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 http://www.bin95.com/ebooks/equipment_down_time_costs.htm

1. Business Industrial Network
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True Downtime Cost

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.
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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
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4. 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.
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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.
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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.
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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.
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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
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9. A greater return is why we see
the popularity of …
 TPM
 (Total Productive Maintenance)
 RCM
 (Reliability Centered Maintenance)
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10. 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.
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11. TDC made easy by growing
number of Computer systems
 Arebeing recognized as necessary and
valuable for …
 asset information
 work management
 condition monitoring
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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.
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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.
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14. TDC represents the final
bottlenecks to a fully integrated
and auditable approach to
“LEAN”
maintenance strategy TPM, RCM, PM
development / justification.
TDC
Click the link to learn more about ERP,CMMS,EDI,DCS,PLC
•TDC Data Source
•TDC Cost Factors
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