AI & Digital Manufacturing Analytics worked example

False Positive Inspection Cost at 94% reviewed alert share: a worked example

Push reviewed alert share up to 94% and the picture changes. This example computes every intermediate figure at that operating point. a quality manager needs to quantify the cost of AI inspection false positives

The inputs for this scenario

  • False positive inspection alerts: 1,850 alerts (unchanged)
  • Cost per false positive review: 18 $ / alert (unchanged)
  • Reviewed alert share: 94 % (raised for this scenario; the documented default is 82)
  • Containment and sorting cost: 9,500 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Reviewed false positive cost = false positive alerts × cost per review × reviewed alert share) to the inputs above produces each figure below.
  • At this operating point the engine returns 40,802 $ false positive cost for false positive inspection cost, the number this scenario is built around.
  • At this operating point the engine returns 22.06 $ / piece for cost per false positive review.
  • At this operating point the engine returns 31,302 $ for reviewed false positive cost.
  • At this operating point the engine returns 9,500 $ for containment and sorting cost.

How this compares with the baseline

  • Against the tool's baseline example, where reviewed alert share sits at 82% and the headline result is 36,806 $ false positive cost, this scenario comes in 10.86% above the baseline at 40,802 $ false positive cost.
  • It sums the labor cost of reviewing the share of false-positive alerts that actually get reviewed plus a fixed containment and sorting cost to give the total false-positive bill. The value of this scenario is the size of the gap it exposes: that gap, priced out over a year, is the budget you can justify spending to close it.

Results at a glance

  • False positive inspection cost: 40,802 $ false positive cost (headline result)
  • Cost per false positive review: 22.06 $ / piece
  • Reviewed false positive cost: 31,302 $
  • Containment and sorting cost: 9,500 $

Run it with your numbers

  • Every input above is editable in the live False Positive Inspection Cost calculator, which recalculates instantly and can be shared with the inputs intact.

Last reviewed 2026-05-12.