Cutsforth Reliability ROI Calculator

Reliability ROI Calculator

Use this complimentary tool to quantify the business value of closing the gap between your current maintenance performance and industry best-in-class benchmarks.

Financial Parameters

The economic foundation of the calculation — cost of capital, asset value, and per-unit economics.

Cost of Capital (COC)

The cost your company pays to borrow money.

Sometimes termed the internal rate of return — a benchmark that compares projects against expected financial gain. Enter a value between 0.5 and 100.

%
Replacement Asset Value (RAV)

The cost to procure, install, and commission a replacement plant or equipment.

Also referred to as estimated replacement value. The dollar value required to replace the production capability of the present assets. Excludes the value of real estate or depreciation.

$
Revenue Per Unit (RPU)

Average sales price per unit produced and sold.

In dollars. The average sales price per unit that your company collects per unit of product produced and sold.

$
Cost of Goods Sold (COGS)

Total cost of a single unit produced.

The cost per unit produced including raw materials and energy used to run machinery.

$
Overhead Costs

Sales, marketing, administrative, facility & operator overhead.

Only include operator time to run machinery if available.

$
MRO Materials Value

Audited book value of maintenance, repair & operating supplies in stock.

Includes consignment and vendor-managed inventory, in all storage locations. Does not include production-related inventory such as raw materials, finished goods, or packaging.

$

Production Capacity

What your plant is engineered to produce, and what it actually delivered.

Engineered Capacity (CAPACITY)

Units that your plant can produce at 100% capacity.

The amount of product this plant or unit is engineered to produce at 100% availability.

units
Standard Units Produced (SUP)

Actual units produced — by number, weight, or volume.

Measured as a count, weight, or volume over the same period as the engineered capacity.

units
Maximum Available Hours in One Year

A year has 8,760 hours of possible availability.

Availability is a measure of when the asset is either running or capable of performing its intended function. Enter a value less than or equal to 8,760.

hours

Maintenance & Reliability

Total maintenance investment and how plant hours are consumed — idle, scheduled, and unplanned.

Total Maintenance Cost (TMC)

Includes operator maintenance activities.

All maintenance expenses for outages, shutdowns, or turnarounds, as well as normal operating times. Includes capital expenditures directly related to end-of-life machinery replacement. Does not include capital expenditures for plant expansions or improvements.

$
Idle Time

Hours an asset is idle or waiting to run.

The sum of hours when there is no demand and administrative idle time (e.g., not scheduled for production). Does not include downtime or no-handclock/no-raw-material conditions. Enter a value ≤ 8,760.

hours
Down Time — Scheduled + Unscheduled

Total hours the asset is down for maintenance or repair.

Scheduled downtime: planned weekly maintenance. Unscheduled downtime: repairs or modifications not on the weekly schedule.

hours
11 inputs · About 3 minutes to complete

Your Metrics vs. Industry Best-in-Class

Five derived reliability metrics calculated from your inputs, compared against industry best-in-class benchmarks. Mock values shown — wire to Gravity calculation fields in integration.

Uptime %
( Max HoursDown TimeIdle Time ) ÷ Max Hours × 100
Your Plant
Best-in-Class
97.0%
MRO Inventory as % of Replacement Asset Value
MRO ÷ RAV × 100
Your Plant
Best-in-Class
1.5%
Total Maintenance Cost as % of Replacement Asset Value
TMC ÷ RAV × 100
Your Plant
Best-in-Class
2.0%
Per Unit Maintenance Cost
TMC ÷ Standard Units Produced
Trend metric
Your Plant
Per-unit maintenance cost varies substantially across industries and product types, making a single industry benchmark misleading. This number is most useful as a trend measure — tracked quarter over quarter and watched for sustained improvement.
Maintenance Cost as % of Revenue
TMC ÷ ( Standard Units Produced × Revenue Per Unit ) × 100
Your Plant
Best-in-Class
3.0%
Estimated Annual Value Opportunity

The annual value of closing the gap between your current maintenance performance and industry best-in-class — achieved through a sustained reliability program, not a single project.

Sales — Current
At current availability
Sales — Improved
EBITDA — Current
At current maintenance cost
EBITDA — Improved

Current Performance

Annual Sales
EBITDA
Economic Value above COC

At Best-in-Class

Annual Sales
EBITDA
Economic Value above COC

See where Cutsforth can help your operation.

A short conversation with a Cutsforth reliability engineer is the starting point — a chance to review your results and identify how and where you can improve by working with Cutsforth's reliability program experts.

Results based on inputs from Step 1 and SMRP / ISO 55000 best-in-class benchmarks.

Best-in-class values are derived from Cutsforth's 35 years of reliability work across utility, oil & gas, and process industries, cross-referenced with SMRP and ISO 55000 reliability benchmarks. Results are directional and intended to support reliability program planning conversations.

ROI Calculator - Talk to an Expert

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