equipment cost - downtime

AFE-St. Louis's June Meeting/Tour

save money with True Cost of Downtimesave money with

St. Louis Chapter 26 would like to express a special Thank You to 

Frank Kastl - Chief Engineer at Metropolitan Square

Jim Lepper - Jarrell (A full Mechanical Contractor) 
Don Fitchett - Business Industrial Network


along with all the management at Metropolitan Square, for hosting our meeting, and to Jim who sponsored the meeting with pizza and drinks!. 

Thanks to all those members who showed their support by attending. We look forward to seeing you again at next month's meeting. To all our guests, we hope you found this event interesting. This is just one of the many benefits of belonging to our organization. We will enjoy seeing you at the next meeting. We hope that you all join the Association for Facilities Engineering.

Frank Kastl

President-AFE St. Louis (Chapter 26)

Frank Kastl gave us a tour of the 42nd floor. There was some very interesting features as the entire floor was designed as a sales tool. Then Don Fitchett started out speaking as an AFE member on the value of participating in an organization. Next Don used a power point presentation to cover his main topic, "The true cost of downtime".

Networking and Organizations:

Metcalfe's Law - Bob Metcalfe, inventor of Ethernet and founder of 3Com, stated that the value of a network is at least of the order of N-squared 

  • A network of: " 5 sites is 25 times more powerful than each alone. 
  • 10 sites is 100 times more powerful than each alone.

Don went on to explain this analogy in his normal teaching format of speaking by asking the question ... What is the most valuable asset of participating in an organization? Most answered very quickly and correctly by stating, "networking". When ask the next question "What original value does the internet and organizations have in common?", none where quick to answer. (networking people and information)

The Internet and organizations where first developed and thrive today on one primary premise. "When two minds come together working on a common goal, they thereby create a third intangible force that will result in a solution that neither individual would have likely concluded on their own."

Don goes on to elaborate the N-squared power of networking people. 

  • Each member of a chapter networks their information through medias such as filling cabinets, libraries, records, computers, etc. giving them a more complete picture.
  • A organization's chapter members network with other within that chapter.
  • Chapter's within the organization network with other chapters.
  • Organizations with common interest network together.
  • Through the internet all of the above network with each other and entities such as individuals not in the organization, companies, OEMs, government, etc. that have a common interest.

The results, the most powerful problem solving tool. 

The Meeting Topic:

 Don was one of the first to address the issue of  "The True Cost of Downtime" with his website dedicated to the topic. ( He completed this website after a five year study of all the cost metrics involved in manufacturing.

Last week ARC Advisory Group ( #1 advisers to the industrial markets) announced a new trend. Companies are realizing "Profit Optimization Requires Understanding True Product Costs". This report shows AFE St. Louis brings you the latest information to excel in the work place and realize greater cost savings. 

Don showed that even in these economically troubled times, it is not necessary to use employee cutbacks to survive. That is not when there is so much waste in other areas that can be trimmed. The Arc report sums it up nicely ....

"A substantial percentage of companies are making strategic selling and product pricing decisions based on flawed data. Too many manufacturers use standard costs or badly flawed cost allocations for these critical decisions."

To download Don Fitchett's power point presentation on The true cost of downtime, please right click here and select "save as".

Thanks to those who attended, hope to see more of you in our engineering ranks at our next meeting on Energy Savings with Variable Speed Drives.

Thanks Again Metropolitan Square, for the great time!

AFE Members: We exist because of the continued support of our Sponsors.  When you have needs, please show your appreciation by contacting them.

Click to visit  Business Industrial Network's manufacturing maintenance downtime analysis area. hope this helps make a lean manufacturing facilty while giving you some cost justification information.

Charles E. Jarrell Contracting Company, Inc.

4208 Rider Trail North
Earth City, MO 63045
Toll Free: 1-800-729-HVAC (4822)