Business Industrial Network

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

2. Data Sources (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. TDC – True Downtime Cost www.DowntimeCentral.com

3. 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? www.DowntimeCentral.com

4. 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 www.DowntimeCentral.com

5. Digging for data • equipment 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.

6. 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 www.DowntimeCentral.com

7. 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. www.DowntimeCentral.com

8. Where does valid data come from? • all computer systems and networks • plant automation systems • distributed control systems • programmable logic controllers • diagnostic monitoring systems. • asset management software www.DowntimeCentral.com

9. How to bring it all together • Wonderware • Versacall 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? www.DowntimeCentral.com

10. Versacall.com • VersaCall 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." www.DowntimeCentral.com

11. 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%? OEE,RAV www.DowntimeCentral.com

12. 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 TDC www.DowntimeCentral.com

13. Maintenance Management Control System - DCS Condition Measurements Decision Support Data Information MIMOSA Equipment Management Information Model thanks to: Ken Bever, John Hawkins, Alan Johnston, Art Jones, Peter Morgan

14. Maintenance Management Control System - DCS ConditionMeasurements • Start/Stop times • Speed • fluid (lube oil) condition • vibration (on and off-line) • operating measurements (on-line and operating logs) • motor characteristics • thermography • anodic/cathodic voltage • ultrasonic (leak detection) • corrosion thickness Decision Support Data Information MIMOSA Equipment Management Information Model thanks to: Ken Bever, John Hawkins, Alan Johnston, Art Jones, Peter Morgan

15. Maintenance Management Control System - DCS Condition Measurements • Data: • ID’s: Plant / Location / Equipment • Events • Numerical values (measurements) • True Downtime Cost Metrics • Measurement trends • Array / Image: • Vectors • Time Waveforms • Orbits • Spectra (frequency, order, CPB) • Lube oil particle • Temperature images Data Information MIMOSA Equipment Management Information Model thanks to: Ken Bever, John Hawkins, Alan Johnston, Art Jones, Peter Morgan

16. Maintenance Management • asset management (inc. spare parts) • workforce management • scheduled maintenance (inc. PM) • work management • MRO inventory management • tool and rental equipment • cost accounting Control System - DCS Condition Measurements Data Information MIMOSA Equipment Management Information Model thanks to: Ken Bever, John Hawkins, Alan Johnston, Art Jones, Peter Morgan

17. Maintenance Management Control System - DCS Condition Measurements • From Maintenance Management: • Conditions found • Spare parts availability • Work accomplished -- Action taken • Maintenance history: work performed, cost, process downtime • Nameplate data • Manufacturers specifications • Work order issued: Work order number, requirements: parts, resources, tools, people • Work schedule Data Information MIMOSA Equipment Management Information Model thanks to: Ken Bever, John Hawkins, Alan Johnston, Art Jones, Peter Morgan

18. Maintenance Management Control System - DCS Condition Measurements • mechanical diagnostics inc. rolling bearing • performance/efficiency • reciprocating analysis • operating deflection shape (ODS) • root cause • reliability centered maintenance (RCM) • risk • prognosis Data Information MIMOSA Equipment Management Information Model thanks to: Ken Bever, John Hawkins, Alan Johnston, Art Jones, Peter Morgan

19. Maintenance Management Control System - DCS Condition Measurements • Information • Status -- something happened, event • State of health -- numerical condition index • Rate of change (health/severity) -- numerical • Time to action -- predicted date under current conditions • Problem identification -- description • Components affected -- description • Recommendations -- operating and maintenance • Remarks/Comments -- explanatory information • Work request -- yes or no • Confidence -- numerical Data Information MIMOSA Equipment Management Information Model thanks to: Ken Bever, John Hawkins, Alan Johnston, Art Jones, Peter Morgan

20. 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 www.DowntimeCentral.com

21. Information Sources • 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 www.DowntimeCentral.com

22. Information must be: • Readily available, easily exchanged and clearly understandable for everyone with requirements throughout the enterprise MIMOSA! Machinery Information Management Open Systems Alliance www.DowntimeCentral.com

23. TDC Metrics • Equipment Metrics • Labor Constants • Downtime Data • Outsourcing Information www.DowntimeCentral.com

24. TDC Details Overhead

25. 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 • ExpectedSales • % effect on product out the door.

26. TDC, a closer look at Labor • LPP / Equipment Contribution • Not as accurate, use if not items below • QC wages • Extra inspections, Rework • Management wages • Engineering • Maintenance • Support • Equipment operators www.DowntimeCentral.com

27. TDC, a closer look at Downtime • 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 www.DowntimeCentral.com

28. Overhead 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 These are per downtime occurrence entries, but most can be exported from your CMMS. Downtime You can use a percentage of existing numbers depending on amount of TDC metrics they are made up of www.DowntimeCentral.com

29. 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. www.DowntimeCentral.com

30. Let’s put Downtime in it’s own bucket and make sound decisions. 6% 1% 2% 0% 1% www.DowntimeCentral.com

31. TDC represents the final bottlenecks to a fully integrated and auditable approach to maintenance strategy development / justification. TDC • Click the link to learn more about • TDC Data Source • TDC Cost Factors www.BIN95.com www.DowntimeCentral.com