How the Cost of Downtime is Shaping the Competitive Crane Market

It is estimated that factories lose between 5% and 20% of productivity due to downtime. This can translate into millions of dollars worth of revenue loss.

Would you like to learn how to reduce downtime and increase productivity in the competitive crane market?

Keep reading to learn more about how downtime could be affecting your business and ways to improve crane efficiency.

What is Downtime?

Downtime causes inefficiency and monetary value loss for your business. This is because both the costs of labor and equipment costs are being paid without the equal output being created.

Often, companies don’t account for the different types of downtime. Unplanned downtime includes failures such as operator errors, hardware errors, or poor performance. This is compared to planned downtime such as upgrades or regular maintenance, which can be easily controlled.

Calculating the Cost of Downtime

One of the reasons why it is so difficult to negate the negative impacts of manufacturing industry downtime is because 80% of companies cannot accurately determine their downtime. Naturally, you can’t fix something that you aren’t aware of. Therefore, it is important first to calculate the dollar value loss of downtime to reduce it.

When calculating, include occurrences such as:

  • Low staff productivity
  • Rescheduling
  • Unexpected repairs
  • Customer relations

Reducing the Downtime of Machinery

Unplanned downtime can be reduced in part by ensuring the predictive maintenance of machinery. This will lower the number of unexpected breakdowns. In turn, unplanned downtime and lost production time will reduce.

Predictive maintenance may include booking regular crane inspections. We at Kor-Pak offer crane inspections as well as crane modernizations and upgrades.

It is also important to know that if you invest in cheaper machines initially, it may require more maintenance down the line. This can further increase downtime. Therefore, it may be worth investing more to increase long-run productivity.

Further, you can use tools such as risk audits to check the quality of your machinery.

Having explicit knowledge and budgeting for potential downtime will also help you avoid any unexpected production errors. It will also help you justify to stakeholders the importance of predictive maintenance and initial investment.

Reducing the Downtime of Labor

A large portion of downtime is a result of unproductive workers. For example, one of the leading causes of downtime is operator errors. 

If you can change workers’ mindsets, you can empower your employees to become incredibly effective and productive. Ultimately, these good operators will be able to diagnose and fix their own machinery. They will also be on top of maintenance schedules and documentation, allowing them to prevent future potential losses.

You can empower workers through company incentives or skills training. Another way is to include workers in the innovative process, making them feel like they are working toward a bigger vision.

How Kor-Pak Can Help

We at Kor-Pak have a range of maintenance, repair, and modernization services. These types of predictive maintenance can help you reduce millions of dollars worth of monetary losses due to the high cost of downtime. 

You might also be unsure about what service is right for your business. If this is the case, you can also contact us directly for more information.

Posted in Crane.