The Maintenance Excellence Institute
How OCE Impacts Your Bottom Line: Part II – Page 4
Example: What If Wrench Time is 40%? With effective planning and scheduling we can achieve at a minimum a 10 point improvement in craft utilization from our current baseline. Starting from a baseline of 40 percent up to a level of 50 percent, we in effect get a 25 percent increase in craft capacity for actual work.
Total Hours Gained in Wrench Time: 4,160 hours gained
20,800 hours @ 50% - 16,640 hours @40% = 4,160 hours gained
Total Gain in Equivalent Number of Crafts Positions: 5
4,160 Hours Gained 832 Average Wrench Time Hours @ 40%
= 5 Equivalent Craft Positions
Total Gained Value of 5 Equivalent Positions: $187,200
5 equivalents x 40
= $187,200 Gained Value
Valuable Craft Time Can Slip Away: For the 20 person craft work force, just a 10% improvement up to 50% wrench time is 4,160 hours of added wrench time. This gain represents a 25 percent increase in overall craft labor capacity. The maintenance best practice for planning and scheduling requires a dedicated planner(s). An effective maintenance planner can support and plan for 20 to 30 crafts positions. With only a 10 percent increase in craft utilization for a 20-person craft work force, we can get more than a 5 to 1 return to offset a maintenance planner position.
Example B: What if Wrench Time is 30%? For many operations wrench time is only about 30%. Again with effective planning and scheduling, good PM/PdM and parts availability we can eliminate excessive non-wrench time. An improvement of at least 20 points in craft utilization is very realistic. If we begin from a baseline of 30% up to a level of 50% we are in effect getting a 67% percent increase in craft capacity for actual hands on work. Let’s look at the gained value we can get from going from 30% up to 50% wrench time.
Total Hours Gained in Wrench Time: 8,320 Hours Gained
20,800 hours @ 50% - 12,480 hours @30% = 8,320 hours gained
Total Gain in Equivalent Number of Crafts Positions: 13
8,320 Hours Gained 624 Average Wrench Time Hours @ 30%
= 13.3 Equivalent Craft Positions
Total Gained Value of 13.3 Equivalent Positions: $497,952
13.3 equivalents x 40
hrs. wk .
Wks yr .
$18.00 hr .
= $497,952 Gained Value