Marine, Shipbuilding & Boat Manufacturing worked example

Dockside Rework Cost with number of defects requiring repair of 30 defects: a worked example

Push number of defects requiring repair up to 30 defects and the picture changes. This example computes every intermediate figure at that operating point. Use it to quantify post-delivery rework exposure, justify quality improvements in production, and set rework reserves in vessel pricing.

The inputs for this scenario

  • Number of defects requiring repair: 30 defects (raised for this scenario; the documented default is 12)
  • Average repair hours per defect: 3.5 hr / defect (unchanged)
  • Burdened dockside labor rate: 95 $ / hr (unchanged)
  • Average material cost per repair: 85 $ / defect (unchanged)

Working through the calculation

  • Applying the documented formula (Total rework labor cost = defects x average repair hours x burdened labor rate) to the inputs above produces each figure below.
  • At this operating point the engine returns 185 $ for total dockside rework cost, the number this scenario is built around.
  • At this operating point the engine returns 6.16 $ / piece for average rework cost per defect.
  • At this operating point the engine returns 99.75 $ for rework labor cost.
  • At this operating point the engine returns 85 $ for rework material cost.

How this compares with the baseline

  • Against the tool's baseline example, where number of defects requiring repair sits at 12 defects and the headline result is 125 $, this scenario comes in 47.92% above the baseline at 185 $.
  • It computes the combined labor and material cost of repairing a batch of defects discovered at the dock, plus the average cost per defect. The value of this scenario is the size of the gap it exposes: that gap, priced out over a year, is the budget you can justify spending to close it.

Results at a glance

  • Total dockside rework cost: 185 $ (headline result)
  • Average rework cost per defect: 6.16 $ / piece
  • Rework labor cost: 99.75 $
  • Rework material cost: 85 $

Run it with your numbers

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

Last reviewed 2026-05-12.