MES THINKING

Machine Downtime - What's it worth to you?

Most of us are acquainted with the adage “Time is Money,” and the concept that time is a valuable resource, and therefore it’s better to things as quickly as possible.

In this context, we delve into the financial repercussions of production interruptions within manufacturing operations. While an ideal scenario involves uninterrupted 24/7 manufacturing processes, the reality necessitates occasional breaks to sustain productivity.

Analogously, consider a car: unless it undergoes periodic service intervals, continuous operation may lead to unexpected breakdowns at inconvenient times. Here we explore how unforeseen downtime escalates manufacturing costs and unveil effective strategies to mitigate it, ultimately enhancing productivity and profitability.

Every minute is valuable

In manufacturing, every minute carries weight. From automotive assembly lines to plastics manufacturing equipment to food processing plants, the seamless functioning of machinery and processes is crucial for meeting production goals, upholding quality standards, and preserving and improving profitability.

Unplanned downtime isn’t just a nuisance; its steep costs can swiftly reverberate throughout your company’s financial standing and market standing. Among Fortune Global 500 companies, the annual downtime cost per facility now averages $129 million. This and other figures quoted in this article, unless specified otherwise, are either taken or extrapolated from a Siemens research paper “The True Cost of Downtime 2022”

Understanding the cost of downtime

Understanding downtime costs becomes simpler when expressed on an hourly basis. For instance:

  • In FMCG manufacturing, the cost of a lost hour amounts to $39,000.
  • In the automotive sector, it skyrockets to $2,000,000.

These figures have surged significantly due to global upheavals over the past four years, affecting labour costs and energy prices. Yet, certain facts remain consistent across industries:

  • On average, there are 20 downtime incidents per month.
  • Each plant loses around 25 hours monthly.

You might assume that these statistics primarily affect larger companies. However, the average downtime hours amount to roughly 800 per year, or 15 hours per week. Thus, even a modest manufacturing operation experiencing an hour’s worth of production loss valued at $100 will suffer $80,000 in annual revenue loss.

Are you aware of the impact of downtime on your manufacturing operation?

To find out visit our Return On Investment calculator to gauge the financial ramifications you’re facing and explore simple, cost-effective measures to mitigate these adverse effects.

Production Monitoring System ROI Calculator

Let’s take a brief look at the high cost of downtime in the manufacturing business, and the strategies that can reduce it.

What is Machine Downtime in Manufacturing?

Downtime is straightforward: it denotes the period when production activities cease.

Planned downtime involves scheduled maintenance, repairs, upgrades, or machinery adjustments. While it may cause pauses, planned downtime is proactive, preventing breakdowns and extending equipment lifespan.

We have already explored the importance of planned downtime in a separate article that can be found here:

https://intouchmonitoring.com/mes/why-is-planned-downtime-for-maintenance-so-important/

Unplanned downtime, conversely, stems from costly halts triggered by equipment failures, human errors, and supply chain disruptions. Its unpredictable nature renders unplanned downtime 35% more costly per minute than planned downtime.

Causes of downtime in manufacturing

As previously mentioned, manufacturing facilities suffer an average of 20 downtime incidents per month, and a few of the most common causes are below.

  • Machine breakdown – The most common causes of unplanned downtime, typically due to equipment failure and technical glitches, bringing a production line to a sudden halt. 70% of companies are unaware when their equipment is due for maintenance [REF]. Simple monitoring of your production equipment vastly improves the ability to prevent potential downtime events.
  • Employee absences – Occasional absences are unavoidable, but too many absences can throw your whole system off. Unplanned employee absences can be especially disruptive and can lead to productivity gaps, particularly if there are no backup personnel available to fill in.
  • Supply chain disruptions – No industry has been so disrupted by supply-chain issues as manufacturing, with 60% of manufacturing companies reporting these delays weekly. Manufacturers rely on a complex web of suppliers and sub-component manufacturers to provide raw materials, manufacturing machinery, and components. Any unexpected delivery delays or shortages can lead to production stoppages and lost revenue.
  • Human error – To err is human. It can be mitigated by proper onboarding procedures and continued education. Another aspect is the length of time it takes for information to travel between personnel when there is a problem of some kind. This process can typically be speeded up when there are automation-based measures in place such as real-time monitoring and alerts of production equipment.
  • Scheduling errors – When you have a strict production schedule, the last thing you want is unplanned downtime. Downtime can disrupt your schedule, leading to inefficient use of resources and materials. Linking your production schedule to your equipment monitoring provides a bullet-proof method to ensure that production plans can be met through more proactive planning measures.

Make downtime a relic of the past

Here at Intouch Monitoring we have developed an MES solution that is completely scalable and deployable within a few days. The concept is simple: start by connecting to a few critical machines on your shop floor, collect and analyse basic operational data, and make data-driven decisions that ensure production is optimised to meet changing demands.

Any potential issues are caught straight away as notifications and alerts are remotely delivered to all key stakeholders. Additionally, the ability to link the MES to your production planning helps you stay ahead of the game and aids meeting schedules even when capacity is affected due to unforeseen breakdowns. The resulting improvements are rapid and provide a fast and easy justification to scale

the installation to include additional equipment and functionality within a matter of weeks. Ultimately, the aim is to empower manufacturing organisations with an end-to-end supply chain monitoring solution that is completely agile and excels on efficiency.

We offer a free no-risk trial of our software platform, allowing companies to see tangible results before making a longer-term commitment.

Click on the link below to find out more.

Would you like to learn more?

If you’d like to learn more about how you can implement production monitoring software, talk to one of our experts:

Talk to us

How it works

Getting started with Intouch is as easy as 1, 2, 3

1. Book a demo

Let us show you what we can do. Jump on a demo call and our friendly team will take you through the Intouch system and answer any questions you might have.

2. Enjoy a free trial

Don’t just take our word for it! We’ll lend you our technology for a 60-day free trial so you can see exactly how it can benefit the everyday operation of your business.

3. Receive ongoing support

It doesn’t end there. If you decide Intouch is the right production monitoring system for you, we’ll work with you to help you take control and make significant improvements in OEE.

Book 30 Min demoBook 60-Day Free Trial