Fun facts: What are the costs?

We have found some actual figures that show “what are the costs” when you are not effective.

We have looked at a number of machines over a period of four weeks.

These are ordinary machines in different types of industrial production, and the data we have found is perfectly normal compared to the rest of the year.

The figures we found are all about Availability. We only look at the cost of downtime, not performance and quality.

Uptime and stop

The average uptime in the period was 48.63% for the machines. We’ve measured 191 machines.

During the period there were a total of 103,770 stops, equivalent to 543 stops per machine.

That’s 2,537,798 minutes of downtime. Yes, it says 2.5 million minutes. That’s 42,297 hours.

Assuming that the average cost of not producing is 2,000 kroner per hour, then it is a loss of 84,594,000 kroner.

Now you cannot achieve an availability of 100% and the price of downtime for a machine can be 1,000 kroner or 10,000 kroner, depending on which industry you are in.

You can make your own calculation and think about what it means to increase availability by just a single percent. Then you know what it costs when everything isn’t running optimally.

Enjoy the optimization. We’re cheering you on. It’s good to be productive.