Work out downtime cost instantly with clear inputs, formula shown and shareable results.
Downtime costs the contribution on units never made plus the fixed costs that keep running while the line is stopped — labour on standby, energy, depreciation and overhead. Where the line is a bottleneck and output is sold, contribution loss dominates and dwarfs any maintenance saving.
Downtime cost
Lost units = downtime minutes x production rate; cost = lost units x contribution + downtime x fixed cost per minute
Only if overtime or expediting cost is incurred instead — count the make-up cost rather than the contribution. If demand is genuinely lost, count contribution.
Material and other variable costs are not incurred on units never made. Contribution is the true loss.