Production worked example

Downtime Cost with downtime of 8.75 hr: a worked example in production

What does the result look like when downtime reaches 8.75 hr? The full calculation is worked below with real intermediate numbers. Use when prioritizing maintenance, reliability, and bottleneck improvement work.

The inputs for this scenario

  • Downtime: 8.75 hr (raised for this scenario; the documented default is 3.5)
  • Output rate: 115 units / hr (unchanged)
  • Contribution per unit: 6.75 $ / unit (unchanged)
  • Standing labor cost: 240 $ / hr (unchanged)

Working through the calculation

  • Applying the documented formula (Lost units = downtime hours × output rate) to the inputs above produces each figure below.
  • At this operating point the engine returns 8,892 $ for downtime cost, the number this scenario is built around.
  • At this operating point the engine returns 1,006 units for lost units.
  • At this operating point the engine returns 6,792 $ for lost contribution.
  • At this operating point the engine returns 2,100 $ for standing labor.

How this compares with the baseline

  • Against the tool's baseline example, where downtime sits at 3.5 hr and the headline result is 3,557 $, this scenario comes in 150% above the baseline at 8,892 $.
  • A figure at this level is achievable when downtime is genuinely sustained, not just peaked for a shift. It captures direct margin and standing labor only — it ignores downstream effects like expedited freight, scrap from restart, penalty clauses and lost future orders, so treat it as a conservative floor.

Results at a glance

  • Downtime cost: 8,892 $ (headline result)
  • Lost units: 1,006 units
  • Lost contribution: 6,792 $
  • Standing labor: 2,100 $

Run it with your numbers

  • Every input above is editable in the live Downtime Cost calculator, which recalculates instantly and can be shared with the inputs intact.

Last reviewed 2026-05-12.