Mining Vehicle & Underground Equipment worked example

Rework Cost at 61% defects truly reworkable: a worked example in mining vehicle & underground equipment

Here is what the math looks like when conditions slip. We hold every other input steady and drop defects truly reworkable to 61%, then walk the calculation through step by step. Estimate the cost to rework defective mining vehicle assemblies caught in inspection before they ship.

The inputs for this scenario

  • Units needing rework: 15 units (held at the documented default)
  • Rework cost per unit: 650 $/unit (held at the documented default)
  • Defects truly reworkable: 61 % (the input this scenario stresses; the baseline uses 85)
  • Line disruption flat cost: 1,200 $ (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: Rework cost = units x rework cost per unit x reworkable % + line disruption.
  • Total rework cost works out to 7,148 $ at these inputs, and this is the headline figure for the scenario.
  • Rework cost per unit works out to 477 $ / piece at these inputs.
  • Variable rework cost works out to 5,948 $ at these inputs.
  • Fixed rework cost adder works out to 1,200 $ at these inputs.

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 24.66% below the baseline at 7,148 $.
  • The practical read: the gap between this scenario and the baseline is entirely attributable to defects truly reworkable, so recovering it is worth quantifying in dollars before considering equipment or staffing changes. It assumes every captured unit reworks successfully on the first pass; parts that need a second rework loop or fail rework and become scrap are not modeled and will understate true cost.

Results at a glance

  • Total rework cost: 7,148 $ (headline result)
  • Rework cost per unit: 477 $ / piece
  • Variable rework cost: 5,948 $
  • Fixed rework cost adder: 1,200 $

Run it with your numbers

  • To rerun this with your own numbers, open the live Rework Cost calculator, set defects truly reworkable to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.