Aerospace & Defense Manufacturing worked example

Flight Hardware Scrap Cost at 110% chargeable scrap cost share: a worked example

What does the result look like when chargeable scrap cost share reaches 110%? The full calculation is worked below with real intermediate numbers. a program or quality manager needs to quantify the cost of scrapped flight hardware in a production lot

The inputs for this scenario

  • Scrapped flight hardware units: 7 flight units (unchanged)
  • Fully burdened cost per flight unit: 18,400 $ / unit (unchanged)
  • Chargeable scrap cost share: 110 % (raised for this scenario; the documented default is 100)
  • Fixed replacement and investigation cost: 9,500 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Chargeable scrap cost = scrapped units × fully burdened cost per unit × chargeable scrap cost share) to the inputs above produces each figure below.
  • At this operating point the engine returns 151,180 $ scrap exposure for flight hardware scrap cost, the number this scenario is built around.
  • At this operating point the engine returns 21,597 $ / unit for fully burdened cost per unit.
  • At this operating point the engine returns 141,680 $ scrap exposure for chargeable scrap cost.
  • At this operating point the engine returns 9,500 $ for fixed replacement or investigation cost.

How this compares with the baseline

  • Against the tool's baseline example, where chargeable scrap cost share sits at 100% and the headline result is 138,300 $ scrap exposure, this scenario comes in 9.31% above the baseline at 151,180 $ scrap exposure.
  • A figure at this level is achievable when chargeable scrap cost share is genuinely sustained, not just peaked for a shift. The chargeable share is a single percentage; it can't capture downstream schedule cost, customer penalties, or the value of a delayed delivery that often dwarf the part cost itself.

Results at a glance

  • Flight hardware scrap cost: 151,180 $ scrap exposure (headline result)
  • Fully burdened cost per unit: 21,597 $ / unit
  • Chargeable scrap cost: 141,680 $ scrap exposure
  • Fixed replacement or investigation cost: 9,500 $

Run it with your numbers

  • Every input above is editable in the live Flight Hardware Scrap Cost calculator, which recalculates instantly and can be shared with the inputs intact.

Last reviewed 2026-05-12.