Category: Guides

How-to guides to tackle specific challenges. Guides indicate audience relevance, from newcomers to advanced professionals.

  • [Guide] How to Reduce Machine Downtime: Strategies for SMBs

    Introduction: You don’t need to keep suffering from reactive downtime

    For small and medium-sized manufacturers (SMBs), every minute of downtime means lost revenue and missed delivery deadlines. While larger manufacturers may have redundancy and backup equipment, SMBs rely on keeping each machine up and running.

    The stakes are high:

    Poor maintenance strategies can reduce an asset’s overall productive capacity by 5% to 20%. [In total,] unplanned downtime is costing industries an estimated $50 billion each year.

    Source: Deloitte (2024)

    No wonder. Each hour of unplanned downtime can cost $25,000 – $500,000, depending on company size and output.

    But there’s good news too. With the right strategies, manufacturers can drastically cut machine downtime, driving greater efficiency, profitability, and customer satisfaction.

    Here, we offer you an overview of proven, actionable ways to reduce downtime and raise productivity, based on real-world case studies, data, and current good practices.

    Preventive Maintenance: Stopping Problems Before They Start

    A preventive maintenance (PM) program can help you ensure that machines are serviced on a regular schedule and before a breakdown can occur.

    You may already do that. If not, it’s definitely worth your while!

    The specific impact of preventative maintenance can vary: It depends on the condition and age of your machines, the challenges posed by your factory environment (e.g, dust) and manufacturing processes, and more. In other words, your results will be unique to you.

    But as one example of the impact that PM can achieve, consider that asset management company Brightly found a meaningful 12-18% cost reduction from PM programs, at a 400% return on investment (ROI). And zooming in from summary data to a specific company: A manufacturer in Alabama (USA) that used a digital CMMS (Computerized Maintenance Management System) as the heart of a maintenance program saved $10,000/ month in line stoppages within their first year of their PM program.

    How to Get Started

    • Identify your most critical equipment.
    • Set up a maintenance calendar based on manufacturer specs and operational data.
    • Use a simple computerized system (CMMS) or even a spreadsheet to log completed maintenance.

    Predictive Maintenance: Leveraging Real-Time Data

    Predictive maintenance (PdM) goes one step further.

    It uses sensors and data analytics to predict failures before they happen, often using vibration analysis or temperature readings. PdM can help companies achieve significant savings ROI, via a variety of metrics.

    For example, on the high end, Georgia Pacific achieved a 30% reduction in unplanned downtime. More comprehensive research by PwC puts the average cost reduction impact closer to 12%. But cost reduction isn’t everything. Add in benefits related to uptime, reduced EHS risks, and longer asset life (as the same PwC study found), and it all still sums up to a whopping impact.

    But you need to watch out. Such powerful technology can (but need not) come at a price. Researchers from General Motors, for example, have warned that

    “developing the technology required for predictive maintenance can be an expensive undertaking, requiring many parts, months of data collection, and possibly years of engineering effort. It is critical to understand the expected return on investment for developing such a project.“

    Source: Annual Conference of the PHM Society (2021). Italics added

    Luckily, the researchers’ warning also contains a workable solution: What takes long and can get expensive is the development of PdM technology. If you can find existing solutions that are compatible with your incumbent systems and don’t cause unforeseen hidden costs, you can achieve predictive maintenance with a reasonable payback period for your investment.

    How to Get Started

    • Start with your most failure-prone machines or those that cause the most stress to recover, should you suffer from unplanned downtime (e.g., due to long parts lead time or particularly expensive repais).
    • Use affordable wired or wireless sensors, and a basic dashboard to track data.
    • Look for trends like rising vibrations or temperatures, and act before a breakdown.

    Operator Training and Autonomous Maintenance

    Did you know that human error is linked to roughly 40% of downtime events in manufacturing?

    As a result, you can achieve measurable impact from upskilling operators to recognize early warning signs and empowering them to perform basic maintenance (“autonomous maintenance”).

    Some of that benefit will result from better machine uptime and less reactive maintenance. But of course, you may also reduce OSHA incidents when machines don’t fail suddenly. Given that such an incident may set you back $40,000 or more in direct and indirect costs, that too can add up (not to mention the human impact of your team feeling confident and safe at all times).

    How to Implement

    • Train operators on daily inspection and cleaning steps.
    • Encourage reporting of abnormal sounds or vibrations immediately.
    • Use job aids or checklists on each machine.

    Managing Spare Parts & Inventory

    Having the right spare parts in stock is crucial to minimizing downtime. For example, a MaintainX survey of 1,100+ MRO professionals identified better spare parts management as the primary factor for 59% of companies that reduced their unplanned downtime in 2024.

    Rising part and shipping costs, a problem for 72% of respondents in the MaintainX study, makes smart MRO inventory management even more critical: As the price of spare parts goes up, you still want to hold the ones you truly need, but nothing more.

