Economic Efficiency and Hourly Operational Cost of High-Speed Equipment

Abstract

The hourly operating cost of equipment provides an assessment of its operational efficiency, in monetary terms. Often, enterprises need to assess product quality. By the proposed method, without complex cost/benefit calculations, the proportion of the cost corresponding to each piece of equipment in a production system may be calculated simply on the basis of the labor intensity of machining and the operational efficiency OEE of the equipment. It is also useful for managers and workers to know the cost of an hour of downtime for particular equipment and to understand the losses in the shop and the enterprise as a whole. Such awareness assists in loss prevention.