMMS reports, life cycle cost analyses, financial records, production schedules.

These are the recommended sources to build a cost justification report to be presented to the bean counters.A maintenance manager would need a full time research assistant to run a productive department.

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Measurement effectiveness:Do measures such as maintenance cost /

RAV show contribution to real objectives? age of equipment, process intensity

MTBF; total population / total repairs or equipment specific statistics which, what, how often

PM compliance and PM backlog, % overtime, % PM compared to % reactive don’t measure whether activity is required or

how much value is produced

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What do all these data sources have in common?

They all build on downtime cost estimates that are only 10% or less of the True Downtime Cost. (10%TDC)

Cost justification requires analysis of several of these areas by management.

Often you have to justify the validity of the data source.

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Where does valid data come from?

all computer systems and networksplant automation systems

distributed control systems programmable logic controllers diagnostic monitoring systems.

asset management software

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How to bring it all togetherWonderwareVersacall

The new millennium focus is on bringing the valid data from various sources back to the management software and technique of your choice.

Will this full circle of data management bring us close to 100% management efficiency?

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Versacall.comVersaCall Facility Communications

System. capture and document  downtime monitoring response time communicating an alarm occurrence

"5% of cost in a sites production capability from downtime is a fairly safe number. It does vary by

industry ~ mostly going up from the 5%."  "80% of the manufacturing operations I have

interacted with have no idea what they are losing in true dollars with downtime."

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Not even close You will see a 200%

to 300% increase in efficiency, but that’s only 30%TDC, will that give you the required ROI?

Why settle for 300% when you can easily have 800%?

“LEAN”TPM, RCM, PM

ERP,CMMS,EDI,DCS,PLC

OEE,RAV

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The Answer, TDC 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

“LEAN”TPM, RCM, PM

ERP,CMMS,EDI,DCS,PLC

TDC

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MIMOSAEquipment ManagementInformation Modelthanks to: Ken Bever, John Hawkins, Alan Johnston, Art Jones, Peter Morgan

Control System - DCS

Decision Support

Data

Maintenance ManagementCondition Measurements

Information

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MIMOSAEquipment ManagementInformation Modelthanks to: Ken Bever, John Hawkins, Alan Johnston, Art Jones, Peter Morgan

Control System - DCS

Decision Support

Data

Maintenance ManagementCondition Measurements

Start/Stop timesSpeedfluid (lube oil) conditionvibration (on and off-line)operating measurements (on-line and operating logs)motor characteristicsthermographyanodic/cathodic voltageultrasonic (leak detection)corrosion thickness

Information

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MIMOSAEquipment ManagementInformation Modelthanks to: Ken Bever, John Hawkins, Alan Johnston, Art Jones, Peter Morgan

Control System - DCS

Maintenance Management

Data:ID’s: Plant / Location / Equipment EventsNumerical values (measurements)True Downtime Cost MetricsMeasurement trendsArray / Image:

•Vectors•Time Waveforms•Orbits•Spectra (frequency, order, CPB)•Lube oil particle•Temperature images

Data:ID’s: Plant / Location / Equipment EventsNumerical values (measurements)True Downtime Cost MetricsMeasurement trendsArray / Image:

•Vectors•Time Waveforms•Orbits•Spectra (frequency, order, CPB)•Lube oil particle•Temperature images

Condition Measurements

Information

Data

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MIMOSAEquipment ManagementInformation Modelthanks to: Ken Bever, John Hawkins, Alan Johnston, Art Jones, Peter Morgan

Control System - DCS

Maintenance ManagementCondition Measurements

Information

Data

asset management (inc. spare parts)workforce managementscheduled maintenance (inc. PM)work managementMRO inventory managementtool and rental equipmentcost accounting

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MIMOSAEquipment ManagementInformation Modelthanks to: Ken Bever, John Hawkins, Alan Johnston, Art Jones, Peter Morgan

Control System - DCS

Maintenance ManagementCondition Measurements

Information

Data

From Maintenance Management:Conditions foundSpare parts availabilityWork accomplished -- Action takenMaintenance history: work performed, cost, process downtimeNameplate dataManufacturers specificationsWork order issued: Work order number, requirements: parts, resources, tools, peopleWork schedule

From Maintenance Management:Conditions foundSpare parts availabilityWork accomplished -- Action takenMaintenance history: work performed, cost, process downtimeNameplate dataManufacturers specificationsWork order issued: Work order number, requirements: parts, resources, tools, peopleWork schedule

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MIMOSAEquipment ManagementInformation Modelthanks to: Ken Bever, John Hawkins, Alan Johnston, Art Jones, Peter Morgan

