Glossary

Production Downtime

Downtime in manufacturing is defined as any period of time when a machine or work-station is not in production, which can result in production delay. The total amount of downtime a factory experiences includes any stops during production that cause a loss of revenue for the company. Downtime in production is separated into two different categories: planned and unplanned. ‘Planned downtimes’ are scheduled and budgeted stops during production such as scheduled maintenance and product changeover. ‘Unplanned downtime’ in manufacturing occurs when an unexpected event such as equipment failures or running out of material occurs to equipment that is scheduled to be in operation. Though all downtime has a price, it is pivotal for manufacturers to service their machines as a form of prevention to decrease the chances of unplanned downtime, a much costlier process. Minimizing downtime in manufacturing is just as imperative as maximizing quality and output to maintain contribution margins. To understand the true cost of downtime, manufacturers must be able to track, categorize and analyze every aspect of the cost factors associated with each stop or delay in the production process.

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