ABB Survey Unveils INR 7 Million Per Hour Impact of Unplanned Downtime
Results from ABB’s recent survey, titled “Value of Reliability,” have highlighted the significant impact of unplanned downtime on Indian industrial businesses. The survey, conducted by Sapio Research in July 2023, collected responses from 3,215 plant maintenance decision-makers across various sectors, including metals, oil and gas, chemicals, energy generation, food and beverage, plastics and rubber, water and wastewater, rail, utilities, marine, and wind. The findings shed light on the current state of maintenance practices and the steps businesses can take to reduce unplanned downtime.
Key findings from the survey reveal that 88 percent of Indian industrial businesses experience unplanned outages at least once a month, compared to the global average of 69 percent. These interruptions cost the typical Indian business nearly INR 7 million per hour, in contrast to the global average of INR 10.3 million. Surprisingly, despite these costs, 19 percent of Indian businesses still rely on run-to-fail maintenance strategies.
Across the board, the data underscores the critical importance of equipment reliability and maintenance. Globally, 92 percent of respondents reported that maintenance has increased their uptime in the past year, with 38 percent experiencing an improvement of at least a quarter. Moreover, three-quarters of those surveyed stated that reliability positively influences their business reputation, financial performance, contract fulfillment, waste reduction, and the ability to secure repeat business. Reliability was rated as the top priority when purchasing new equipment.
Looking ahead, the survey reveals that 60 percent of respondents plan to increase their investments in reliability and maintenance over the next three years, with a third of them aiming to boost spending by more than 10 percent. Furthermore, 90 percent of respondents expressed interest in outcome-based maintenance agreements, in which operators pay service partners based on achieved outcomes, such as increased uptime or energy efficiency. This approach results in efficient and effective service delivery with predictable cash flow.
Speaking about the results of the survey, Amit Gupta, Division President, Motion Services, ABB India Ltd. said, “The study’s results clearly show that our industry often underestimates the real effects of unplanned downtime, which the survey supports strongly. This is an important moment for our industry to focus more on energy efficiency and understand how much downtime can impact us. It’s crucial that we invest in making things more reliable, use digital tools to make better decisions, and look to the future with an outcome-based approach. So, industrial businesses should move from a risky “run-to-fail” approach to a long-term strategy based on outcomes. This change will make things more reliable, improve the reputation of the business, make it more competitive, save money, and give peace of mind. This will allow businesses to concentrate on what they do best.”
The transition to this new outcome-based maintenance model not only helps industrial businesses meet incoming emissions targets and regulations in the battle against climate change but also addresses the industry’s growing skills gap as experienced technicians reach retirement age.
