Maintenance Management Resources Six sigma and lean manufacturing, it's all about money:
Business Industrial Network is your best resource when you need fast solutions. After you view this six sigma area dedicated to learning the true cost of equipment downtime
with time and motion study, please visit our company.
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 Quality Control 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.
Direct QC labor related to downtime
First product inspections
Indirect labor related to downtime
Return shipment sorting
Material handling/shipping expenses
Trips of QC personnel to customer's site
When calculating the cost of re-work, it often will bring insight to the most cost effective solution, in regards to the re-work or scrap question. Often re-work demands over-time, trips to customer locations and other hidden costs that are not given full consideration.
A Quality Note: Quality does not cost, it pays.
Quality really pays in reference to Machine quality, replacement part quality, repair quality, Service quality, and management quality. Please give us examples you have witnessed of how cutting quality corners, cost more in the long run.