calculating cost of down time...

[TMTS]

After spending most of today changing one track and then replacing the bearings for my front wheels on the other track, I had a question...

how do you calculate the cost of down time? I know my daily fixed cost for equipment payments, insurance, etc...then the cost of parts and repairs but how do you factor is the lost production? Look at profit per hour x 8 hrs.?

just trying to get a handle on down time...

thanks-

TMTS

 

[john_bud]

Yes, normal profit * 8 hours. Plus repair costs outside of normal maintenance.

You may have to add extra costs if you have any time based contracts and have to rent equipment to keep on schedule.