Component Supply Review
ALE downtime cost calculator

Alfred Lewis Engineering resource

Downtime cost calculator

Estimate the cost of a late or failed machined component. Use the result to decide which parts need drawing review, second-source planning, first batch qualification or planned repeat supply.

Start a component supply review Check supplier risk

1. Part and equipment

Use 1 if the part fails or runs short once a year.

2. Cost of one downtime event

Use contribution margin. Use revenue per hour only when no margin number is available.
Optional. The calculator separates part cost from downtime exposure.
Event cost = lost production + recovery labour + contractors + freight + scrap or rework + penalties + admin + replacement part cost.

3. Supply condition

4. Next action

High exposure parts should not stay in ad hoc quoting. Select the components that carry the most supply risk, then review drawings, materials, inspection points, supplier position and repeat demand.