Cost saving calculation by Condition Monitoring Program

Cost saving calculation by the work orders generated by Condition Monitoring
A: Cost If any damage occures  without warning: (If OCM doesnot predict)	Downtime * Cost of Downtime/hr + Direct maintenance cost (unplanned & Unscheduled) + Potential damages
B: Actual cost of repair:  (If OCM predict)	Downtime (if any - should be fixed in scheduled shutdown) * Cost of Downtime/hr + direct maintenance cost (planned & scheduled) + Damages(= 0)
A- B	Cost of avoidance (Cost Saving)
Example:
If a coupling damage occurs without any prediction. The cost saving (cost of avoidance) can be calculated as mentioned below.
A: Cost If any damage occures  without warning: (If OCM doesnot predict)	Downtime * Cost of Downtime/hr + Direct maintenance cost (unplanned & Unscheduled) + Potential damages
Downtime* cost of downtime/hr= 8 hours (say) * 0 (As standby machine is available)=0 USD
Direct Maintenance cost ( cost of the coupling and labour hours (say 4 hrs) for replacing the coupling) =3000USD
Potential Damages= Cost of damaged bearings and the seals replaced during this opportunity and the extra labour cost (4hrs)= 4000USD
(associated damages since it is not predicted at an earlier stage)
Total Cost (A)= 0+3000+4000= 7000 USD
B: Actual cost of repair:  (If OCM predict)	Downtime (if any - should be fixed in scheduled shutdown) * Cost of Downtime/hr + direct maintenance cost (planned & scheduled) + Damages(= 0)
Downtime* cost of downtime/hr= 4 hours (say since only coupling is damaged) * 0 (As standby machine is available)=0 USD
Direct Maintenance cost (material cost and labour hours (say 4 hrs) for replacing the coupling only) =3000 USD
Damages= (No other damage occur since coupling damage is predicted before any further failure of other components)= 0 USD
Total Cost (B)= 0+3000+0= 3000 USD
Cost of avoidance (Cost Saving)= A-B= 7000-3000= 4000 USD