How do you calculate rework cost?

Multiply rework hours by the loaded labor rate and by the salvageable share, then add the fixed re-setup charge. With 16 hours at $38/hr, an 85% salvageable share, and a $150 re-setup, total rework cost is $666.80.

Why multiply labor by the salvageable share?

Because you only earn back value on the portion of the lot you can actually recover. At 85% salvageable, the variable labor effectively applies to the recoverable web, giving $516.80 of variable cost before the fixed adder.

What is the re-setup charge and why is it fixed?

It's the cost to re-thread the web, re-set tension and grammage, and bring the line back into spec — a flat $150 here that you incur once regardless of how many meters you rework. On short rework runs it dominates the total.

What is rework cost per unit?

Total rework cost divided by the rework hours (or pieces) gives the per-unit figure — $41.68 in the example. Compare this against scrap value and replacement cost to decide whether reworking pays.

When should I scrap instead of rework?

Scrap when the per-unit rework cost approaches or exceeds the cost to simply remake the web. If $41.68 per unit is near your fresh production cost, the $150 re-setup makes rework a losing proposition for a small lot.

Does loaded labor rate include overhead?

It should — use a fully burdened $/hr covering wages, benefits, and allocated line overhead, not bare wages, or you'll understate every rework decision.

Nonwoven Materials & Technical Textiles calculator

Rework Cost Calculator

Rework cost captures what it really takes to salvage off-spec nonwoven or technical-textile output — the labor hours spent re-slitting, re-winding, or re-inspecting rolls, scaled by how much of the lot is actually recoverable, plus the fixed charge to re-thread and re-set the line. Quality and operations leaders use it to decide whether to rework a flagged lot or scrap it outright, because on a web line the re-setup charge alone can swamp the labor when only part of a roll is salvageable. The calculator separates the variable labor cost from the fixed re-setup adder and also reports cost per unit, so the rework-versus-scrap call is grounded in numbers rather than instinct.

What this calculator does

Estimate the labor cost of rewinding, re-slitting or re-inspecting flagged nonwoven rolls.
A quality lead deciding between reworking and scrapping a batch of off-spec rolls uses it to compare the labor cost against the material saved.
It computes total rework cost as labor hours times loaded rate times the salvageable share, plus a fixed re-setup charge, and breaks out the variable and fixed components.

Formula used

Rework cost = rework hours x loaded rate x reworkable share% + re-setup charge
Rework cost per hour = total rework cost / rework hours

Inputs explained

Rework labor hours:
Loaded labor rate:
Reworkable (salvageable) share:
Line re-setup / threading charge:

How to use the result

Use it whenever a lot of nonwoven web is flagged off-spec and you must decide between reworking, downgrading, or scrapping it.
It costs only the rework activity itself — it does not include the value of material you still lose on the non-salvageable share, so pair it with a scrap-cost view for the full picture.

Current U.S. benchmarks

As of Jun 2026, average hourly earnings in U.S. manufacturing are $30.27 (BLS), up 4.4% from a year earlier. Burdened shop rates typically run 1.3 to 1.8 times earnings once benefits and overhead are loaded.
Industrial electricity averages 8.66 cents per kWh across the U.S. (EIA, Apr 2026), up 5.5% from a year earlier. Energy-intensive steps carry this directly into unit cost.

Common questions

How do you calculate rework cost? Multiply rework hours by the loaded labor rate and by the salvageable share, then add the fixed re-setup charge. With 16 hours at $38/hr, an 85% salvageable share, and a $150 re-setup, total rework cost is $666.80.
Why multiply labor by the salvageable share? Because you only earn back value on the portion of the lot you can actually recover. At 85% salvageable, the variable labor effectively applies to the recoverable web, giving $516.80 of variable cost before the fixed adder.
What is the re-setup charge and why is it fixed? It's the cost to re-thread the web, re-set tension and grammage, and bring the line back into spec — a flat $150 here that you incur once regardless of how many meters you rework. On short rework runs it dominates the total.
What is rework cost per unit? Total rework cost divided by the rework hours (or pieces) gives the per-unit figure — $41.68 in the example. Compare this against scrap value and replacement cost to decide whether reworking pays.
When should I scrap instead of rework? Scrap when the per-unit rework cost approaches or exceeds the cost to simply remake the web. If $41.68 per unit is near your fresh production cost, the $150 re-setup makes rework a losing proposition for a small lot.

Last reviewed 2026-05-12.