Manufacturing downtime is one of the biggest problems in manufacturing. In today’s blog, we’ll be discussing what manufacturing downtime is and how you can reduce manufacturing downtime to ensure you optimize your operations.
What is manufacturing downtime?
Manufacturing downtime refers to any period of time when a machine is not in production. In essence, the machine is out of order and as a result, the factory is not producing product. Manufacturing downtime interrupts operations and can negatively impact margins. Moreover, when left unchecked, it can affect employee efficiency, inventory planning, and cycle and lead time.
What are the two types of manufacturing downtime?
There are two main categories of manufacturing downtime: planned and unplanned.
1. Planned downtime
Planned downtime occurs when a machine is scheduled to be down. While planned downtime is definitely more ideal than unplanned downtime, it still affects revenue. So, the goal is to get the machine up and running again as soon as possible. But, sometimes this isn’t the case and delays affect a company’s overall equipment effectiveness (OEE) and contribution margins. Some examples of planned downtime include:
- Routine maintenance activities: This can include cleaning, lubricating, inspecting, and detecting minor problems before they become bigger problems and causing the production line to shut down.
- Product changeover: This is a process that occurs when a manufacturing plant, or factory, switches from producing one product to a different one during a planned downtime.
2. Unplanned downtime
Unplanned downtime occurs when a machine stops operating due to an unexpected event. Stops can occur at any time without notice, and can last any length of time as well. Consequently, this creates massive backups along the production line. Some examples of unplanned downtime include:
- Hardware failure: This refers to when a part of a machine breaks or malfunctions and therefore, a machine has to unexpectedly stop
- Material shortages: Materials are essential for any and every manufacturing business. So, when a machine is experiencing material shortages, it means production cannot continue.
- Missing operator: Depending on the circumstances, a missing operator can be seen as planned or unplanned downtime. If an operator is not scheduled to be at work during a certain time or day, then this would be considered as planned downtime as the company did not expect the operator to be there. But, if an operator was expected to work, but is absent, then this is obviously seen as unplanned downtime.
The impact of downtime in manufacturing
Just like there are various reasons for manufacturing downtime, there are various impacts it can have on a company.
Planned downtime that isn’t supported by optimized production processes, such as proactive preventive maintenance and for product changeovers, drains resources. Similarly, unplanned downtime due to equipment failures and material shortages reduces efficiency and productivity, and threatens the ability to complete orders. The impact of manufacturing downtime include:
- Cost: Manufacturing downtime can be costly. This is because there is lower efficiency and throughput, costs for replacement parts are higher as you’ll need expedited delivery, and you have an increase in spare parts.
- Decreased productivity: Whenever an equipment failure occurs or an operator is unable to work, this stops the production flow and leaves the business with an unproductive workflow.
- Lower service levels: If a manufacturing downtime event threatens repeat orders, the completion of current orders, or longer lead times, then it can reach a crises level. Each time manufacturing downtime occurs, it accumulates to create a loss that could negatively affect orders.
- Lower employee morale: Manufacturing downtime, especially unplanned downtime, can be stressful for employees. This is because impacted teams are going to feel the blow of such a critical error, while other teams may doubt the competence of the overall company as well as the teams involved.
Cost
Lower efficiency and throughput, expedited replacement parts, more spare parts held
Lower productivity
A failed machine or an absent operator stops the production flow
Lower service levels
Current and repeat orders and lead times at risk; each event adds to the loss
Lower morale
Impacted teams feel the blow; other teams doubt the company's competence
How to reduce manufacturing downtime
In addition to scheduling planned downtime regularly, there are several other things you can do reduce manufacturing downtime in your operations. These include:
1. Implement preventive maintenance
One of the most proactive things you can do to reduce manufacturing downtime is to implement preventive maintenance into your organization. Preventive maintenance should be an important aspect of any manufacturing plant or factory’s maintenance routine. But, scheduling preventive maintenance activities requires a lot of manual work. So, you can simplify this by digitally logging each machine’s maintenance history. For example, you can record how often maintenance has been completed for each machine, when it has been completed, what was completed, and which steps of the maintenance activity took the longest.
