SGH Solutions
Finance

How much does 14 minutes of downtime cost on your line?

By Piotr Zieliński, Optimization Specialist·November 15, 2024·4 min read

Almost every shift manager in Silesia will shrug off fifteen minutes of downtime. It seems like just a moment for a cigarette or a quick coffee while the machine catches an error. But numbers don't lie if you know how to read them, and those 14 minutes repeated twice a week can drain a company's wallet faster than an electricity price hike.

Labor costs slipping through your fingers

Imagine a plant in Katowice with 11 people at the line. Each of them earns an average of 43 PLN gross per hour. When the machine stops for 14 minutes, you're not paying them for work, but for waiting. On the scale of one such incident, that's just a bit over 110 PLN thrown away. The problem is that these people lose their rhythm, start talking, and after the fault is fixed, they need another 6 minutes to return to full efficiency. So realistically, you're losing not fifteen minutes, but almost half an hour of paid work time for the entire crew.

At Silesia Growth Hub, we saw this with one of our metal industry clients in March 2024. They had exactly 14-minute downtimes during die changes that happened 3 times a day. After summing up labor costs, it turned out the company was paying 14,600 PLN annually for people to stare at the ceiling. That's an amount that could buy a solid tool set or pay for the servicing of two other machines. The shop floor must earn, not stand idle, and such 'minor' stops are the easiest way to a budget hole that isn't visible in an Excel sheet.

Add to that the utility costs. A machine that stands idle but is switched on still consumes idle power. For large injection molding machines, this can be up to 3.4 kW per hour. If you multiply this by the number of working days in a year, it suddenly turns out you're financing a nice vacation for the local utility company. No one likes paying for nothing, and downtime is precisely paying for a void in the production hall.

The shop floor must earn, not stand idle. Every minute spent staring at a broken machine is money taken out of your pocket.
Labor costs slipping through your fingers

A simple formula to calculate losses

You don't need a PhD in economics to figure this out. At SGH, we use a simple converter. You take the number of workers on the line, multiply by their hourly rate, and by 0.23 (which is roughly 14 minutes as a fraction of an hour). To that, you add the margin you didn't generate during that time. If your line generates an average of 840 PLN margin per hour, then 14 minutes costs you 193 PLN in lost profit. This is pure money that could have hit the account, but simply doesn't exist.

It's also worth looking at fixed costs. Hall rent, machine leasing, property taxes in Katowice – these fees don't disappear when the belt is stopped. Dividing the monthly cost of maintaining the plant by working hours gives you the 'readiness' cost. For a small workshop of 320 square meters, this cost is often around 28 PLN for every 15 minutes. Total it all up: labor, electricity, lost margin, and fixed costs. Suddenly those 14 minutes turn into a 415 PLN net loss.

Most owners we talk to look for savings in cheaper materials or negotiate a 2% discount with a screw supplier. Meanwhile, monitoring continuity of work yields much greater effects without degrading product quality. The system should make work easier, not add more clicking, so instead of telling the foreman to write reports in a notebook, it's better to install a simple sensor that counts those quarters automatically. Numbers don't lie if you know how to read them.

A simple formula to calculate losses

The domino effect and contractual penalties

Losses inside the hall are only half the problem. The real pain starts when, because of those 14 minutes, you don't manage to load a truck that must leave at 3:00 PM. A driver from a transport company in Tychy won't wait for free. Every hour of delay is often a 120-150 PLN surcharge for truck downtime. If your client, for example a large wholesaler, has contractual penalty clauses for late deliveries, one small machine error can cost 2,400 PLN in penalties.

We had a case in October 2023 where a minor sensor fault costing 80 PLN caused a 14-minute slip during packing. Because of this, the transport didn't reach the terminal before the window closed. The result? The goods left 2 days later, and the client charged a 5% penalty on the order value. Instead of making a clean profit, the company had to pay extra for the deal. This shows that in production there are no 'small' delays. Everything is connected like links in a chain.

No more manual transcribing of breakdown data to Excel at the end of the week. By then, it's too late to react. If you find out about a problem on Friday at 4:00 PM, you'll just get upset before the weekend. Information must be immediate. When you know the line is down now, you can move people to other tasks or quickly call a service technician before he leaves for another job in Gliwice.

A single shipment that didn't leave on time because of a silly 14 minutes can eat the entire profit from a week's production.
The domino effect and contractual penalties

How to stop guessing and start measuring?

The simplest way to fight these losses is to implement analytics that don't hurt. You don't need a million-zloty system. Simple machine runtime counting (OEE) is enough. In June 2024, we helped a plant in Sosnowiec implement such a module. Before implementation, the owner claimed his machines worked 84.2% of the time. After two weeks of collecting hard data, it turned out the real result was 62%. The difference came from precisely these short, 10-15 minute downtimes that no one entered in the reports.

When you see in black and white that one specific press stops every day at the same time, you'll start asking why. Maybe the operator has to go to the other end of the hall for pallets? Maybe the cooling can't keep up? Without data, you'll just be guessing and fixing whatever screams loudest, not what's actually taking your money. We move your production floor from Excel to a proper system so you know where your margin is leaking.

Start with a small step. For the next 3 business days, use a stopwatch to record every moment the machine isn't producing. Don't judge people, just measure time. If the sum of these breaks exceeds 47 minutes a day, it's a sign that annually you're losing the equivalent of a good delivery van. Then it's worth talking about proper analytics. We invite you for a 20-minute conversation about your production, where without any fluff, we will assess if we can help you catch those escaping zlotys.

How to stop guessing and start measuring?