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Systems downtime expense calculator
- Originally Published:
- May 2019
When computer systems won’t work, business grinds to a halt—and that costs your enterprise money. With the help of this tool, you can estimate just how much each downtime incident costs.
From the calculator instructions:
When to use this tool
Well, maybe business does not come to a complete halt, but enough productivity can be lost to make estimating the cost of each incident a necessity. That’s the idea behind this Systems Downtime Expense Calculator, which helps you evaluate the cost of downtime based on the reliance of your business on certain key systems.
The heart of this tool is the Assumptions tab, which asks you to provide the amount of productivity that will be lost by job category when certain key systems fail. For example, if your company’s financial systems fail, the tool makes the ballpark assumption that your executive team will suffer a 50% decrease in productivity. However, it assumes that the same system outage would have only nominal impact on warehousing, IT administration, and most other job categories.
Obviously, your assumptions are going to vary from ours, or those of any other enterprises, for that matter. That’s why the productivity levels on the Assumptions tab are fully editable. We’ve included the placeholders for custom internal systems and job categories we may have overlooked. The tab also asks you to provide average hourly cost for staff in various job categories.
Basic Calculations tab
With this information stored in the Assumptions tab of the tool, creating quick snapshots of the cost of downtime on the Basic Calculations tab is easy. Simply use the check boxes on the left to denote the type of system failure suffered and then enter the number of affected staffers in each job category, marked in blue. We’ve also included tallies for more intangible costs, such as lost sales, and entries for the cost of recovering a failed system.
The net cost of your downtime incident is reported in the upper-right corner on the Basic Calculations tab.
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