"We are so small, we cannot afford such an investment." or "We don't need to focus on continuous improvement, because we are a small company.". These are arguments often used by small business owners. Let's see what "size" your company needs to be in order to make the decision to focus on downtime reduction justifiable.
Take a look at the small company below. It has:
Given the current conditions this small company makes a € 30K profit. If they only reduce their downtime from 15 to 12 percent, their profit rises from € 30K to € 53K. An increase of 23K.
Lets say it takes 6 months to get to 12% downtime and during those months they invest € 9K in the continuous improvement tool ProMISe, including implementation and training. While their costs rise by € 9K their profit also rises by € 23K, increasing their net profit by a total of € 14K. An investment that pays itself back 2,5 times within a half a year!
No matter what scenario you are in, we invite you to use our Return On Investment calculator and see the effects of downtime reduction in your specific situation.
