Electronics Manufacturing worked example

Component Scrap Cost with scrapped components of 630 components: a worked example

Suppose scrapped components falls to 630 components. This page works the full calculation at that level so you can see exactly which result moves and by how much. Estimate component scrap cost from scrapped component count, component cost, labor/setup cost, and overhead.

The inputs for this scenario

  • Scrapped components: 630 components (the input this scenario stresses; the baseline uses 1,250)
  • Average component cost: 0.42 $ / component (held at the documented default)
  • Scrap disposition labor cost: 90 $ (held at the documented default)
  • Expedite, inventory, or overhead cost: 60 $ (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: Total component scrap cost = scrapped components × average component cost + disposition labor + overhead.
  • Total component scrap cost works out to 415 $ at these inputs, and this is the headline figure for the scenario.
  • Scrap cost per component works out to 0.66 $ / component at these inputs.
  • Scrapped component value works out to 265 $ at these inputs.
  • Disposition and overhead adders works out to 150 $ at these inputs.

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 38.58% below the baseline at 415 $.
  • It computes the total loaded cost of scrapped components, adding disposition labor and overhead to the raw part value, plus the cost per scrapped component. 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 component scrap cost: 415 $ (headline result)
  • Scrap cost per component: 0.66 $ / component
  • Scrapped component value: 265 $
  • Disposition and overhead adders: 150 $

Run it with your numbers

  • To rerun this with your own numbers, open the live Component Scrap Cost calculator, set scrapped components to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.