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True Cost of Downtime |
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What is your True Cost of Downtime?
Losses in the areas of labor, revenue, and service all contribute to the total cost of an outage. A good starting point for evaluating these factors is to collect statistics on both the duration and associated costs of past outages as recorded by your accounting team. Use the following equation to calculate the average labor cost of an outage: LABOR COST = P x E x R x H
Where:
P = number of people affected
E = average percentage they are affected
R = average employee cost per hour
H = number of hours of outage As companies depend more and more on computer applications for day-to-day business operations, the cost of downtime has increased. The simplest way to calculate potential revenue losses during an outage is with the equation: LOST REVENUE = (GR x TH) x I x H
Where:
GR = gross yearly revenue
TH = total yearly business hours
I = percentage impact
H = number of hours of outage
Service costs are rarely zero. Of course, you don’t have to do this in your head? We will do it for you. Go to our micro site at www.truecostofdowntime.com and fill in the quick form. We will then give you a call to tell you exactly what it is costing you.
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