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Simple Calculation for Value of Availablity

Posted on 2016-10-16
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Last Modified: 2016-10-18
I'm trying to put together a simple calculation for Availability, comparing Current State to Future State.  Here's my mathematical challenge.  How do I calculate the cost of a lack of availability in the model attached?  I'm using the reciprocal of Uptime and the probability of failure against the average cost of a failure.  Is this acceptable or correct?

Thank you for taking a look and commenting in advance.

B.
Availability.xlsm
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Question by:Bright01
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Expert Comment

by:David L. Hansen
Comment Utility
Let's back up a bit here.

It appears that you want to do some statistical analysis using probabilities for "up-time" and "down-time". Is this for server availability (not that the subject is all that important but it would give us more context for the conversation)? Also, there isn't any time-frame shown in the file you provided. Are we looking at uptime per month? per year? or some other time-frame? And what do you want to include in the costs (ie. loss of sales? Reputation? Customer payments? Insurance claims?)?

Let's look at the broader picture, specify some boundaries and the final goal (are there several follow-on questions or is this like homework where you just need one answer?).
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Author Comment

by:Bright01
Comment Utility
David,

Thanks for the reply!  I spent a good part of the day working the math on this and while it was fairly simple and straight forward, I had to get comfortable with the Utility/Energy Industry.  So I've attached the latest.  See what you can do to improve on it.  My original question, by the end of the day today.... actually seemed way too broad.

I look forward to your response.  I'm in the Middle East right now but will pick up a reply in the morning.

Best regards,
B.
Availabilityv2.xlsm
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David L. Hansen earned 500 total points
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Looks pretty good.

I believe you'll want to change A8 and A9 so they show the difference (ie. don't include A5 in the calculations). I'd just do that and I think you'll be in good shape.
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Author Closing Comment

by:Bright01
Comment Utility
David,

Thanks for the help!   I think this gives me a good first start.

B.
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Expert Comment

by:David L. Hansen
Comment Utility
:)
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