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DOWNTIME COST CALCULATOR

Most plants underestimate downtime cost by 40 to 60 percent because they only count lost production. The hidden costs (idle labor, overhead, scrap on restart, emergency repairs) usually double or triple the number. This calculator shows you the full picture in 60 seconds.

INPUTS

Revenue the line generates per hour when running

Fully loaded hourly cost of operators idled during stops

Electricity, lease, depreciation allocated per hour

Total unplanned stops, breakdowns, and changeovers

Number of separate stop events monthly

Parts, contractors, and diagnostic time per stop

Defective product produced during ramp-up after a stop

ANNUAL DOWNTIME COST

$4,848,000

$404,000 per month · 26% is hidden cost beyond lost production

LOST PRODUCTION

$300,000

per month

IDLE LABOR

$48,000

per month

OVERHEAD

$24,000

per month

REPAIRS

$24,000

per month

RESTART SCRAP

$8,000

per month

26% IS HIDDEN COST

26% of your downtime cost is hidden, beyond just lost production. Top three contributors: Lost production ($300,000/mo), Idle labor ($48,000/mo), Overhead ($24,000/mo).

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FAQ

QUESTIONS PLANT MANAGERS ASK

WHAT IS A REALISTIC HOURLY PRODUCTION VALUE?

Use revenue per running hour minus variable cost. The simplest version is annual revenue divided by total scheduled run hours, then take 60 to 70 percent of that to net out variable cost. Revenue alone overstates the loss because materials and consumables you did not use during the stop should not count.

SHOULD I INCLUDE LABOR THAT IS REASSIGNED DURING DOWNTIME?

Only count the fully loaded hourly cost of workers who are actually idled. If a supervisor reassigns operators to cleaning, training, or another line, those hours are recovered and should not show up in idle labor cost. Be honest about how often that reassignment actually happens.

WHAT GOES IN OVERHEAD?

Electricity, lease, insurance, depreciation, and any fixed cost that runs whether the line is running or not, allocated per hour. Most plants land between $300 and $800 per hour of overhead on a single major line. Pull this number from finance; do not estimate.

IS REPAIR COST JUST PARTS?

No. Repair cost includes parts, emergency contractor or service calls, and the diagnostic time it takes to find the problem. A bearing replacement that costs $400 in parts can easily cost $1,500 once you add the maintenance tech hours and the after-hours service call.

HOW DO I TRACK DOWNTIME HOURS?

Operator capture at the machine, with reason codes. The Sharpen scrap and downtime tracking guide walks through it. Pair tracking with the OEE calculator to see how Availability shifts as you reduce stops. For a daily metric rhythm, see three numbers by 10am.

BUILT BY OPERATORS, NOT CONSULTANTS

The Sharpen platform covers the full operating system that brings downtime under control: structured tracking, daily Pareto reviews, weekly improvement projects, and the guides for each. The free 10-minute diagnostic scores your plant across all 10 pillars and produces a prioritized roadmap.
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