Abstract
While the process industry, generally shows a high awareness on the financial implications of low availability, the manufacturing industry is still quite ignorant. The traditional setup of discrete item manufacturing systems has been fairly forgiving of low availability. However, by applying lean principles, the discrete item production system resembles process industry, regarding sensitivity to disturbances. Still, the awareness of the financial impact of downtime seems to be low in manufacturing industry. This is a problem since it makes it harder to justify costs for investments in increased availability. This paper presents a study of the view and attitudes towards the cost of downtime in Swedish manufacturing industry. The answers indicate that the respondents have rather vague ideas of the costs associated with downtime. Further, they rarely quantify the downtime costs that often associated with maintenance of production equipment. However, without any proper financial measures for downtime costs, the companies lack proper incentives for investing time and resources on the necessary optimization of their maintenance programs.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Ahlman, H. R. (2002). From traditional practice to the new understanding: The significance of life cycle profit concept in the management of industrial enterprises. In IFRIMmmm Conference, Växjö Sweden.
Crumrine, D., & Post, D. (2006). When true cost of downtime is unknown, bad decisions ensue. InTech, 53(1), 55.
Fox, J. P., Brammall, J. R., & Yarlagadda, P. K. (2008). Determination of the financial impact of machine downtime on the Australia Post large letters sorting process. In Global Congress on Manufacturing and Management (GCMM) Board.
Fuerst, M. J., Vorster, M. C., & Hicks, D. K. (1991). A model for calculating cost of equipment downtime and lack of availability in directorates of engineering and housing (No. CERL-TR-P-91/16). Construction Engineering Research Lab (Army) Champaign, IL.
Gryna, F. M. (1999). Quality and costs. Juran’s quality handbook (5th ed.). New York: McGraw-Hill.
Holmberg, K. (2001). Competitive reliability 1996–2000. Technology Programme Report 5/2001, Final Report. Helsinki: National Technology Agency.
Lincoln, A. R. (2013). Development of a dynamic costing model for assessing downtime and unused capacity costs in manufacturing. Atlanta, USA: Georgia Institute of Technology Publishing.
Muchiri, P., & Pintelon, L. (2008). Performance measurement using overall equipment effectiveness (OEE): Literature review and practical application discussion. International Journal of Production Research, 46(13), 3517–3535.
Naiknaware, D. M., & Pimplikar, S. S. (2013). Equipment costs associated with downtime and lack of availability. International Journal of Engineering Research and Applications, 3(4), 327–332.
Nepal, M. P., & Park, M. (2004). Downtime model development for construction equipment management. Engineering. Construction and Architectural Management, 11(3), 199–210.
Plant2Business Solutions. (2001). Downtime analysis: Managing production efficiency.
Sondalini, M. (2011). Defect and failure true cost. Feed forward Publications, ESBN:F36-048C-2326-11B3
Ståhl, J. E., Gabrielson, P., Andersson, C., & Jönsson, M. (2012). Dynamic manufacturing costs—Describing the dynamic behaviour of downtimes from a cost perspective. CIRP Journal of Manufacturing Science and Technology, 5(4), 284–295.
Wiersema, W. H. (2005). Conquering downtime: Unless an effort is made to expose downtime, the cost remains largely hidden and can escalate out of control. Electrical Apparatus, 58(12), 34.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2016 Springer International Publishing Switzerland
About this paper
Cite this paper
Salonen, A., Tabikh, M. (2016). Downtime Costing—Attitudes in Swedish Manufacturing Industry. In: Koskinen, K., et al. Proceedings of the 10th World Congress on Engineering Asset Management (WCEAM 2015). Lecture Notes in Mechanical Engineering. Springer, Cham. https://doi.org/10.1007/978-3-319-27064-7_53
Download citation
DOI: https://doi.org/10.1007/978-3-319-27064-7_53
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-319-27062-3
Online ISBN: 978-3-319-27064-7
eBook Packages: EngineeringEngineering (R0)