2. Perform risk audits
Performing risk audits helps you identify which equipment needs service, poses a safety risk, is outdated, or needs replacing. What’s more, it can help you identify problems before they actually happen, which can ultimately reduce manufacturing downtime.
3. Upgrading hardware and software
A machine is only as good as its parts. So, once you’ve audited your equipment, ensure that every aspect of your manufacturing machinery is the best. Moreover, you should consider bringing your machines online if you want to efficiently reduce manufacturing downtime. The easiest way to prevent unplanned downtime is to start simple by monitoring uptime and downtime objectively. By using machine monitoring applications, you automatically receive an objective read of downtime so that you’re not left wondering about any errors. You’ll also be able to automatically track machine status and create a huge database.
4. Employee training
Training your employees is essential if you want to reduce manufacturing downtime that is caused by human errors. If an error occurs and results in unplanned downtime, taking the time to properly identify and determine the root cause of the error can result in meaningful learning. In short, keep all your employees up-to-date with any relevant technical expertise.
5. Plan for the unexpected
Planning for the unexpected may be another lengthy process. However, to reduce manufacturing downtime, ensure that you have contingency plans that can help you mitigate the consequences from an unexpected event. Doing this can help you get your manufacturing processes up and running again with minimal worries.
6. Ensure visibility
Reduce manufacturing downtime by having complete visibility over your operations. Nowadays, most companies are able to do so with the help of a manufacturing software that can track sales trends and accurately forecast product demand.
Preventive maintenance
Log each machine's history digitally: how often, when, what was done, which steps took longest
Risk audits
Find equipment that needs service, poses a safety risk, is outdated or needs replacing
Upgrade hardware and software
Monitor uptime and downtime objectively with machine monitoring applications
Employee training
Find the root cause of errors that caused downtime and keep technical skills current
Plan for the unexpected
Contingency plans that limit the damage from an unexpected event
Ensure visibility
Track sales trends and forecast demand with manufacturing software
Frequently Asked Questions
What is manufacturing downtime?
Manufacturing downtime is any period when a machine is not in production, so the factory is not producing product. It interrupts operations and cuts into margins, and when nobody tracks it, it also drags on employee efficiency, inventory planning, cycle time and lead time. It comes in two types, planned and unplanned, and both need managing.
What is the difference between planned and unplanned downtime?
Planned downtime is scheduled: routine maintenance such as cleaning, lubricating and inspecting, or a product changeover between runs. It still costs revenue, so the aim is to get the machine running again fast. Unplanned downtime arrives without notice when a part breaks, material runs out or an operator who was expected does not show up, and it creates backups along the whole line.
What does downtime cost a manufacturer?
Four things. Direct cost, because throughput falls while replacement parts arrive by expedited delivery and spare parts stock grows. Lost productivity, because a stopped machine or a missing operator stops the flow. Lower service levels, because late or incomplete orders put repeat business at risk. Lower morale, because unplanned stops are stressful for the teams involved and make other teams doubt them.
How do you reduce manufacturing downtime?
Start with preventive maintenance and log each machine's maintenance history digitally so scheduling takes less manual work. Run risk audits to find equipment that needs service, poses a safety risk or is outdated. Keep hardware in good condition and monitor uptime and downtime objectively with machine monitoring. Train employees so human error drops, keep contingency plans for the unexpected, and get visibility over operations and demand.
Does preventive maintenance count as downtime?
Yes, as planned downtime, since the machine is scheduled to stop for cleaning, lubrication, inspection and small fixes. It is still worth it because it catches minor problems before they shut the line down unexpectedly. Recording how often each machine is serviced, what was done and which steps took longest makes the schedule easier to manage and the stops shorter.
Free for this topic: Autonomous maintenance (CILR) checklist, SMED changeover worksheet, OEE calculator
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