    How to Implement

    • Define your critical spare parts list and set minimum re-order levels.
    • Use labeled storage and digital or paper tracking.
    • Audit usage every 6-12 months.

    Digital Monitoring Systems

    Platforms like SCADA (Supervisory Control and Data Acquisition) or affordable cloud-based dashboards make real-time production and machine status visible to your whole team. Many plants already have SCADA systems. And those may already display machine statuses. So for many companies, it’s more a matter of integrating new solutions with existing ones, rather than starting from scratch.

    Done well, either solution lets you respond faster to issues and improve long-term decision making too. This integration takes proper care. Incorrectly-configured SCADA system connections to cloud solutions can create unsecured, exposed internet connections. But done right, you can make your insights more accessible, scalable, and flexible to use.

    In other words, these systems don’t cut costs or improve OEE on their own. But they make it easier for your team to understand and monitor everything that’s going on in your plant and reach insights that in turn do improve your performance.

    How to Start

    • Evaluate inexpensive monitoring systems compatible with your machines.
    • Pilot on one line or work center first.
    • Check for compatibility with your existing systems, to avoid “SaaS bloat” (i.e., a patchwork of many incompatible solutions).
    • Over time, build habits and eventually a culture in which your team uses data to prioritize future improvement efforts.

    Conclusion: You, too, can reduce machine downtime!

    Even small changes in your downtime strategy pay big dividends. By combining regular preventive maintenance, predictive analytics, skilled operators, well-managed spares, and digital monitoring, small and mid-sized manufacturers can build operational resilience and unlock greater productivity that’s on par with any major corporation.

    In other words: Combine solutions. Each can contribute its own strength to great OEE, more so than any “silver bullet” can ever hope to do on its own.

  • [Guide] What Is Machine Monitoring, and Why Does It Matter

    [Guide] What Is Machine Monitoring, and Why Does It Matter

    Introduction

    If you’re running a small or medium-sized manufacturing operation, you’ve likely heard about machine monitoring. But what exactly is it, and why should you care? 

    Simply put, machine monitoring is your direct window into how your equipment is performing, minute by minute. It’s the difference between guessing what’s happening on your shop floor and knowing for certain.

    Machine monitoring gives small manufacturers the same visibility into operations that was once only available to large enterprises with massive budgets. It’s not just about tracking when machines are running or stopped anymore—it’s about understanding why, predicting what might happen next, and making smart decisions based on real data, not hunches.

    In this guide, we’ll break down what machine monitoring is in practical terms, show you how it works without the technical jargon, and explain why it matters especially for smaller operations where every minute of downtime hurts your profit.

    What Is Machine Monitoring?

    Machine monitoring is the process of collecting, analyzing, and acting on data from your manufacturing equipment in real time. It’s like having a health monitor for each of your machines that constantly checks vital signs and alerts you to any issues before they become major problems.

    At its core, machine monitoring uses sensors and connections to your existing equipment to gather information on:

    • When machines are running versus sitting idle
    • The actual length of production cycles compared to expectations
    • Why downtime occurs and how often
    • Which machines might soon have maintenance needs
    • How your overall production efficiency stacks up

    The beauty of modern machine monitoring is its simplicity. While the technology behind it is sophisticated, using it doesn’t have to be complicated. Today’s systems are designed to be user-friendly, offering clear dashboards that show you exactly what you need to know without requiring an engineering degree to interpret.

    For small manufacturers, machine monitoring isn’t about collecting data for data’s sake. It’s about getting practical insights that help you make better decisions about scheduling, maintenance, staffing, and quoting new jobs with confidence.

    Why Does Machine Monitoring Matter for Small and Medium Manufacturers?

    Small and medium manufacturers face unique challenges that make machine monitoring particularly valuable:

    Doing More With Limited Resources

    Unlike large corporations, you don’t have excess capacity sitting idle. When a machine goes down unexpectedly, it immediately impacts your delivery schedule. Machine monitoring gives you early warning of potential issues so you can address them before they cause delays.

    For example, vibration analysis might detect a bearing that’s starting to wear before it fails completely. This lets you schedule maintenance during planned downtime rather than suffering through an emergency repair that stops production entirely.

    Making Data-Driven Decisions

    How long does a typical job really take on your shop floor? Without monitoring, you’re often relying on estimates or operator-reported times that may not capture the full picture.

    With machine monitoring, you know exactly how long similar jobs have taken in the past, allowing you to quote new work more accurately. This means better margins on jobs and more realistic delivery promises to your customers.

    Identifying Your True Capacity

    Many small manufacturers are actually running at a fraction of their potential capacity without realizing it. Short stops, slow cycles, and inefficient changeovers eat away at productive time.

