How it is calculated
What counts as a loss when the machine stops?
The units the machine would have produced in that time and did not. That is why the calculation starts from two figures you already know: how many units your machine puts out per hour and how much each unit leaves you.
What is the exact formula?
Monthly loss = units per hour × profit per unit × hours of downtime per day × production days per month. The annual figure is that same number multiplied by 12. And what shows up as recoverable is the monthly loss multiplied by the reduction percentage you pick on the last slider.
Why does the figure usually come out higher than expected?
Because the calculation multiplies by the production days in the month. A stop that looks minor within a shift —half an hour, forty minutes— becomes dozens of hours a month once it repeats every day. It is the same effect that makes short stops invisible when they are written down by hand at the end of the shift.
What does this estimate leave out?
It leaves out wasted raw material, rework, overtime and missed deliveries. It only takes the production that did not happen, which is the part you can calculate with figures you already have at hand.