Control System - DCS

Maintenance ManagementCondition Measurements

Information

Data

mechanical diagnostics inc. rolling bearingperformance/efficiencyreciprocating analysisoperating deflection shape (ODS)root causereliability centered maintenance (RCM)risk prognosis

mechanical diagnostics inc. rolling bearingperformance/efficiencyreciprocating analysisoperating deflection shape (ODS)root causereliability centered maintenance (RCM)risk prognosis

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MIMOSAEquipment ManagementInformation Modelthanks to: Ken Bever, John Hawkins, Alan Johnston, Art Jones, Peter Morgan

Control System - DCS

Maintenance ManagementCondition Measurements

Information

Data

InformationStatus -- something happened, eventState of health -- numerical condition indexRate of change (health/severity) -- numericalTime to action -- predicted date under current conditionsProblem identification -- descriptionComponents affected -- descriptionRecommendations -- operating and maintenanceRemarks/Comments -- explanatory informationWork request -- yes or noConfidence -- numerical

InformationStatus -- something happened, eventState of health -- numerical condition indexRate of change (health/severity) -- numericalTime to action -- predicted date under current conditionsProblem identification -- descriptionComponents affected -- descriptionRecommendations -- operating and maintenanceRemarks/Comments -- explanatory informationWork request -- yes or noConfidence -- numerical

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MTBF Example Average 2 year MTBF on 2,000 pumps

(compared to world class -- 6 to 7 year) Average cost of repair $5,000 Double MTBF to 4 years

saves $2.5 million!! 6 year MTBF

saves $3.3 million That’s at the profit level!!

how much product must be produced to deliver $2.5 million profit at 10% pretax??

PROFIT CENTERED MENTALITY

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Information required for equipment management is optimally developed within specialty systems: condition monitoring / assessment

Start/Stop, speed, vibration, fluid analysis, thermography, motor electrical, ultrasound

control (DCS) performance, efficiency Calculated with TDC

maintenance management (CMMS) manufacturers specifications, task instructions,

history, parts, costs

Information Sources

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Information must be:Readily available, easily exchanged and

clearly understandable for everyone with requirements throughout the enterprise

MIMOSA!Machinery Information Management Open Systems Alliance

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TDC MetricsEquipment MetricsLabor ConstantsDowntime DataOutsourcing Information

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TDC DetailsEquipment

Categories

People

Product

Start-Up

Bottleneck

Sales Exp

Labor

LPP/M

QC

Maintenance

EngineeringManagement

Downtime

Time

Reduced

Scrap

Band-Aid

OEM

Tooling

Part / Ship

Overhead

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TDC, a closer look at Equipment

Categories Use MIMOSA, machine, priority, type, cell, line, Notes, etc.

People Number of Direct and in-direct idle workers

Product Cost per unit at that stage in production Units per hour

Start-Up Electrical surge cost, Set up, % reduced till start/stop Equipment fatigue Scrap produced, is it recycle able

Bottleneck List other downstream equipment, and % effected

Expected Sales % effect on product out the door.

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LPP / Equipment Contribution Not as accurate, use if not items below

QC wages Extra inspections, Rework

Management wagesEngineeringMaintenanceSupportEquipment operators

TDC, a closer look at Labor

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Time Down Reduced

% reduced, for how long Scrap

Number of units, % recovered by recycling Band-aid

Is a sub category of several, value in %TDC OEM

Annual fee/ est. hours used per year, or T&M + Expenses Tooling

Replacement, reworking, recycling Parts

Actual repair, and band-aid

TDC, a closer look at Downtime

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TDC-Warning Data Overload!Too many variables, Too complicated, Too much change!

Equipment These are all one time entry of constants, updated annually, exported from your existing computer systems.

Labor

DowntimeThese are per downtime occurrence entries,

but most can be exported from your CMMS.

Overhead You can use a percentage of existing numbers depending on amount of TDC

metrics they are made up of

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Is using TDC too much change ?

Not really. You just need to require up front that your vendors adhere to MIMOSA

standards and TDC metrics.

Your vendors being data collection equipment vendors, and software vendors such as

CMMS.

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Let’s put Downtime in it’s own bucket and make sound decisions.

DT veiwed now WITH TDC

2% 1%0%

1%

6%

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TDC represents the final bottlenecks to a fully integrated and auditable approach to maintenance strategy development / justification.

“LEAN”TPM, RCM, PM

ERP,CMMS,EDI,DCS,PLC

TDC

Click the link to learn more about•TDC Data Source•TDC Cost Factors