What is the True Impact of Down Equipment?

Machines almost invariably work in integrated production teams. This means that a down event in one unit invariably impacts many associated resources, which causes the cost of downtime to be extremely high. When an asphalt paver goes down, for example, a lot of things go wrong and many closely tied associated resources experience significant impact costs. When the single driving resource—in this case, the paver—goes down, it’s the worst situation. If one articulated truck in a spread of four goes down, at least the associated resources can continue at reduced productivity.

How to Calculate the True Cost when Equipment Fails?

Assume the cost of the down unit and all its associated resources comes to $350 per hour. This includes the cost of the machine, labor associated with operating the machine and all other resources that were dependent on this piece of equipment operating at 100%. Assume the machine is down for only one 8 hour shift he would give a total downtime cost of $2,800 for the eight-hour down event.

The OER Service Plan Advantage

1. Single source billing for all equipment
2. Worry free preventive maintenance scheduling
3. Maximize equipment uptime
4. Decrease in service and maintenance spend
5. Nationwide network of service providers