🇦🇺Australia

Cost Overrun from Idle Equipment

1 verified sources

Definition

Longer cycle times increase inventory holding costs and reduce cash flow by necessitating higher stock levels to meet demand.

Key Findings

  • Financial Impact: AUD 20,000-100,000/year in excess inventory and storage for mid-sized plastics firm (2-5% of production costs)
  • Frequency: Ongoing per production cycle
  • Root Cause: Inefficient production processes and poor workforce training leading to delays

Why This Matters

The Pitch: Plastics players in Australia 🇦🇺 waste AUD 100,000+ annually on excess inventory from long cycle times. Automation of cycle optimization cuts storage and holding costs.

Affected Stakeholders

Inventory Manager, Finance Controller

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Financial Impact

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Current Workarounds

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Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

Capacity Loss from Extended Cycle Times

5.48% cycle time reduction equals ~18,000 extra parts/year (from 450,000 baseline); equivalent to AUD 50,000-200,000 lost revenue at AUD 10-20/part

Cost of Poor Quality from Cycle Imbalances

Scrap rate >4% equals AUD 30,000-150,000/year loss; 4-sec cycle delay adds 5% scrap risk

Cost of Poor Quality

AUD 20,000-100,000/year in material waste and rework (2-5% of production costs for mid-sized firm)

Waste from Trial-and-Error

AUD 10,000-50,000/year in scrapped materials and labor (1-3% of material costs)

Capacity Loss from Rework

AUD 15,000-60,000/year (40 hours/month downtime at AUD 100/hour machine rate)

PPAP-Bottlenecks und Freigabe-Verzögerungen

Logikbasiert: ca. AUD 50.000–150.000 entgangener Umsatz pro Jahr durch 1–2 Monate verspätete Serienfreigaben infolge unvollständiger/fehlerhafter PPAP-Sets; zusätzlich ca. 40–80 Maschinenstunden/Jahr ungenutzte Kapazität pro kritischem Projekt.

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