Business Industrial Network

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

2. 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 www.DowntimeCentral.com

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

4. 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. www.DowntimeCentral.com

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

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

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

8. 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 www.DowntimeCentral.com

9. TDC – True Downtime Cost Overview (Definition:) • 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. www.DowntimeCentral.com

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

11. 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. www.DowntimeCentral.com

12. 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. www.DowntimeCentral.com

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 www.DowntimeCentral.com

15. A Quick Look at TDC metrics Overhead www.DowntimeCentral.com

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. CMM$ X 10 TPM $ X 10 RCM $ X 10 OEE $ X 10 www.DowntimeCentral.com

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

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 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. www.DowntimeCentral.com

21. 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. www.DowntimeCentral.com

22. www.BIN95.com TDCrepresents the final bottlenecks to a fully integrated and auditable approach to maintenance strategy development / justification. TDC • Visit online to learn more about • Standards • OEE • TDC Data Source • TDC Cost Factors www.DowntimeCentral.com