    Machine monitoring reveals these hidden capacity killers. One small machining company discovered through monitoring that they were losing over 20 hours of production weekly to short, unrecorded stops. Addressing these issues was like adding another machine without the capital expense.

    Improving Without Expanding

    Before investing in new equipment, it makes sense to maximize what you already have. Machine monitoring shows you exactly where to focus improvement efforts for the biggest return.

    A producer of aerospace parts in Missouri had set a goal of raising their machine utilization, so they’d be running at least 65% of their staffed time. Using machine monitoring in combination with Lean methodology, they reported “an easy 15% or more improvement in utilization.”

    Success factors

    You may have noticed it already in the case study above. Machine monitoring is a tool in your belt. But how you use it is up to you. Just like the manufacturer from St. Louis that we just described, you need to:

    • Set specific, meaningful goals: You can pursue many kinds of “improvement.” But not all of them will yield equal business benefits in your specific situation. The manufacturer in our example focused on utilization, which mattered most to them. They also set their goal at an attainable level. For comparison, at a rule of thumb level, a 20-30% improvement would be very good for most operations optimization initiatives. So our example manufacturer’s 15% improvement from limited effort is impressive.
      Setting “SMART” goals is often seen as a gold standard for setting such goals. But be sure you don’t get so enamored with precision that you lose the view of the big picture. For example, the aerospace company’s goal of “65% utilization” is quite simple. But it still set an aggressive standard that was meaningful for them.
      What will most move the needle for you? What degree of improvement is realistic in your context?
    • Build capabilities, not just tools: It’s perfectly human to buy new tools and assume that they will yield results on their own. But you need complete capabilities and put in hard work to achieve the desired results. The aerospace manufacturer from our example used machine monitoring to generate insights as well as Lean methodology to make use of the lessons. And all of that is only possible if you have people who can do this sleuthing and have sufficient time and authority to do the work properly.

    How Machine Monitoring Actually Works

    Let’s demystify how machine monitoring systems actually capture and process information from your equipment:

    1. Data Collection: The Foundation

    Machine monitoring starts with connecting to your equipment. There are typically two approaches:

    • Direct integration: For newer CNC machines and equipment with built-in computer controls, machine monitoring systems can often connect directly to read operational data. This might use standard protocols like MTConnect or OPC-UA that many modern machines support.
    • Sensor-based monitoring: For older equipment without built-in data outputs, simple sensors can be attached to monitor power usage, vibration, temperature, or simply whether a machine is running. These retrofit solutions make it possible to include all your equipment in your monitoring system, regardless of age.

    The good news? You don’t need to replace your existing machines to start monitoring them. Most small manufacturers use a mix of both approaches depending on their equipment.

    2. Data Transmission: Getting Information Where It Needs to Go

    Once collected, data needs to reach your monitoring system. This typically happens through:

    • Wired connections: Traditional ethernet networks within your facility
    • Wireless transmission: WiFi or cellular connections for flexibility
    • Edge devices: Small computing devices that sit near your machines to pre-process data

    Most systems today use secure cloud storage, meaning you can access your machine data from anywhere, whether you’re on the shop floor or checking in from home after hours.

    3. Data Analysis: Turning Numbers Into Insights

    This is where machine monitoring really shines. Modern systems don’t just collect data. They analyze it to:

    • Calculate Overall Equipment Effectiveness (OEE) to show your true productivity
    • Identify patterns in downtime or quality issues
    • Detect when machine performance is starting to drift from normal
    • Create performance comparisons across different shifts, operators, or job types

    The analysis happens automatically, meaning you get useful information without having to spend hours crunching numbers yourself.

    4. Visualization and Alerts: Making Data Usable

    Finally, the system presents information in ways that make sense:

    • Real-time dashboards showing current machine status across your shop
    • Historical reports to spot trends and improvement opportunities
    • Automatic alerts when issues arise, delivered by text, email, or app notifications
    • Performance comparisons against goals you’ve set

    These visualizations and alerts turn complex data into clear action items for your team, whether it’s addressing a machine that’s down, shifting work to underutilized equipment, or recognizing which jobs consistently run efficiently.

