Manufacturing Downtime in Malaysia: What’s The Cost?

manufacturing downtime malaysia

Manufacturing downtime in Malaysia refers to any period where facility output is stopped. For most manufacturers, downtime is the largest source of lost production time, increasing expenses, losses, and safety costs.

It includes planned downtime for scheduled asset maintenance and unplanned downtime due to equipment failure and human error. It may also include stoppages due to supply or labour shortages.

Minimising downtime in manufacturing is just as pivotal as maximising quality and output to maintain contribution margins. In order to understand the actual cost of manufacturing downtime, businesses need to analyse all cost factors in their production process.

What is Downtime in Manufacturing?

Manufacturing downtime is any period when a machine is not in production. It is an important factor to consider when running a business as machinery failures lead to a drop in revenue.

Manufacturing downtime in Malaysia is separated into two categories to help identify patterns in machine performance: planned and unplanned.

Planned Downtimes
  • Planned downtimes are scheduled periods when equipment is shut down to allow maintenance, repairs, upgrades or testing. Examples include scheduled maintenance and product changeover.
Unplanned Downtimes
  • Unplanned downtime occurs when equipment scheduled for use experiences system failures or runs out of materials.

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Why Is Knowing Downtime Costs Necessary?

Manufacturers need to understand downtime costs to optimise day-to-day operations and confidently make data-driven decisions.

Moreover, operations teams can avoid unnecessary costs, extensive planning and take preventative actions to avoid unplanned downtime.

5 Significant Consequences Of Manufacturing Downtime in Malaysia

5 Significant Consequences Of Manufacturing Downtime in Malaysia
1. Lost Productivity

Equipment failure and employee injuries are the two main causes of manufacturing downtime. For example, production can halt over a faulty set of machinery, leaving businesses with an unproductive workflow.

2. Production Delays

Manufacturing downtime creates a lag that can disrupt production schedules and delay customer shipments.

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3. Losing Customers’ Trust

Delayed shipments can strain customer relations from wanting to pursue repeat business. A business’s inability to deliver products on time can lead them to lose faith.

Once customers see a company as unreliable, they will not hesitate to move to other businesses.

4. Revenue

Downtime can be expensive. Productivity and profits go hand-in-hand for any thriving business.

A stop in production will cost businesses money to rectify issues and slow money from coming in. If your business’s downtime is holding up a customer from their deadline, they may cancel their order altogether.

5. Losing Customers To Competitors

Losing customers to competitors can cost you more than a lost sale. Your company’s reputation and customer perception are also at stake.

It also doesn’t make your business look any better if your competitors are able to do business when you are not.

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Reducing Manufacturing Downtime in Malaysia

Predictive maintenance is a powerful tool for manufacturers to minimise manufacturing downtime. It helps manufacturers plan and anticipate maintenance needs to avoid costly unplanned downtime.

Manufacturing downtime in Malaysia can be further reduced by providing manufacturers with information to schedule simultaneous asset maintenance efficiently. Doing so allows them to combine multiple planned downtime incidents into one, which reduces downtime overall.

Get Backup Help From Aegis

Understanding your manufacturing downtime costs is equally as important as understanding your return on investments. Businesses can use monitoring techniques and software or predictive maintenance to achieve a great ROI in their manufacturing processes.

Aegis offers affordable and reliable cloud backup and cloud disaster recovery (CDR) services in Malaysia. We protect a business’s on-premise data and production servers with a 100% recovery rate.

With complete managed services that comes with 24×7 proactive monitoring by Aegis’s support team, a responsive call centre and more, Aegis CDR reduces the risk of data loss and protects your business from unexcepted disasters.

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