Daily management decisions related to equipment downtime are made based primarily on labor cost. Of course, production demand is also at the top of the priority list too. The bottlenecks are taken into account in the decisions when they are realized. Some facilities overlook equipment as a bottleneck, like air compressors, boilers, and strappers out in the warehouse. The decision making balance to maintain is between production demand and “True Downtime Cost”, not primarily production demand and direct labor cost.
Using a TDC methodology, the “Overhead” bucket becomes very small, making clear to all, the areas of greatest opportunity. In these times of economic turmoil, it is ever more important to look at the “True Downtime Cost” in respective categories, not only to see the greatest opportunity, but to profit from the valuable insight this methodology will bring. Many of the metrics with cost savings bottom line improvement opportunities, far outweigh the labor category and the immediate temporary gains of downsizing.
After 14 years in service, the system was on the verge of meltdown with downtimes of up to 27 hours paralyzed the entire company. An extensive system upgrade undertaken by viastore SYSTEMS now ensures that the MLS, which was built by a third-party supplier, can once again be relied upon.
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About viastore SYSTEMS, Inc.
For over 40 years, viastore SYSTEMS, Inc. has been a leading international provider of automated material handling solutions including AS/RS (automated storage and retrieval systems) and conveyor systems, warehouse management systems software, material flow and process controls, and integrated SAP logistics solutions. The company employs over 470 people worldwide and has annual sales of over $140 Million. viastore’s focus is on consulting and planning, together with the implementation and constant improvement of intralogistics solutions with locations in Germany, USA, France, Spain, Czech Republic, Russia, China, Croatia, Turkey, Poland, Israel, Ukraine, Sweden, and Brazil.
viastore SYSTEMS, with North American headquarters in Grand Rapids, MI, (www.us.viastore.com) is an integrated and certified partner for all major ERP system database and operating system suppliers such as SAP, Oracle, and Microsoft. viastore SYSTEMS earned a return spot on Food Logistics’ 2015 FL100+ list of software and technology providers whose products and solutions are key to the global food supply chain. viastore SYSTEMS is a proud member of MHI.
Follow viastore on Twitter at @viastoresystems
Company Name: Viastore Systems Inc.
Contact Person: Jason Perks
Address:4890 Kendrick Street SE
City: Grand Rapids
Country: United States