Downtime Rate

KPI Name

Downtime Rate

Alternative Names

Equipment Downtime Percentage

KPI Description

Measures the percentage of time production or operations are halted due to unplanned stoppages.

Category

Operations & Logistics

KPI Type

Quantitative, Lagging

Target Audience

Operations Managers, Maintenance Teams, Business Owners

Formula

Downtime Rate = (Total Downtime Hours ÷ Total Available Production Hours) × 100

Calculation Example

If a factory experiences 50 hours of downtime out of 1,000 production hours, Downtime Rate = (50 ÷ 1,000) × 100 = 5%

Data Source

SCADA Systems, ERP Systems, Maintenance Logs

Tracking Frequency

Weekly, Monthly, Quarterly

Optimal Value

Lower is better; under 5% is ideal.

Minimum Acceptable Value

A high rate suggests maintenance or equipment reliability issues.

Benchmark

Industry benchmarks: Manufacturing ~2-5%, Automotive ~3-6%, Food Processing ~1-3%

Recommended Chart Type

Bar chart (to compare departments), Line chart (to track trends)

How It Appears in Reports

Displayed in operational reports to assess machine reliability.

Why Is This KPI Important?

Indicates operational stability and equipment performance.

Typical Problems and Limitations

Unexpected failures can disrupt production and lead to financial losses.

Actions for Poor Results

Implement predictive maintenance, upgrade outdated equipment, improve staff training.

Related KPIs

Production Efficiency, Defect Rate, Supply Chain Efficiency

Real-Life Examples

A manufacturer reduced downtime from 7% to 3% by implementing IoT-based predictive maintenance.

Most Common Mistakes

Focusing only on downtime without ensuring cost-effectiveness of maintenance solutions.