Financial Implications of Machine Failure and Possible Solutions

Why does Machinery fail?

• Irregular maintenance of machinery
• Handling by an unequipped and unskilled workforce
• Failure to replace parts as when required
• Taking the equipment to work beyond its capabilities
• Missing out on the regular analysis of the equipment
• Running the machinery on the incompetent electrical supply

Actual Impact of Machine Failure

• Industrial operations are largely dependent on the working of appropriate equipment and machinery. Therefore, on the account of such failure, the whole industrial operation takes a hit. Other than the cost of replacing failed machinery, several other financial implications come into existence.
• Cost of workforce associated with removal of failed machines
• The machines used in industrial operations are often composed of complex electrical connections and are even quite huge in size. It is not a layman’s job to efficiently remove the failed equipment from the premises without causing any more damage that might result from careless handling.
• Cost of replacement or repair of failed machines
• The cost associated with replacing failed parts of industrial machinery is a factor that definitely causes a dent in the monopoly of the small, medium as well as large enterprises dealing with machinery failure.
• Cost of dealing with efficiency loss
• Another financial implication that is not as straightforward as the two mentioned above is that of dealing with the downfall of the efficiency of the industry as a whole. Failed machinery leads to the failure of certain aspects of operations undertaken by the industry, which further leads to loss of utility costs, labor wages, and even impact customer experience in a negative way.

How to minimize the loss caused by Machine failure