Aerospace & Defense Manufacturing worked example

Flight Hardware Scrap Cost at 72% chargeable scrap cost share: a worked example

This worked example runs the flight hardware scrap cost numbers for a tougher week than the baseline: 72% chargeable scrap cost share instead of the typical 100%. Estimate scrap cost for flight hardware from scrapped units, cost per unit, cost capture share, and fixed disposal or replacement cost.

The inputs for this scenario

  • Scrapped flight hardware units: 7 flight units (held at the documented default)
  • Fully burdened cost per flight unit: 18,400 $ / unit (held at the documented default)
  • Chargeable scrap cost share: 72 % (the input this scenario stresses; the baseline uses 100)
  • Fixed replacement and investigation cost: 9,500 $ (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: Chargeable scrap cost = scrapped units × fully burdened cost per unit × chargeable scrap cost share.
  • Flight hardware scrap cost works out to 102,236 $ scrap exposure at these inputs, and this is the headline figure for the scenario.
  • Fully burdened cost per unit works out to 14,605 $ / unit at these inputs.
  • Chargeable scrap cost works out to 92,736 $ scrap exposure at these inputs.
  • Fixed replacement or investigation cost works out to 9,500 $ at these inputs.

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 26.08% below the baseline at 102,236 $ scrap exposure.
  • Use it when closing a scrap or nonconformance event, building a cost-of-quality case, or quantifying the payoff of a corrective action. A result at this level usually justifies acting on the stressed input before touching anything else, because every other figure in the table is downstream of it.

Results at a glance

  • Flight hardware scrap cost: 102,236 $ scrap exposure (headline result)
  • Fully burdened cost per unit: 14,605 $ / unit
  • Chargeable scrap cost: 92,736 $ scrap exposure
  • Fixed replacement or investigation cost: 9,500 $

Run it with your numbers

  • To rerun this with your own numbers, open the live Flight Hardware Scrap Cost calculator, set chargeable scrap cost share to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.