Nutraceuticals & Functional Foods worked example

Rework Cost at 99% share that passes qc after rework: a worked example in nutraceuticals & functional foods

What does the result look like when share that passes qc after rework reaches 99%? The full calculation is worked below with real intermediate numbers. A production or quality team needs the cost of reworking a held lot, such as re-blending, re-labeling, or re-inspecting, to weigh it against scrapping.

The inputs for this scenario

  • Units routed to rework: 5,000 units (unchanged)
  • Rework labor and material cost per unit: 0.2 $ / unit (unchanged)
  • Share that passes QC after rework: 99 % (raised for this scenario; the documented default is 90)
  • Fixed line setup and retest cost: 200 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Variable rework cost = units to rework × rework cost per unit × share successfully reworked) to the inputs above produces each figure below.
  • At this operating point the engine returns 1,190 $ for total rework cost, the number this scenario is built around.
  • At this operating point the engine returns 0.24 $ / unit for rework cost per unit reworked.
  • At this operating point the engine returns 990 $ for variable rework cost.
  • At this operating point the engine returns 200 $ for fixed setup and retest cost.

How this compares with the baseline

  • Against the tool's baseline example, where share that passes qc after rework sits at 90% and the headline result is 1,100 $, this scenario comes in 8.18% above the baseline at 1,190 $.
  • A figure at this level is achievable when share that passes qc after rework is genuinely sustained, not just peaked for a shift. It charges variable cost only against successfully reworked units; in reality you spend labor on failed attempts too, so for low recovery yields the model can understate true cost.

Results at a glance

  • Total rework cost: 1,190 $ (headline result)
  • Rework cost per unit reworked: 0.24 $ / unit
  • Variable rework cost: 990 $
  • Fixed setup and retest cost: 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.