    Key Features to Look For in Machine Monitoring Systems

    Not all machine monitoring solutions are created equal. Small manufacturers should look for these essential features:

    Easy Implementation

    The best systems for small manufacturers offer:

    • Quick setup without extensive IT requirements
    • Ability to start small and expand over time
    • Minimal disruption to ongoing operations
    • Clear implementation support and training

    User-Friendly Interfaces

    Look for:

    • Dashboards that anyone in your shop can understand at a glance
    • Mobile access so you can check status from anywhere
    • Customizable views that highlight what matters most to your operation
    • Visual trouble indicators that make problems immediately obvious

    Flexible Connection Options

    Ensure the system can:

    • Connect to a wide range of equipment types and ages
    • Work with both modern and legacy machines
    • Offer retrofit options for older equipment
    • Expand with you, as you add or upgrade machines

    Actionable Intelligence, Not Just Data

    The system should provide:

    • Clear reasons for downtime, not just duration
    • Trends that help predict and prevent future issues
    • Comparisons against your defined targets
    • Practical recommendations for improvement

    Cost-Effective Scaling

    Look for pricing that:

    • Starts affordable for small operations
    • Scales reasonably as you grow
    • Delivers clear ROI within months, not years
    • Doesn’t require expensive IT infrastructure

    Real Benefits Small Manufacturers Are Seeing

    Machine monitoring isn’t just theory. It’s delivering measurable results for small manufacturers across industries:

    Reduced Downtime

    A contract manufacturer in Michigan reported a 37% reduction in unplanned downtime within three months of implementing machine monitoring. By addressing the top three downtime reasons identified by their system, they recovered over 400 production hours annually.

    Improved Utilization

    A precision parts maker discovered through monitoring that their most expensive CNC machines were actually running for just 35% of available time, far below industry benchmarks. After implementing changes based on monitoring data, they increased utilization to over 60%, effectively adding capacity without buying new equipment.

    Better Quality Control

    By correlating machine performance data with quality metrics, a small aerospace parts supplier identified specific machine conditions that predicted quality issues. Addressing these conditions before they affected parts reduced their scrap rate by 23%. 

    Enhanced Maintenance

    Rather than performing maintenance on a fixed schedule, many small manufacturers now use monitoring data to perform maintenance exactly when needed. One company extended the life of expensive tooling by 40% while simultaneously reducing emergency repairs by 65%.

    Competitive Quoting

    With accurate data on true production times, small manufacturers can quote jobs more precisely. A custom fabricator attributes winning 15% more competitive bids to their ability to quote jobs based on actual production data rather than estimates.

    Getting Started: First Steps Toward Implementation

    If machine monitoring sounds valuable for your operation, here’s how to begin:

    1. Define Your Goals

    Start by identifying your biggest pain points:

    • Are unexpected breakdowns (i.e., reactive maintenance) disrupting your schedule?
    • Do you suspect machines sit idle more than they should?
    • Are you struggling to meet production quotas and delivery dates?
    • Do you question whether you’re getting maximum value from your equipment?

    Your specific challenges will guide which aspects of machine monitoring to prioritize.

    Consider setting “SMART” goals for your team, as long as the resulting precision clarifies without causing analysis paralysis.

    2. Start Small But Think Big

    You don’t need to monitor every machine on day one:

    • Begin with 2-3 critical machines that impact your throughput most
    • Choose equipment that represents different machine types on your floor
    • Select machines with known issues that you want to address
    • Pick a work center that’s a bottleneck in your process

    This focused approach lets you learn the system and demonstrate value before expanding.

    3. Involve Your Team Early

    Machine monitoring works best when your team embraces it:

    • Explain how it will make their jobs easier, not monitor their performance
    • Include operators in the implementation process
    • Use their knowledge to help interpret initial data
    • Share wins and improvements the system helps identify

    When operators see monitoring as a tool that helps them succeed rather than a way to watch over them, adoption becomes much smoother.

    4. Establish Baseline Metrics

    Before making changes, use your new monitoring system to establish current performance:

    • Document current OEE (Overall Equipment Effectiveness)
    • Track typical downtime causes and durations
    • Measure average setup times
    • Record standard cycle times for common jobs

    These baselines give you a starting point to measure improvements against.

    5. Act on What You Learn

    The most important step is using your new insights to drive action:

    • Address the top three downtime causes revealed by your data
    • Adjust maintenance schedules based on actual machine conditions
    • Re-allocate work to maximize utilization across all equipment
    • Update quoting standards based on real production times

    Machine monitoring delivers value only when you use the information to make changes.

    Conclusion: Machine Monitoring Is No Longer Optional

    Yes, even for smaller manufacturers who compete in today’s market, machine monitoring has shifted from a nice-to-have technology to an essential operational tool.

    When larger competitors optimize every aspect of their production using sophisticated data, running blind puts smaller operations at a significant disadvantage.

    The good news is that machine monitoring systems have become more affordable, easier to implement, and specifically designed for small to medium manufacturers. The investment typically pays for itself within months through improved utilization, reduced downtime, and better decision-making.

    Most importantly, machine monitoring gives you certainty in an uncertain world. Instead of wondering what’s happening on your shop floor or why you’re missing delivery dates, you’ll know exactly where you stand, why issues occur, and what to do about them.

    In manufacturing today, the difference between thriving and merely surviving often comes down to how well you understand your own operation. Machine monitoring provides that understanding in real time, giving even the smallest manufacturers the insights they need to compete and win.