Many organisations only count “lost production hours” when thinking about downtime. In practice, the total cost usually includes at least five layers:
- Direct production loss (missed throughput, yield loss, off-spec product)
- Labour and contracting premiums (overtime, specialist call-outs, shutdown crews)
- Logistics premiums (expedited shipping, customs delays, rentals, temporary bypass)
- Quality and integrity impacts (rework, scrap, repeated failures)
- Risk costs (safety and environmental exposure during abnormal operation)
This is why global studies put unplanned downtime into “strategic risk” territory. Siemens’ report frames the problem at board-level scale, while Deloitte highlights how maintenance strategy alone can quietly erode capacity even before major failures occur.
[1][3]A simple reality-check calculationFor a single critical production unit, estimate:
- Gross margin per hour of production (or avoided-cost per hour in utilities/water)
- Typical unplanned outage hours per year for the unit
- Multipliers for knock-on effects (overtime, quality losses, logistics)
When leadership sees downtime expressed as “annualised margin loss” rather than “maintenance events,” investment decisions become easier — especially when the countermeasures are largely operational discipline and engineering fundamentals, not speculative technology.