“By failing to prepare, you are preparing to fail” – Benjamin Franklin
Do you know the real cost of downtime for manufacturers?
While it’s often easy to downplay downtime, unexpected events can have a significant impact on your business. At Mizen Automation, we encourage manufacturers to have adequate spares for older automation hardware.
You should not leave anything down to chance. If you want to run a sustainable and efficient operation, you must be actively investing in spare parts for your older hardware.
How much does machinery downtime cost?
Machine down time is thought to be costing UK manufacturers in excess of £180 billion every year. This is a staggering statistic that highlights the importance of having adequate spares should a failure occur, especially with older automation hardware.
How can you calculate the cost of downtime?
When it comes to calculating the cost of downtime, you need to account for both tangible and hidden costs. Through understanding the true cost of downtime, your business will be able to strategically plan for different eventualities.
If you have equipment that is due for maintenance, do you know how much the downtime could cost you? It’s vital to have these numbers readily available. You can arrive at estimated figures by taking the following questions into consideration:
Tangible downtime costs account for any costs sustained while production is on hold, along with the resources required to fix them.
- Will employees need to work overtime to carryout the maintenance?
- Will you need to hire external contractors to consult on the maintenance?
- How much will the replacement parts cost?
- Have there been any lost or damaged products?
Hidden down time costs are typically much more challenging to calculate. At the same time, they can still have a significant impact on the profitability of your business.
- Will this leave you with a depleted inventory?
- Will you potentially miss out on new business opportunities?
- Could this erode your clients’ trust?
- Could this result in broader reputation damage?
When you’re calculating down time, these are the key questions you need to consider.
Are you ready to wave goodbye to excessive downtime costs? Browse through our range of industrial automation parts today.