
The total cost of downtime extends across the business. In the worst cases, it impacts the entire organisation and customers.
From the moment of failure to the restart of production, no saleable product is made. Instead, money is spent on repairs, with continued fixed costs, and any potential profits that could have been made from saleable products is lost. The graph below illustrates what happens to production time and costs when operations stop due to equipment breakdown (t1). The time and costs required to repair the equipment to operational levels (t2) is unknown at the start of the breakdown.
During this time (t1 to t2) resources and money are needed to return the equipment to operation. Additional costs due to loss of production and therefore potential profit losses are also incurred in this time.
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