What do breakdowns cost your shop?
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What breakdowns cost you
$8,088 a month
$97,056 a year
Pay for people who stand and wait: $2,688
48 hours x 2 people x $28
Profit lost on work that is gone: $2,400
24 hours gone for good x $100
Rush fees and repair bills: $3,000
12 breakdowns x $250
12 machines x 4 hours = 48 hours down a month. 50% of that is 24 hours gone for good.
Say regular upkeep cuts your breakdowns by 20%. That puts $1,618 a month back. That is $19,411 a year.
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Why this number is lower than most
We never count the same dollar twice. Wages count once. Profit counts after wages are paid.
Work you catch up later is not lost profit. That is what the gone-for-good box is for. Wages still count.
Only count machines that stop work. Leave out the spare that sits cold half the week.
Don't track downtime yet? Then these are guesses. That is the first thing worth fixing. Read the full math
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