Jose Guillermo

"I've helped +150 factories calculate this number. Let's normalize having a loss. It's only an opportunity for improvement."

Jose Augusto Guillermo
Manufacturing Tech · 15+ Years On The Floor
Free Tool · Downtime Cost Calculator

Price your downtime

Hours are the same. The cost is not.

Two identical machines, the same one hour stop. On one it costs $500. On the other, nothing. Classify the machine first. The number follows.

🔒 Your numbers stay private · 2 minutes · No install

15+
Years in manufacturing tech
150+
Factories supported
5K+
Machines connected
Step 1 of 5
Step 1 of 5 · The Asset

Which machine or line are we pricing?

Name one specific asset. A plant average is not a number you can act on.

Please fill in both fields to continue.
Step 2 of 5 · Classification

Which bucket does this machine land in?

Every stop lands in one of three buckets. The bucket decides what it costs. Two questions, no finance model.

Question 1 · Demand
Did the stop cost you a sale?
If this machine ran more hours, could you sell everything it made? If it is sold out, every unit it did not make is a unit you never make back. That is margin, and it is gone.
Question 2 · Labor
Did it cost you labor?
Did you pay a crew to stand there while it sat, or pay overtime or an extra shift to catch the output back up? If a sister machine or a buffer covered it and nobody waited, the answer is no.
This machine is
·
Please answer the questions above to continue.
Bucket 3 · Nothing At All

This one is worth nothing. That is the right answer.

No lost sale. No lost labor. Redundancy absorbed the stop and the line kept moving. The honest cost of this downtime is zero, and putting a dollar figure on it would only make your improvement plan worse.

Most calculators will happily hand you a big scary number here. That number is the reason plants spend a year fixing a machine that was never costing them anything.

Every hour you spend on a bucket 3 machine is an hour stolen from your bottleneck.

Go here instead · 01
Your bottleneck. The machine whose output you could sell every unit of. That is the only machine where recovering uptime turns into revenue. Careful though: it is often not the one everyone assumes. Follow the downtime data, not the reputation.
Go here instead · 02
The process with the most labor standing around when it stops. No lost sale, but a crew on the clock. That one prices out on labor and it is usually bigger than people expect.
Step 3 of 5 · Working Schedule

What is the schedule on this line?

This sets total available production hours per month, the baseline the downtime comes out of.

Please select one option in each column.
Step 4 of 5 · Availability

What is the average uptime on this machine?

Uptime = the share of scheduled hours it is actually running. A rough estimate is fine. A directional number beats no number.

Please select or enter your uptime percentage.
Step 5 of 5 · Margin Lost

What does one unit earn you?

You classified as bucket 1, so we value the product. Every unit it did not make is a unit you never sold.

Use margin per unit, not sale price. The materials for the units you never made are still sitting in your warehouse, so charging yourself full price overstates the loss. If you only know the sale price, take your gross margin percentage of it.
Please fill in both fields.
Step 5 of 5 · Labor Lost

What does the waiting crew cost you?

You classified as bucket 2. You did not lose the sale, so valuing the product would overstate it. We price the labor instead.

I know my hourly labor cost
Enter the fully loaded crew cost per hour and I will run it straight through.
Help me calculate it
Give me headcount, wage and country. I will add employer burden and work out the crew cost.
Please select one of the options above.
Step 5 of 5 · Labor Lost

Fully loaded crew cost per hour

For · what the whole crew on this machine costs you for one hour, wages plus employer contributions.

Please enter a valid hourly cost.
Step 5 of 5 · Labor Lost

Tell me about the crew on this machine

For · I will take wages and add employer burden to get the real hourly cost of people waiting.

What this does and does not include. It counts wages plus employer social contributions, benefits and payroll taxes, because that is what you actually pay while the crew waits. It does not add materials, energy or overhead. On a bucket 2 machine those costs move with the output to the shift that catches it up, so charging them here would double count.
Please fill in all fields to continue.
Last step

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