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TDC - Engineering Labor Category

This category is a one time entry of a constant, updated annually, exported from your existing computer systems. Your existing method of calculation need only meet the TDC recommendations below. As with all labor categories, cost should be net cost (insurance, SSC, benefits, etc.), not just base salary.

As with all the labor categories, your accounting software is a good source to export or link all the various Engineering wages to your downtime cost reporting software. Tracking this manpower cost in relation to downtime cost can be automated through I.D. tags, or typical work order reports.

  • True hourly cost of Engineers

    • from accounting software
  • Track time associated with downtime support

    • troubleshooting
    • specifications
    • re-engineering
  • Unless specifically assigned to maintenance department, engineering costs to support troubleshooting and repair of machines can slip through the cracks, while close attention goes to their primary function of projects, production overhead, etc.

    Even 15 minutes consulting here, another 30 minutes calculating a replacement motor specification, adds up over a year's time. The behind the scenes activities are even more difficult to track, when they aren't actually out on the machine, but on the phone. This is why a cost center management program must be strictly enforced.

    If it is necessary to increase engineering support, the proof will already be collected and visible. A very inexpensive cost saving solution to the demand for more Engineering support is found at Forward UP-TIME Publications. They put out a monthly newsletter specifically written to teach engineering to plant operators and maintainers so they can learn to ceaselessly trim production and maintenance costs while lifting reliability by themselves! Please read the article UP-TIME donated -"Definition Root Cause Analysis" and see what a refreshing approach they take.

    NewStandardInstitute.com - Maintenance Computer Based Training CDs and Downloads  (Click Here)

    See Also: Develop Systems Engineering Life Cycle Costs

                    Process Life Cycle Engineering


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    All rights reserved. Revised: January 14, 2005.

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