Minimizing Unplanned Downtime: A Financial Strategy for Equipment-Heavy Businesses

Are you tired of losing money every time one of your trucks or machines unexpectedly breaks down?

Unexpected downtime is a silent killer to profit margins in any equipment-heavy business. Whether you operate a fleet of trucks, heavy equipment, or industrial machinery…

When something fails unexpectedly the bleeding starts.

The Problem…

Most companies don’t have a strategy in place to minimize downtime. They are constantly putting out fires instead of preventing them. And that fire-fighting approach is costing them dearly.

1. The Financial Cost of Downtime & Why It Matters
2. What Fuel System Failures Really Cost Your Business
3. 5 Ways To Dramatically Minimize Costly Downtime
4. Build a Smart Parts Ordering Strategy

If you haven’t seen the numbers before you’ll be blown away.

Based on research conducted by Siemens on the world’s top 500 industrial companies, unplanned downtime costs businesses approximately $1.4 trillion dollars every year. That’s approximately 11% of annual revenues disappearing because machines are sitting idle.

That’s just the large companies.

In the trucking and fleet business every downed truck can cost your business anywhere from $448 – $760 per day that it sits idle based on findings by FleetNet America. Now imagine if you had a fleet of 20 trucks. Even 5 trucks sitting at any given time will set you back thousands of dollars per day.

Here’s what most people don’t realize…

The repair invoice is only part of the overall costs involved. Idle workers, expedited parts pricing, missed delivery fees, and damaged reputation all add up.

Equipment failures account for approximately 42% of all downtime events. And fuel system failures are some of the most common issues in diesel trucks.

One failed fuel injection pump doesn’t just take down one truck, it takes down your entire operation. If a remanufactured Mack fuel pump or fuel injector is not in stock when your shop needs it, loads are reassigned, schedules become disrupted, and drivers are taken out of commission while they wait on parts. That’s why it matters so much where you get your Mack engine injector pump from. You want to make sure you are getting a quality remanufactured pump that has gone through rigorous testing, inspection, and rebuilding to meet or exceed factory specs all at a fraction of the cost of buying new.

Bottom line, your drivers are back on the road faster, your parts costs are dramatically lower, and your trucks spend less time in the shop.

If there was a silver bullet for minimizing downtime every operation would be doing it. There isn’t. However, there are steps you can take to drastically reduce the amount of downtime your operation experiences.

Here are 5 of the best ways to reduce costly downtime.

This should go without saying, but you would be surprised at how many operations skip preventive maintenance. Doing routine inspections and maintaining your equipment on a schedule prevents small issues from turning into larger, more expensive problems.

You can reduce downtime by as much as 20% just by having a preventive maintenance schedule that includes routine inspections of fuel systems, brakes, transmissions, and electrical systems.

Waiting for parts is one of the most expensive delays during an unplanned repair. Rushing orders typically cost more and take longer to arrive. Keeping common replacement parts on hand like fuel pumps, filters, and injectors drastically reduces down time.

Balance is important. You don’t want to be tying up your cash in inventory just sitting on a shelf. However, you also don’t want to be placing urgent orders all the time.

On average you can save up to 30% by buying remanufactured diesel parts instead of buying new OEM parts right from the manufacturer. And with the right supplier you get parts that perform just as good with similar warranty coverage.

This is especially true when it comes to high-dollar parts like fuel injection pumps. A remanufactured Mack fuel pump allows your truck drivers to get back on the road quicker for a fraction of what you’d pay for new.

Predictive maintenance utilizes software to predict when equipment will fail so you can fix it before it does. Sensors are placed on equipment to monitor various factors like engine temperature, fluid conditions, and component performance.

Companies that have invested in predictive maintenance have reduced downtime by up to 50%. Talk about a game changer.

All of the technology in the world can’t replace a trained technician who knows what to look for. Unusual engine sounds, loss of performance, and fluid leaks are all warning signs that something is wrong.

Encourage your team to come to you with any “funny noises” or issues they may come across. Small problems left unchecked lead to major failures. And major failures equal massive downtime.

Something that’s often overlooked…

How you approach parts when equipment breaks down has a huge impact on your turnaround time. Do you have the part in stock? Do you order remanufactured or rebuilt? Or do you order from the manufacturer for the most expensive option.

Take a layered approach to parts procurement:

• Stock your shop with critical components that are known failure points
• Default to buying remanufactured parts when available for expensive components
• Order new OEM parts as a last resort or when warranty requirements demand it

That doesn’t mean you should only buy rebuilt parts. New parts are necessary at times too. But by purchasing remanufactured parts as your default you dramatically reduce parts costs.

As much as anyone would like to completely eliminate downtime it never will be zero. Machines break down. Employees make mistakes. Things happen.

However, that doesn’t mean you can’t drastically reduce downtime by putting some of these tips into place.

Here’s a quick recap:

• Unplanned downtime costs your business serious money
• Fuel system repairs are a big reason your equipment fails
• Use preventive maintenance to stop minor issues before they turn into major failures
• Keep critical components on hand
• Train your team to identify problems early
• Purchase remanufactured when possible

Implementing even just a couple of these tactics can bleed money back into your profit margins.

And don’t forget, time is money…