Fun facts: What are the costs?

Here we use real production figures to show what it costs when availability is low.

We only look at availability, not performance or quality.

Uptime and stops

Over four weeks, the numbers looked like this:

• average uptime of 48.63%
• 191 machines measured
• 103,770 total stops
• 543 stops per machine on average

That added up to:

• 2,537,798 minutes of downtime
• 42,297 hours of downtime

If you put the cost of one hour of downtime at 2,000 DKK, the loss becomes:

84,594,000 DKK

Why this matters

The cost of an hour of downtime varies from machine to machine and from industry to industry. But even if the figure isn't exact, low availability still costs a lot of money.

What you should take away are these questions:

• what is a 1% gain in availability worth in money?
• what does it cost over time when production doesn't run as well as it could?

It is much easier to make the case for better efficiency when everyone can see what the lost time costs.