Downtime Costs

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An excellent source for figuring downtime costs from our friend Marty Scudder, Sales Manager at NAB Automation, and a recent article in Maintenance World, by William C. Worsham.

What Does Downtime Cost Your Company?

by Marty Scudder 12. December 2012 10:15
 
Most managers don't fully understand the impact that downtime has on their companies and its' bottom line.  Downtime is something that many managers have become accustomed to, but do little to prevent.  It's something that is looked upon as "just part of the job" and many feel they can't do much to reduce the amount of downtime within their facilities.  However, with the proper equipment and a solid preventive maintenance (PM) plan, all facilities will operate longer, run leaner, and produce more than those who neglect to introduce a PM plan.

NAB Automation's, Eagle Eye Hazard Monitoring System (HMS) was developed to reduce downtime due to equipment failures and malfunctions.  With the use of our Eagle Eye systems, companies are able to track and perform maintenance on a pro-active basis.  The Eagle Eye system allows our customers to detect small abnormalities before they become much larger, catastrophic events.  The Eagle Eye HMS will alert operators of equipment needing attention, avoiding costly downtime.  This allows the maintenance personnel to schedule maintenance, rather than react to a run-to-failure situation.

In a recent article in Maintenance World, William C. Worsham writes;

The most important reason for a PM program is reduced cost as seen in these many ways:
  • Reduced production downtime, resulting in fewer machine breakdowns.
  • Better conservation of assets and increased life expectancy of assets, thereby eliminating premature replacement of machinery and equipment.
  • Reduced overtime costs and more economical use of maintenance workers due to working on a scheduled basis rather than a crash basis to repair breakdowns.
  • Timely routine repairs circumvent fewer large scale repairs.
  • Reduced cost of repairs by reducing secondary failures.  When parts fail in service, they usually damage other parts.
  • Reduced product rejects, reworks and scraps due to better overall equipment condition.
  • Identification of equipment with excessive maintenance costs, indicating the need for corrective maintenance, operator training or replacement of obsolete equipment.
  • Improved safety and quality conditions.

If you'd like to know what downtime really costs your company, here's a calculator you might like to try: http://www.sudora.com/downtime.html

Most will agree that a PM program is one of the wisest investments a company can make.  Add our Eagle Eye HMS into your company program and you'll realize years of increased production, revenues, and much fewer equipment failures due to lack of attention.  Give us a call and let us help you realize your full production capacity.

Marty Scudder
Sales Director
NAB Automation, Inc.

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