This article covers how you can use an hourly rate per machine to calculate the overheads your business incurs but does not recoup during machine downtime.
Cost of Downtime and Hourly Rate
In the FourJaw general settings page, you can set your currency and an hourly rate per machine. This hourly rate is for overheads (electricity, heating, machine depreciation etc.) that your business incurs per machine, per hour. You can apply a machine hourly rate globally to all machines in a factory. This hourly rate represents costs that your business incurs but does not recoup while your machines are in downtime.
Cost of Downtime = Hourly rate * Length of Downtime
Downtime Pareto Cost Summary
By clicking on the cost summary button in the Downtime Pareto Chart on the Monitor Dashboard, you can see:
- A list of the biggest downtime reasons or categories and their costs
- A total cost of downtime for the period chosen and on the machines, cells or factories chosen.
Focus Continuous Improvement Activities in the Right Areas
Support functions such as Engineering and Maintenance only have a certain amount of resource to solve issues. FourJaw gives a quick summary of where improvement can be made so resources can be quickly assigned to deliver the highest value. It then continues to measure the impact of the improvement, in real-time.
Justifying business decisions
As a business, you want to understand how much money has been spent and not recovered by having inactive machines over a period of time. This enables you to you can justify business decisions such as hiring extra maintenance staff.
Top 10 Downtime Instances Cost Summary
By clicking on the cost summary button in the Downtime Instances Chart on the Monitor Dashboard, you can see the following:
- A list of the top 10 most expensive downtimes with
- Reasons
- Date and time
- Length
- Cost
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Investigate Outliers
Although most of your effort is probably spent on incremental improvements, sometimes all of that hard work can be undone by a single incident where it all goes wrong. The Top 10 Downtime Instances Cost Summary enables you to see the most significant outliers, find out when and where they occurred and go to investigate what happened to prevent a recurrence.
Reports
You can also set up a report to see the longest downtimes each week or month on the downtimes report page.
And a report to see the most costly reasons for downtime.
And a report to compare the cost of downtime across different machines and cells.
