Graph OEM analysis from BIN equipment downtime survey.

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Graph of OEM Cost

More Graphs: Cost OEM PLC Time Reports

(Note: These online graphs where generated in 2001, valid survey participants receive a current report by email.)

OEM Response Time

Industry

_ = Highest Maximum time reported by any one facility, waiting on OEM to respond.

_ = Average maximum time for industry that OEM took to respond.

Analysis:

Note: These are averages among industry of maximum respond time. Not average respond time of OEM. This graph is just to show extreme cases, to bring attention to cost involved.

For example if you calculated your true cost of down time as $1,000 per hour, some instances cost as much as $50,000. If that breakdown was a bottle neck, the hourly cost could escalate to over a half a million!

This is yet another example of why you should take out insurance against costly downtime, and subscribe to Business Industrial Network's technical resources.

(If you only shave 10% off one instance, with our services, you could see a ROI of more than 500%.)

Annual OEM Cost

Industry

_ = 0 to 30 Employees

_ = 31 to 50 Employees

_ = 51 to 100 Employees

_ = 101 to 200 Employees

_ = 201 to 301 Employees

Analysis:

With an increase in outsourcing, industry wide, $100K a year is not bad. If you dig deeper, you'll find these figures to be actual dollars paid out. Not actual cost of downtime related to OEM service.

You will find that service is not the only OEM related cause for downtime cost. Most facilities do not track downtime cost related to OEM warranty work, and OEM new installations/upgrades.

The first step is to accurately track cost related OEM service, warranty, and installations. Then you will see the "True Cost", and potential for savings. (Lack of standards for dealing with OEMs is the primary reason for cost ten times the scale in the graph above. BIN95 is working on a set of tools and standards you can use to save thousands.)

More Graphs: Cost OEM PLC Time Reports

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