{"id":5080,"date":"2022-06-22T17:30:39","date_gmt":"2022-06-22T10:30:39","guid":{"rendered":"https:\/\/vuletech.com\/?p=5080"},"modified":"2022-06-22T17:30:39","modified_gmt":"2022-06-22T10:30:39","slug":"the-real-cost-of-downtime","status":"publish","type":"post","link":"http:\/\/vuletech.com\/en\/the-real-cost-of-downtime\/","title":{"rendered":"The REAL COST OF DOWNTIME"},"content":{"rendered":"
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Do you know how much downtime your business spends (machine idle, machine unused)? For many manufacturers, it is the biggest source of lost production time. And according to Business Industry Network, more than 80% of business owners cannot accurately calculate their true downtime costs.<\/div>\n<\/div>\n
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Not all downtime is the same. If you plan on routine maintenance or machine repair, your business can plan for lost income and make up for it accordingly. This planned downtime is also often significantly shorter than the unplanned downtime. When unplanned downtime occurs, the business doesn’t create any value, but the costs of general operations continue to rise. This ultimately affects the company’s bottom line significantly.<\/p>\n

Some information about downtime:<\/strong><\/p>\n

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  1. According to a 2016 study, the average cost of downtime for all businesses is $260,000 per hour. That’s a 60% increase from 2014.<\/li>\n
  2. Downtime costs vary by industry. For example, in the auto industry, downtime can be as high as $50,000\u00a0\u00a0per minute. This is equivalent to 3 million dollars per hour.<\/li>\n
  3. A common estimate is that factories lose between 5% and 20% of their productivity due to downtime.<\/li>\n
  4. Human error causes about 23% of unplanned downtime in production.<\/li>\n
  5. Faulty equipment is another common cause of downtime. A 2017 survey found that 70% of companies lack adequate awareness of when equipment is due for maintenance or upgrades.<\/li>\n<\/ol>\n

    See also: 8 types of waste in production<\/p>\n

    How to calculate your downtime costs:<\/h3>\n

    To calculate downtime losses, there are several aspects of your business that you need to know first. Including:<\/p>\n