MedTech Manufacturing worked example

Medical Device Scrap Cost with scrapped devices of 15 devices: a worked example

Here is what the math looks like when conditions slip. We hold every other input steady and drop scrapped devices to 15 devices, then walk the calculation through step by step. Estimate scrap cost from rejected devices, absorbed cost per unit, disposition costs, and investigation/documentation labor.

The inputs for this scenario

  • Scrapped devices: 15 devices (the input this scenario stresses; the baseline uses 30)
  • Absorbed cost per scrapped device: 45 $ / device (held at the documented default)
  • Fixed scrap disposition cost: 500 $ (held at the documented default)
  • Investigation and documentation labor: 350 $ (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: Total medical device scrap cost = scrapped devices × absorbed cost per device + fixed disposition cost + investigation labor.
  • Total scrap cost works out to 1,525 $ at these inputs, and this is the headline figure for the scenario.
  • All-in cost per scrapped device works out to 102 $ / piece at these inputs.
  • Absorbed material/labor loss works out to 675 $ at these inputs.
  • Disposition plus investigation cost works out to 850 $ at these inputs.

How this compares with the baseline

  • Against the tool's baseline example, where scrapped devices sits at 30 devices and the headline result is 2,200 $, this scenario comes in 30.68% below the baseline at 1,525 $.
  • The practical read: the gap between this scenario and the baseline is entirely attributable to scrapped devices, so recovering it is worth quantifying in dollars before considering equipment or staffing changes. It uses a single absorbed cost per device, so a mix of units scrapped at different process stages (raw vs. nearly finished) will be averaged and may misstate stage-specific loss.

Results at a glance

  • Total scrap cost: 1,525 $ (headline result)
  • All-in cost per scrapped device: 102 $ / piece
  • Absorbed material/labor loss: 675 $
  • Disposition plus investigation cost: 850 $

Run it with your numbers

  • To rerun this with your own numbers, open the live Medical Device Scrap Cost calculator, set scrapped devices to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.