Mining Vehicle & Underground Equipment worked example

Rework Cost at 98% defects truly reworkable: a worked example in mining vehicle & underground equipment

This scenario runs the rework cost calculation on the strong side: 98% defects truly reworkable, with every other input held at its documented default. A quality lead costing a batch of welded or assembled components routed back for correction after final inspection.

The inputs for this scenario

  • Units needing rework: 15 units (unchanged)
  • Rework cost per unit: 650 $/unit (unchanged)
  • Defects truly reworkable: 98 % (raised for this scenario; the documented default is 85)
  • Line disruption flat cost: 1,200 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Rework cost = units x rework cost per unit x reworkable % + line disruption) to the inputs above produces each figure below.
  • At this operating point the engine returns 10,755 $ for total rework cost, the number this scenario is built around.
  • At this operating point the engine returns 717 $ / piece for rework cost per unit.
  • At this operating point the engine returns 9,555 $ for variable rework cost.
  • At this operating point the engine returns 1,200 $ for fixed rework cost adder.

How this compares with the baseline

  • Against the tool's baseline example, where defects truly reworkable sits at 85% and the headline result is 9,488 $, this scenario comes in 13.36% above the baseline at 10,755 $.
  • Use it when a batch of haul truck, LHD, or roof bolter components fails inspection and you need to compare reworking against scrap-and-remake or quantify cost of poor quality. 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: 10,755 $ (headline result)
  • Rework cost per unit: 717 $ / piece
  • Variable rework cost: 9,555 $
  • Fixed rework cost adder: 1,200 $

Run it with your numbers

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

Last reviewed 2026-05-12.