NPI, DFM/DFA & Engineering Change worked example

Launch Delay Cost at 81% unrecoverable share: a worked example in npi, dfm/dfa & engineering change

Push unrecoverable share up to 81% and the picture changes. This example computes every intermediate figure at that operating point. a program manager needs to value a launch delay to justify recovery spending or schedule trade-offs.

The inputs for this scenario

  • Delay duration: 6 weeks (unchanged)
  • Margin lost per week: 18,000 $ / week (unchanged)
  • Unrecoverable share: 81 % (raised for this scenario; the documented default is 70)
  • Expedite and rework cost: 12,000 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Total launch delay cost = delay weeks × margin lost per week × unrecoverable share + expedite and rework cost) to the inputs above produces each figure below.
  • At this operating point the engine returns 99,480 $ for total launch delay cost, the number this scenario is built around.
  • At this operating point the engine returns 16,580 $ / piece for launch delay cost per unit.
  • At this operating point the engine returns 87,480 $ for variable launch delay cost.
  • At this operating point the engine returns 12,000 $ for fixed launch delay cost adder.

How this compares with the baseline

  • Against the tool's baseline example, where unrecoverable share sits at 70% and the headline result is 87,600 $, this scenario comes in 13.56% above the baseline at 99,480 $.
  • It computes the total cost of a launch delay as lost margin per week times the unrecoverable share over the delay window, plus a one-time expedite and rework adder. 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 launch delay cost: 99,480 $ (headline result)
  • Launch delay cost per unit: 16,580 $ / piece
  • Variable launch delay cost: 87,480 $
  • Fixed launch delay cost adder: 12,000 $

Run it with your numbers

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

Last reviewed 2026-05-12.