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TDC - Sales Expectation 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
Possibly the most deceptive category of all when it comes to downtime. We
have to completely change our way of thinking to realize the full potential
savings, and make wise asset management decisions. The current view is "we
need X amount of production to fulfill our current sales orders".
The new view in line with TDC method
should be one of "we have to maintain a 100% capacity readiness". The
other TDC categories need to be calculated
to determine what is the "True" capacity of our facility. This new way
of thinking has two major differences.
1. It all starts
out on the shop floor, making known to all, the manufacture's specified
speed of each machine. (Yes, back to OEE)
expectation should be calculated with the goal of 24/7/365 to get the
most value out of your assets.
More saleable products out the door. (increased capacity)
In addition to lost sales, loss of market share is even more
The Whirlpool Findlay Division has been able to increase production by
21%, without any significant capital costs by focused TPM
and OEE utilization.
If your reliability program resulted in an OEE increase from 85 percent to
89 percent. If at 85% you had annual sales of $1,236,500,000 Therefore, each
percentage point of OEE represents $15,135,000 of sales. With the increase
in product represented by improved OEE, sales would increase $60,520,000.
Another reports losses less visible can be much greater. Equipment not
running capacity, may result in not filling orders, or reduced sales
volumes. “For example, if prolonged operation with four out of five
furnaces working reduces production capacity by 20 percent, a continuous
process line with a design rating of 1,000 units per hour would be capable
of only 800 units. To determine the loss, multiply the 200 units per hour by
the unit sales price of $100. This computes to a $20,000 loss for each hour
of operation at reduced capacity. Should this mode continue for a full year,
the annualized loss equals more than $175 million.”
Most who do measure Producibility
(production ability), do so by machine cycle times, then the next most common is
yield rate. Have you reduced your cycle time, but increased your downtime? True
product ability, capacity, 100% ready to meet sales expectation (of 100%
capacity) has to be looked at as the big picture. How much product can you get
out the door?
Yes, sales expectation (and goal) should be calculated with all of your
equipment running at 100% efficiency, 24/7/365. Once at 100% readiness, you can
focus on getting your sales team to capture your chunk of the market share.
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