Operations Cost Calculator

DeFranco Performance Solutions

About this app

Are you losing money in your operations without knowing it?

The Operations Cost Calculator helps business owners, managers, and operations leaders quantify exactly how much operational waste is costing them using the proven Lean Six Sigma 8 Wastes framework.
Most businesses know something is wrong. Margins are shrinking. Productivity is inconsistent. Costs keep climbing. But without a number attached to the problem, it's impossible to justify change.

WHAT IT DOES
Enter your observations across the 8 categories of operational waste. (Defects, Overproduction, Waiting, Non-Utilized Talent, Transportation, Inventory, Motion, and Extra-Processing) and calculate your annual hidden cost impact. Every entry shows you the math, not just the result.

THE 8 WASTES — DOWNTIME

Defects — Rework, errors, and quality failures
Overproduction — Delivering more than the customer needs
Waiting — Idle time for staff and equipment
Non-Utilized Talent — Skill mismatch and under-tasking
Transportation — Unnecessary movement of materials, data, or people
Inventory — Annual carrying cost of excess stock or backlog
Motion — Unnecessary movement and searching
Extra-Processing — Doing more than the customer paid for

Each waste category includes a contextual insight, including Theory of Constraints for inventory, Critical to Quality, Delivery, and Cost frameworks for extra-processing, and flow principles for waiting and transportation.

KEY FEATURES

Instant dollar calculation across all 8 waste categories
Direct Impact vs. Capacity Value breakdown
Recovery Potential slider — see what recovering 10%, 20%, or 50% means in real dollars
Named observations — label each entry for your report
Ranked calculations page — wastes sorted by annual dollar impact with full formula transparency
Email your full analysis — complete with the math — directly from the app
Multiple currency support — USD, EUR, GBP, JPY, MXN, INR, CNY
Works offline — no account required, no login, no subscription
Data persists on your device between sessions

WHO IT'S FOR

Business owners and executives
Operations and general managers
Continuous improvement and Lean Six Sigma practitioners
Supply chain and logistics leaders
Healthcare, hospitality, and service industry operators
Retail and distribution managers
Operations consultants and business analysts
MBA students and business school faculty
Anyone responsible for efficiency, cost reduction, or process improvement

THE METHODOLOGY
The Operations Cost Calculator is built on DPS-Lean, a methodology developed by Jerry DeFranco, a 20-year defense and aerospace veteran, Lean Six Sigma Master Black Belt, PMP, and doctoral candidate. DPS-Lean integrates Theory of Constraints (identify the constraint), Lean Six Sigma (exploit and improve it), and Agile (execute improvements rapidly). It has been applied across manufacturing, defense, healthcare, and service industries.

READY TO RECOVER YOUR REVENUE?
Once you've quantified your waste, the next step is fixing it. DPS-Lean offers workshops, consulting, training, and Lean Six Sigma certification programs designed to turn your hidden revenue number into real bottom-line recovery.

Visit dps-lean.com to learn more or book a free discovery call.