time and motion study

Maintenance Management Resources
Six sigma and lean manufacturing, it's all about money:
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True Cost of downtime
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TDC - Tooling Cost Category

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six sigma, six sigma tools, lean manufacturing, time and motion study



These are per downtime occurrence entries, not usually recorded in CMMS programs. Your existing method of reporting need only meet the TDC recommendations below.

The decision to record this cost is very dependant on the manufacturing environment. If your greatest tooling cost related to machine failure is an occasional $5 insert, it is probably not worth the time to incorporate the tooling category in your downtime tracking software.

On the other hand, if a machine was destroying one $5 insert every hour, due to machine needing repaired, it could warrant this field being implemented. Let's look at the true cost, if the nuisance problem was allowed to continue for just one week. 24 hours, times 7 days, equals 168 inserts ($840). Closer but still not at the TDC. Tool change time cost 30 minutes of production, (1/2 hour TDC = $350). Are we there yet? No. Assume 1 scrap/rework resulted out of every 5 times the tool broke, (34 X % $15 per part = $510)

Two Sides to every coin ...

Tooling damage caused by Machine failure

  • What is the Frequency of tooling damage?

    X                     Times the cost of tooling

    +                Plus the other TDC Metrics

  • (Set-up time, QC labor, Reduced production, etc.)

Machine failure caused by Tooling damage

  • Root cause for tooling failur

    Is Tooling Quality adequate?
    Is it the right tool for the right job?
    Is procedure the cause for tooling failure?

  • Tooling Solution vs TDC of Machine Failure

    First calculate the True Downtime Cost
    Second, the cost to resolve tooling issue
    Then set priority appropriate with difference between cost



Now we are close enough to the true cost of downtime. Tooling ($840) + Lost Production ($350) + Scrap ($510) = $1,700 To keep it simple we did not consider the many other cost, such as QC labor hours doing extra inspections. Armed with your new TDC knowledge; Would you decide to shut the machine down for the 1 hour repair ($700)? Or would you wait till scheduled downtime on the weekend ($1,700+)?

Final Notes: Tooling accounts for only three percent of the cost of producing a part. The true downtime cost from the failure of inferior tooling adds up to many times that 3%. Tooling often falls into the category “too small to analyze”, even if the MTBF is high


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