Jewelry, Watches & Precision Luxury Goods worked example

Finishing Defect Cost at 3.6% finishing defect rate: a worked example

This worked example runs the finishing defect cost numbers for a tougher week than the baseline: 3.6% finishing defect rate instead of the typical 5%. Calculate the total cost of finishing defects (scratches, pitting, uneven plating, orange peel, polishing burns, and rhodium flaking) in a jewelry or watch production batch. Covers rework labor, scrap pieces, and additional material cost for re-plating or re-polishing. Helps quality managers quantify the financial impact of finishing quality issues.

The inputs for this scenario

  • Total pieces in finishing batch: 100 pieces (held at the documented default)
  • Average rework or replacement cost per defective piece: 25 $ / piece (held at the documented default)
  • Finishing defect rate: 3.6 % (the input this scenario stresses; the baseline uses 5)
  • Fixed quality investigation cost: 150 $ (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: Variable defect cost = total pieces × defect rate / 100 × rework cost per defect.
  • Total finishing defect cost works out to 240 $ at these inputs, and this is the headline figure for the scenario.
  • Defect cost per piece in batch works out to 2.4 $ / piece at these inputs.
  • Variable defect cost works out to 90 $ at these inputs.
  • Fixed quality investigation cost works out to 150 $ at these inputs.

How this compares with the baseline

  • Against the tool's baseline example, where finishing defect rate sits at 5% and the headline result is 275 $, this scenario comes in 12.73% below the baseline at 240 $.
  • Use it when reviewing a finishing run's quality cost, justifying a process improvement, or comparing defect costs across polishing or plating lines. 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 finishing defect cost: 240 $ (headline result)
  • Defect cost per piece in batch: 2.4 $ / piece
  • Variable defect cost: 90 $
  • Fixed quality investigation cost: 150 $

Run it with your numbers

  • To rerun this with your own numbers, open the live Finishing Defect Cost calculator, set finishing defect rate to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.