Electronics Manufacturing worked example

Component Scrap Cost with scrapped components of 3,100 components: a worked example

This scenario runs the component scrap cost calculation on the strong side: scrapped components of 3,100 components, with every other input held at its documented default. a procurement or quality lead needs to quantify component scrap exposure

The inputs for this scenario

  • Scrapped components: 3,100 components (raised for this scenario; the documented default is 1,250)
  • Average component cost: 0.42 $ / component (unchanged)
  • Scrap disposition labor cost: 90 $ (unchanged)
  • Expedite, inventory, or overhead cost: 60 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Total component scrap cost = scrapped components × average component cost + disposition labor + overhead) to the inputs above produces each figure below.
  • At this operating point the engine returns 1,452 $ for total component scrap cost, the number this scenario is built around.
  • At this operating point the engine returns 0.47 $ / component for scrap cost per component.
  • At this operating point the engine returns 1,302 $ for scrapped component value.
  • At this operating point the engine returns 150 $ for disposition and overhead adders.

How this compares with the baseline

  • Against the tool's baseline example, where scrapped components sits at 1,250 components and the headline result is 675 $, this scenario comes in 115% above the baseline at 1,452 $.
  • Use it when a lot is condemned, when reporting monthly material cost-of-quality, or when ranking scrap drivers for a corrective-action project. Treat this as a target state: the delta against the baseline quantifies what the improvement is worth before you commit to chasing it.

Results at a glance

  • Total component scrap cost: 1,452 $ (headline result)
  • Scrap cost per component: 0.47 $ / component
  • Scrapped component value: 1,302 $
  • Disposition and overhead adders: 150 $

Run it with your numbers

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

Last reviewed 2026-05-12.