The average manufacturing IT system will experience 3.6 instances of downtime at a cost of $65,830 annually, according to a recent readership survey conducted by IndustryWeek magazine for Stratus Technologies.
“The statistical results are a good indication as to why the response to this email survey was so strong; the persistence and punishing cost of IT systems downtime are very much on the minds of plant operations management,” said Dave LeClair, director of product management & marketing, Stratus Technologies. “As high as these costs appear, our experience in manufacturing suggests these calculations understate the true financial impact and include only the more obvious cost factors, such a labor and reduced volume. In reality, that’s just the tip of the iceberg.”
More than five hundred IndustryWeek readers responded to the March 2012 survey. The magazine tabulated results by annual revenue categories – less than $100 million, $100-$999 million and above $1 billion – and by the average of all respondents. Results were as follows:
|Annual Revenue||Average Cost per Downtime Incident||Average Downtime Incidents Annually||Total Annual Cost of IT Downtime|
Source: “Manufacturer IT Applications Study,” March 2012, IndustryWeek magazine
Only three out of seven respondents said they have a strategy in place for high availability computing! The percentage of manufacturers with annual revenue of more than $1 billion that said they have a strategy (41 percent) was nearly twice that of those with revenue of less than $100 million (23 percent). Larger companies also used IT technologies better suited to ensuring high availability than did smaller firms. Despite these preparations, large manufacturers are still losing nearly $150,000 annually from IT system downtime.
The full survey results will be presented during a webinar hosted by IndustryWeek on May 31, 2012. NetSuite’s GM of Manufacturing/Wholesale & Distribution, Roman Bukary, and Stratus’ Director of Global Alliances, Peter Cook, will discuss the results of the survey, provide insights into what manufacturers are currently experiencing with regard to downtime, and offer some best practices to prevent it. To pre-register for the webinar, visit http://bit.ly/IHZxLA.