By far, the biggest contributing factor to the overall costs of poor performing equipment has to do with the downtime itself. Regardless of the type of business you’re running or even the industry that you’re operating in, the “real” cost of a machine stoppage has been estimated to fall somewhere between four to 15 times the costs of ongoing maintenance. This obviously takes into consideration some of the financial issues that may crop up from that downtime including missed deadlines, loss of reputation, etc.
Poor Performing Equipment Creates a Poor Performing Business
Of course, the next most immediate cost is also, for many organizations, the most immediate: the excess maintenance that you now suddenly have to pay for that you really weren’t planning on at all.
If you’re dealing with poor performing equipment, you’re naturally going to pay more to maintain it than you would with reliable machines – even if you don’t necessarily realize it. Fragile parts are going to have to be changed out more often. This means more money to materials as well as labor. This means taking the time of valuable employees away from matters that need their attention. All this, and you’re still likely going to have to deal with unexpected downtime due to the nature of the situation.
But more than anything, the biggest long-term cost of poor performing equipment has to do with what you’re actually sacrificing: quality.
When equipment is failing, the chances of sub-par products coming off of your assembly line increase exponentially. Not only can that go a long way towards damaging your reputation with your customers, but it also means that you’ll have to spend even more money to rework those faulty parts to meet whatever orders you have outstanding.
Or you could take one meaningful step to avoid these types of costs altogether – which is exactly what downtime tracking is all about.
Yes, downtime tracking is all about figuring out why unexpected stops are happening – but it’s easy to see how this also fits in within the bigger picture of your business. By understanding why ALL stops are happening, you can identify which ones are happening most frequently – and which machines are most commonly impacted. Once you have that level of insight, you have everything you need to recognize when a piece of equipment is failing long before it ever gets to the point where it can do some real damage. Likewise, you can use this insight to prioritize maintenance across the board to help extend the operational life of every last machine on your factory floor – thus getting as much value as you can out of your investments and avoiding these types of costly situations altogether.
To find out more about what you’re really paying by continuing to deal with that poor performing equipment, or to get answers to any other specific questions that you may have, please feel free to reach out to your friends at Thrive today.