Configure-to-Order & Product Configuration worked example

Configuration Error Cost at 72% share of error cost captured: a worked example

Suppose share of error cost captured falls to 72%. This page works the full calculation at that level so you can see exactly which result moves and by how much. Estimate cost caused by invalid configurations, quote mistakes, order rework, and incorrect BOM handoff.

The inputs for this scenario

  • Configuration errors requiring correction: 24 errors (held at the documented default)
  • Average cost per configuration error: 740 $ / error (held at the documented default)
  • Share of error cost captured: 72 % (the input this scenario stresses; the baseline uses 100)
  • Fixed containment and rule-fix cost: 2,100 $ (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: Variable configuration error cost = configuration errors requiring correction × average cost per configuration error × error cost scope included.
  • total configuration error cost works out to 14,887 $ at these inputs, and this is the headline figure for the scenario.
  • configuration error cost per configured unit or quote works out to 620 $ / piece at these inputs.
  • variable configuration error cost works out to 12,787 $ at these inputs.
  • fixed containment and rule-fix cost works out to 2,100 $ at these inputs.

How this compares with the baseline

  • Against the tool's baseline example, where share of error cost captured sits at 100% and the headline result is 19,860 $, this scenario comes in 25.04% below the baseline at 14,887 $.
  • It computes the total cost of configuration errors as scope-adjusted per-error variable cost plus a fixed containment and rule-fix cost. When the numbers land here, the stressed input is the lever to work; the walkthrough above shows exactly how much each output recovers as it climbs back toward the baseline.

Results at a glance

  • total configuration error cost: 14,887 $ (headline result)
  • configuration error cost per configured unit or quote: 620 $ / piece
  • variable configuration error cost: 12,787 $
  • fixed containment and rule-fix cost: 2,100 $

Run it with your numbers

  • To rerun this with your own numbers, open the live Configuration Error Cost calculator, set share of error cost captured to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.