The formula to calculate the Downtime Cost (DC) is:
\[ DC = DT \times ARU \]
Where:
Downtime cost is a measure of the financial impact of downtime on a business. It is calculated by multiplying the total downtime by the average revenue per hour during uptime. This metric helps businesses understand the cost implications of downtime and can be used to justify investments in reliability and maintenance improvements.
Let's say the total downtime (DT) is 5 hours, and the average revenue per hour (ARU) is $1,000. Using the formula:
\[ DC = 5 \times 1,000 = 5,000 \]
So, the Downtime Cost (DC) is $5,000.