When you work in the industrial or manufacturing sector, few things are more undesirable than unplanned production downtimes. But, outside of environmental mishaps or employee safety issues, there’s nothing that can derail your business more.But what causes production downtime, exactly? And what are some of the specific costs? Let’s take a closer look.
Getting to the Bottom of Unplanned Production Delays
First and foremost, it’s important to acknowledge that unplanned production downtime is typical. Studies show that four out of five manufacturing companies experience a significant production downtime within any given year. Moreover, some companies may face two, three, or more unplanned production downtimes.
So why is production downtime such a widespread problem? Common causes include:
- Human error
- Aging equipment
- Reactive maintenance
While it’s difficult to control human error, a business can significantly reduce downtime by investing in regular maintenance and support plans.
But suppose you wait until equipment malfunctions before performing any maintenance. In that case, you’re asking for trouble: Specifically, this reactive approach usually means that equipment has to be abruptly shut off, potentially halting the entire production process. Then there’s the added stress and cost of waiting for replacement parts and repairs.
Statistically speaking, taking a preventative approach to maintenance is much better for boosting uptime and keeping the entire facility up and running more consistently.
Counting the Costs of Production Downtime
Unplanned downtime is a financial drain on your business and can arise from many sources. Collectively, these costs significantly impact the bottom line.
Consider just a few examples.
Labor Costs
Unplanned production downtime may result in direct costs for your on-site maintenance team, overtime for employees who work hard to get back on schedule, and expenses associated with outside maintenance providers.
Production Costs
There are also production costs, such as wasted products or materials, reduced capacity, and costs associated with shutting down and restarting production lines. You may also incur additional testing and quality control expenses.
Finances
Unplanned production downtime usually means a direct hit to the bottom line in the form of lost revenues and tighter profit margins.
Overhead
Overhead costs include indirect labor (back-office functions), idled operators, parts and materials, shipping, and utility expenses.
Business Development
Finally, production downtime can negatively impact your business development team, specifically lost sales opportunities and customer service risks.
Preventing Production Downtime
The reality is that production downtimes will happen sooner or later, and when they do, the proper maintenance plan can keep production downtimes to a minimum.
We’re big believers in preventative maintenance and provide options for preventive air compressor care. If that’s something you’d like to learn more about, we welcome you to contact Engineering Sales Associates. Contact us to inquire about our AirShield program or to ask any other questions you may have about limiting production downtime at your manufacturing facility.
