What is an additional hour worth?
“Stepping over dollars to pick up dimes.” It’s a catch phrase used that applies to the decision of running equipment to failure or spending money and time in preventative maintenance activities before equipment breakdown. In a recent discussion with an operations manager he deftly explained, “You don’t understand our business. We don’t have time for planning and our equipment failures are unavoidable & impossible to predict.”
Unfortunately some maintenance personnel have never, in their entire careers, worked in a facility with equipment that consistently ran with OEE’s in the 90’s.
The impact of improved equipment reliability is staggering to most companies. Equipment reliability intersects with quality. It intersects with safety. It intersects with delivery performance. It intersects with a surge in morale in employees. It impacts the amount of overtime required. It impacts waste & scrap. When equipment runs with zero unplanned interruptions, it uncovers hidden dollars and more importantly provides a framework for financial decision making that didn’t exist prior to the improvements.
What Should we Measure?
What is our goal within equipment reliability? Is it just reduced downtime? We define two goals:
1. Equipment that produces quality product, at designed run rates, with low changeover and down time hours while:
– Continually closing the gap between actual and theoretical run hours per week
– Not exceeding customer demand
2. Do this at the lowest overall cost of maintenance (OACM) including:
– PM $ (preventative maintenance programs)
– Repair $ (reactive maintenance expenses)
– Production losses $ (lost sales, late fees, etc.)
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