True Downtime Cost Analysis - 2nd Edition
True Down Time Cost Analysis - 2nd Edition
By Don Fitchett and Mike Sondalini
"Costing methods & techniques for manufacturing processes to offer the greatest return on capital employed (ROCE)."
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 book "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 book, 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 ...)