True Downtime Cost (TDC) overview


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Overview of TDC, a Lean principle that enhances management decisions and assign criticality based on True Downtime Cost. An Activity Based Costing (ABC) methodology for tracking and analysis of people movement, involvement and cost. Helps identify and eliminate the 8th waste too. For the latest TDC info, see

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True Downtime Cost (TDC) overview

  1. 1. Business Industrial Network True Downtime Cost
  2. 2. Quick Help Results 12 10 Without BIN  Our customers can BIN Customers see ROI of 1000% 8  BIN makes 6 Manufactures, 4 Vendors, and Support companies 2 more profitable 0 through TDC Hours Down information.
  3. 3. True Downtime Cost (TDC) Corrugators = $ 10,000 per hour 6 Hours saved in Unplanned downtime, $60K Air compressor = $ 30,000 per hour 6 Hours saved in Unplanned downtime, $180K Cell Bottleneck = $ 3,000 per hour 6 Hours saved in Unplanned downtime, $18K
  4. 4. Overview (Definition:) TDC – True Downtime Cost•A method of recording and analyzing all significant costmetrics associated with equipment downtime in a buildingor manufacturing facility.•TDC provides a way to assign time and/or monetary valueto previously considered “non-tangible” cost of downtime.•Also TDC includes downtime factors commonly overlook toarrive at a more true value for the cost of downtime.
  5. 5. Focus on the 80% 80% of the failures come from 20% of the failure modes. TDC helps you focus on the greatest cost of downtime, as opposed to traditional broad categories such as “Maintenance” , “Labor”, etc.
  6. 6. Why use TDC? Executive Management  True (Better) information, allows you to make better decisions. Maintenance Management  TDC gives you the tools to cost justify those much needed equipment upgrades and replacements. All Service and Product Suppliers  Allows you to show customers the true value and savings of your product or service.  Helps your customers cost justify purchasing from you.
  7. 7. You’ve seen the value in CMMS,now see that value increase. CMMS, might pay for itself in 18-30 months Targeted cost/risk review of projects and maintenance requirements will typically achieve net payback in 3-6 months.
  8. 8. A Quick Look at TDC metrics Equipment Labor Downtime Categories LPP/M Time People Reduced QC Scrap Product Maintenance Band-Aid Start-Up OEM Engineering Bottleneck Tooling Management Sales Exp Part / Ship Overhead
  9. 9. A greater return is why we seethe popularity of … TPM  (Total Productive Maintenance) RCM  (Reliability Centered Maintenance)
  10. 10. TDC shows at least 10 times thecost that conventional methodsshow. This is why TDC amplifies the value of asset management programs by many times.
  11. 11. TDC made easy by growingnumber of Computer systems Arebeing recognized as necessary and valuable for …  asset information  work management  condition monitoring
  12. 12. The Old Mindsets The relationships are poorly understood, the mathematics are too nasty, and the available raw data is usually inadequate. However, much has changed through the TDC project.
  13. 13. TDC to OEE OEE can appear improved by actions such as purchasing oversize equipment, providing redundant supporting systems and increasing the frequency of overhauls. Also complete understanding of OEE is required to make sound decisions. TDC enhances OEE accuracy, and places it in perspective.
  14. 14. TDC represents the finalbottlenecks to a fully integratedand auditable approach to “LEAN”maintenance strategy TPM, RCM, PMdevelopment / justification. TDCClick the link to learn more about ERP,CMMS,EDI,DCS,PLC•TDC Data Source•TDC Cost Factors