Cost due to Damage to Equipment

Cost due to Damage to Equipment, Property etc.

• Tooling may have to be redesigned, adding cost.
• Cost due to reduced output and delays for rescheduling.
• Direct loss of equipment or property which has to be repaired or replaced.
• The damaged equipment/machinery remaining out of operation increases overhead cost.
• The loss may also occur due to damage to system, plant, facility or material.
• The damaged equipment operates below par.
• Loss due to reduction in production.