How do you calculate the cost of unplanned downtime?
The short answer
Cost of downtime/hour = lost production value + idle labor + scrap/restart + expedite/penalty costs. Many plants count only lost output and understate the real number — which is usually far higher once labor, scrap and knock-on delivery costs are included.
What to include
- Lost production value — units not made × contribution margin.
- Idle labor — operators paid while the line is down.
- Scrap & restart — material lost and ramp-up waste.
- Expedite & penalties — overtime, freight and late-delivery costs.
Why it matters — and how Praxie helps
Knowing the true hourly cost is what justifies investing in prevention. Praxie captures downtime and its causes and quantifies the impact, so you can target the losses that cost the most — provable on your data in a free micro-pilot.
See what AI-powered maintenance could look like for your equipment.
We’ll build you an AI-powered micro-pilot at no cost $0
1. Review your current processWe’ll look at your work orders, downtime and maintenance data today.
2. Map the AI maintenance workspaceWe’ll show where Praxie can predict, schedule and analyze downtime.
3. Define a fast micro-pilotYou’ll get a working maintenance micro-pilot in days.