Downtime Costs Auto Industry $22k/Minute – Survey
New survey of auto industry manufacturing executives shows stopped production costs an average $22,000 per minute Manufacturers say they need better machine maintenance
PEORIA, Ill. (March 27, 2005) – In a survey of 101 manufacturing executives in the automotive industry, from parts suppliers to engine makers to automakers, a majority say the cost of stopped production is incredibly high – an average $22,000 per minute. A majority also say they would outsource production machine maintenance as a way to make their factories run better. The research was commissioned by Advanced Technology Services, Inc. (ATS) and conducted by Nielsen Research.
While one minute of stopped production, or downtime, costs an average of $22,000, some survey respondents cite the figure to be as high as $50,000 per minute. With such high costs at stake, keeping production machinery operating smoothly is critical to a factory’s bottom line.
When executives were asked if they could outsource more factory services, Read More . . . .
The U.S. Auto Industry and the Ripple Effect
“It’s not necessary to have so many layoffs in the auto industry. With all the Technology on the market today to help cut downtime costs and reduce production downtime we should be asking questions like “Why aren’t the right decisions being made in the auto industry to bring aboard new technology that can reduce downtime and raise incremental profits and reduce layoffs.”
The Bartol Mag-Probe is a device that will lower downtime and increase production by simply reducing the amount of time that it takes to troubleshoot a problem on a production line and bring it back up to speed and thereby will naturally increase incremental profits. It’s not just the Mag-Probe that can help these companies, there are many different technology products that can help, but if the Auto makers aren’t looking for a better way to manufacture their product they will continue to decline until their are no more auto workers building American made vehicles employed in the U.S. Downtime Costs.