The repair bill is usually the smallest part. The real cost of an unexpected breakdown lies in everything that does not happen while the machine is down.
What downtime costs are made up of
- Lost margin: the number of parts per hour multiplied by the margin per part
- Wages that keep running while production stops
- Overheads that keep running
- Catch-up costs: overtime, outsourcing to a subcontractor, expedited transport
- Indirect damage: late deliveries, contractual penalties, disrupted planning, and customers placing their next order elsewhere
This last category is often larger than the repair itself and the hardest to recover.
A simple worked example
Suppose a machine produces 40 parts per hour with a margin of 8 euros per part. Two operators stand idle, at a combined 70 euros per hour in wages. Overheads continue at 40 euros per hour.
A breakdown lasting half a day then already costs more than 1,700 euros, without counting the repair or the delivery delay it causes. Fill in your own figures and the picture quickly becomes clear.
The repair is rarely the largest cost item.
How to reduce downtime
- Fixed maintenance intervals instead of running until something fails
- Critical wear parts in stock, so waiting for a delivery does not cost days
- Condition monitoring: catching a leak, play or rising temperature before it causes a stoppage
- A service contract with a clear response time
- Well-trained operators. Collision damage from incorrect input is one of the most common causes
- Keeping control and program backups up to date
The trade-off
Maintenance and a service contract feel like costs as long as everything is running. Compare them with the cost of a single day of unplanned downtime, and the balance usually becomes clear very quickly.
Written by Triple AAA Machines
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