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Measuring Overall Craft Effectiveness (OCE) - page 3 / 13





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The Maintenance Excellence Institute

How OCE Impacts Your Bottom Line: Part II – Page 3

Improve Wrench Time First: Go on the attack to increase wrench time in your operation even if you do nothing to improve the other two OCE Factors; Craft Performance and the Craft Methods and Quality level. As we will see in the following examples, very dramatic and significant tangible benefits can be realized with just focusing on increasing wrench time. Improvement of from 20 to 30 percentage points can typically be expected just from more effective maintenance planning and scheduling. Let’s now look at several examples showing the value of craft utilization improvement within a 20-person work force with an average hourly rate of $18.00 and see the significant benefits that a 10 percent increase in craft utilization can provide.

Gained Value of 10% in Wrench Time: What if through better planning and scheduling, good parts availability and having equipment available to fix it on a scheduled basis, we are able to increase actual wrench time by 10 percent? What is the gained value to us if we get wrench time increase across the board for a 20- person crew being paid an average hourly rate of $18 per hour? First let’s look at what it is really costing us at various levels of wrench time

Total Craft Hours Available and Annual Craft Labor Costs for Crew of 20 Crafts

20 Crafts x 40

Hrs. wk.

x 52 wks./yr. = 41,600 Craft Hours Available

41,600 Craft Hours @ $18/hr. = $748,800 Craft Labor Cost/Year

Wrench Time and Actual Costs Per Hour at Various Levels of Craft Utilization

Level of Craft Utilization

Total Wrench Time (Hours)

Actual Hands On Cost Per Hour

Average Wrench Time Hours Per Craft Position

30% 40% 50% 60% 70% 80% *85% 90% 100%

12,480 16,640 20,800 24,960 29,120 49,920 35,360 37,440 41,600

$60.00 $45.00 $36.00 $30.00 $25.71 $22.50 $21.18 $20.00 $18.00

624 832 1040 1248 1456 1664 1768 1872 2080

Table 3:

Note: Maximum possible Craft Utilization is 85 percent (as shown in Figure 2) considering paid holidays, vacation time, breaks, clean-up, employees meetings, craft training, etc.

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