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Operational Scenario Model · Reviewed 30 October 2026

Shop Downtime & ROI Scenario Calculator

Measure technician manual search time, wrong part restocking penalties, and equipment downtime with your shop’s historical data. Model realistic financial scenarios without inflated industry claims.

Interactive Scenario Calculator

Calculator awaiting required shop inputs
(Changing currency clears monetary inputs)

Indicate whether your inputs are based on audited shop records or preliminary estimates.

1. Shop Labor & Information Search Friction

Volume is shop-wide. Technician headcount sets available capacity, not a multiplier for work orders.

Wage + benefits, not billing rate
2. Wrong Part Orders & Restocking Costs

Restocking penalty applies to returnable parts. Nonreturnable dead stock is entered separately.

% of spend returnable due to miss-spec
Typical supplier restocking charge
Incremental return courier/freight
Unreturnable parts scrap/loss
3. Equipment Downtime Friction

Total asset-hours machines sit idle awaiting documentation/parts. Must exclude labor already counted above.

Rental replacement, production delay (no double counting)
4. Scenario Assumptions & Investment Costs

Select a scenario preset or manually specify your target reductions and software budget.

Scenario Assumption Presets
Target search reduction
% of recovered time cutting payroll/overtime
Target wrong-part reduction
Target downtime reduction
Hypothetical software subscription budget
One-time onboarding, data migration, and training

Awaiting Shop Input Data

Complete the form on the left with your shop’s technician headcount, work orders, parts spend, and rate assumptions — or click Load Illustrative Example to view a sample scenario.

YOUR SHOP’S MANUALS & DATA

Ready to Cut Information Search Friction in Your Shop?

Rigovely indexes the heavy equipment service manuals, hydraulic schematics, and parts catalogs your shop already owns. Help technicians pull exact cited pages right at the machine.

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No credit card required. Evaluation scenarios are calculated locally and never transmitted to our servers.

Calculation Methodology & Formula Boundaries

Mathematical definitions, capacity constraints, and anti-inflation principles governing this model.

Three Cardinal Principles of This Tool

  • Volume is shop-wide: Total work orders represent the entire facility. Technician headcount defines total shop capacity, and is never used as a multiplier for repair orders.
  • Capacity valuation is not immediate cash savings: Reclaiming 240 technician hours provides productive bandwidth, but salaried payroll does not decrease unless overtime or outside contractor hours are genuinely avoided.
  • No double-counting downtime: Incremental equipment downtime costs must exclude technician loaded wages and parts expenditures already captured in labor and parts sections.

1. Labor Capacity & Search Friction Formulas

Manual information retrieval takes time away from actual wrench time. SMRP Metric 5.6.1 distinguishes active wrench time from waiting and preparation time. We calculate annual search friction as:

searchHours = shopWorkOrdersPerWeek × workingWeeks × searchPersonMinutesPerOrder / 60
availableHours = technicianCount × hoursPerTechWeek × workingWeeks
laborCapacityValue = searchHours × loadedLaborCostPerHour
recoveredHours = searchHours × laborTimeReduction
recoveredCapacityValue = recoveredHours × loadedLaborCostPerHour
laborCashBenefit = recoveredCapacityValue × laborCashRealization

If searchHours > availableHours, the engine halts calculations and reports a capacity limit violation.

2. Parts Wrong-Order Restocking Formulas

Ordering incorrect fittings, seals, or filters results in distributor restocking penalties (commonly 15%–25%) and freight costs. Nonreturnable dead stock is captured in a dedicated field to prevent double-counting:

annualWrongOrderSpend = monthlyPartsSpend × 12 × wrongOrderSpendShare
annualRestockingCost = annualWrongOrderSpend × restockingFeeRate
annualReturnCost = annualRestockingCost + 12 × (monthlyReturnFreight + monthlyNonreturnableWriteoff)
returnCashBenefit = annualReturnCost × returnCostReduction

3. Equipment Downtime Friction Formulas

As detailed in USACE EP 1110-1-8 , equipment costs differ between ownership, standby, and operating rates. Downtime in this calculator tracks out-of-service asset-hours:

annualDowntimeCost = equipmentDowntimeHoursPerMonth × 12 × incrementalDowntimeCostPerHour
downtimeCashBenefit = annualDowntimeCost × downtimeReduction

Unless the user explicitly checks downtimeCostsAreIndependent, downtime is reported as an isolated baseline and excluded from the total cash exposure to prevent double-counting technician labor.

4. Net Benefit, ROI, and Payback Timeline

The steady-state first-year model evaluates cash savings against total first-year software and implementation expenditures:

annualCashBenefit = laborCashBenefit + returnCashBenefit + independentDowntimeCashBenefit
firstYearCost = annualRecurringCost + implementationCost
firstYearNetBenefit = annualCashBenefit - firstYearCost
firstYearRoiPercent = 100 × firstYearNetBenefit / firstYearCost
monthlyNetBenefitBeforeSetup = (annualCashBenefit - annualRecurringCost) / 12
paybackMonths = implementationCost / monthlyNetBenefitBeforeSetup

When first-year cost is zero, ROI is reported as not-applicable (not infinity). When monthly net benefit is zero or negative, payback is reported as not-reached.

Shop Operational Assumptions & Local Measurement Guide

Rather than relying on generic industry claims, this reference outlines how to audit and measure each baseline metric within your own heavy equipment shop or fleet maintenance operations.

Operational MetricIllustrative Sample ValueBaseline Source & BoundariesHow to Measure in Your Shop
Search Person-Minutes per Repair Order30 minutes (Hypothetical example)

SMRP 5.6.1 identifies wrench time vs administrative/retrieval time, but does not provide a universal manual-search baseline.

Primary source documentation		Sample 10 work orders across 2 weeks. Time technician interval from opening ticket to finding exact schematic, torque spec, or wiring pinout.
Loaded Labor Cost per Hour$45/hour (Hypothetical example)

Represents internal shop wage + taxes + benefits + overhead, not customer door billing rate.

Divide annual payroll, technician healthcare, payroll taxes, and dedicated shop tooling allocation by total paid technician hours.
Wrong Order Spend Share5% of monthly parts spend (Hypothetical example)

Aftermarket and distributor returns vary heavily. Commercial guides report 3%–5%, but vary by machine model mix and technician experience.

Review credit memos and return packing slips over the past 90 days. Divide returned parts value by total gross parts spend.
Restocking Fee Rate20% fee rate (Hypothetical example)

Commercial parts supplier policies typically charge 15%–25% on standard returnable parts, excluding special orders or electrical items.

Examine supplier vendor terms and invoice debit adjustments for restock percentage penalties on returned line items.
Incremental Downtime Cost per Hour$120/hour (Hypothetical example)

USACE EP 1110-1-8 differentiates ownership, operating, and standby rates. Operating rates exclude redundant technician wages already counted.

Primary source documentation		Calculate revenue delay, standby crew costs, or rental replacement cost per hour for machine out-of-service time.
Labor Cash Realization Rate50% (Default is 0% until verified)

Capacity recovery does not automatically cut payroll for salaried technicians. Only overtime eliminated or avoided temp labor counts as direct cash savings.

Audit overtime logs and contractor invoices over the preceding 6 months to determine if reclaimed hours convert to avoided cash expenses.