Unquestionably, downtime is the single largest source of lost production time for most manufacturing organisations.

Downtime can be planned or unplanned. Examples of scheduled downtimes include taking a machine off the grid for cleaning and maintenance, patching and rebooting servers, or closing a plant for regulatory inspection. Notably, planned downtimes are somewhat predictable and normally incorporated into a company’s cost of production. 

By contrast, unplanned downtime occurs when there is a failure in the equipment or a shortage of resources like personnel and raw materials. The inadvertent downtime is part of doing business in an imperfect world with different variables outside a manufacturer’s control.

Ignoring the impacts and financial loss of downtime isn’t an option. Therefore, organisations need to understand how it affects their profitability and find a reliable way to address it.

Cost of Downtimes in Manufacturing

As visible as downtime often is, most manufacturers significantly underestimate the real impact, while others cannot calculate the costs correctly. Meanwhile, meeting financial goals and keeping your bottom line solid requires you to understand the costs of downtimes.

We have compiled a list of direct and indirect costs associated with downtime just to give you an idea of its far-reaching impacts.

1.   Lost Production

Lost production capacity is obviously the most direct impact of downtime. NIST’s Costs and Benefits of Advanced Maintenance in Manufacturing estimates that 82% of companies have experienced unplanned downtime over the past three years, with the outages lasting an average of four hours and costing $2 (£1.49) million.

2.   Wasted Labor

When equipment breakdown, plant operators essentially become idle. So, not only are you looking at reduced revenues due to lack of production, but you are also paying employees.

Even worse, a major breakdown may require a call for all hands on deck, resulting in a chain reaction effect that strains other business areas, such as customer service.

3.  Depleted Inventory

Certainly, manufacturers require a specific number of products in a warehouse to keep operations running without a hitch. Unfortunately, downtime disastrously prevents organisations from reaching such goals by depleting inventory. More serious than that, there are production limits when equipment gets fully operational, meaning that it can take days, weeks, or months to restock.

4.  Lack of Innovation

Increasingly focusing on fixing equipment and solving issues leaves no time or resources for innovation – the lifeblood of a pioneering business. Needless to say, organizations might not experience a cost because of a lack of innovation, but they can’t renounce the long-term impact.

Overcoming Downtimes with Cloud Technology

Naturally, no business wants to experience downtime. So how can manufacturers reduce downtime and enhance productivity?

Cloud computing technology plays an essential and foundational role in enabling the next production revolution. The technology primarily involves the provision of infinitely scalable computing resources as a service over the internet, in the process transforming virtually every facet of modern manufacturing. As a result, cloud computing solutions help manufacturers operate effectively, reduce costs, integrate into the supply chain, design, sell products, innovate, and increase competitiveness. For instance, manufacturers can use various forms of modern production systems with cloud computing, such as 3D printing, high-performance computing (HPC), industrial robotics, smart factories, computer-aided design, Internet of Things (IoT), and plant automation. Better still, cloud technology democratizes access to and use of these systems by small and large manufacturers.

What are some of the ways cloud computing impacts modern manufacturing companies?

1. Cloud-Based Equipment Maintenance Software to Prevent Unplanned Downtime

As digital technologies transform the manufacturing sector, companies can use cloud maintenance solutions to create and execute a maintenance plan. Expressly, moving to the cloud enables manufacturers to streamline planning and execution of work orders and achieve end-to-end visibility into their maintenance operations to make better, informed decisions. Cloud Geeni, for instance, offers cloud computing solutions for making your business infrastructure more scalable and flexible while ensuring processes are as streamlined as possible.

With cloud technology, manufacturers can define their assets, gather maintenance information, and analyze data. As might be expected, the first step in any maintenance plan is to define all assets, starting with the mission-critical ones. After listing the assets, the next step involves gathering maintenance information, including recommended maintenance on equipment and the resources needed to complete the job. Finally, cloud systems allow you to keep maintenance plans effective by reviewing them over time to ensure they are aligned with the latest defined recommendations.

2.  Mobilising Workforce

Whether running maintenance manually or using a cloud maintenance solution, automating paper-based processes in manufacturing can reduce labor and costs. For instance, cloud systems can provide an overall view of scheduled works and changes to operations that may impact the business. It only requires a few clicks to complete work orders, enter material and required labor to complete a job, and document work order completion details.  

Cloud computing also enables remote support. In this case, shifts running 24/7 can get around-the-clock tech support. Better still, manufacturers can leverage the technology to tap into a pool of experts remotely, any time, and from any location globally.

3.  Improved Enterprise Operations

Without a doubt, cloud computing impacts virtually all aspects of manufacturing companies, including the way they manage their operations, from enterprise resource planning (ERP) to data analytics. Additionally, the technology is integral to how manufacturers integrate their businesses into industrial supply chains.

To discuss cloud adoption for your manufacturing firm, schedule a call with a Cloud Consultant today