The Automation Industry: The Cost of Down time The Automation Industry: The Cost of Down time June 5 Wholesale George Iloka Jersey , 2013 | Author: Todd Smith | Posted in Business
There is no question the automation industry has made great steps and facilitated bigger precision and savings in every type of manufacturing activities. Nevertheless, automation (like any other system) can break down. It could also require straightforward upkeep from time to time. From a bottom line perspective its important that a company know, with relative precision, what those down times cost so the figures can be utilised in budgeting and pricing.

Informed management is smart management. It is not extraordinarily hard to investigate the cost of down time by employing particular parameters. Certainly the cost of labor is the 1st prime to are evoked, but there?s are also other points to think about such as a product delay, bottlenecks or blockages in other bits of the manufacturing process while upgrades or repairs occur for example. By looking at these contributors a company can identify the best timing for downtimes.

Let?s use a straightforward example. Say company A knows that the demand for product experiences seasonal highs and lows, it is smart to schedule down time for a period when demand is the lowest. Otherwise or possibly cooperatively the company could begin watching for new automation equipment that's being offered at lower price-points and buy, then wait to install till that off season rolls around. The sole difficulty with the second eventuality is storage. If you do not have a facility for your equipment then that cost needs to be factored in too.

In looking at your costs for down time Wholesale Clint Boling Jersey , some chiefs weigh overhead costs heavily. But when you consider that those costs are ALWAYS part of the company profile, actually the direct labor is a far greater weight. Along with those man hours there?s also the employee?s insurance, IRAs, overtime (if applicable) for example. Also consider indirect work like inspectors, material handlers, advisors, administrative personnel or regular staff who have to take time from standard obligations to assist in managing the goals for the down-time.

Constants in the world of down time include gear costs and labor (including QC). Less certain is what kind of time you will need, how much production reduces Wholesale Kevin Huber Jersey , consultation, any fitting necessary, and shipping the mandatory parts. A flow chart can explain a large amount of this data, especially if the manufacturer is using information gathering systems.

After you've been through one automation downtime cost calculation you can use that info or any future such endeavors. Some factors will change unless you have to do the same project, but having a functional format saves a great deal of time going forward.

Todd Smith is the founder of psifla, a website with information about automation systems

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