Most manufacturing production managers will likely agree that managing downtime is a top workday priority. When managed well, downtime can help boost efficiency, production and profitability. However, when mismanaged, downtime can strain production and create various downstream issues until a solution is found.
Downtime is inevitable in manufacturing, but all downtime is not the same.
Planned downtime allows manufacturers to intentionally stop production to efficiently manage critical responsibilities, like machine maintenance, facility cleaning and equipment changeovers, to maximize production uptime and mitigate future disruptions.
Unplanned downtime occurs when unexpected failure, such as equipment malfunction, process breakdowns and human error, halts production and negatively affects uptime and revenue until the issue is identified and corrected.
Similar names, but very different circumstances.
Uncovering the costs
Where planned downtime provides an opportunity to forecast the cost of stopping production, unplanned downtime can only be analyzed post-disruption and if accurate performance information is available.
To calculate your unplanned downtime as a percentage of time, you must:2
- Determine the planned operating time, in hours, for a specific and measurable timeframe, such as one week, one month or one quarter.
- Track the number of unplanned downtime hours experienced during the determined timeframe.
Understanding the cost of your unplanned downtime in terms of lost dollars requires a more comprehensive set of data points, including:3
- Planned operating time (hours)
- Actual operating time (hours)
- Average total number of units produced (during actual operating time)
- Gross profit per unit
From here, you can input your data points into the four-step formula shown below.
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