Aerospace & Defense Manufacturing worked example

Supplier Escape Cost at 61% containment cost capture share: a worked example in aerospace & defense manufacturing

Here is what the math looks like when conditions slip. We hold every other input steady and drop containment cost capture share to 61%, then walk the calculation through step by step. Estimate cost exposure from supplier quality escapes using escaped parts, cost per escape, containment effectiveness, and fixed recovery cost.

The inputs for this scenario

  • Escaped supplier parts: 18 parts (held at the documented default)
  • Cost per supplier escape: 1,250 $ / part (held at the documented default)
  • Containment cost capture share: 61 % (the input this scenario stresses; the baseline uses 85)
  • Fixed containment and recovery cost: 4,200 $ (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: Contained escape cost = escaped parts × cost per escape × containment cost capture share.
  • Supplier escape cost exposure works out to 17,925 $ escape exposure at these inputs, and this is the headline figure for the scenario.
  • Cost per supplier escape works out to 996 $ / part at these inputs.
  • Contained escape cost works out to 13,725 $ escape exposure at these inputs.
  • Fixed containment and recovery cost works out to 4,200 $ at these inputs.

How this compares with the baseline

  • Against the tool's baseline example, where containment cost capture share sits at 85% and the headline result is 23,325 $ escape exposure, this scenario comes in 23.15% below the baseline at 17,925 $ escape exposure.
  • The practical read: the gap between this scenario and the baseline is entirely attributable to containment cost capture share, so recovering it is worth quantifying in dollars before considering equipment or staffing changes. It models direct and containment cost only; it does not capture downstream consequences like schedule slip, customer penalties, or reputational and airworthiness risk, which can dwarf the calculated figure.

Results at a glance

  • Supplier escape cost exposure: 17,925 $ escape exposure (headline result)
  • Cost per supplier escape: 996 $ / part
  • Contained escape cost: 13,725 $ escape exposure
  • Fixed containment and recovery cost: 4,200 $

Run it with your numbers

  • To rerun this with your own numbers, open the live Supplier Escape Cost calculator, set containment cost capture share to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.