Every manufacturing operation battles two profitability killers: downtime and material loss. Versich, your NetSuite Advanced Manufacturing experts, helps Florida and global manufacturers track these precisely in NetSuite for accurate COGS, variance analysis, and actionable insights.
Understanding the difference and how NetSuite captures each transforms vague cost overruns into targeted improvement opportunities.
Types of Downtime: Planned vs. Unplanned
Planned Downtime (Necessary Capacity Consumer)
Scheduled maintenance and equipment calibration
Changeovers between product runs/SKUs
Set up/cleanup between batches
NetSuite tracks via: Work Order scheduling + capacity planning
Unplanned Downtime (Biggest Profit Leak)
Equipment failures (mechanical/electrical breakdowns)
Material shortages (missing components/inventory)
Operator delays (training gaps, no-shows)
Quality holds (inspection failures, testing pauses)
NetSuite tracks via the Advanced Manufacturing Data Collection module
Types of Material Loss: Scrap, Waste, Rework
1. Scrap (Permanent Loss – Kiss It Goodbye)
Defective parts, contaminated batches, and damaged components are permanently removed from production.
2. Waste (Process Inevitabilities)
Standard losses inherent to manufacturing:
3. Rework (Not True Loss – Recovery Possible)
Critical distinction: Reworked materials re-enter production. NetSuite handles via separate workflows, not Material Loss tracking.
Why it matters: Poor classification = distorted inventory valuation and wrong profitability analysis.
NetSuite Work Orders & Assemblies: Your Tracking Foundation
Versich configures NetSuite Work Orders and Assemblies for comprehensive production tracking. While base Manufacturing lacks native downtime capture, Advanced Manufacturing unlocks enterprise-grade capabilities.
BOM-Based Variance Analysis
Implementing BOMs and WIP for Loss Calculation. Bills of Materials (BOMs) and Work in Progress (WIP) accounting work in tandem to help identify material waste by comparing expected versus actual usage.
Excess material usage: When components are used beyond their defined specification
Yield loss: Less finished product output than anticipated based on input volume
Standard vs. actual cost differences: The monetary impact of inefficient material use
Versich uses the WIP and Routings module to track these variances mid-process. This extra layer of insight helps catch issues like defects or required rework before final assembly.
Time: When the loss occurred
Loss Quantity: The number of units damaged, scrapped, or wasted
Loss Reason: Selected from your pre-configured categories
Asset Name: The equipment related to the incident
Employee: The individual logging the event
Standard Processing: Losses from expected elements like setup scrap or evaporation
Shop Floor Loss: Issues from mishandling, contamination, or user error
Quality Rejection: Material that fails inspection or quality control
Spoilage: Products that exceed usable shelf life
These inputs automatically update inventory and are reflected in manufacturing cost reports - giving you full visibility into the financial effects of production waste.
Configuring NetSuite for Capturing Labor Cost and Routing Losses. Labor can be a major cost in manufacturing, but it's common for businesses to track only the portion attributed to direct production. Versich recommends using NetSuite’s routing tools to break down exactly how labor time is allocated.
Setup Time: Preparation before actual manufacturing starts
Run Time: Time spent producing the item
Teardown Time: Cleanup or resetting machinery after the task
Queue Time: Delays between production phases
Operators can log hours for each step, and NetSuite flags differences between expected and actual durations. For example, if a step is budgeted for 2 hours but consistently takes 3, that trend could highlight a problem that needs addressing.
Rework Labor: Hours spent correcting mistakes or defective outputs
Idle Time: Delays caused by a lack of materials, tools, or direction
Indirect Labor: Time spent on support tasks like cleaning or maintenance that still affect output
With Advanced Manufacturing, Versich uses Labor Codes within the Data Collection module to tie these hours directly to specific steps. This gives a clearer picture of labor distribution rather than aggregating all cost data under a broad work order.
Advanced Scheduling and Capacity Planning to Minimize Downtime. While tracking downtime can help identify past issues, a proactive approach ensures better process stability. NetSuite’s planning tools let Versich fine-tune production schedules to avoid these issues before they arise.
OEE (Overall Equipment Effectiveness): A measure combining availability, performance, and quality
Machine Utilization Rate: How much equipment is used versus how much is available
Throughput: Number of units produced over a set period
Cycle Time: Time from the beginning to the completion of one production unit
NetSuite dashboards surface these metrics in real time, drawing directly from your downtime and material loss data to show how current operations stack up.
Preventive Maintenance Integration Tracking downtime uncovers patterns that are crucial for preventive maintenance planning. If a particular machine shows a steady climb in unexpected stoppages, you can plan maintenance during an upcoming scheduled break - before the issue escalates.
