What’s the True Cost of Machine Downtime?

The continuous modernization of industrial processes is dizzying and exciting. All Systems Go is a show that intends to demystify the varying technologies—from UAVs and robotics to supply chain software and virtual reality sims—and how they will advance everything from logistics to manufacturing across the globe.

Senseye’s recently-launched report, “The True Cost of Downtime,” found that large facilities lose 27 hours a month to machine failures, on average, at the cost of $532,000 for each hour of unplanned downtime.

Total losses are estimated to total $3.3 million production hours, worth US$864 billion per year across Fortune Global 500 industrial companies.

The results were compiled from studies of 72 major multinational industrial and manufacturing companies.

Alexander Hill, Chief Global Strategist of Senseye, said that unplanned downtime is “the curse of the industrial sector.” When expensive production lines and machinery stop, organizations stop earning, and those investments start costing rather than making money.

The sector hardest hit is automotive, even after years of investment in automation and systems. Auto plants were found to lose, on average, 29 production hours a month at the cost of $1.3 million per hour.

Mining, metals and other heavy-industrial companies lose 23 hours/month, equating to 1.2 million hours a year across the sector. At $187,500/hour, this adds up to $225 billion annually.

Oil and gas producers suffer 32 hours of unplanned downtime each month, on average, at the cost of $220,000 per hour, amounting to $84 million per facility.

One of the big challenges manufacturers face is managing data, sorting the valuable wheat from the white noise of chaff, and using it to effect improvements.

Senseye can help clients and customers implement effective strategies and manage them to get unplanned machine downtime under control.

Check Out Previous Episodes of All Systems Go Here!

Follow us on social media for the latest updates in B2B!

Twitter – @MarketScale
Facebook – facebook.com/marketscale
LinkedIn – linkedin.com/company/marketscale

Follow us on social media for the latest updates in B2B!

Image

Latest

quality & customer service
Gates Concrete Means Quality & Customer Service
September 13, 2024

In a market where quality & customer service are paramount, Gates Concrete exemplifies integrating innovation with traditional manufacturing excellence. This strategic approach proves vital as the construction industry increasingly demands efficient, durable, and environmentally conscious materials. Gates Concrete’s dedication to quality & customer service reflects a broader industry trend toward improving manufacturing processes and…

Read More
Marc Rodriguez
From Marine Corps to Entrepreneurship: Marc Rodriguez’s Leadership Journey
September 12, 2024

On this episode of the Through the Storm podcast, Dr. Travis Hearne talks with the CEO, Leadership Educator, Speaker, fitness professional and retired Marine, Marc (Rod) Rodriguez about how to become a successful business owner and how to bring your experience into how you lead. Marc Rodriguez is a thriving entrepreneur and a retired United…

Read More
AI helps security teams
Staying Left of the Bang: How AI Helps Security Teams with Crisis Prevention
September 12, 2024

Most security conversations focus on responding to attacks or incidents after they occur. This week, our Innovation Obsessed panel shifts the focus to prevention—moving left on the timeline, before the bang. What can you know in advance? How early can you know it? And most importantly, how can you stay ahead of the threat, keeping…

Read More
Starin Salamander and Jabra
The Future of Flexible Meeting Rooms: A New Partnership Between Starin, Salamander, and Jabra
September 11, 2024

With hybrid work environments becoming the norm, businesses are constantly on the lookout for adaptable solutions for meeting spaces. With shifting needs in workspace design, flexibility and ease of setup are paramount. The latest innovation, the Acadia tabletop stand, is revolutionizing video-enabled meeting rooms, offering a construction-free setup that maintains aesthetics while reducing costs. How…

Read More