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.)

Related TGG Project Titles

Dust handling system TPM
OEE A3 reporting calculator
Equipment reliability 3 year strategy
STRANDS training workshop
Autonomous maintenance Kaizen
Planned (T minus) PM Kaizen
Print press ink cart TPM
STRANDS TPM team training
Pipe multilayer equipment STRANDS board
RCFA project laminator down time
Water jet RCFA project
OEE calculations on glueing equipment



What are the Issues?

  • Running equipment to failure
  • Rewarding reactive fire fighting
  • 85% of failures are random and not directly cycle related
  • Data collection is very poor
  • Maintenance is under manned and under trained


  • $ 2MM New equipment purchase cost avoidance
  • 15% Improvement to OEE trend
  • 200 New visuals on an asset

Define your Problem Statement.

The first step towards breaking your organizational log jams is identifying and verbalizing the challenge you're facing. What are you trying to solve? This simple Problem Statement exercise can have profound implications for your team. It helps you define the issue and gives TGG some sense of where the soft spots could be in your Order to Cash process. We invite you to take a few moments to fill out this form. A TGG consultant will contact you shortly to discuss your Problem Statement and provide some insight on how we may be able to help.

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