How to Calculate Downtime

Calculating asset downtime offers new insights into your maintenance operations, and how you can make improvements.

But how do you calculate downtime? And what can you do with that information? Here’s what you need to know.

What Is Equipment Downtime?

Downtime refers to any period when a system fails to perform its primary function. For your maintenance operations, you’ll want to measure unexpected downtime that occurs any time production stops due to asset failure. You also might track planned downtime, which means equipment remains offline while preventive maintenance or other planned tasks occur.

Why You Need to Track Equipment Downtime

While your managers likely want to track equipment downtime, it holds benefits for the maintenance team too. Maintenance is on the frontline when things aren’t working, and it directly affects our workload.

Tracking equipment downtime helps with…

  • Determining which workflows are working and which ones aren’t
  • Evaluating the effectiveness of PM schedules
  • Identifying areas for improvement
  • Lowering maintenance costs

How Much Downtime is OK?

You can’t avoid downtime, but you can minimize it. Most enterprise organizations aim for 10% or less for unscheduled downtime, which they calculate on the basis of number of operating hours.

How to Calculate Asset Downtime

To calculate asset downtime, you need data. You’ll find some of this data in your CMMS software, and your accounting department can help with the rest. This data should include:

  • Employee costs per hour: The average employee salary divided by number of hours worked, multiplied by the number of employees.
  • Average revenue per hour: An estimate of how much revenue your company generates in a given hour.
  • Employees affected by downtime: An estimate of the percent of employees who would be unable to work due to shut down machinery.
  • Revenue affected by downtime: An estimate of the percent of revenue lost due to machine downtime.
  • Number of units produced per hour: An estimate of the number of units produced in one hour.
  • Average profit per unit: The amount of profit earned for each unit produced.
  • Number of hours of downtime: The number of hours of downtime expected.

Maintenance managers plug in these estimates and generate an average cost of machine downtime per hour.

Simple Downtime Calculation

Not everyone needs to calculate downtime at the same level. If you need something a little simpler, try this equation that only takes a few numbers:

(Hours of downtime / Total period measured) * 100 = percentage of downtime

How to Reduce Downtime

Once you have the basic calculations, you can identify ways to reduce downtime. MPulse customers have successfully reduced downtime by…

Knowing how much equipment downtime costs your organization is just the beginning. Reducing equipment downtime—and the related loss of productivity—is one of the biggest benefits our CMMS users find with their MPulse Software, Inc. It all comes back to the basics: when your organization’s equipment hasn’t been maintained properly, you’re going to experience more downtime. That translates into lost dollars and intense pressure on the maintenance team to get production running again. The less downtime you experience in the first place, the better.

Have questions? Want to learn how to optimize your CMMS software to quickly calculate downtime? Contact us. We’re here to help.