Industrial Sensors & Instrumentation worked example

Sensor Scrap Cost at 98% non-recoverable cost percentage: a worked example

What does the result look like when non-recoverable cost percentage reaches 98%? The full calculation is worked below with real intermediate numbers. Use this when quantifying production scrap dollars for monthly reporting, comparing scrap rates across product lines, or building a business case for process improvements that reduce sensor scrap.

The inputs for this scenario

  • Sensors scrapped per batch: 18 sensors (unchanged)
  • Average invested cost per scrapped sensor: 72 $ / sensor (unchanged)
  • Non-recoverable cost percentage: 98 % (raised for this scenario; the documented default is 85)
  • Fixed scrap handling and disposal costs: 350 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Variable scrap cost = sensors scrapped x cost per scrap x (non-recoverable % / 100)) to the inputs above produces each figure below.
  • At this operating point the engine returns 1,620 $ for total scrap cost, the number this scenario is built around.
  • At this operating point the engine returns 90 $ / piece for scrap cost per sensor.
  • At this operating point the engine returns 1,270 $ for variable scrap cost.
  • At this operating point the engine returns 350 $ for fixed scrap handling costs.

How this compares with the baseline

  • Against the tool's baseline example, where non-recoverable cost percentage sits at 85% and the headline result is 1,452 $, this scenario comes in 11.61% above the baseline at 1,620 $.
  • A figure at this level is achievable when non-recoverable cost percentage is genuinely sustained, not just peaked for a shift. It treats the non-recoverable percentage as a single blended figure; in reality scrap at potting differs sharply from scrap at final calibration, so segment by failure stage for precise numbers.

Results at a glance

  • Total scrap cost: 1,620 $ (headline result)
  • Scrap cost per sensor: 90 $ / piece
  • Variable scrap cost: 1,270 $
  • Fixed scrap handling costs: 350 $

Run it with your numbers

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

Last reviewed 2026-05-12.