The Hidden Cost of Downtime: A Strategy for Improving Return on Assets
The following article from Maintenance Technology offers a clear view into the importance of addressing downtime in financial equations. How many times have we ask the question, “Where did all the money go?” Especially in the Railroad industry.
What are the hidden costs of downtime? This article explains how to calculate them using company financial information and simple rules of thumb.
Industrial assets, from complex manufacturing plants to remote and mobile capital equipment, are subject to an asset availability ceiling. While this ceiling varies by industry, peak system availability is typically 85-95 percent. Unfortunately, the widespread acceptance of these ceilings masks the hidden—and significant—costs associated with unplanned downtime.
For typical heavy process industries, these costs can represent 1-3 percent of revenue and potentially 30-40 percent of profits annually. For large capital equipment, the costs may be 1-3 percent of asset value per year. With millions of dollars in savings at stake, the cost of unplanned downtime warrants further investigation. Read Full Article . . . .
It appears the railroad and business in general is currently being refined by the natural consequence of Lost Potential Revenue. Once companies begin to streamline their budgets it becomes obvious the value of purchasing time saving products in maintenance. Products and processes that have proven track records for effectively reducing downtime rise to the top, while the ones that don’t are filtered out. Below are a few areas where the Bartol Mag-Probe is being used in the railroad industry to reduce downtime.
BELOW: Bartol Mag-Probe Model (HS) is Being Used in Railroad Locomotive Repair
- Breaking Systems
- Testing Electrical Solenoid Valves
- Testing Relays
- Fuel Injector Coil Test
- EFI Nozzle Test
- Pump Testing
Click Link Below to Read About a
I received the probes and can’t thank you enough. As stated in the other email I’ve been using the Mag-Probes for 10 years as a locomotive electrician and it is one of the tools I use on a daily basis. With electronic fuel injection it is easier than a meter to see if voltage is present at the injector. These are some of the best probes I’ve ever used, thanks so much again for your help. TinnerBoy
Call Bob Bartol at 208-321-7566 or email email@example.com