WhitepaperWhat is the True Downtime Cost TDC

This whitepaper supports the True Down Time Costs Analysis (a downloadable book and the
indirect cost definition when it comes to return on capital employed (ROCE) as it relates
to manufacturing processes.

True Down Time Costs Analysis focus on costing methods and costing techniques that
quantify like activities that previously fell under the indirect cost definition, like the
hidden cost of outsourcing, warranties, etc. This technique is a must for bottleneck
management, but also should be applied to piece manufacturing and even other industries.
Authors Don Fitchett and Mike Sondalini coauthor the extension of the original Ebook
"The true cost of manufacturing down time" (ISBN 1-933047-15-1). With this second edition
also comes an action plan to utilize existing shop floor data collection to monitor the
many manufacturing processes and associated costs. 'True Downtime Cost Analysis (TDC)'
is the final piece to the lean manufacturing puzzle and a great cost justification tool
for maintenance managers and production managers, right up to general managers, to make
changes in their operations that move their companies toward using better practices.
The OEE and TEEP chapter discuss this benchmarking process tool from a return on
capital employed (ROCE) point of view. In line with the "True" perspective of this Ebook,
the authors clarify the proper use of OEE and TEEP. The action plan chapter ends with a
detailed example plan followed by an additional example of implementing TDC in your
facility to it's fullest extent. "The TDC method used reveals many cost saving
opportunities that would not be evident using standard time and material cost tracking
methods that hide many costs under the indirect cost definition." Extracts and
summaries from this 102 page Ebook have been published as industrial engineering articles
in many engineering and management journals as well as industry websites throughout the
world. (Control Engineering, Instrumentation and Control Journal, Facilities
Engineering Journal, Pumps & Systems Magazine, Pharma Manufacturing Magazine, Hong Kong
Engineer, and more ...)

Keywords :

down time costs, roce, equipment down time, true cost accounting, manufacturing processes,
indirect cost definition, return on capital employed, downtime definition, production
equipment, data sharing, outsourcing maintenance, overall equipment efficiency, shop floor
data collection, benchmarking process, oee, oee consulting, bottleneck management,
bottleneck manufacturing, oee impact, maintenance management, manufacturing management,
maintenance planning

All, PDF doc