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

2. www.DowntimeCentral.com Introduction A little about the speaker AFE Region 9 – Marketing and Communication Representative Benefits of Trade Organizations Networking among similar organizations What is commonality between the Internet and organizations Why the topic Downtime Cost? TDC Survey

3. www.DowntimeCentral.com The Power of networking… You InternetOrganization A third intangible force

4. www.DowntimeCentral.com 2002 Downtime Survey 150 employees, only 80 hours annual downtime reported Average OEM respond time, 20 hours. Max 40 hours, cost nothing? 7 industries surveyed, 4 industries reported on an average, that they had less than 6 PLCs in their facility. 30% PM, 10% emergency. The Truth - 9% PM, 60% emergency.

5. www.DowntimeCentral.com Quick Help Results Our customers can see ROI of 200% BIN makes Manufactures, Vendors, and Support companies more profitable through TDC information. Hours Down FIND FIX PARTS PREVENT

6. www.DowntimeCentral.com Overview – The 3 step plan True Downtime Cost Adopt Information Standards Understanding OEE

7. www.DowntimeCentral.com Acronyms explained ROI Return On Investment OEE Overall Equipment Effectiveness ROA Return on Assets RAV Replacement Asset Value

8. www.DowntimeCentral.com 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

9. www.DowntimeCentral.com Overview (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.

10. www.DowntimeCentral.com HOW MANY HOURS PER YEAR ? Our survey shows the average annual downtime that was tracked and reported, to be 450 hours. True Downtime cost per year Corrugators = $ 4,500,000 per year Air compressor = $ 13,500,000 per year Cell Bottleneck = $ 1,350,000 per year

11. www.DowntimeCentral.com 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”, “The Hottest Fire” etc.

12. www.DowntimeCentral.com Why use TDC? Executive Management True (Better) information, make better daily decisions based on true cost, not just labor and production schedule. 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.

13. 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. www.DowntimeCentral.com

14. Data Collection Equipment –constants Updated annually, or as needed Labor – constants Updated when needed automatically Downtime – occurrences Updated at time of each occurrence automatically

15. www.DowntimeCentral.com A Quick Look at TDC metrics Equipment Categories People Product Start-Up Bottleneck Sales Exp Labor LPP/M QC Maintenance Engineering Management Downtime Time Reduced Scrap Band-Aid OEM Tooling Part / Ship Overhead

16. A greater return is why we see the popularity of … TPM (Total Productive Maintenance) RCM (Reliability Centered Maintenance) CMMS (Computerized Maintenance Management System) OEE (Overall Equipment Effectiveness) www.DowntimeCentral.com

17. TDC shows at least 10 times the cost that conventional methods show. This is why TDC amplifies the value of asset management programs by many times.

18. www.DowntimeCentral.com What if TDC dies off, employees lose interest?

19. TDC made easy by growing number of Computer systems Are being recognized as necessary and valuable for … asset information work management condition monitoring www.DowntimeCentral.com

20. 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. The Old Mindsets

21. www.DowntimeCentral.com 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.

22. www.DowntimeCentral.com 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 Visit online to learn more about Standards OEE TDC Data Source TDC Cost Factors