Electronics Repair, Refurbishment & Depot Operations worked example

Failure Pareto Cost at 58% share of failures in pareto scope: a worked example

This worked example runs the failure pareto cost numbers for a tougher week than the baseline: 58% share of failures in pareto scope instead of the typical 80%. Estimate the cost exposure of a failure mode family so repair depots can prioritize Pareto actions, supplier containment, redesign feedback, or technician training.

The inputs for this scenario

  • RMA units in this failure mode: 100 units (held at the documented default)
  • Cost per failure occurrence: 45 $ / occurrence (held at the documented default)
  • Share of failures in Pareto scope: 58 % (the input this scenario stresses; the baseline uses 80)
  • Fixed containment or investigation cost: 250 $ (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: Variable failure Pareto cost = failure-mode RMA units × cost per failure occurrence × Pareto scope included.
  • Total failure Pareto cost works out to 2,860 $ at these inputs, and this is the headline figure for the scenario.
  • Failure cost per RMA unit works out to 28.6 $ / piece at these inputs.
  • Variable failure Pareto cost works out to 2,610 $ at these inputs.
  • Fixed containment or investigation cost works out to 250 $ at these inputs.

How this compares with the baseline

  • Against the tool's baseline example, where share of failures in pareto scope sits at 80% and the headline result is 3,850 $, this scenario comes in 25.71% below the baseline at 2,860 $.
  • Use it when ranking failure modes for 8D or corrective-action prioritization, or when building the business case to fix a recurring defect. A result at this level usually justifies acting on the stressed input before touching anything else, because every other figure in the table is downstream of it.

Results at a glance

  • Total failure Pareto cost: 2,860 $ (headline result)
  • Failure cost per RMA unit: 28.6 $ / piece
  • Variable failure Pareto cost: 2,610 $
  • Fixed containment or investigation cost: 250 $

Run it with your numbers

  • To rerun this with your own numbers, open the live Failure Pareto Cost calculator, set share of failures in pareto scope to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.