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4 Costs That Arises With Sudden Downtime

Did you know that a one-hour breakdown of a machine can cost a company up to $26,000? Did you also know that you can save yourself at least 40% cost when you run proper checks on your machines from time to time? Would you like to know how? Then stick with us for a bit.

Repairing malfunctioning equipment would cost you three to ten times more than routine maintenance because, at this point, the damage has already been done. Machines might already be totally damaged, productions would also have to halt, and deadlines cannot be met amongst other problems that might arise when a machine just breaks down all of a sudden.

Check below some of the expenses you would be saving yourself when you run routine checks on your systems:

Cost of Managing The Problem:

This includes the costs of activities that allow the company to mitigate the impact of unexpected downtime. It keeps the faulty equipment from affecting other assets. This includes the cost of implementing temporary solutions while a permanent solution is sought.

Recovery Costs and Third Party Costs:

Recovery costs are the expenses incurred in restoring business operations to their original state. To resolve the issue, specialists must be called in, and the resources required for the repair must be paid for.

Total Cost Of Employee Productivity:

These are the costs associated with decreased user productivity. The relevant employees cannot perform their duties due to the failure of the machine, but they must still be paid. Overtime costs that are required to compensate for lost work are also included in this cost pool.

Total Costs Of The Business Interruption:

These are the total costs of equipment downtime, including lost revenue, lost productivity, and recovery costs, as well as potential reputational damage, missed deadlines, customer churn, and long-term damage to business systems and processes. Companies suffer greatly from deferred maintenance expenses since unforeseen breakdowns are rarely factored into their budgets.

WHAT CAUSES SUDDEN DOWNTIME, EXACTLY?

Unplanned downtimes of machines and systems can occur as a result of poor or non-existent maintenance.
70% of the manufacturing firms polled do not know the exact condition of their equipment or when it should be serviced, upgraded, or replaced. Another common cause is a lack of equipment capable of alerting businesses when their equipment needs to be serviced or replaced.

WHAT CAN BE DONE TO PREVENT UNPLANNED DOWNTIMES?

In many cases, the true cost of unplanned downtime due to failed assets is underestimated. It is expedient to put certain processes in place to reduce the risk of sudden downtime.

Sudden downtime can be prevented by putting condition monitoring processes in place to let you know when anything might b wrong with your machine in time before it breaks down completely.

You can also read more here on ways you can prevent sudden downtime in your facility

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