What one hour of downtime really costs a factory

Most factory owners can tell you what a broken machine costs per hour. Fewer have done the same sum for an IT problem, like a dead server, a network that drops, or the computer that runs the production schedule going down.

Try this on the back of an envelope. It takes five minutes.

Step 1: People waiting.

How many people can't work when the system is down? 

Try this...Operators waiting for job orders, warehouse staff who can't print delivery receipts, office staff who can't invoice.

Multiply by their hourly cost.

Step 2: Output you can't recover.

If production stops or slows, what's one hour's output worth at selling price? Be honest about how much you can make up later with overtime. That overtime has a cost too.

Step 3: Deadlines and penalties.

Is any order due this week with a late-delivery penalty or a customer who might not reorder? Put a number on one hour of delay.

Step 4: Add it up.

People waiting + lost output + deadline risk = your cost per hour of downtime.

# Now compare.

Look at what you spend each month to keep your systems running, then look at your one-hour number. If one bad hour costs more than a month of looking after your IT, that tells you something about where the priority should sit.

Where this usually goes wrong

The problem is rarely the one big failure. It's the small, ignored things: a server that's been running past its time, a backup nobody has tested, one person who knows how everything is connected. 

# What we do

We look after the systems (computers, network, servers, backups) so problems get caught before they stop production, and when something does break, someone responds quickly. 

# Want us to run the numbers with you?

Book a free consultation. Bring your rough figures and we'll work through your downtime cost together.