Leather, Footwear & Accessories Manufacturing worked example

Defect Rework Cost at 5.75% defect rate in the batch: a worked example

This scenario runs the defect rework cost calculation on the strong side: 5.75% defect rate in the batch, with every other input held at its documented default. Use this when quantifying the cost of quality issues, justifying preventive action investment, comparing rework cost across production lines, or reporting quality cost to management.

The inputs for this scenario

  • Production batch size: 1,000 pairs (unchanged)
  • Rework cost per defective pair: 8 $ / pair (unchanged)
  • Defect rate in the batch: 5.75 % (raised for this scenario; the documented default is 5)
  • Fixed inspection and containment cost: 150 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Variable rework cost = batch size x rework cost per pair x defect rate%) to the inputs above produces each figure below.
  • At this operating point the engine returns 610 $ for total rework cost, the number this scenario is built around.
  • At this operating point the engine returns 0.61 $ / piece for rework cost per defective pair.
  • At this operating point the engine returns 460 $ for variable rework cost.
  • At this operating point the engine returns 150 $ for fixed inspection and containment cost.

How this compares with the baseline

  • Against the tool's baseline example, where defect rate in the batch sits at 5% and the headline result is 550 $, this scenario comes in 10.91% above the baseline at 610 $.
  • Use it when a defect spike appears, when costing a quality problem for a corrective action, or when comparing rework against scrapping. Treat this as a target state: the delta against the baseline quantifies what the improvement is worth before you commit to chasing it.

Results at a glance

  • Total rework cost: 610 $ (headline result)
  • Rework cost per defective pair: 0.61 $ / piece
  • Variable rework cost: 460 $
  • Fixed inspection and containment cost: 150 $

Run it with your numbers

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

Last reviewed 2026-05-12.