This calculator can help you estimate the direct labor cost of machine downtime
and the cost of tracking downtime using conventional methods, such as, paper
reports or spreadsheets. Keep in mind that
the labor cost is not the only component of downtime costs. At the bottom of
this page, we present some of the other costs associated
with machine downtime.
Any variable changes will require a recalculation, click on the 'Recalculate' button.
Downtime Direct Labor Cost
Downtime Tracking Cost
$1,399.00
Potential Labor Savings Per Year
Reduce your downtime by using DowntimeDB and you can acheive the following savings!!!
(Direct cost of downtime X Actual Downtime Savings (%)) -
Cost of downtime tracking - Annual Cost of DowntimeDB
Example: ($741,000.00 * .1) - $14,820.00 - $1,399.00 = $57,881.00
| If you can reduce your downtime by |
Machine Downtime Savings (USD) |
Total Downtime Savings (USD w/DowntimeDB) |
| 10% |
$74,100.00 |
A savings of $57,881.00 per year!!! |
| 20% |
$148,200.00 |
A savings of $131,981.00 per year!!! |
| 30% |
$222,300.00 |
A savings of $206,081.00 per year!!! |
| 50% |
$370,500.00 |
A savings of $354,281.00 per year!!! |
| 75% |
$555,750.00 |
A savings of $539,531.00 per year!!! |
Other costs of downtime:
-
The cost of overtime:
The previous model only considers the time lost during normal (straight) time, there
might be additional costs if the downtime needs to be replaced with
overtime.
-
The cost of additional inventories:
Machine downtime also brings higher inventories due to the
difficulty of predicting machine availability. The inventories can be work-in-process and/or finished
products. Inventory costs can be calculated by considering the opportunity cost of the capital used and
calculating the loss from obsolescence and spoilage/breakage.
-
The cost of maintenance labor costs:
Additional maintenance personnel are sometimes used to fix the
machines that are down and minimize downtime.
-
The loss of revenue:
In situations where supply exceeds demand for the
products and there is no excess capacity, machine downtime can produce a
loss of sales. This can be observed when a customer’s order cannot be fulfilled because of the
requested delivery date. The additional cost of downtime would be the lost revenue minus the reduced
variable costs (energy, materials, etc.)
-
The additional costs needed to fix the machine:
One example is air freight for spare parts needed to
repair the machine.
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DowntimeDB
We offer a easy and inexpensive solution for your downtime tracking. We will work with
you to make your company a success.