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Increase Profitability of Your Fleet
We wrap up the Unexpected Equipment Downtime series with this final installment: are multi-brand tools the solution to OEM tools?
So far, we’ve created a pretty good model for calculating the annual cost of unexpected downtime for 1 machine in a fleet of heavy equipment. Now it’s time to start actually reducing the downtime and the costs of it.
Many companies running equipment fleets rely almost completely on the OEM dealer for repairs, big and small, simple and complex for a way to lower downtime numbers… but at what cost?
From part 2 of this series, we left off with our running yearly cost of unexpected downtime for one piece of equipment at $10,800. We illustrated an example of about 360 hours per year of unexpected downtime at a cost of $30 per hour = $10,800 annual cost. Let’s continue from there…
As I said in the previous article, when trying to figure the complete cost of unexpected equipment downtime, there are a number of different costs that must be included in our calculations. There is one area that is often overlooked when doing this…the loss of expected use of a machine.
It’s a simple question really…what is the cost of equipment downtime? Or at least it’s simple to ask. In reality, if you were to put this question to 100 equipment fleet managers, it’s likely you’ll get 100 very different answers.