February 2016
Intermediate to advanced
322 pages
9h 13m
English
Content preview from Total Productive Maintenance
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211TPM Case Study: Hydraulic Leak Reduction
Financial Savings
Average rework time per defect = 32 minutes
Reduction in manpower requirements = 6.8 hours/ day
Cost of rework = $34.00 per hour
Number of production days per year = 150 days
Warranty = $22,000 per year
Project investment = $50,000
I = 15% (minimum)
Annual cost savings with zero defects = $22,000 + (32/60)*$34*150 +
6.8*$34*150 = $59,400
Five- year ROI = 116%
Payback period = 0.97 years
Conclusions
The results from this project were far above what we expected, having
exceeding all of the goals set in the charter. This was largely attributed to the
robust and efcient design of the system, wh
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