Downtime in manufacturing represents a significant loss for the industry. While many manufacturers consider this a cost of doing business, lost production doesn’t have to be a fact of life. Instead, steps can be taken to minimize the amount of downtime in your facility.
It’s estimated that the average manufacturer deals with more than 15 hours of downtime per week. The exact cost of this loss will vary by facility, but consider that an average automobile manufacturer loses $22,000 USD per minute of downtime.
In today’s post, we’ll discuss the true cost of lost production. We’ll also examine ways that manufacturers can reduce downtime so that they can operate at peak efficiency.
Calculating downtime in production is a straightforward equation when you only consider the direct impact of downtime: lost production. The equation is:
Lost production = units per hour * profit per unit
Using this equation will give you an idea of the cost of downtime, but it’s not the entire picture. There are several other factors that will need to be considered when calculating the cost of downtime for your facility. Some of the other types of downtime in manufacturing are:
While some of the above factors are not easily tracked, your company should be fully capable of tracking downtime in production. Your business should know every second that a machine is not functioning, from when it goes down to when it’s back in production. This information is vital when conducting follow-up investigations as to why the machine went down.
Some downtime is inevitable, with many causes even being outside of your control. However, there is much that can be done to reduce the downtime that your facilities experience.
Reducing downtime in your facility might mean investing in AI in manufacturing. Facilities with a strong monitoring system powered by AI are better equipped to understand and resolve the issues that cause downtime.
An effective facility is one with minimal downtime. Is your facility currently effectively operating, or are you wrestling with weekly downtime?
If you’re struggling to keep machines up and running, you may need to update your monitoring software. Properly understanding the status of every machine in the facility is a great way to ensure uptime, since you’ll have a better understanding of what’s happening in the facility.
Additionally, using a monitoring system powered by AI means that it will be equipped to produce actionable insights for managers to help them reduce downtime. How can your facility benefit from AI in manufacturing?