Fastener Manufacturing & Thread Rolling worked example

Defect Ppm Cost at 72% chargeable or capture factor: a worked example

Suppose chargeable or capture factor 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 the cost exposure of fastener defects using defective pieces, cost per defect, detection or chargeback factor, and fixed containment cost.

The inputs for this scenario

  • Defective fastener count: 25 pieces (held at the documented default)
  • Cost per defect or escape: 18 $ / defect (held at the documented default)
  • Chargeable or capture factor: 72 % (the input this scenario stresses; the baseline uses 100)
  • Containment, credit, or admin cost: 500 $ (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: Defect PPM cost = defective count × cost per defect × chargeable factor + fixed containment cost.
  • Total defect PPM cost works out to 824 $ at these inputs, and this is the headline figure for the scenario.
  • Average cost per defect works out to 32.96 $ / defect at these inputs.
  • Variable defect cost works out to 324 $ at these inputs.
  • Fixed containment cost works out to 500 $ at these inputs.

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 13.26% below the baseline at 824 $.
  • It computes the total cost of a defect event as defective count times per-defect cost times the chargeable factor, plus a fixed containment cost, and the average cost per defect. 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 defect PPM cost: 824 $ (headline result)
  • Average cost per defect: 32.96 $ / defect
  • Variable defect cost: 324 $
  • Fixed containment cost: 500 $

Run it with your numbers

  • To rerun this with your own numbers, open the live Defect Ppm Cost calculator, set chargeable or capture factor to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.