The Automation Industry: The Price of Down-time
There is no question the automation industry has made great steps and facilitated bigger precision and savings in all types of manufacturing endeavors. Nevertheless, automation (like every other system) can break down. It might also require straightforward maintenance once in a while. From a net result viewpoint its significant that a company know, with relative accuracy, what those down times cost so the figures can be utilised in budgeting and pricing.
Informed management is smart management. It isn't extraordinarily tough to analyze the price of down time by using specific parameters. Definitely the price of work is the first prime to spring to mind, but there's are also other considerations such as a product delay, bottlenecks or blockages in other parts of the manufacturing process while upgrades or repairs happen and so on. By having a look at these factors a company can determine the best timing for downtimes.
Let's utilise a simple example. Say company A knows that the demand for product experiences seasonal highpoints and lowpoints, it is smart to line up down time for a period when demand is the lowest. Or or doubtless cooperatively the company could begin watching for new automation equipment that is being offered at lower price-points and buy, then wait to install till that quiet season rolls around. The sole issue with the second eventuality is storage. If you don't have a facility for your apparatus then that cost has to be allowed for also.
In taking a look at your costs for down time, some managers weigh overhead costs heavily. However , when you consider that those costs are ALWAYS part of the company profile, truly the direct work is a far bigger weight. Together with those man hours there's also the employee's insurance, IRAs, overtime (if pertinent) etc. Also consider indirect work like inspectors, material handlers, experts, administrative staff or regular employees who have to take time from standard obligations to assist in managing the goals for the downtime.
Constants in the world of down time include equipment costs and work (including Quality Controls). Less certain is what kind of time you will need, how much production decreases, consultation, any fitting required, and shipping the mandatory parts. A flow chart can explain a lot of this info, especially if the maker is already using information gathering systems.
Once you have been through one automation down-time cost calculation you can use that information or any future such endeavors. Some factors will change unless you have got to try the same project, but having a functional format saves a great amount of time going forward.
Informed management is smart management. It isn't extraordinarily tough to analyze the price of down time by using specific parameters. Definitely the price of work is the first prime to spring to mind, but there's are also other considerations such as a product delay, bottlenecks or blockages in other parts of the manufacturing process while upgrades or repairs happen and so on. By having a look at these factors a company can determine the best timing for downtimes.
Let's utilise a simple example. Say company A knows that the demand for product experiences seasonal highpoints and lowpoints, it is smart to line up down time for a period when demand is the lowest. Or or doubtless cooperatively the company could begin watching for new automation equipment that is being offered at lower price-points and buy, then wait to install till that quiet season rolls around. The sole issue with the second eventuality is storage. If you don't have a facility for your apparatus then that cost has to be allowed for also.
In taking a look at your costs for down time, some managers weigh overhead costs heavily. However , when you consider that those costs are ALWAYS part of the company profile, truly the direct work is a far bigger weight. Together with those man hours there's also the employee's insurance, IRAs, overtime (if pertinent) etc. Also consider indirect work like inspectors, material handlers, experts, administrative staff or regular employees who have to take time from standard obligations to assist in managing the goals for the downtime.
Constants in the world of down time include equipment costs and work (including Quality Controls). Less certain is what kind of time you will need, how much production decreases, consultation, any fitting required, and shipping the mandatory parts. A flow chart can explain a lot of this info, especially if the maker is already using information gathering systems.
Once you have been through one automation down-time cost calculation you can use that information or any future such endeavors. Some factors will change unless you have got to try the same project, but having a functional format saves a great amount of time going forward.
About the Author:
Todd Smith is the founder of psifla.com, a website with information about automation systems
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