What this calculator does
This calculator estimates the cost of recurring downtime by combining lost contribution during stopped time, labour paid during the stop and scrap or recovery cost per event. Use it to prioritise reliability work, not to overstate revenue that could not have been sold.
Define one repeatable failure mode
Calculate one fault, jam or stop category at a time so the result can support a specific corrective action.
- Use average or median stop duration
- Count events from a defined period
- Separate planned and unplanned stops
Value only real consequences
Lost contribution applies where output is constrained and demand exists. Labour and scrap may still apply even when production can be recovered later.
- Use contribution rather than selling price
- Include affected labour only
- Record overtime or recovery separately
Compare cost with corrective action
Use the annual estimate to justify root-cause work, spares, planned replacement, training or redesign. Verify the benefit after action.
- Record baseline frequency and duration
- Set a target reduction
- Track recurrence after repair
