HIDDEN CAPACITY CALCULATOR

What is your hidden factory worth?

Four rough numbers, about a minute. Ballpark is fine. Nothing you enter leaves this page.

Annual sales

Your top line, roughly.

How much of scheduled time your key machines make good parts

Not sure? Most plants that haven't measured are near 60%.

Inventory on hand

Raw material, WIP and finished goods, at cost.

Scrap and rework, as a share of sales

Include remakes, sorting and returns if you track them.

ANNUAL SAVINGS WITHIN REACH

a year, from trimming inventory and halving scrap and rework. Plus in cash freed up, once.

INVENTORY

a year in carrying cost from a 20% inventory reduction.

QUALITY

a year if scrap and rework are cut in half.

CARRYING COST TODAY

a year just to hold what's on your shelves now, figured at 25% of inventory value. How we figure it

ROOM TO GROW

in added sales capacity from a 10-point gain in machine effectiveness, without new equipment or a shift, if you can sell the extra output.

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HOW WE GOT THESE NUMBERS

These are broad industry benchmarks applied to your inputs, not a diagnosis of your plant. Real numbers come from the floor.

Room to grow: a 10-point gain in OEE (capped at the ~85% world-class mark), applied to today’s sales. It only becomes revenue if you can sell the extra output. Typical plants run near 60% OEE (Vorne / OEE.com).
Carrying cost: 25% of your inventory value, every year. That covers the cash tied up on the shelf, the floor space, handling and equipment, insurance and taxes, and stock that goes obsolete, damaged or missing. 25% is the midpoint of the 20–30% range in standard supply-chain references (ASCM/APICS).
Inventory savings: that same 25% applied to a 20% inventory reduction. The cash freed up is the 20% itself, a one-time gain.
Quality: uses only your own scrap-and-rework figure. Total quality-related costs often run far higher, 15–20% of sales at many companies (ASQ).
Not included: overtime, expediting, waiting, motion and the customers you lose. Those rarely show up on a P&L line.

FREE · PRINTABLE

The same form I use on client floors, plus a one-page guide to running your own 30-minute waste walk this week. Print it, grab a supervisor, go.

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