Creating monthly reports on downtime by asset
Isolating machines with increasing failure rates
Scheduling targeted maintenance during slower production times
Monitoring whether the service reduces further unplanned downtime
By following this method, Versich can track whether scheduled maintenance is effective - often seeing improvements within the first six months.
Custom Workflows and Automation for Reporting Downtime and Losses. Manual processes delay visibility and resolution. Versich uses custom workflows in NetSuite to automate how downtime and material losses are reported. Notifications and approval flows ensure that stakeholders know as soon as an issue arises, enabling faster response and more informed decision-making.
Automated Alert Configuration: Set up workflows that automatically trigger notifications when downtime or material loss crosses set limits:
Immediate alerts: Email production managers when downtime exceeds 30 minutes
Escalation workflows: Notify plant directors if downtime issues remain unresolved after 2 hours
Daily summaries: Auto-generate reports summarizing all downtime events from the previous day
These automations in NetSuite, configured by Versich, remove the need for manual communication and ensure accountability for addressing disruptions.
Custom Record Implementation: Some manufacturers need more than what NetSuite's standard functionality can track. Versich helps expand system capability through custom records. Common enhancements include:
Root cause fields that tie each issue to specific corrective actions
Images or attachments that document machine conditions
Multi-level approvals for costly scrap or loss events
Enhancing NetSuite this way turns the platform into a more complete operational tool that reflects real production needs.
Analyzing Downtime and Loss Data with NetSuite Saved Searches and Reports. Simply collecting downtime data without analyzing it only adds overhead. Through saved searches and reports, NetSuite transforms that data into insights you can act on.
Building Effective Saved Searches. Saved searches offer real-time, flexible reporting across all collected information. Key examples include:
Downtime by Asset (Monthly)
Results: Equipment name, total downtime hours, number of events
Filters: By date, plant location, downtime category
Use case: Spot recurring maintenance issues by asset
Downtime by Reason (Weekly)
Results: Downtime cause, frequency, total time lost
Filters: By timeframe, equipment group
Use case: Identifying which causes of downtime happen most often
Material Loss Trend Analysis
Results: Loss reason, quantity lost, cost impact, change over time
Filters: By item type, date range
Use case: Monitoring progress in waste reduction measures
Dashboard Configuration SuiteAnalytics dashboards allow KPIs and metrics to be visualized in real-time, supporting quicker decisions. Top configurations for manufacturers include:
OEE gauge: Real-time performance vs. production benchmarks
Downtime Pareto chart: Top sources of downtime visualized by frequency
Cost variance trend: Compares actual vs. standard production costs over time
Scrap rate by line: Reveals how different lines perform against each other
These dashboards help teams quickly isolate problem areas, then dig deeper using reports or saved searches. Versich configures dashboards to reflect what matters most to your operations.
Best Practices for NetSuite Manufacturing Downtime Management: Setting up the tech is only half the story. Seeing real improvements depends on strong processes and team buy-in.
Start Simple, Then Expand. Don’t overwhelm your users with dozens of downtime reason codes on day one. Starting with 5 - 7 broad categories leads to better adoption. Once patterns emerge, you can refine the options to match actual trends.
Enforce Real-Time Logging. Trying to log downtime at the end of a shift leads to poor accuracy - operators forget events or guess on duration. Instead, Versich recommends:
Installing barcode scanners at each operator station
Training operators to enter downtime data as it happens
Including logging accuracy in routine quality audits
Close the Feedback Loop Operators won't fully engage unless they see how the data is being used. Build trust in the process by:
Sharing weekly downtime reports with production teams
Highlighting improvements triggered by operator-reported issues
Acting on the data, like scheduling maintenance based on frequent downtime alerts
When the shop floor sees their input resulting in tangible improvements, participation climbs.
Conduct Regular Reason Code Reviews. Your downtime categories need to evolve with your operations. Review them monthly and ask:
Are too many events marked as "Other"? You may need new codes.
Are some codes never used? These might not reflect real production issues.
Are the codes too generic? It's time to split and clarify them.
Staying proactive with your taxonomy ensures the data remains clean, clear, and useful.
What sets Versich apart: Over 35 pre-built apps designed specifically for SuiteCommerce and NetSuite customization. Proven experience with manufacturers deploying WIP and routing functionality. Straightforward, real-world solutions rooted in Midwestern practicality - engineered to deliver beyond just the demo. Dedicated support through managed services that scale with your growing business
Our client Tripp Perkins shared his experience, saying: "Mitch has been super helpful in getting us back on track with NetSuite customizations/implementation of WIP/Routings. He is super knowledgeable, and it didn't take long to pick up on our processes and understand our manufacturing processes."
If you're ready to move beyond vague production metrics and start capturing detailed operational performance, Versich offers a complimentary consultation to assess your unique needs.
