Fastener Manufacturing & Thread Rolling worked example

Defect Ppm Cost at 110% chargeable or capture factor: a worked example

What does the result look like when chargeable or capture factor reaches 110%? The full calculation is worked below with real intermediate numbers. Use it when translating defect PPM from headed, rolled, plated, heat-treated, sorted, or shipped fasteners into a dollar impact.

The inputs for this scenario

  • Defective fastener count: 25 pieces (unchanged)
  • Cost per defect or escape: 18 $ / defect (unchanged)
  • Chargeable or capture factor: 110 % (raised for this scenario; the documented default is 100)
  • Containment, credit, or admin cost: 500 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Defect PPM cost = defective count × cost per defect × chargeable factor + fixed containment cost) to the inputs above produces each figure below.
  • At this operating point the engine returns 995 $ for total defect ppm cost, the number this scenario is built around.
  • At this operating point the engine returns 39.8 $ / defect for average cost per defect.
  • At this operating point the engine returns 495 $ for variable defect cost.
  • At this operating point the engine returns 500 $ for fixed containment cost.

How this compares with the baseline

  • Against the tool's baseline example, where chargeable or capture factor sits at 100% and the headline result is 950 $, this scenario comes in 4.74% above the baseline at 995 $.
  • A figure at this level is achievable when chargeable or capture factor is genuinely sustained, not just peaked for a shift. It is a single-event estimate; it does not capture customer relationship damage, lost future business, or recurring sort costs that a chronic defect creates over time.

Results at a glance

  • Total defect PPM cost: 995 $ (headline result)
  • Average cost per defect: 39.8 $ / defect
  • Variable defect cost: 495 $
  • Fixed containment cost: 500 $

Run it with your numbers

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

Last reviewed 2026-05-12.