How do you calculate the cost of an andon event?

Multiply units lost by their value, then add standing labor and escalation adders. Here 95 units x $6.40 = $608, plus $210 labor and $125 adders = $943 per event.

What is the cost per lost unit in an andon event?

Divide total event cost by units lost. In the example $943 / 95 units = $9.93 per lost unit, which is higher than the $6.40 throughput value alone because labor and escalation adders are spread across the lost units.

Why include standing labor in andon cost?

When the line stops, operators are paid but produce nothing. That $210 of idle labor is a real cash cost of the delay, on top of the $608 in lost throughput value, and it's the part managers most often forget.

How do I use this to justify faster andon response?

Price an event at $943, multiply by how many events a slow response causes per period, and compare against the cost of an extra responder or a paging system. If faster response prevents even a few $943 events, it often pays for itself.

What counts as an escalation or expedite adder?

Any incremental cost the event triggers beyond labor and lost units: scrap from a restart, premium freight to recover the schedule, or overtime to catch up. The $125 adder here captures those one-off recovery costs.

Is andon cost the same as downtime cost?

They overlap but aren't identical. Downtime cost usually focuses on lost throughput; andon response cost specifically isolates the delay between the signal and the fix, including the standing labor and escalation that the slow response uniquely drives.

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Andon Response Time Cost Calculator

Andon Response Time Cost puts a dollar figure on one andon event by combining the value of units lost during the response delay, the labor standing idle while the line waits, and any escalation, scrap, or expedite charges the event triggers. Lean and operations managers use it to justify faster response targets and to compare the cost of a slow andon against the cost of more responders or better escalation paths. It matters because andon delay is usually invisible on the P&L: a few minutes of a stopped line looks free until you add up lost throughput, paid-but-idle operators, and the downstream expedite to recover the schedule. Pricing one event makes the case for tightening response time concrete.

What this calculator does

Estimate the cost of delayed andon response from lost units, unit value, labor, and escalation adders.
a production manager needs to quantify the cost of slow response to line-down andon calls
It totals the cost of one andon event from lost-unit value, standing labor, and escalation adders, then divides by units lost for a per-unit figure.

Formula used

Andon delay cost = lost units × value per unit + standing labor + escalation adders
Cost per lost unit = delay cost ÷ units lost

Inputs explained

Units lost during andon delay:
Value per delayed or lost unit:
Standing labor during response delay:
Escalation, scrap, or expedite adders:

How to use the result

Use it when setting andon response-time targets or building the business case for additional responders or a faster escalation chain.
It prices a single representative event; multiply by event frequency, and recheck the inputs, before drawing annual conclusions.

Current U.S. benchmarks

The U.S. has 21,668 machinery manufacturing establishments employing about 1,086,146 workers (Census County Business Patterns, 2023).

Common questions

How do you calculate the cost of an andon event? Multiply units lost by their value, then add standing labor and escalation adders. Here 95 units x $6.40 = $608, plus $210 labor and $125 adders = $943 per event.
What is the cost per lost unit in an andon event? Divide total event cost by units lost. In the example $943 / 95 units = $9.93 per lost unit, which is higher than the $6.40 throughput value alone because labor and escalation adders are spread across the lost units.
Why include standing labor in andon cost? When the line stops, operators are paid but produce nothing. That $210 of idle labor is a real cash cost of the delay, on top of the $608 in lost throughput value, and it's the part managers most often forget.
How do I use this to justify faster andon response? Price an event at $943, multiply by how many events a slow response causes per period, and compare against the cost of an extra responder or a paging system. If faster response prevents even a few $943 events, it often pays for itself.
What counts as an escalation or expedite adder? Any incremental cost the event triggers beyond labor and lost units: scrap from a restart, premium freight to recover the schedule, or overtime to catch up. The $125 adder here captures those one-off recovery costs.

Last reviewed 2026-05-12.